This regulation sets technical, reporting and royalty rules for geothermal tenures in Queensland, including the threshold for large‑scale production, mandatory notices and detailed reports, core‑sample and well‑abandonment standards, data publication, prescribed securities and a 2.5% wellhead royalty. Stated purposes are data collection, safety and revenue; these introduce compliance costs, valuation uncertainty and administrative discretion that can affect commercial decisions (see ss.42,44–47,50–51; pts.3–4).
The Geothermal Energy Regulation 2022 is a subordinate instrument that prescribes detailed procedural, reporting, technical and financial rules under the principal Act referenced throughout the text (the Act). It commences 1 September 2022 (s 2). Mechanically the regulation does the following, by reference to the sections provided:
Specifies when geothermal production counts as “large-scale” for the Act’s s 16 threshold (a thermal power criterion of 5 MWth measured at the wellhead, and the commercial/industrial purpose requirement; s 4).
Prescribes the content of proposed work programs and development plans required under the Act, including the geological model, recoverable thermal energy estimates in PJth, geoscientific methods and expected outcomes (ss 5-6).
Sets mandatory notice periods and minimum information for operational activities: drilling, survey work, hydraulic fracturing, completions and abandonment (Part 3, ss 7-13). The recurring minimum is 10 business days’ notice for starting activities such as drilling and surveys (ss 8, 10, 12).
Lays out an extensive reporting regime: daily drilling reports, well completion and abandonment reports, production and injection reports and testing reports, geophysical and scientific survey reports, and end-of-tenure, surrender and partial relinquishment reporting (Part 4, ss 14-31). Many reports must contain information referenced to schedule 1 (which is cited repeatedly).
Prescribes units and base-temperature reporting conventions for amounts in reports (s 32).
Requires retention and transfer standards for core samples, including minimum proportions and labelling when parts must be given to the chief executive (ss 33-34).
Sets technical standards and detailed methods for plugging and abandoning wells and shot holes, including concrete capping, sealing casing below ground, cement plugs of industry grade, isolation of aquifers, and specific requirements for horizontal wells (s 35, sch 2).
Current sections
Direct links to the current provisions in Geothermal Energy Regulation 2022.
85
pt.1
Preliminary
Preliminary
sec.1
Short title
sec.1 Short title
This regulation may be cited as the Geothermal Energy Regulation 2022 .
sec.2
Commencement
sec.2 Commencement
This regulation commences on 1 September 2022.
sec.3
Definitions
sec.3 Definitions
The dictionary in schedule 6 defines particular words used in this regulation.
sec.4 Deciding large-scale geothermal production— Act , s 16
For section 16 (2) of the Act , the following criteria are prescribed—
the total amount of thermal power produced from all geothermal wells measured at the wellhead is 5 megawatts thermal (MW th ) or more when the temperature is 0°C and the atmospheric pressure is 1 atm;
For a geothermal well that produces 50 tonnes an hour of geothermal fluid with specific enthalpy of 900 kilojoules a kilogram, the total amount of thermal power produced from the well measured at the wellhead is 12.5 MW th (above 0°C).
the geothermal production is for a commercial or industrial purpose.
(a) the total amount of thermal power produced from all geothermal wells measured at the wellhead is 5 megawatts thermal (MW th ) or more when the temperature is 0°C and the atmospheric pressure is 1 atm; Example of measurement of thermal power— For a geothermal well that produces 50 tonnes an hour of geothermal fluid with specific enthalpy of 900 kilojoules a kilogram, the total amount of thermal power produced from the well measured at the wellhead is 12.5 MW th (above 0°C).
(b) the geothermal production is for a commercial or industrial purpose.
pt.2
Requirements for proposed work programs and development plans
Requirements for proposed work programs and development plans
sec.5
Proposed work program— Act , s 47
sec.5 Proposed work program— Act , s 47
For section 47 (1) (f) of the Act , the following matters are prescribed—
a description of the geological model for the geothermal reservoirs in the area of the proposed geothermal permit;
an assessment of the potential for the discovery of geothermal resources in the area of the proposed geothermal permit;
an estimate of the recoverable thermal energy in the area using units of petajoules thermal (PJ th )
the geoscientific information, standards and procedures used to make the estimate of recoverable geothermal energy
an explanation of the rationale, having regard to the geological model mentioned in paragraph (a) , for the activities proposed to be carried out under the proposed geothermal permit;
an outline of the expected outcomes to be achieved by the proposed work program.
(a) a description of the geological model for the geothermal reservoirs in the area of the proposed geothermal permit;
(b) an assessment of the potential for the discovery of geothermal resources in the area of the proposed geothermal permit; Examples of information that may be included in an assessment— • an estimate of the recoverable thermal energy in the area using units of petajoules thermal (PJ th ) • the geoscientific information, standards and procedures used to make the estimate of recoverable geothermal energy
• an estimate of the recoverable thermal energy in the area using units of petajoules thermal (PJ th )
• the geoscientific information, standards and procedures used to make the estimate of recoverable geothermal energy
(c) an explanation of the rationale, having regard to the geological model mentioned in paragraph (a) , for the activities proposed to be carried out under the proposed geothermal permit;
(d) an outline of the expected outcomes to be achieved by the proposed work program.
• an estimate of the recoverable thermal energy in the area using units of petajoules thermal (PJ th )
• the geoscientific information, standards and procedures used to make the estimate of recoverable geothermal energy
sec.6
Proposed development plan— Act , s 89
sec.6 Proposed development plan— Act , s 89
For section 89 (1) (e) of the Act , the following matters are prescribed—
for each geothermal reservoir identified in the area of the proposed geothermal lease, the location of the boundaries of the classified geothermal resources in the reservoir;
details, including the location, type and size, of the infrastructure intended to be located in the area of the proposed geothermal lease.
communication systems, compressors, pipelines, powerlines, pumping stations, reservoirs, roads, substations
temporary structures or structures of an industrial or technical nature, including mobile and temporary camps
(a) for each geothermal reservoir identified in the area of the proposed geothermal lease, the location of the boundaries of the classified geothermal resources in the reservoir;
(b) details, including the location, type and size, of the infrastructure intended to be located in the area of the proposed geothermal lease. Examples of infrastructure— • communication systems, compressors, pipelines, powerlines, pumping stations, reservoirs, roads, substations • temporary structures or structures of an industrial or technical nature, including mobile and temporary camps
• temporary structures or structures of an industrial or technical nature, including mobile and temporary camps
pt.3
Notice requirements
Notice requirements
sec.7
Purpose of part
sec.7 Purpose of part
This part prescribes, for section 192 (1) (b) of the Act , the notices that a geothermal tenure holder must give to the chief executive in the approved form.
sec.8
Notice of intention to drill a geothermal well
sec.8 Notice of intention to drill a geothermal well
A geothermal tenure holder must, at least 10 business days before starting to drill a geothermal well in the area of the tenure, give the chief executive a notice stating—
that the well is to be drilled; and
the proposed identifying name for the well.
The proposed identifying name for the geothermal well must not be the same, or substantially the same, as an identifying name for another geothermal well recorded in the register.
(sec.8-ssec.1) A geothermal tenure holder must, at least 10 business days before starting to drill a geothermal well in the area of the tenure, give the chief executive a notice stating— that the well is to be drilled; and the proposed identifying name for the well.
(sec.8-ssec.2) The proposed identifying name for the geothermal well must not be the same, or substantially the same, as an identifying name for another geothermal well recorded in the register.
(a) that the well is to be drilled; and
(b) the proposed identifying name for the well.
sec.9
Notice of completion, change or abandonment of geothermal well
sec.9 Notice of completion, change or abandonment of geothermal well
This section applies if any of the following events happen in relation to a geothermal well in the area of a geothermal tenure—
drilling of the well is completed;
the completion configuration of the well changes;
the well is abandoned.
The geothermal tenure holder must, within 10 business days after the event happens, give the chief executive a notice stating that the event has happened.
For subsection (1) —
drilling of a geothermal well in the area of the geothermal tenure is completed if—
the drilling rig last used to drill the well is moved so it is no longer above the well; and
the geothermal tenure holder does not intend to continue drilling the well; and
the completion configuration of a geothermal well in the area of the geothermal tenure changes if, after drilling of the well is completed—
additional casing is installed in the well; or
any part of the well is plugged, other than for decommissioning the well; or
an interval in the well is changed in any other way.
(sec.9-ssec.1) This section applies if any of the following events happen in relation to a geothermal well in the area of a geothermal tenure— drilling of the well is completed; the completion configuration of the well changes; the well is abandoned.
(sec.9-ssec.2) The geothermal tenure holder must, within 10 business days after the event happens, give the chief executive a notice stating that the event has happened.
(sec.9-ssec.3) For subsection (1) — drilling of a geothermal well in the area of the geothermal tenure is completed if— the drilling rig last used to drill the well is moved so it is no longer above the well; and the geothermal tenure holder does not intend to continue drilling the well; and the completion configuration of a geothermal well in the area of the geothermal tenure changes if, after drilling of the well is completed— additional casing is installed in the well; or any part of the well is plugged, other than for decommissioning the well; or an interval in the well is changed in any other way.
(a) drilling of the well is completed;
(b) the completion configuration of the well changes;
(c) the well is abandoned.
(a) drilling of a geothermal well in the area of the geothermal tenure is completed if— (i) the drilling rig last used to drill the well is moved so it is no longer above the well; and (ii) the geothermal tenure holder does not intend to continue drilling the well; and
(i) the drilling rig last used to drill the well is moved so it is no longer above the well; and
(ii) the geothermal tenure holder does not intend to continue drilling the well; and
(b) the completion configuration of a geothermal well in the area of the geothermal tenure changes if, after drilling of the well is completed— (i) additional casing is installed in the well; or (ii) any part of the well is plugged, other than for decommissioning the well; or (iii) an interval in the well is changed in any other way.
(i) additional casing is installed in the well; or
(ii) any part of the well is plugged, other than for decommissioning the well; or
(iii) an interval in the well is changed in any other way.
(i) the drilling rig last used to drill the well is moved so it is no longer above the well; and
(ii) the geothermal tenure holder does not intend to continue drilling the well; and
(i) additional casing is installed in the well; or
(ii) any part of the well is plugged, other than for decommissioning the well; or
(iii) an interval in the well is changed in any other way.
sec.10
Notice of intention to carry out geophysical survey or scientific or technical survey
sec.10 Notice of intention to carry out geophysical survey or scientific or technical survey
This section applies if a geophysical survey or a scientific or technical survey is to be carried out in the area of a geothermal tenure.
The geothermal tenure holder must, at least 10 business days before the survey starts, give the chief executive a notice stating the following information—
a proposed identifying name for the survey;
the type of survey to be carried out;
seismic, geochemical, geotechnical, gravity, magnetic, MT
a description of the part of the area of the tenure to be surveyed;
the day surveying will start;
the expected duration of the surveying.
The notice must be accompanied by spatial information showing the location of the part of the area of the geothermal tenure to be surveyed.
The proposed identifying name for the survey must not be the same, or substantially the same, as an identifying name for another survey recorded in the register.
(sec.10-ssec.1) This section applies if a geophysical survey or a scientific or technical survey is to be carried out in the area of a geothermal tenure.
(sec.10-ssec.2) The geothermal tenure holder must, at least 10 business days before the survey starts, give the chief executive a notice stating the following information— a proposed identifying name for the survey; the type of survey to be carried out; seismic, geochemical, geotechnical, gravity, magnetic, MT a description of the part of the area of the tenure to be surveyed; the day surveying will start; the expected duration of the surveying.
(sec.10-ssec.3) The notice must be accompanied by spatial information showing the location of the part of the area of the geothermal tenure to be surveyed.
(sec.10-ssec.4) The proposed identifying name for the survey must not be the same, or substantially the same, as an identifying name for another survey recorded in the register.
(a) a proposed identifying name for the survey;
(b) the type of survey to be carried out; Examples— seismic, geochemical, geotechnical, gravity, magnetic, MT
(c) a description of the part of the area of the tenure to be surveyed;
(d) the day surveying will start;
(e) the expected duration of the surveying.
sec.11
Notice of completion of geophysical survey or scientific or technical survey
sec.11 Notice of completion of geophysical survey or scientific or technical survey
This section applies if a geophysical survey or a scientific or technical survey has been completed in the area of a geothermal tenure.
The geothermal tenure holder must, within 10 business days after the survey is completed, give the chief executive a notice stating that the survey has been completed.
For subsection (1) , a survey is completed when all of the raw data for the survey has been recorded.
(sec.11-ssec.1) This section applies if a geophysical survey or a scientific or technical survey has been completed in the area of a geothermal tenure.
(sec.11-ssec.2) The geothermal tenure holder must, within 10 business days after the survey is completed, give the chief executive a notice stating that the survey has been completed.
(sec.11-ssec.3) For subsection (1) , a survey is completed when all of the raw data for the survey has been recorded.
sec.12
Notice of intention to carry out hydraulic fracturing activities
sec.12 Notice of intention to carry out hydraulic fracturing activities
This section applies if a geothermal tenure holder intends to carry out hydraulic fracturing activities in the area of the tenure.
The holder must, at least 10 business days before starting the hydraulic fracturing activities, give the chief executive a notice stating the day the activities are to start.
(sec.12-ssec.1) This section applies if a geothermal tenure holder intends to carry out hydraulic fracturing activities in the area of the tenure.
(sec.12-ssec.2) The holder must, at least 10 business days before starting the hydraulic fracturing activities, give the chief executive a notice stating the day the activities are to start.
sec.13
Notice of completion of hydraulic fracturing activities
sec.13 Notice of completion of hydraulic fracturing activities
This section applies if a geothermal tenure holder has completed hydraulic fracturing activities in the area of the tenure.
The holder must, within 10 business days after completing the hydraulic fracturing activities, give the chief executive a notice stating the day the activities were completed.
(sec.13-ssec.1) This section applies if a geothermal tenure holder has completed hydraulic fracturing activities in the area of the tenure.
(sec.13-ssec.2) The holder must, within 10 business days after completing the hydraulic fracturing activities, give the chief executive a notice stating the day the activities were completed.
pt.4
Report requirements
Report requirements
pt.4-div.1
Particular reports required under the Act
Particular reports required under the Act
sec.14
Definitions for division
sec.14 Definitions for division
In this division—
general area information , for a geothermal tenure, for a partial relinquishment report or surrender report, see section 15 .
hazard information , for a geothermal tenure, means the following information for a hazard arising, or potentially arising, from activities carried out under the tenure—
the nature of the hazard;
the cause, or reasons for existence, of the hazard;
the location of the hazard;
measures taken to prevent or reduce the risk of the hazard or to mitigate the effects of the hazard.
partial relinquishment report means a report that must be given to the chief executive under section 190 of the Act .
relinquished area , for a geothermal tenure, means the part of the area of the tenure that is relinquished as required or authorised under the Act .
surrendered area , for a geothermal tenure, means the part of the area of the tenure that is the subject of the geothermal tenure holder’s surrender application.
surrender report means a report that must accompany a surrender application under section 302 (2) of the Act .
(a) the nature of the hazard;
(b) the cause, or reasons for existence, of the hazard;
(c) the location of the hazard;
(d) measures taken to prevent or reduce the risk of the hazard or to mitigate the effects of the hazard.
sec.15
Meaning of general area information
sec.15 Meaning of general area information
The following information is general area information , for a geothermal tenure, for a partial relinquishment report or surrender report for the tenure—
spatial information showing the location of—
the area of the tenure immediately before the relinquishment or surrender the subject of the report; and
the relinquished area or surrendered area the subject of the report; and
geothermal wells drilled under the tenure; and
seismic lines used to carry out seismic surveys for the tenure;
structure contour spatial information showing the seismic horizons (seismic reflectors) in the relinquished area or surrendered area the subject of the report.
(a) spatial information showing the location of— (i) the area of the tenure immediately before the relinquishment or surrender the subject of the report; and (ii) the relinquished area or surrendered area the subject of the report; and (iii) geothermal wells drilled under the tenure; and (iv) seismic lines used to carry out seismic surveys for the tenure;
(i) the area of the tenure immediately before the relinquishment or surrender the subject of the report; and
(ii) the relinquished area or surrendered area the subject of the report; and
(iii) geothermal wells drilled under the tenure; and
(iv) seismic lines used to carry out seismic surveys for the tenure;
(b) structure contour spatial information showing the seismic horizons (seismic reflectors) in the relinquished area or surrendered area the subject of the report.
(i) the area of the tenure immediately before the relinquishment or surrender the subject of the report; and
(ii) the relinquished area or surrendered area the subject of the report; and
(iii) geothermal wells drilled under the tenure; and
(iv) seismic lines used to carry out seismic surveys for the tenure;
sec.16
Requirement for geothermal viability report— Act , s 65
sec.16 Requirement for geothermal viability report— Act , s 65
For section 65 (4) (a) (i) of the Act , it is a requirement that a geothermal viability report for an area must contain the following information—
identification of each geothermal reservoir in the area;
an estimate of all classified geothermal resources identified in each geothermal reservoir in the area;
the geoscientific information, standards and procedures used to make the estimate mentioned in paragraph (b) ;
geological, geochemical, geophysical or geotechnical information
a statement whether, in the geothermal permit holder’s opinion, geothermal production in the area is commercially viable;
if the geothermal permit holder’s opinion is that geothermal production is not commercially viable—a statement about whether, in the holder’s opinion, it is likely to become commercially viable within 10 years;
supporting data, and an analysis of the data, to support the opinions mentioned in paragraphs (d) and (e) .
In this section—
area means the part of the area of a geothermal permit that is a potential geothermal commercial area.
numerical modelling study means a study of the likely performance of a geothermal reservoir using a numerical model.
resource assessment means an estimate of the future production of geothermal energy from a geothermal reservoir.
supporting data , for an area, includes—
technical data relating to the geology of, and the geothermal reservoirs in, the area; and
resource assessment and numerical modelling studies for geothermal reservoirs in the area; and
market and financial data for the area.
an engineering and economic feasibility study showing that geothermal production in the area can be economically and technically justified
data showing the uses for the geothermal energy
(sec.16-ssec.1) For section 65 (4) (a) (i) of the Act , it is a requirement that a geothermal viability report for an area must contain the following information— identification of each geothermal reservoir in the area; an estimate of all classified geothermal resources identified in each geothermal reservoir in the area; the geoscientific information, standards and procedures used to make the estimate mentioned in paragraph (b) ; geological, geochemical, geophysical or geotechnical information a statement whether, in the geothermal permit holder’s opinion, geothermal production in the area is commercially viable; if the geothermal permit holder’s opinion is that geothermal production is not commercially viable—a statement about whether, in the holder’s opinion, it is likely to become commercially viable within 10 years; supporting data, and an analysis of the data, to support the opinions mentioned in paragraphs (d) and (e) .
(sec.16-ssec.2) In this section— area means the part of the area of a geothermal permit that is a potential geothermal commercial area. numerical modelling study means a study of the likely performance of a geothermal reservoir using a numerical model. resource assessment means an estimate of the future production of geothermal energy from a geothermal reservoir. supporting data , for an area, includes— technical data relating to the geology of, and the geothermal reservoirs in, the area; and resource assessment and numerical modelling studies for geothermal reservoirs in the area; and market and financial data for the area. an engineering and economic feasibility study showing that geothermal production in the area can be economically and technically justified data showing the uses for the geothermal energy
(a) identification of each geothermal reservoir in the area;
(b) an estimate of all classified geothermal resources identified in each geothermal reservoir in the area;
(c) the geoscientific information, standards and procedures used to make the estimate mentioned in paragraph (b) ; Examples of geoscientific information— geological, geochemical, geophysical or geotechnical information
(d) a statement whether, in the geothermal permit holder’s opinion, geothermal production in the area is commercially viable;
(e) if the geothermal permit holder’s opinion is that geothermal production is not commercially viable—a statement about whether, in the holder’s opinion, it is likely to become commercially viable within 10 years;
(f) supporting data, and an analysis of the data, to support the opinions mentioned in paragraphs (d) and (e) .
(a) technical data relating to the geology of, and the geothermal reservoirs in, the area; and
(b) resource assessment and numerical modelling studies for geothermal reservoirs in the area; and
(c) market and financial data for the area. Examples of market and financial data— • an engineering and economic feasibility study showing that geothermal production in the area can be economically and technically justified • data showing the uses for the geothermal energy
• an engineering and economic feasibility study showing that geothermal production in the area can be economically and technically justified
• data showing the uses for the geothermal energy
• an engineering and economic feasibility study showing that geothermal production in the area can be economically and technically justified
• data showing the uses for the geothermal energy
sec.17
Information for partial relinquishment report— Act , s 190
sec.17 Information for partial relinquishment report— Act , s 190
For section 190 (2) (b) of the Act , the following information is prescribed for a partial relinquishment report for a geothermal tenure—
the general area information for the tenure;
the hazard information for the tenure;
the day the relinquishment takes effect;
identification of the blocks or sub-blocks comprising the relinquished area;
the reason the geothermal tenure holder relinquished the relinquished area;
a description of the geological model for the geothermal reservoirs in the relinquished area;
a summary of the results of all authorised activities for the tenure carried out in the relinquished area since the tenure took effect;
any conclusions drawn by the geothermal tenure holder based on the results mentioned in paragraph (g) ;
an estimate of the total mass flow of geothermal fluid from each geothermal well in the relinquished area for each year since the tenure took effect;
the period of the work program or development plan for the tenure;
any other information stated in the relevant direction for the report.
(a) the general area information for the tenure;
(b) the hazard information for the tenure;
(c) the day the relinquishment takes effect;
(d) identification of the blocks or sub-blocks comprising the relinquished area;
(e) the reason the geothermal tenure holder relinquished the relinquished area;
(f) a description of the geological model for the geothermal reservoirs in the relinquished area;
(g) a summary of the results of all authorised activities for the tenure carried out in the relinquished area since the tenure took effect;
(h) any conclusions drawn by the geothermal tenure holder based on the results mentioned in paragraph (g) ;
(i) an estimate of the total mass flow of geothermal fluid from each geothermal well in the relinquished area for each year since the tenure took effect;
(j) the period of the work program or development plan for the tenure;
(k) any other information stated in the relevant direction for the report.
sec.18
Information for surrender report— Act , s 302
sec.18 Information for surrender report— Act , s 302
For section 302 (2) (c) of the Act , the following information is prescribed for a surrender report for a geothermal tenure—
the general area information for the tenure;
the hazard information for the tenure;
a description of the methods used to produce geothermal energy in the surrendered area;
an estimate of—
the amount of geothermal energy produced from each geothermal well in the surrendered area for each year since the tenure took effect; and
the volume of water or disposal fluid injected into each injection well in the surrendered area;
the surface temperature of the water or disposal fluid mentioned in paragraph (d) (ii) at the point of injection;
a description of the geological features of the classified geothermal resources in the surrendered area from which geothermal energy was produced;
the reason the geothermal tenure holder has applied to surrender all or part of the area of the tenure;
any other information stated in the relevant direction for the report.
In this section—
injection well means a well used to—
return geothermal fluid to a geothermal reservoir after its use; or
introduce another fluid into the reservoir.
water, supercritical carbon dioxide
(sec.18-ssec.1) For section 302 (2) (c) of the Act , the following information is prescribed for a surrender report for a geothermal tenure— the general area information for the tenure; the hazard information for the tenure; a description of the methods used to produce geothermal energy in the surrendered area; an estimate of— the amount of geothermal energy produced from each geothermal well in the surrendered area for each year since the tenure took effect; and the volume of water or disposal fluid injected into each injection well in the surrendered area; the surface temperature of the water or disposal fluid mentioned in paragraph (d) (ii) at the point of injection; a description of the geological features of the classified geothermal resources in the surrendered area from which geothermal energy was produced; the reason the geothermal tenure holder has applied to surrender all or part of the area of the tenure; any other information stated in the relevant direction for the report.
(sec.18-ssec.2) In this section— injection well means a well used to— return geothermal fluid to a geothermal reservoir after its use; or introduce another fluid into the reservoir. water, supercritical carbon dioxide
(a) the general area information for the tenure;
(b) the hazard information for the tenure;
(c) a description of the methods used to produce geothermal energy in the surrendered area;
(d) an estimate of— (i) the amount of geothermal energy produced from each geothermal well in the surrendered area for each year since the tenure took effect; and (ii) the volume of water or disposal fluid injected into each injection well in the surrendered area;
(i) the amount of geothermal energy produced from each geothermal well in the surrendered area for each year since the tenure took effect; and
(ii) the volume of water or disposal fluid injected into each injection well in the surrendered area;
(e) the surface temperature of the water or disposal fluid mentioned in paragraph (d) (ii) at the point of injection;
(f) a description of the geological features of the classified geothermal resources in the surrendered area from which geothermal energy was produced;
(g) the reason the geothermal tenure holder has applied to surrender all or part of the area of the tenure;
(h) any other information stated in the relevant direction for the report.
(i) the amount of geothermal energy produced from each geothermal well in the surrendered area for each year since the tenure took effect; and
(ii) the volume of water or disposal fluid injected into each injection well in the surrendered area;
(a) return geothermal fluid to a geothermal reservoir after its use; or
(b) introduce another fluid into the reservoir. Examples of a fluid— water, supercritical carbon dioxide
sec.19
Information for end of tenure report— Act , s 191
sec.19 Information for end of tenure report— Act , s 191
For section 191 (g) of the Act , the following information is prescribed—
for an end of tenure report for a geothermal permit—the information required for a report under section 17 ;
for an end of tenure report for a geothermal lease—the information required for a report under section 18 .
For subsection (1) —
a reference in section 17 to the relinquished area is taken to be a reference to the area of the geothermal permit immediately before it ended; and
a reference in section 18 to the surrendered area is taken to be a reference to the area of the geothermal lease immediately before it ended.
Subsection (1) does not apply to the extent the information has already been included in either of the following reports given to the chief executive for the geothermal tenure—
a partial relinquishment report;
a surrender report.
(sec.19-ssec.1) For section 191 (g) of the Act , the following information is prescribed— for an end of tenure report for a geothermal permit—the information required for a report under section 17 ; for an end of tenure report for a geothermal lease—the information required for a report under section 18 .
(sec.19-ssec.2) For subsection (1) — a reference in section 17 to the relinquished area is taken to be a reference to the area of the geothermal permit immediately before it ended; and a reference in section 18 to the surrendered area is taken to be a reference to the area of the geothermal lease immediately before it ended.
(sec.19-ssec.3) Subsection (1) does not apply to the extent the information has already been included in either of the following reports given to the chief executive for the geothermal tenure— a partial relinquishment report; a surrender report.
(a) for an end of tenure report for a geothermal permit—the information required for a report under section 17 ;
(b) for an end of tenure report for a geothermal lease—the information required for a report under section 18 .
(a) a reference in section 17 to the relinquished area is taken to be a reference to the area of the geothermal permit immediately before it ended; and
(b) a reference in section 18 to the surrendered area is taken to be a reference to the area of the geothermal lease immediately before it ended.
(a) a partial relinquishment report;
(b) a surrender report.
pt.4-div.2
Other reports
Other reports
sec.20
Purpose of division
sec.20 Purpose of division
This division prescribes, for section 192 (1) of the Act , information and reports that a geothermal tenure holder must keep or give to the chief executive.
sec.21
Daily drilling report
sec.21 Daily drilling report
A geothermal tenure holder must keep a report for each day on which drilling of a geothermal well is carried out under the tenure (a daily drilling report ) containing the information stated in schedule 1 , section 1 .
A copy of each daily drilling report for the geothermal well must be given to the chief executive with the well completion report for the well.
Also, a copy of a daily drilling report for the geothermal well must be given to the chief executive at any time the chief executive asks for the copy.
(sec.21-ssec.1) A geothermal tenure holder must keep a report for each day on which drilling of a geothermal well is carried out under the tenure (a daily drilling report ) containing the information stated in schedule 1 , section 1 .
(sec.21-ssec.2) A copy of each daily drilling report for the geothermal well must be given to the chief executive with the well completion report for the well.
(sec.21-ssec.3) Also, a copy of a daily drilling report for the geothermal well must be given to the chief executive at any time the chief executive asks for the copy.
sec.22
Well completion report
sec.22 Well completion report
A geothermal tenure holder must, within 12 months after the rig release day for a geothermal well in the area of the tenure, give the chief executive a report about the completion of the well (a well completion report ) containing the information stated in schedule 1 , section 2 .
If the geothermal well is plugged and abandoned on or before the rig release day for the well, the well completion report must be accompanied by a well abandonment report for the well.
(sec.22-ssec.1) A geothermal tenure holder must, within 12 months after the rig release day for a geothermal well in the area of the tenure, give the chief executive a report about the completion of the well (a well completion report ) containing the information stated in schedule 1 , section 2 .
(sec.22-ssec.2) If the geothermal well is plugged and abandoned on or before the rig release day for the well, the well completion report must be accompanied by a well abandonment report for the well.
sec.23
Well abandonment report
sec.23 Well abandonment report
If a geothermal well in the area of a geothermal tenure is plugged and abandoned, the geothermal tenure holder must give the chief executive a report about the abandonment of the well (a well abandonment report ) containing the information stated in schedule 1 , section 3 .
The well abandonment report must be given—
for a well that is plugged and abandoned on or before the rig release day for the geothermal well—with the well completion report for the well; or
otherwise—within 6 months after the day the plugging and abandoning of the well is completed in compliance with section 200 of the Act .
If the well abandonment report for the geothermal well is given with the well completion report for the well, the well abandonment report need not contain information about the well already included in the well completion report.
(sec.23-ssec.1) If a geothermal well in the area of a geothermal tenure is plugged and abandoned, the geothermal tenure holder must give the chief executive a report about the abandonment of the well (a well abandonment report ) containing the information stated in schedule 1 , section 3 .
(sec.23-ssec.2) The well abandonment report must be given— for a well that is plugged and abandoned on or before the rig release day for the geothermal well—with the well completion report for the well; or otherwise—within 6 months after the day the plugging and abandoning of the well is completed in compliance with section 200 of the Act .
(sec.23-ssec.3) If the well abandonment report for the geothermal well is given with the well completion report for the well, the well abandonment report need not contain information about the well already included in the well completion report.
(a) for a well that is plugged and abandoned on or before the rig release day for the geothermal well—with the well completion report for the well; or
(b) otherwise—within 6 months after the day the plugging and abandoning of the well is completed in compliance with section 200 of the Act .
sec.24
Annual resources report
sec.24 Annual resources report
A geothermal tenure holder must, within 60 business days after the last day of each 12-month period of the term of the tenure, give the chief executive a report about geothermal resources for the tenure (an annual resources report ) containing the information stated in schedule 1 , section 4 .
However, the requirement to give an annual resources report for a 12-month period of the term of a geothermal tenure does not apply if the tenure ends during the 12-month period.
See section 191 of the Act , and section 19 , for the requirements for an end of tenure report.
(sec.24-ssec.1) A geothermal tenure holder must, within 60 business days after the last day of each 12-month period of the term of the tenure, give the chief executive a report about geothermal resources for the tenure (an annual resources report ) containing the information stated in schedule 1 , section 4 .
(sec.24-ssec.2) However, the requirement to give an annual resources report for a 12-month period of the term of a geothermal tenure does not apply if the tenure ends during the 12-month period. See section 191 of the Act , and section 19 , for the requirements for an end of tenure report.
sec.25
Production report
sec.25 Production report
A geothermal tenure holder must, within 60 business days after the last day of each 6-month period for the tenure, give the chief executive a report for the tenure (a production report ) containing the information stated in schedule 1 , section 5 .
In this section—
6-month period , for a geothermal tenure, means a following period during which the tenure is in effect, for all or part of the period—
1 January to 30 June;
1 July to 31 December.
(sec.25-ssec.1) A geothermal tenure holder must, within 60 business days after the last day of each 6-month period for the tenure, give the chief executive a report for the tenure (a production report ) containing the information stated in schedule 1 , section 5 .
(sec.25-ssec.2) In this section— 6-month period , for a geothermal tenure, means a following period during which the tenure is in effect, for all or part of the period— 1 January to 30 June; 1 July to 31 December.
(a) 1 January to 30 June;
(b) 1 July to 31 December.
sec.26
Production testing report
sec.26 Production testing report
If production testing of a geothermal well is carried out under a geothermal tenure, the geothermal tenure holder must, within 40 business days after the production testing period ends, give the chief executive a report about the production testing during the period (a production testing report ) containing the information stated in schedule 1 , section 6 .
sec.27
Injection report
sec.27 Injection report
A geothermal tenure holder must, within 60 business days after the end of each 12-month period of the term of the tenure, give the chief executive a report for the tenure (an injection report ) containing the information stated in schedule 1 , section 7 .
However, the requirement to give an injection report for a 12-month period of the term of a geothermal tenure does not apply if the tenure ends during the 12-month period.
See section 191 of the Act , and section 19 , for the requirements for an end of tenure report.
(sec.27-ssec.1) A geothermal tenure holder must, within 60 business days after the end of each 12-month period of the term of the tenure, give the chief executive a report for the tenure (an injection report ) containing the information stated in schedule 1 , section 7 .
(sec.27-ssec.2) However, the requirement to give an injection report for a 12-month period of the term of a geothermal tenure does not apply if the tenure ends during the 12-month period. See section 191 of the Act , and section 19 , for the requirements for an end of tenure report.
sec.28
Injection testing report
sec.28 Injection testing report
If injection testing of a geothermal well is carried out under a geothermal tenure, the geothermal tenure holder must, within 60 business days after the injection testing period ends, give the chief executive a report about the testing during the period (an injection testing report ) containing the information stated in schedule 1 , section 8 .
sec.29
Geophysical survey report
sec.29 Geophysical survey report
If a geothermal tenure holder carries out a geophysical survey of the tenure, the holder must, within 12 months after the completion day for the survey, give the chief executive a report about the survey (a geophysical survey report ) containing the information stated in schedule 1 , section 9 .
sec.30
Scientific or technical survey report
sec.30 Scientific or technical survey report
If a geothermal tenure holder carries out a scientific or technical survey for the tenure, the holder must, within 12 months after the completion day for the survey, give the chief executive a report about the survey (a scientific or technical survey report ) containing the information stated in schedule 1 , section 10 .
If a geothermal tenure holder completes hydraulic fracturing activities in the area of the tenure, the holder must, within 6 months after the completion of the activities, give the chief executive a report about the activities (a hydraulic fracturing activities completion report ) containing the information stated in schedule 1 , section 11 .
pt.4-div.3
Stating amounts in reports
Stating amounts in reports
sec.32
How amounts in reports must be stated
sec.32 How amounts in reports must be stated
For a report mentioned in this part, a measurement of an amount of a thing mentioned in column 1 must be stated by reference to the measurement unit stated in column 2.
Column 1
Column 2
injected water
tonnes
geothermal fluid
tonnes
separated steam
tonnes
disposal fluid
tonnes
energy generation, including electrical and thermal energy generation
megawatt hours (MWh)
specific enthalpy
kilojoule for each kilogram (kJ/kg)
geothermal resources—if thermal energy is generated
petajoules thermal (PJ th )
geothermal resources—if electrical energy is generated
petajoules electrical (PJ e )
Also, if the report includes information about the amount of heat that is generated, the base temperature on which the heat was calculated must be stated.
(sec.32-ssec.1) For a report mentioned in this part, a measurement of an amount of a thing mentioned in column 1 must be stated by reference to the measurement unit stated in column 2. Column 1 Column 2 injected water tonnes geothermal fluid tonnes separated steam tonnes disposal fluid tonnes energy generation, including electrical and thermal energy generation megawatt hours (MWh) specific enthalpy kilojoule for each kilogram (kJ/kg) geothermal resources—if thermal energy is generated petajoules thermal (PJ th ) geothermal resources—if electrical energy is generated petajoules electrical (PJ e )
(sec.32-ssec.2) Also, if the report includes information about the amount of heat that is generated, the base temperature on which the heat was calculated must be stated.
pt.5
Core samples
Core samples
sec.33
Keeping core sample— Act , s 193
sec.33 Keeping core sample— Act , s 193
For section 193 (1) of the Act , the following matters are prescribed—
a core sample for each geothermal well drilled under the geothermal tenure must be kept;
the core sample must be kept until the later of the following—
the end of the term of the tenure; or
when the sample, or part of the sample, is given to the chief executive under section 194 of the Act ;
the core sample must be kept in a way that prevents unnecessary deterioration or loss of the sample.
Despite subsection (1) , the geothermal tenure holder is not required to keep a core sample (the new sample ) for a geothermal well drilled under the tenure if, on written application by the holder, the chief executive exempts the holder from having to keep the new sample because—
the holder has previously given the chief executive all or part of a core sample (the previous sample ) from the same geothermal well or another geothermal well drilling the same geothermal reservoir; and
the new sample has similar properties to the previous sample.
(sec.33-ssec.1) For section 193 (1) of the Act , the following matters are prescribed— a core sample for each geothermal well drilled under the geothermal tenure must be kept; the core sample must be kept until the later of the following— the end of the term of the tenure; or when the sample, or part of the sample, is given to the chief executive under section 194 of the Act ; the core sample must be kept in a way that prevents unnecessary deterioration or loss of the sample.
(sec.33-ssec.2) Despite subsection (1) , the geothermal tenure holder is not required to keep a core sample (the new sample ) for a geothermal well drilled under the tenure if, on written application by the holder, the chief executive exempts the holder from having to keep the new sample because— the holder has previously given the chief executive all or part of a core sample (the previous sample ) from the same geothermal well or another geothermal well drilling the same geothermal reservoir; and the new sample has similar properties to the previous sample.
(a) a core sample for each geothermal well drilled under the geothermal tenure must be kept;
(b) the core sample must be kept until the later of the following— (i) the end of the term of the tenure; or (ii) when the sample, or part of the sample, is given to the chief executive under section 194 of the Act ;
(i) the end of the term of the tenure; or
(ii) when the sample, or part of the sample, is given to the chief executive under section 194 of the Act ;
(c) the core sample must be kept in a way that prevents unnecessary deterioration or loss of the sample.
(i) the end of the term of the tenure; or
(ii) when the sample, or part of the sample, is given to the chief executive under section 194 of the Act ;
(a) the holder has previously given the chief executive all or part of a core sample (the previous sample ) from the same geothermal well or another geothermal well drilling the same geothermal reservoir; and
(b) the new sample has similar properties to the previous sample.
sec.34
Giving part of core sample— Act , s 194
sec.34 Giving part of core sample— Act , s 194
The part of a core sample kept under section 33 that must be given to the chief executive under section 194 of the Act must—
be at least 50% of the core recovered; and
have as complete a vertical face as is practicable; and
be given in a container suitable for its long-term storage and handling that is labelled with the following information—
the identifying name of the geothermal well from which the core was recovered;
the depth in metres of the top and bottom of the interval from which the core was recovered;
if more than 1 core is recovered from the well—the number of the core;
the length in metres of the core recovered.
(a) be at least 50% of the core recovered; and
(b) have as complete a vertical face as is practicable; and
(c) be given in a container suitable for its long-term storage and handling that is labelled with the following information— (i) the identifying name of the geothermal well from which the core was recovered; (ii) the depth in metres of the top and bottom of the interval from which the core was recovered; (iii) if more than 1 core is recovered from the well—the number of the core; (iv) the length in metres of the core recovered.
(i) the identifying name of the geothermal well from which the core was recovered;
(ii) the depth in metres of the top and bottom of the interval from which the core was recovered;
(iii) if more than 1 core is recovered from the well—the number of the core;
(iv) the length in metres of the core recovered.
(i) the identifying name of the geothermal well from which the core was recovered;
(ii) the depth in metres of the top and bottom of the interval from which the core was recovered;
(iii) if more than 1 core is recovered from the well—the number of the core;
(iv) the length in metres of the core recovered.
pt.6
Geothermal wells and shot holes
Geothermal wells and shot holes
sec.35
Ways to plug and abandon geothermal wells— Act , s 200
sec.35 Ways to plug and abandon geothermal wells— Act , s 200
For section 200 (3) (a) of the Act , a geothermal well must be plugged and abandoned in the way stated in schedule 2 .
sec.36
Requirement to plug shot holes
sec.36 Requirement to plug shot holes
A geothermal tenure holder must ensure that, if a hole is drilled in the area of the tenure for use as a shot hole—
as soon as practicable after the hole is no longer required for use as a shot hole—
the hole is plugged with solid material; and
concrete, rock or soil
any area surrounding the hole that has been disturbed by the firing of an explosive is restored as far as is practicable to its original state; and
if the hole caves in or collapses after it is plugged as required under paragraph (a) —all subsequent damage caused by the hole caving in or collapsing is remedied.
Maximum penalty—20 penalty units.
Despite subsection (1) , to the extent that a requirement under the subsection is inconsistent with a relevant environmental condition for the geothermal tenure, the relevant environmental condition prevails.
In this section—
shot hole means a hole that has been drilled in the area of a geothermal tenure for the purpose of firing an explosive in connection with carrying out a seismic survey.
(sec.36-ssec.1) A geothermal tenure holder must ensure that, if a hole is drilled in the area of the tenure for use as a shot hole— as soon as practicable after the hole is no longer required for use as a shot hole— the hole is plugged with solid material; and concrete, rock or soil any area surrounding the hole that has been disturbed by the firing of an explosive is restored as far as is practicable to its original state; and if the hole caves in or collapses after it is plugged as required under paragraph (a) —all subsequent damage caused by the hole caving in or collapsing is remedied. Maximum penalty—20 penalty units.
(sec.36-ssec.2) Despite subsection (1) , to the extent that a requirement under the subsection is inconsistent with a relevant environmental condition for the geothermal tenure, the relevant environmental condition prevails.
(sec.36-ssec.3) In this section— shot hole means a hole that has been drilled in the area of a geothermal tenure for the purpose of firing an explosive in connection with carrying out a seismic survey.
(a) as soon as practicable after the hole is no longer required for use as a shot hole— (i) the hole is plugged with solid material; and Example of solid material— concrete, rock or soil (ii) any area surrounding the hole that has been disturbed by the firing of an explosive is restored as far as is practicable to its original state; and
(i) the hole is plugged with solid material; and Example of solid material— concrete, rock or soil
(ii) any area surrounding the hole that has been disturbed by the firing of an explosive is restored as far as is practicable to its original state; and
(b) if the hole caves in or collapses after it is plugged as required under paragraph (a) —all subsequent damage caused by the hole caving in or collapsing is remedied.
(i) the hole is plugged with solid material; and Example of solid material— concrete, rock or soil
(ii) any area surrounding the hole that has been disturbed by the firing of an explosive is restored as far as is practicable to its original state; and
pt.7
Required information—confidentiality period and publication
Required information—confidentiality period and publication
sec.37
Confidentiality period for required information for geothermal tenures— Act , s 196
sec.37 Confidentiality period for required information for geothermal tenures— Act , s 196
For section 196 (2) of the Act , the confidentiality period for the required information mentioned in schedule 3 , column 1—
starts on the day the information is given to the chief executive; and
ends on the day stated in schedule 3 , column 2 for the information;
However, there is no confidentiality period for making a well abandonment report for a geothermal well available to the holder of a petroleum tenure or a coal or oil shale mining tenement under the Mineral Resources Act if the well was drilled within the area of the tenure or tenement.
Also, there is no confidentiality period for required information not mentioned in schedule 3 , column 1.
s 37 amd 2025 SL No. 48 s 14 sch 1
(sec.37-ssec.1) For section 196 (2) of the Act , the confidentiality period for the required information mentioned in schedule 3 , column 1— starts on the day the information is given to the chief executive; and ends on the day stated in schedule 3 , column 2 for the information;
(sec.37-ssec.2) However, there is no confidentiality period for making a well abandonment report for a geothermal well available to the holder of a petroleum tenure or a coal or oil shale mining tenement under the Mineral Resources Act if the well was drilled within the area of the tenure or tenement.
(sec.37-ssec.3) Also, there is no confidentiality period for required information not mentioned in schedule 3 , column 1.
(a) starts on the day the information is given to the chief executive; and
(b) ends on the day stated in schedule 3 , column 2 for the information;
sec.38
Publication of required information— Act , s 196
sec.38 Publication of required information— Act , s 196
For section 196 (1) (a) of the Act , the publication of required information in each of the following ways is prescribed—
in a journal published by the department or under the Minister’s authority;
in another publication the chief executive considers appropriate;
on a Queensland Government website;
in a publicly available database;
for spatial data—by making it available to the public for inspection or purchase;
in digital form;
providing the information on a universal serial bus (commonly known as a ‘usb’)
by displaying it on a notice that is available to the public for inspection at—
the department’s head office; or
another place the chief executive considers appropriate;
by telling it to another person or presenting it to the person in a visual form.
In this section—
Queensland Government website means a website with a URL that contains ‘qld.gov.au’, other than the website of a local government.
(sec.38-ssec.1) For section 196 (1) (a) of the Act , the publication of required information in each of the following ways is prescribed— in a journal published by the department or under the Minister’s authority; in another publication the chief executive considers appropriate; on a Queensland Government website; in a publicly available database; for spatial data—by making it available to the public for inspection or purchase; in digital form; providing the information on a universal serial bus (commonly known as a ‘usb’) by displaying it on a notice that is available to the public for inspection at— the department’s head office; or another place the chief executive considers appropriate; by telling it to another person or presenting it to the person in a visual form.
(sec.38-ssec.2) In this section— Queensland Government website means a website with a URL that contains ‘qld.gov.au’, other than the website of a local government.
(a) in a journal published by the department or under the Minister’s authority;
(b) in another publication the chief executive considers appropriate;
(c) on a Queensland Government website;
(d) in a publicly available database;
(e) for spatial data—by making it available to the public for inspection or purchase;
(f) in digital form; Example— providing the information on a universal serial bus (commonly known as a ‘usb’)
(g) by displaying it on a notice that is available to the public for inspection at— (i) the department’s head office; or (ii) another place the chief executive considers appropriate;
(i) the department’s head office; or
(ii) another place the chief executive considers appropriate;
(h) by telling it to another person or presenting it to the person in a visual form.
(i) the department’s head office; or
(ii) another place the chief executive considers appropriate;
pt.8
Geothermal royalty
Geothermal royalty
pt.8-div.1
Preliminary
Preliminary
sec.39
Disapplication of part
sec.39 Disapplication of part
This part does not apply to a geothermal producer in relation to geothermal energy produced by or for the geothermal producer before 1 July 2030.
sec.40
Definitions for part
sec.40 Definitions for part
In this part—
component , of the wellhead value of geothermal energy produced by or for a geothermal producer in a royalty return period, means—
an element used to work out the projected amount under section 43 (1) (a) for the geothermal energy; or
an expense, or an amount contributing to an expense, mentioned in section 41 (1) (a) , (c) or (d) , for the geothermal energy.
geothermal royalty decision see section 45 (1) .
operating expenses , for geothermal energy produced by or for a geothermal producer in a royalty return period, see section 41 .
royalty return period means each of the following 3-month periods in a year—
1 January to 31 March;
1 April to 30 June;
1 July to 30 September;
1 October to 31 December.
wellhead value , of geothermal energy produced by or for a geothermal producer in a royalty return period, means the wellhead value worked out for the geothermal energy under section 43 for the period.
(a) an element used to work out the projected amount under section 43 (1) (a) for the geothermal energy; or
(b) an expense, or an amount contributing to an expense, mentioned in section 41 (1) (a) , (c) or (d) , for the geothermal energy.
(a) 1 January to 31 March;
(b) 1 April to 30 June;
(c) 1 July to 30 September;
(d) 1 October to 31 December.
sec.41
Meaning of operating expenses
sec.41 Meaning of operating expenses
The operating expenses , for geothermal energy produced by or for a geothermal producer in a royalty return period, means each of the following—
a toll, tariff or other charge paid or payable by the geothermal producer to a third party for producing the geothermal energy during the royalty return period if the charges are worked out—
on a commercial basis; or
if the Minister believes another basis for working out the charges is a more practical basis—on the other basis;
depreciation of capital costs on an operating plant or pipeline owned by the geothermal producer and used for producing the geothermal energy or transporting it from the wellhead of the geothermal well in which it was produced to the point of its disposal, allocated over—
10 years; or
if the Minister believes a shorter period is appropriate having regard to the expected potential for geothermal production from the well in which the geothermal energy was produced—the shorter period decided by the Minister;
an operating cost incurred, or to be incurred, by the geothermal producer that relates directly to—
treating, processing or refining the geothermal energy; or
transporting the geothermal energy to the point of its disposal;
catering, accommodation and travel costs for personnel
communication costs
consumable stores used at the site at which the energy is produced
costs associated with transporting the geothermal energy, including a reasonable share of road maintenance and repairs, motor vehicle costs, wharfage and harbour fees
geothermal energy storage costs
geothermal tenure rents
personnel wages and salaries
repairs and maintenance of, and insurance costs for, operating plant and pipelines used to produce geothermal energy or transporting it from the wellhead to the point of its disposal
another expense incurred, or to be incurred, by the geothermal producer in relation to the operation of the site at which the geothermal energy was produced that is approved by the Minister for the purpose of this section.
However, expenses are not operating expenses under subsection (1) if the expenses are any of the following—
an expense incurred by the geothermal producer in producing the geothermal energy;
lifting costs
office overhead costs for an office that is not located in the area of the geothermal tenure or at the site at which geothermal energy is produced;
marketing costs for producing geothermal energy;
Commonwealth excise levies;
a civil penalty, or interest on an amount, payable by the geothermal producer under the Act .
(sec.41-ssec.1) The operating expenses , for geothermal energy produced by or for a geothermal producer in a royalty return period, means each of the following— a toll, tariff or other charge paid or payable by the geothermal producer to a third party for producing the geothermal energy during the royalty return period if the charges are worked out— on a commercial basis; or if the Minister believes another basis for working out the charges is a more practical basis—on the other basis; depreciation of capital costs on an operating plant or pipeline owned by the geothermal producer and used for producing the geothermal energy or transporting it from the wellhead of the geothermal well in which it was produced to the point of its disposal, allocated over— 10 years; or if the Minister believes a shorter period is appropriate having regard to the expected potential for geothermal production from the well in which the geothermal energy was produced—the shorter period decided by the Minister; an operating cost incurred, or to be incurred, by the geothermal producer that relates directly to— treating, processing or refining the geothermal energy; or transporting the geothermal energy to the point of its disposal; catering, accommodation and travel costs for personnel communication costs consumable stores used at the site at which the energy is produced costs associated with transporting the geothermal energy, including a reasonable share of road maintenance and repairs, motor vehicle costs, wharfage and harbour fees geothermal energy storage costs geothermal tenure rents personnel wages and salaries repairs and maintenance of, and insurance costs for, operating plant and pipelines used to produce geothermal energy or transporting it from the wellhead to the point of its disposal another expense incurred, or to be incurred, by the geothermal producer in relation to the operation of the site at which the geothermal energy was produced that is approved by the Minister for the purpose of this section.
(sec.41-ssec.2) However, expenses are not operating expenses under subsection (1) if the expenses are any of the following— an expense incurred by the geothermal producer in producing the geothermal energy; lifting costs office overhead costs for an office that is not located in the area of the geothermal tenure or at the site at which geothermal energy is produced; marketing costs for producing geothermal energy; Commonwealth excise levies; a civil penalty, or interest on an amount, payable by the geothermal producer under the Act .
(a) a toll, tariff or other charge paid or payable by the geothermal producer to a third party for producing the geothermal energy during the royalty return period if the charges are worked out— (i) on a commercial basis; or (ii) if the Minister believes another basis for working out the charges is a more practical basis—on the other basis;
(i) on a commercial basis; or
(ii) if the Minister believes another basis for working out the charges is a more practical basis—on the other basis;
(b) depreciation of capital costs on an operating plant or pipeline owned by the geothermal producer and used for producing the geothermal energy or transporting it from the wellhead of the geothermal well in which it was produced to the point of its disposal, allocated over— (i) 10 years; or (ii) if the Minister believes a shorter period is appropriate having regard to the expected potential for geothermal production from the well in which the geothermal energy was produced—the shorter period decided by the Minister;
(i) 10 years; or
(ii) if the Minister believes a shorter period is appropriate having regard to the expected potential for geothermal production from the well in which the geothermal energy was produced—the shorter period decided by the Minister;
(c) an operating cost incurred, or to be incurred, by the geothermal producer that relates directly to— (i) treating, processing or refining the geothermal energy; or (ii) transporting the geothermal energy to the point of its disposal; Examples of operating costs that may be directly related to treating, processing, refining or transporting geothermal energy— • catering, accommodation and travel costs for personnel • communication costs • consumable stores used at the site at which the energy is produced • costs associated with transporting the geothermal energy, including a reasonable share of road maintenance and repairs, motor vehicle costs, wharfage and harbour fees • geothermal energy storage costs • geothermal tenure rents • personnel wages and salaries • repairs and maintenance of, and insurance costs for, operating plant and pipelines used to produce geothermal energy or transporting it from the wellhead to the point of its disposal
(i) treating, processing or refining the geothermal energy; or
(ii) transporting the geothermal energy to the point of its disposal; Examples of operating costs that may be directly related to treating, processing, refining or transporting geothermal energy— • catering, accommodation and travel costs for personnel • communication costs • consumable stores used at the site at which the energy is produced • costs associated with transporting the geothermal energy, including a reasonable share of road maintenance and repairs, motor vehicle costs, wharfage and harbour fees • geothermal energy storage costs • geothermal tenure rents • personnel wages and salaries • repairs and maintenance of, and insurance costs for, operating plant and pipelines used to produce geothermal energy or transporting it from the wellhead to the point of its disposal
• catering, accommodation and travel costs for personnel
• communication costs
• consumable stores used at the site at which the energy is produced
• costs associated with transporting the geothermal energy, including a reasonable share of road maintenance and repairs, motor vehicle costs, wharfage and harbour fees
• geothermal energy storage costs
• geothermal tenure rents
• personnel wages and salaries
• repairs and maintenance of, and insurance costs for, operating plant and pipelines used to produce geothermal energy or transporting it from the wellhead to the point of its disposal
(d) another expense incurred, or to be incurred, by the geothermal producer in relation to the operation of the site at which the geothermal energy was produced that is approved by the Minister for the purpose of this section.
(i) on a commercial basis; or
(ii) if the Minister believes another basis for working out the charges is a more practical basis—on the other basis;
(i) 10 years; or
(ii) if the Minister believes a shorter period is appropriate having regard to the expected potential for geothermal production from the well in which the geothermal energy was produced—the shorter period decided by the Minister;
(i) treating, processing or refining the geothermal energy; or
(ii) transporting the geothermal energy to the point of its disposal; Examples of operating costs that may be directly related to treating, processing, refining or transporting geothermal energy— • catering, accommodation and travel costs for personnel • communication costs • consumable stores used at the site at which the energy is produced • costs associated with transporting the geothermal energy, including a reasonable share of road maintenance and repairs, motor vehicle costs, wharfage and harbour fees • geothermal energy storage costs • geothermal tenure rents • personnel wages and salaries • repairs and maintenance of, and insurance costs for, operating plant and pipelines used to produce geothermal energy or transporting it from the wellhead to the point of its disposal
• catering, accommodation and travel costs for personnel
• communication costs
• consumable stores used at the site at which the energy is produced
• costs associated with transporting the geothermal energy, including a reasonable share of road maintenance and repairs, motor vehicle costs, wharfage and harbour fees
• geothermal energy storage costs
• geothermal tenure rents
• personnel wages and salaries
• repairs and maintenance of, and insurance costs for, operating plant and pipelines used to produce geothermal energy or transporting it from the wellhead to the point of its disposal
• catering, accommodation and travel costs for personnel
• communication costs
• consumable stores used at the site at which the energy is produced
• costs associated with transporting the geothermal energy, including a reasonable share of road maintenance and repairs, motor vehicle costs, wharfage and harbour fees
• geothermal energy storage costs
• geothermal tenure rents
• personnel wages and salaries
• repairs and maintenance of, and insurance costs for, operating plant and pipelines used to produce geothermal energy or transporting it from the wellhead to the point of its disposal
(a) an expense incurred by the geothermal producer in producing the geothermal energy; Example for paragraph (a) — lifting costs
(b) office overhead costs for an office that is not located in the area of the geothermal tenure or at the site at which geothermal energy is produced;
(c) marketing costs for producing geothermal energy;
(d) Commonwealth excise levies;
(e) a civil penalty, or interest on an amount, payable by the geothermal producer under the Act .
pt.8-div.2
Working out geothermal royalty
Working out geothermal royalty
sec.42
Geothermal royalty rate—Act s, 105
sec.42 Geothermal royalty rate—Act s, 105
For section 105 (b) of the Act , the rate of geothermal royalty payable by a geothermal producer for a royalty return period is 2.5% of the wellhead value of all geothermal energy produced by or for the geothermal producer in the period.
sec.43
Working out wellhead value of geothermal energy
sec.43 Working out wellhead value of geothermal energy
The wellhead value of geothermal energy produced by or for a geothermal producer in a royalty return period is—
the amount the geothermal producer could reasonably expect to realise if the geothermal energy were sold on a commercial basis (the projected amount ); less
the sum of the following for the period—
the operating expenses for the geothermal energy;
any negative wellhead value deductable under subsection (2) .
If, for a royalty return period, the operating expenses are more than the projected amount—
the amount of the excess is a negative wellhead value for the royalty return period; and
the negative wellhead value may be deducted under subsection (1) (b) (ii) in a later royalty return period in the same year.
To remove any doubt, it is declared that a geothermal producer is not entitled to receive any payment in relation to a negative wellhead value.
(sec.43-ssec.1) The wellhead value of geothermal energy produced by or for a geothermal producer in a royalty return period is— the amount the geothermal producer could reasonably expect to realise if the geothermal energy were sold on a commercial basis (the projected amount ); less the sum of the following for the period— the operating expenses for the geothermal energy; any negative wellhead value deductable under subsection (2) .
(sec.43-ssec.2) If, for a royalty return period, the operating expenses are more than the projected amount— the amount of the excess is a negative wellhead value for the royalty return period; and the negative wellhead value may be deducted under subsection (1) (b) (ii) in a later royalty return period in the same year.
(sec.43-ssec.3) To remove any doubt, it is declared that a geothermal producer is not entitled to receive any payment in relation to a negative wellhead value.
(a) the amount the geothermal producer could reasonably expect to realise if the geothermal energy were sold on a commercial basis (the projected amount ); less
(b) the sum of the following for the period— (i) the operating expenses for the geothermal energy; (ii) any negative wellhead value deductable under subsection (2) .
(i) the operating expenses for the geothermal energy;
(ii) any negative wellhead value deductable under subsection (2) .
(i) the operating expenses for the geothermal energy;
(ii) any negative wellhead value deductable under subsection (2) .
(a) the amount of the excess is a negative wellhead value for the royalty return period; and
(b) the negative wellhead value may be deducted under subsection (1) (b) (ii) in a later royalty return period in the same year.
sec.44
Minister may request information or geothermal royalty decision in particular circumstances
sec.44 Minister may request information or geothermal royalty decision in particular circumstances
This section applies if the Minister reasonably believes, in particular circumstances, that for working out the wellhead value of geothermal energy produced by or for a geothermal producer in a royalty return period—
the projected amount under section 43 (1) (a) is less than the market value of the geothermal energy; or
the operating expenses for the geothermal energy are more than the expenses that would reasonably be incurred in the circumstances.
Without limiting subsection (1) , the Minister may form the reasonable belief because of any of the following circumstances—
the geothermal energy is used in a power station owned by the geothermal producer;
the geothermal energy is acquired by an associated entity or related party of the geothermal producer;
an expense was paid or payable to an associated entity or related party of the geothermal producer.
The Minister may ask the geothermal producer—
to give the Minister information or documents that support that 1 or more components of the wellhead value are based on arms-length transactions at market value; or
to apply to the Minister under section 45 for a geothermal royalty decision.
The geothermal producer must comply with the Minister’s request made under subsection (3) within—
40 business days after the request is made; or
if the Minister has, within the 40 business days, agreed to a longer period—the longer period.
The Minister may ask the geothermal producer for additional information or documents about a transaction if—
the Minister made a request under subsection (3) (a) ; and
the geothermal producer complied with the request as required under subsection (4) .
Subsection (7) applies if—
the geothermal producer does not comply with a request made under subsection (3) or (5) ; or
for a request made under subsection (3) (a) , the geothermal producer—
complies with the request; but
the information or documents do not satisfy the Minister that 1 or more components of the wellhead value are based on arms-length transactions at market value.
The Minister may make a geothermal royalty decision for 1 or more components of the wellhead value as if the geothermal producer had made an application for a geothermal royalty decision under section 45 .
In this section—
associated entity , of a geothermal producer, means an entity that, within the meaning of the Corporations Act , section 50AAA , is an associated entity of the geothermal producer.
related party , of a geothermal producer, means an entity that, within the meaning of the Corporations Act , section 228 , is a related party of the geothermal producer.
(sec.44-ssec.1) This section applies if the Minister reasonably believes, in particular circumstances, that for working out the wellhead value of geothermal energy produced by or for a geothermal producer in a royalty return period— the projected amount under section 43 (1) (a) is less than the market value of the geothermal energy; or the operating expenses for the geothermal energy are more than the expenses that would reasonably be incurred in the circumstances.
(sec.44-ssec.2) Without limiting subsection (1) , the Minister may form the reasonable belief because of any of the following circumstances— the geothermal energy is used in a power station owned by the geothermal producer; the geothermal energy is acquired by an associated entity or related party of the geothermal producer; an expense was paid or payable to an associated entity or related party of the geothermal producer.
(sec.44-ssec.3) The Minister may ask the geothermal producer— to give the Minister information or documents that support that 1 or more components of the wellhead value are based on arms-length transactions at market value; or to apply to the Minister under section 45 for a geothermal royalty decision.
(sec.44-ssec.4) The geothermal producer must comply with the Minister’s request made under subsection (3) within— 40 business days after the request is made; or if the Minister has, within the 40 business days, agreed to a longer period—the longer period.
(sec.44-ssec.5) The Minister may ask the geothermal producer for additional information or documents about a transaction if— the Minister made a request under subsection (3) (a) ; and the geothermal producer complied with the request as required under subsection (4) .
(sec.44-ssec.6) Subsection (7) applies if— the geothermal producer does not comply with a request made under subsection (3) or (5) ; or for a request made under subsection (3) (a) , the geothermal producer— complies with the request; but the information or documents do not satisfy the Minister that 1 or more components of the wellhead value are based on arms-length transactions at market value.
(sec.44-ssec.7) The Minister may make a geothermal royalty decision for 1 or more components of the wellhead value as if the geothermal producer had made an application for a geothermal royalty decision under section 45 .
(sec.44-ssec.8) In this section— associated entity , of a geothermal producer, means an entity that, within the meaning of the Corporations Act , section 50AAA , is an associated entity of the geothermal producer. related party , of a geothermal producer, means an entity that, within the meaning of the Corporations Act , section 228 , is a related party of the geothermal producer.
(a) the projected amount under section 43 (1) (a) is less than the market value of the geothermal energy; or
(b) the operating expenses for the geothermal energy are more than the expenses that would reasonably be incurred in the circumstances.
(a) the geothermal energy is used in a power station owned by the geothermal producer;
(b) the geothermal energy is acquired by an associated entity or related party of the geothermal producer;
(c) an expense was paid or payable to an associated entity or related party of the geothermal producer.
(a) to give the Minister information or documents that support that 1 or more components of the wellhead value are based on arms-length transactions at market value; or
(b) to apply to the Minister under section 45 for a geothermal royalty decision.
(a) 40 business days after the request is made; or
(b) if the Minister has, within the 40 business days, agreed to a longer period—the longer period.
(a) the Minister made a request under subsection (3) (a) ; and
(b) the geothermal producer complied with the request as required under subsection (4) .
(a) the geothermal producer does not comply with a request made under subsection (3) or (5) ; or
(b) for a request made under subsection (3) (a) , the geothermal producer— (i) complies with the request; but (ii) the information or documents do not satisfy the Minister that 1 or more components of the wellhead value are based on arms-length transactions at market value.
(i) complies with the request; but
(ii) the information or documents do not satisfy the Minister that 1 or more components of the wellhead value are based on arms-length transactions at market value.
(i) complies with the request; but
(ii) the information or documents do not satisfy the Minister that 1 or more components of the wellhead value are based on arms-length transactions at market value.
sec.45
Geothermal producer may apply for geothermal royalty decision
sec.45 Geothermal producer may apply for geothermal royalty decision
A geothermal producer may apply to the Minister for a decision (a geothermal royalty decision ) about how 1 or more components of the wellhead value of geothermal energy produced by or for the geothermal producer in a royalty return period must be worked out for a particular transaction or particular period.
The application must be made—
before the geothermal energy is produced; or
before, or as soon as practicable after, a material change of circumstances that may affect whether the components mentioned in subsection (1) are based on an arms-length transaction at market value.
The application must—
be in writing; and
be given to the chief executive at the office of the department stated on the department’s website; and
state why the geothermal producer is seeking the geothermal royalty decision; and
include a statement about how the geothermal producer proposes the components mentioned in subsection (1) should be worked out for the particular transaction or particular period; and
a fixed value with adjustments in particular circumstances
a formula for deciding the market value
include a statement about each of the following—
the proposed period for which the geothermal royalty decision will apply;
whether or not the geothermal royalty decision is to be reviewed;
if the geothermal producer proposes that the geothermal royalty decision be reviewed—when the decision is to be reviewed.
(sec.45-ssec.1) A geothermal producer may apply to the Minister for a decision (a geothermal royalty decision ) about how 1 or more components of the wellhead value of geothermal energy produced by or for the geothermal producer in a royalty return period must be worked out for a particular transaction or particular period.
(sec.45-ssec.2) The application must be made— before the geothermal energy is produced; or before, or as soon as practicable after, a material change of circumstances that may affect whether the components mentioned in subsection (1) are based on an arms-length transaction at market value.
(sec.45-ssec.3) The application must— be in writing; and be given to the chief executive at the office of the department stated on the department’s website; and state why the geothermal producer is seeking the geothermal royalty decision; and include a statement about how the geothermal producer proposes the components mentioned in subsection (1) should be worked out for the particular transaction or particular period; and a fixed value with adjustments in particular circumstances a formula for deciding the market value include a statement about each of the following— the proposed period for which the geothermal royalty decision will apply; whether or not the geothermal royalty decision is to be reviewed; if the geothermal producer proposes that the geothermal royalty decision be reviewed—when the decision is to be reviewed.
(a) before the geothermal energy is produced; or
(b) before, or as soon as practicable after, a material change of circumstances that may affect whether the components mentioned in subsection (1) are based on an arms-length transaction at market value.
(a) be in writing; and
(b) be given to the chief executive at the office of the department stated on the department’s website; and
(c) state why the geothermal producer is seeking the geothermal royalty decision; and
(d) include a statement about how the geothermal producer proposes the components mentioned in subsection (1) should be worked out for the particular transaction or particular period; and Examples— • a fixed value with adjustments in particular circumstances • a formula for deciding the market value
• a fixed value with adjustments in particular circumstances
• a formula for deciding the market value
(e) include a statement about each of the following— (i) the proposed period for which the geothermal royalty decision will apply; (ii) whether or not the geothermal royalty decision is to be reviewed; (iii) if the geothermal producer proposes that the geothermal royalty decision be reviewed—when the decision is to be reviewed.
(i) the proposed period for which the geothermal royalty decision will apply;
(ii) whether or not the geothermal royalty decision is to be reviewed;
(iii) if the geothermal producer proposes that the geothermal royalty decision be reviewed—when the decision is to be reviewed.
• a fixed value with adjustments in particular circumstances
• a formula for deciding the market value
(i) the proposed period for which the geothermal royalty decision will apply;
(ii) whether or not the geothermal royalty decision is to be reviewed;
(iii) if the geothermal producer proposes that the geothermal royalty decision be reviewed—when the decision is to be reviewed.
sec.46
Deciding application for geothermal royalty decision
sec.46 Deciding application for geothermal royalty decision
The Minister must make a geothermal royalty decision for an application made under section 45 .
The geothermal royalty decision may state—
a method or formula—
for deciding the market value of the geothermal energy; or
for working out a particular toll, tariff or other charge paid or payable by the geothermal producer; or
for adjusting the market value of the geothermal energy or the tolls, tariffs or other charges in particular circumstances; or
for working out any other component of the wellhead value of the geothermal energy; and
the period for which the geothermal royalty decision applies; and
if applicable—when the geothermal royalty decision is to be reviewed.
In making the geothermal royalty decision, the Minister may consider the following matters—
the amount received for geothermal energy sold in similar circumstances;
how the value of the geothermal energy can be adjusted to reflect changes to the market value of geothermal energy;
the expenses likely to be incurred by the geothermal producer in arms-length transactions at market value;
the period for which the geothermal royalty decision, or aspects of the decision, will apply;
the need for any future adjustment of the geothermal royalty decision or aspects of the decision;
any submissions made to the Minister by the geothermal producer in relation to a component of the wellhead value of the geothermal energy;
any other matter the Minister considers relevant.
The Minister must give the geothermal producer written notice of the geothermal royalty decision and the reasons for the decision.
(sec.46-ssec.1) The Minister must make a geothermal royalty decision for an application made under section 45 .
(sec.46-ssec.2) The geothermal royalty decision may state— a method or formula— for deciding the market value of the geothermal energy; or for working out a particular toll, tariff or other charge paid or payable by the geothermal producer; or for adjusting the market value of the geothermal energy or the tolls, tariffs or other charges in particular circumstances; or for working out any other component of the wellhead value of the geothermal energy; and the period for which the geothermal royalty decision applies; and if applicable—when the geothermal royalty decision is to be reviewed.
(sec.46-ssec.3) In making the geothermal royalty decision, the Minister may consider the following matters— the amount received for geothermal energy sold in similar circumstances; how the value of the geothermal energy can be adjusted to reflect changes to the market value of geothermal energy; the expenses likely to be incurred by the geothermal producer in arms-length transactions at market value; the period for which the geothermal royalty decision, or aspects of the decision, will apply; the need for any future adjustment of the geothermal royalty decision or aspects of the decision; any submissions made to the Minister by the geothermal producer in relation to a component of the wellhead value of the geothermal energy; any other matter the Minister considers relevant.
(sec.46-ssec.4) The Minister must give the geothermal producer written notice of the geothermal royalty decision and the reasons for the decision.
(a) a method or formula— (i) for deciding the market value of the geothermal energy; or (ii) for working out a particular toll, tariff or other charge paid or payable by the geothermal producer; or (iii) for adjusting the market value of the geothermal energy or the tolls, tariffs or other charges in particular circumstances; or (iv) for working out any other component of the wellhead value of the geothermal energy; and
(i) for deciding the market value of the geothermal energy; or
(ii) for working out a particular toll, tariff or other charge paid or payable by the geothermal producer; or
(iii) for adjusting the market value of the geothermal energy or the tolls, tariffs or other charges in particular circumstances; or
(iv) for working out any other component of the wellhead value of the geothermal energy; and
(b) the period for which the geothermal royalty decision applies; and
(c) if applicable—when the geothermal royalty decision is to be reviewed.
(i) for deciding the market value of the geothermal energy; or
(ii) for working out a particular toll, tariff or other charge paid or payable by the geothermal producer; or
(iii) for adjusting the market value of the geothermal energy or the tolls, tariffs or other charges in particular circumstances; or
(iv) for working out any other component of the wellhead value of the geothermal energy; and
(a) the amount received for geothermal energy sold in similar circumstances;
(b) how the value of the geothermal energy can be adjusted to reflect changes to the market value of geothermal energy;
(c) the expenses likely to be incurred by the geothermal producer in arms-length transactions at market value;
(d) the period for which the geothermal royalty decision, or aspects of the decision, will apply;
(e) the need for any future adjustment of the geothermal royalty decision or aspects of the decision;
(f) any submissions made to the Minister by the geothermal producer in relation to a component of the wellhead value of the geothermal energy;
(g) any other matter the Minister considers relevant.
sec.47
Minister may amend geothermal royalty decision
sec.47 Minister may amend geothermal royalty decision
The Minister may amend a geothermal royalty decision applying to a geothermal producer if there has been a material change of circumstances since the making of the decision.
If the Minister proposes to amend a geothermal royalty decision applying to a geothermal producer on the Minister’s own initiative, the Minister must—
give the geothermal producer notice of the proposed change at least 60 business days before the first day of the next royalty return period to which the proposed amended royalty decision would apply; and
invite the geothermal producer to make submissions about the proposed amendment within 30 business days (the submission period ) after giving the notice.
In amending a geothermal royalty decision applying to a geothermal producer, the Minister—
must consider any submissions made by the geothermal producer in the submission period; and
may consider the matters stated in section 46 (3) (a) to (e) and (g) .
If the Minister amends the geothermal royalty decision, the Minister must give the geothermal producer written notice of the decision and the reasons for the decision.
The amended geothermal royalty decision must state the period to which the decision applies.
(sec.47-ssec.1) The Minister may amend a geothermal royalty decision applying to a geothermal producer if there has been a material change of circumstances since the making of the decision.
(sec.47-ssec.2) If the Minister proposes to amend a geothermal royalty decision applying to a geothermal producer on the Minister’s own initiative, the Minister must— give the geothermal producer notice of the proposed change at least 60 business days before the first day of the next royalty return period to which the proposed amended royalty decision would apply; and invite the geothermal producer to make submissions about the proposed amendment within 30 business days (the submission period ) after giving the notice.
(sec.47-ssec.3) In amending a geothermal royalty decision applying to a geothermal producer, the Minister— must consider any submissions made by the geothermal producer in the submission period; and may consider the matters stated in section 46 (3) (a) to (e) and (g) .
(sec.47-ssec.4) If the Minister amends the geothermal royalty decision, the Minister must give the geothermal producer written notice of the decision and the reasons for the decision.
(sec.47-ssec.5) The amended geothermal royalty decision must state the period to which the decision applies.
(a) give the geothermal producer notice of the proposed change at least 60 business days before the first day of the next royalty return period to which the proposed amended royalty decision would apply; and
(b) invite the geothermal producer to make submissions about the proposed amendment within 30 business days (the submission period ) after giving the notice.
(a) must consider any submissions made by the geothermal producer in the submission period; and
(b) may consider the matters stated in section 46 (3) (a) to (e) and (g) .
sec.48
Geothermal producer may apply for amendment of geothermal royalty decision
sec.48 Geothermal producer may apply for amendment of geothermal royalty decision
A geothermal producer may apply to the Minister to amend a geothermal royalty decision.
The geothermal producer’s application must be made at least 60 business days before the first day of the royalty return period to which the proposed amended geothermal royalty decision would apply.
Sections 45 (3) and 46 apply to the application as if the reference in the provisions to the geothermal royalty decision were a reference to an amendment of the geothermal royalty decision.
(sec.48-ssec.1) A geothermal producer may apply to the Minister to amend a geothermal royalty decision.
(sec.48-ssec.2) The geothermal producer’s application must be made at least 60 business days before the first day of the royalty return period to which the proposed amended geothermal royalty decision would apply.
(sec.48-ssec.3) Sections 45 (3) and 46 apply to the application as if the reference in the provisions to the geothermal royalty decision were a reference to an amendment of the geothermal royalty decision.
pt.9
Miscellaneous provisions
Miscellaneous provisions
sec.49
Way for making or giving an application, document or submission— Act , s 363
sec.49 Way for making or giving an application, document or submission— Act , s 363
For section 363 (2) (b) of the Act , the prescribed way is using the online system on the department’s website.
However, if a person makes or gives an application, document or submission as mentioned in subsection (1) , the chief executive may, by notice given to the person, require the person to also lodge a hard copy of the application, document or submission at the place mentioned in section 363 (2) (a) of the Act .
If a person makes or gives an application, document or submission as mentioned in subsection (1) after 4.30p.m. on a business day and before 8.30a.m. on the next business day (the later day ), the application, document or submission is taken to have been made or given at 8.30a.m. on the later day.
(sec.49-ssec.1) For section 363 (2) (b) of the Act , the prescribed way is using the online system on the department’s website.
(sec.49-ssec.2) However, if a person makes or gives an application, document or submission as mentioned in subsection (1) , the chief executive may, by notice given to the person, require the person to also lodge a hard copy of the application, document or submission at the place mentioned in section 363 (2) (a) of the Act .
(sec.49-ssec.3) If a person makes or gives an application, document or submission as mentioned in subsection (1) after 4.30p.m. on a business day and before 8.30a.m. on the next business day (the later day ), the application, document or submission is taken to have been made or given at 8.30a.m. on the later day.
sec.50
Annual rent— Act , s 130
sec.50 Annual rent— Act , s 130
For section 130 (1) of the Act , the annual rent payable for each geothermal tenure is stated in schedule 4 .
For section 130 (2) of the Act , the annual rent, or a pro-rata amount of the annual rent if the period to which the rent relates is less than a year, must be paid on or before—
on the grant of the geothermal tenure, if the Minister has not already required payment of the rent—the 20th business day after the tenure takes effect; or
otherwise—31 August each year.
If the annual rent is paid for a year and the geothermal tenure ends during the year, the proportion of the rent that relates to the remainder of the year may be refunded.
(sec.50-ssec.1) For section 130 (1) of the Act , the annual rent payable for each geothermal tenure is stated in schedule 4 .
(sec.50-ssec.2) For section 130 (2) of the Act , the annual rent, or a pro-rata amount of the annual rent if the period to which the rent relates is less than a year, must be paid on or before— on the grant of the geothermal tenure, if the Minister has not already required payment of the rent—the 20th business day after the tenure takes effect; or otherwise—31 August each year.
(sec.50-ssec.3) If the annual rent is paid for a year and the geothermal tenure ends during the year, the proportion of the rent that relates to the remainder of the year may be refunded.
(a) on the grant of the geothermal tenure, if the Minister has not already required payment of the rent—the 20th business day after the tenure takes effect; or
(b) otherwise—31 August each year.
sec.51
Security for geothermal tenure— Act , s 204
sec.51 Security for geothermal tenure— Act , s 204
For section 204 (2) (a) of the Act , the following forms of security are prescribed—
cash, including an electronic funds transfer of cash;
an unconditional security issued by a financial institution that—
is in favour of the ‘State of Queensland’ and is payable on demand; and
has no expiry date; and
states the type and number of the geothermal tenure or proposed geothermal tenure; and
states the address of the financial institution; and
is signed by an officer of the financial institution who has authority to sign the security;
a combination of the forms mentioned in paragraphs (a) and (b) .
For section 204 (2) (b) of the Act , the following amounts are prescribed—
for a geothermal permit or proposed geothermal permit—$14,748;
for a geothermal lease or proposed geothermal lease—$43,017.
(sec.51-ssec.1) For section 204 (2) (a) of the Act , the following forms of security are prescribed— cash, including an electronic funds transfer of cash; an unconditional security issued by a financial institution that— is in favour of the ‘State of Queensland’ and is payable on demand; and has no expiry date; and states the type and number of the geothermal tenure or proposed geothermal tenure; and states the address of the financial institution; and is signed by an officer of the financial institution who has authority to sign the security; a combination of the forms mentioned in paragraphs (a) and (b) .
(sec.51-ssec.2) For section 204 (2) (b) of the Act , the following amounts are prescribed— for a geothermal permit or proposed geothermal permit—$14,748; for a geothermal lease or proposed geothermal lease—$43,017.
(a) cash, including an electronic funds transfer of cash;
(b) an unconditional security issued by a financial institution that— (i) is in favour of the ‘State of Queensland’ and is payable on demand; and (ii) has no expiry date; and (iii) states the type and number of the geothermal tenure or proposed geothermal tenure; and (iv) states the address of the financial institution; and (v) is signed by an officer of the financial institution who has authority to sign the security;
(i) is in favour of the ‘State of Queensland’ and is payable on demand; and
(ii) has no expiry date; and
(iii) states the type and number of the geothermal tenure or proposed geothermal tenure; and
(iv) states the address of the financial institution; and
(v) is signed by an officer of the financial institution who has authority to sign the security;
(c) a combination of the forms mentioned in paragraphs (a) and (b) .
(i) is in favour of the ‘State of Queensland’ and is payable on demand; and
(ii) has no expiry date; and
(iii) states the type and number of the geothermal tenure or proposed geothermal tenure; and
(iv) states the address of the financial institution; and
(v) is signed by an officer of the financial institution who has authority to sign the security;
(a) for a geothermal permit or proposed geothermal permit—$14,748;
(b) for a geothermal lease or proposed geothermal lease—$43,017.
sec.52
Prescribed interest on amounts owing to the State— Act , s 372
sec.52 Prescribed interest on amounts owing to the State— Act , s 372
For section 372 (2) of the Act , the rate of interest is 15% a year.
sec.53
Fees
sec.53 Fees
The fees payable under the Act are stated in schedule 5 .
pt.10
Transitional provisions
Transitional provisions
sec.54
Definition for part
sec.54 Definition for part
In this part—
expired regulation means the expired Geothermal Energy Regulation 2012 .
sec.55
Existing requirement to give a notice, report or information
sec.55 Existing requirement to give a notice, report or information
This section applies if—
before the commencement—
a person was required to give the chief executive a notice, report or information under the Act ; and
the expired regulation, part 3 or 4, prescribed matters for the notice, report or information, including, for example, the requirement to give the notice, report or information; and
immediately before the commencement, the period within which the notice, report or information was required to be given had not ended.
The expired regulation continues to apply in relation to the requirement to give the notice, report or information as if this regulation had not been made.
In this section—
information includes documents, records and samples.
(sec.55-ssec.1) This section applies if— before the commencement— a person was required to give the chief executive a notice, report or information under the Act ; and the expired regulation, part 3 or 4, prescribed matters for the notice, report or information, including, for example, the requirement to give the notice, report or information; and immediately before the commencement, the period within which the notice, report or information was required to be given had not ended.
(sec.55-ssec.2) The expired regulation continues to apply in relation to the requirement to give the notice, report or information as if this regulation had not been made.
(sec.55-ssec.3) In this section— information includes documents, records and samples.
(a) before the commencement— (i) a person was required to give the chief executive a notice, report or information under the Act ; and (ii) the expired regulation, part 3 or 4, prescribed matters for the notice, report or information, including, for example, the requirement to give the notice, report or information; and
(i) a person was required to give the chief executive a notice, report or information under the Act ; and
(ii) the expired regulation, part 3 or 4, prescribed matters for the notice, report or information, including, for example, the requirement to give the notice, report or information; and
(b) immediately before the commencement, the period within which the notice, report or information was required to be given had not ended.
(i) a person was required to give the chief executive a notice, report or information under the Act ; and
(ii) the expired regulation, part 3 or 4, prescribed matters for the notice, report or information, including, for example, the requirement to give the notice, report or information; and
sec.56
Existing requirement to keep a sample
sec.56 Existing requirement to keep a sample
This section applies if—
before the commencement—
a person was required to keep a sample under the Act ; and
the expired regulation, part 4, division 3, prescribed matters for the requirement, including, for example, the samples that must be kept; and
immediately before the commencement, the period for which the sample was required to be kept had not ended.
The expired regulation continues to apply in relation to the requirement to keep the sample as if this regulation had not been made.
(sec.56-ssec.1) This section applies if— before the commencement— a person was required to keep a sample under the Act ; and the expired regulation, part 4, division 3, prescribed matters for the requirement, including, for example, the samples that must be kept; and immediately before the commencement, the period for which the sample was required to be kept had not ended.
(sec.56-ssec.2) The expired regulation continues to apply in relation to the requirement to keep the sample as if this regulation had not been made.
(a) before the commencement— (i) a person was required to keep a sample under the Act ; and (ii) the expired regulation, part 4, division 3, prescribed matters for the requirement, including, for example, the samples that must be kept; and
(i) a person was required to keep a sample under the Act ; and
(ii) the expired regulation, part 4, division 3, prescribed matters for the requirement, including, for example, the samples that must be kept; and
(b) immediately before the commencement, the period for which the sample was required to be kept had not ended.
(i) a person was required to keep a sample under the Act ; and
(ii) the expired regulation, part 4, division 3, prescribed matters for the requirement, including, for example, the samples that must be kept; and
sec.57
Required information given before commencement
sec.57 Required information given before commencement
Section 37 applies to required information mentioned in that section and given to the chief executive before the commencement if, on the commencement, the information has not been published under section 196 (1) of the Act .
sch.2-pt.1
Requirements for all geothermal wells
Requirements for all geothermal wells
sch.2-sec.1
Removal of particular equipment
sch.2-sec.1 Removal of particular equipment
All equipment, other than casing, that may create a hazard that is in, or immediately adjacent to, a geothermal well must be removed before the well is plugged and abandoned.
However, if it is not reasonably possible to comply with subsection (1) —
the location of the equipment must be surveyed before the well is plugged and abandoned; and
details of the equipment and its location must be included in an end of tenure report.
(sch.2-sec.1-ssec.1) All equipment, other than casing, that may create a hazard that is in, or immediately adjacent to, a geothermal well must be removed before the well is plugged and abandoned.
(sch.2-sec.1-ssec.2) However, if it is not reasonably possible to comply with subsection (1) — the location of the equipment must be surveyed before the well is plugged and abandoned; and details of the equipment and its location must be included in an end of tenure report.
(a) the location of the equipment must be surveyed before the well is plugged and abandoned; and
(b) details of the equipment and its location must be included in an end of tenure report.
sch.2-sec.2
Abandonment to be consistent with good industry practice
sch.2-sec.2 Abandonment to be consistent with good industry practice
A geothermal well must be abandoned in compliance with good industry practice, to the extent that the practice is consistent with this regulation.
sch.2-sec.3
Capping of well
sch.2-sec.3 Capping of well
A geothermal well must be capped with a metal plate inscribed with the following information—
the identifying name of the well;
the total depth in metres of the well;
the date the well was abandoned.
(a) the identifying name of the well;
(b) the total depth in metres of the well;
(c) the date the well was abandoned.
sch.2-sec.4
Casing to be sealed
sch.2-sec.4 Casing to be sealed
The casing of a geothermal well must be sealed below ground level.
The stub of the casing must be buried below the surface at a depth that—
allows for efficient later re-entry to the well; and
will not adversely interfere with the normal activities of the owner of the land on which the well is located.
(sch.2-sec.4-ssec.1) The casing of a geothermal well must be sealed below ground level.
(sch.2-sec.4-ssec.2) The stub of the casing must be buried below the surface at a depth that— allows for efficient later re-entry to the well; and will not adversely interfere with the normal activities of the owner of the land on which the well is located.
(a) allows for efficient later re-entry to the well; and
(b) will not adversely interfere with the normal activities of the owner of the land on which the well is located.
sch.2-pt.2
Additional requirements for wells other than horizontal wells
Additional requirements for wells other than horizontal wells
sch.2-sec.5
Isolation of aquifers and porous formations
sch.2-sec.5 Isolation of aquifers and porous formations
An aquifer or porous formation intersected by a geothermal well must be isolated so there is no interconnection of gas, steam or water at the point at which the aquifer or porous formation intersects the well.
cementing an interval in a well, where an aquifer or porous formation is intersected by the well, to seal off the aquifer or porous formation
sch.2-sec.6
Casing of prescribed well
sch.2-sec.6 Casing of prescribed well
Steel casing must be removed from all sections of a geothermal well that are within or immediately adjacent to geothermal fluid.
However, subsection (1) need not be complied with if it is not technically or commercially feasible to remove the casing.
production casing that has been cemented in place and can not feasibly be removed
(sch.2-sec.6-ssec.1) Steel casing must be removed from all sections of a geothermal well that are within or immediately adjacent to geothermal fluid.
(sch.2-sec.6-ssec.2) However, subsection (1) need not be complied with if it is not technically or commercially feasible to remove the casing. production casing that has been cemented in place and can not feasibly be removed
sch.2-sec.7
Cement to be used for plugs
sch.2-sec.7 Cement to be used for plugs
A geothermal well must have a surface plug of cement in the casing.
Also, if a geothermal well has more than 1 casing string and any inner casing string does not reach the surface, the inner casing string must, if required to comply with section 5 , be plugged with cement at the top of the string.
The cement used as a plug in the well must—
be of an industry accepted grade, having regard to the salinity of the fluids in the surrounding strata; and
be tested to ensure that it complies with industry accepted practices and standards.
A plug in, or adjacent to, geothermal fluid in the well must, if reasonably practicable, be adequately secured.
(sch.2-sec.7-ssec.1) A geothermal well must have a surface plug of cement in the casing.
(sch.2-sec.7-ssec.2) Also, if a geothermal well has more than 1 casing string and any inner casing string does not reach the surface, the inner casing string must, if required to comply with section 5 , be plugged with cement at the top of the string.
(sch.2-sec.7-ssec.3) The cement used as a plug in the well must— be of an industry accepted grade, having regard to the salinity of the fluids in the surrounding strata; and be tested to ensure that it complies with industry accepted practices and standards.
(sch.2-sec.7-ssec.4) A plug in, or adjacent to, geothermal fluid in the well must, if reasonably practicable, be adequately secured.
(a) be of an industry accepted grade, having regard to the salinity of the fluids in the surrounding strata; and
(b) be tested to ensure that it complies with industry accepted practices and standards.
sch.2-sec.8
Requirement for packer left in well
sch.2-sec.8 Requirement for packer left in well
A packer in, or adjacent to, a geothermal well that is not to be removed from the well must, if reasonably practicable—
be made of a material that is intrinsically safe; and
be adequately secured.
(a) be made of a material that is intrinsically safe; and
(b) be adequately secured.
sch.2-sec.9
Fluid to be left in well
sch.2-sec.9 Fluid to be left in well
A geothermal well must be left full of fluid that is of sufficient density to—
help maintain the structural integrity of the well; and
prevent gas influx.
(a) help maintain the structural integrity of the well; and
(b) prevent gas influx.
sch.2-pt.3
Additional requirement for horizontal wells
Additional requirement for horizontal wells
sch.2-sec.10
Requirement for liner
sch.2-sec.10 Requirement for liner
A horizontal geothermal well must be abandoned containing a slotted liner that is not made of steel.
a slotted PVC liner
However, if the horizontal geothermal well has the potential to cause a hazard to future mining because of high levels of methane, the geothermal tenure holder must conduct a risk assessment that includes an assessment of whether a fire resistant anti-static (or FRAS) liner should be used in the well.
(sch.2-sec.10-ssec.1) A horizontal geothermal well must be abandoned containing a slotted liner that is not made of steel. a slotted PVC liner
(sch.2-sec.10-ssec.2) However, if the horizontal geothermal well has the potential to cause a hazard to future mining because of high levels of methane, the geothermal tenure holder must conduct a risk assessment that includes an assessment of whether a fire resistant anti-static (or FRAS) liner should be used in the well.
Source text: opening excerpt
Sourced from Queensland Legislation (legislation.qld.gov.au), CC BY 4.0.
pt.1 Preliminary
Preliminary
sec.1 Short title
sec.1 Short title
This regulation may be cited as the Geothermal Energy Regulation 2022 .
sec.2 Commencement
sec.2 Commencement
This regulation commences on 1 September 2022.
sec.3 Definitions
sec.3 Definitions
The dictionary in schedule 6 defines particular words used in this regulation.
sec.4 Deciding large-scale geothermal production— Act , s 16
sec.4 Deciding large-scale geothermal production— Act , s 16
For section 16 (2) of the Act , the following criteria are prescribed—
the total amount of thermal power produced from all geothermal wells measured at the wellhead is 5 megawatts thermal (MW th ) or more when the temperature is 0°C and the atmospheric pressure is 1 atm;
For a geothermal well that produces 50 tonnes an hour of geothermal fluid with specific enthalpy of 900 kilojoules a kilogram, the total amount of thermal power produced from the well measured at the wellhead is 12.5 MW th (above 0°C).
the geothermal production is for a commercial or industrial purpose.
(a) the total amount of thermal power produced from all geothermal wells measured at the wellhead is 5 megawatts thermal (MW th ) or more when the temperature is 0°C and the atmospheric pressure is 1 atm; Example of measurement of thermal power— For a geothermal well that produces 50 tonnes an hour of geothermal fluid with specific enthalpy of 900 kilojoules a kilogram, the total amount of thermal power produced from the well measured at the wellhead is 12.5 MW th (above 0°C).
(b) the geothermal production is for a commercial or industrial purpose.
pt.2 Requirements for proposed work programs and development plans
Requirements for proposed work programs and development plans
sec.5 Proposed work program— Act , s 47
sec.5 Proposed work program— Act , s 47
For section 47 (1) (f) of the Act , the following matters are prescribed—
a description of the geological model for the geothermal reservoirs in the area of the proposed geothermal permit;
an assessment of the potential for the discovery of geothermal resources in the area of the proposed geothermal permit;
an estimate of the recoverable thermal energy in the area using units of petajoules thermal (PJ th )
the geoscientific information, standards and procedures used to make the estimate of recoverable geothermal energy
an explanation of the rationale, having regard to the geological model mentioned in paragraph (a) , for the activities proposed to be carried out under the proposed geothermal permit;
an outline of the expected outcomes to be achieved by the proposed work program.
Establishes confidentiality and publication rules for required information, with confidentiality periods tied to items in schedule 3 and publication means specified (ss 37-38).
Creates a royalty framework for geothermal producers: defines wellhead value and operating expenses, sets a royalty rate of 2.5% of wellhead value (s 42), provides working rules for calculating wellhead value and negative wellhead values (s 43), and gives the Minister extensive powers to request information and to make or amend geothermal royalty decisions, and allows producers to apply for such decisions (ss 44-48). Notably, part 8 does not apply to geothermal energy produced before 1 July 2030 (s 39).
Prescribes administrative details: online lodgement as the prescribed way, timing rules for late-night electronic lodgements, annual rent timing (with rents stated in schedule 4), forms of security and prescribed security amounts for permits and leases, a prescribed interest rate for amounts owing to the State (15% p.a.), and fees as stated in schedule 5 (ss 49-53).
Provides transitional arrangements preserving the operation of the expired Geothermal Energy Regulation 2012 for certain matters in progress before commencement (Part 10, ss 54-57).
The instrument explicitly ties many of these prescriptions to particular sections of the Act (for example, ss 4, 5, 6, 14, 16, 17, 18, 19, 33, 35, 37, 49, 50, 51, 52, 53). Where the regulation states a purpose (for example, Part 3’s stated purpose to prescribe notices the tenure holder must give, s 7; Part 4’s purpose to prescribe information and reports, s 20), those are statements by the regulation of its functional goal. The text itself contains few policy rationales beyond those operational purposes; it instead concentrates on binding procedures, timeframes, units of measurement and technical standards. The regulation therefore changes the mechanics of compliance for tenure holders by converting broad Act obligations into detailed action requirements, formats and numerical thresholds that tenure holders must observe.
When reading this instrument, note where it expressly leaves scope for Ministerial discretion (for example, to decide shorter depreciation periods, to approve additional operating expenses, or to make royalty decisions: see s 41(b), 41(d), 44-47). These delegations create administrative choices the regulator may exercise in particular factual contexts; the regulation also creates time-limited notice and review processes before some such choices take effect (see s 47). Several schedules and directions are referenced but not reproduced in the supplied text (for example schedules 1, 3, 4 and 5). The regulation therefore both prescribes concrete compliance mechanics and points to further materials (schedules, directions, the department’s website) that tenure holders must consult.
Main concepts
The regulation operates by defining and applying a set of recurring legal and technical concepts. The central concepts and how the instrument uses them are:
Geothermal tenure, geothermal permit, geothermal lease, geothermal tenure holder and geothermal producer: The instrument presumes these roles and labels from the Act and imposes duties accordingly. Duties attach to tenure holders for notices, reports and technical obligations (Part 3, Part 4, ss 8-13, 21-31). The royalty regime distinguishes “geothermal producer” (Part 8) and imposes royalty computation duties on producers (ss 40-48).
Large-scale geothermal production: For s 16 of the Act, the regulation prescribes that “large-scale” means total thermal power at the wellhead of 5 MWth or more (measured at 0°C and 1 atm) and that production is for a commercial or industrial purpose (s 4). The regulation provides an example calculation. The definition therefore couples a quantitative thermal threshold with a purpose test.
Wellhead value: Central to the royalty architecture. The wellhead value is the producer’s projected sale realisation (the “projected amount”) less operating expenses and any carry-forward negative wellhead value (s 43). The regulation prescribes the royalty rate as 2.5% of the wellhead value (s 42).
Projected amount and operating expenses: The projected amount is the amount the producer could reasonably expect to realise if the geothermal energy were sold on a commercial basis (s 43(1)(a)). Operating expenses are exhaustively described but with some ministerial discretions: tolls and tariffs must be commercial or on another basis the Minister accepts; depreciation of capital costs is allocated over 10 years unless the Minister decides a shorter period; a non-exhaustive list of operating costs is provided and the Minister may approve other site-operation expenses (s 41). Operating expenses expressly exclude lifting costs, remote office overheads, marketing costs, Commonwealth excise levies and civil penalties under the Act (s 41(2)).
Negative wellhead value: If operating expenses exceed projected amount in a royalty return period, the excess becomes a negative wellhead value. The negative may be deducted in a later royalty return period in the same year, but the producer is not entitled to any payment in relation to a negative wellhead value (s 43(2)-(3)).
Reporting and units: The regulation defines in s 32 the units that must be used when reporting specific items (for example, injected water in tonnes, energy generation in MWh, geothermal resources in PJth or PJe depending on thermal or electrical energy). The base temperature must be stated when heat quantities are reported.
Notices and timing: The instrument imposes minimum notice periods (typically 10 business days for drilling, surveys, hydraulic fracturing , ss 8, 10, 12) and sets reporting deadlines (for example, well completion report within 12 months after the rig release day , s 22; production report within 60 business days after each 6‑month period , s 25).
Core samples and data custodianship: Tenure holders must keep a core sample for each well until the later of the tenure’s end or when the sample (or part) is given to the chief executive; the regulation permits exemption from keeping a new sample where an equivalent previous sample has been provided (ss 33-34). When parts of cores are given, minimum proportions and labelling requirements apply (s 34).
Plugging, abandonment and well construction standards: Schedule 2 (sch 2) prescribes technical rules for abandonment: removal of hazardous equipment, sealing casing below ground, burial depth for casing stubs, cement plugs of industry-accepted grade and test, isolation of aquifers, removal of steel casing in sections adjacent to geothermal fluid unless infeasible; special requirements for horizontal wells including slotted non-steel liners and methane/FRAS risk assessments (sch 2, secs 1-10).
Confidentiality and publication: The regulation sets confidentiality periods for required information by reference to schedule 3 (s 37) and prescribes publication methods and places including Queensland Government websites, department journals, public databases and physical public inspection or purchase for spatial data (s 38).
Ministerial powers and procedural devices: The Minister may request information, form reasonable beliefs about market values or related-party transactions, ask producers to apply for geothermal royalty decisions, make royalty decisions, amend decisions on material change with notice, and consider specified matters in making decisions (ss 44-47). The regulation provides an application procedure for geothermal royalty decisions and requires written reasons for decisions (ss 45-46).
These concepts knit technical operational requirements together with an administrative valuation regime that centres on the wellhead value calculation and Ministerial oversight. Several concepts incorporate delegated discretion to the Minister, which creates administrative variability in application.
Who it affects
The regulation identifies a defined set of actors and allocates duties, rights and administrative interfaces among them. The primary groups affected are:
Geothermal tenure holders: Permit and lease holders are subject to most operational duties. They must give notices before drilling and surveys (ss 8, 10), report completions, abandonment, daily drilling activity, production, injection and testing (ss 21-31), retain core samples (ss 33-34), comply with plugging and abandonment standards (sch 2), and plug shot holes and remediate disturbance (s 36). Tenure holders must use specified units in reports (s 32). Tenure holders also pay annual rent per schedule 4 and fees in schedule 5 (s 50, s 53).
Geothermal producers: Where separate from tenure holders, geothermal producers face the royalty regime in Part 8. Producers must calculate wellhead value for each 3-month royalty return period, apply the 2.5% royalty rate (s 42), maintain documentation supporting projected amounts and operating expenses (ss 40-43), respond to Ministerial information requests (s 44), and may apply for geothermal royalty decisions or amendments (ss 45-48). The regulation disapplies the royalty part to energy produced before 1 July 2030 (s 39), so producers operating before that date are expressly outside Part 8 for that production.
The Minister and the chief executive: The Minister has adjudicative and discretionary responsibilities under the royalty regime, including the power to request information, make geothermal royalty decisions, and amend them with procedural notice and consultation (ss 44-47). The chief executive is the recipient of notices and reports and is authorised to publish required information and to request hard copies in specified circumstances (ss 7, 21, 49, 38).
Associated entities and related parties: The regulation treats transactions with associated entities or related parties as a possible trigger for Ministerial scrutiny in the royalty context. If geothermal energy is used in the producer’s own power station or sold to an associated entity, the Minister may form a reasonable belief that the projected amount is understated or operating expenses overstated and request supporting information or make a royalty decision (s 44).
Landowners and neighbouring users: The regulation contains duties with consequences for landowners. For example, casing stubs must be buried at a depth that will not adversely interfere with the owner’s normal activities (sch 2, s 4(2)(b)), and shot holes must be plugged and surrounding areas restored (s 36). Where wells present future hazards to mining due to methane, additional assessments are required for horizontal wells (sch 2, s 10).
Financial institutions and surety providers: Prescribed forms of security include unconditional bank guarantees with particular content requirements and cash transfers (s 51). Financial institutions issuing unconditional securities must ensure those securities are in favour of the State, payable on demand, have no expiry date and state specific geothermal tenure details (s 51(1)(b)).
Data users and third parties: Publication rules (s 38) make certain required information publicly available by multiple methods including databases and Queensland Government websites, and allow spatial data to be inspected or purchased. The regulation also creates a confidentiality regime (s 37) based on schedule 3 which affects when such information becomes public.
In short, the regulation primarily affects tenure holders and producers but also imposes consequential obligations or interests on the Minister, the department (chief executive), landowners, associated entities, financial guarantors and the public as recipients of published data. Who pays: tenure holders/producers pay rents (s 50), fees (s 53), prescribed securities (s 51), royalties (s 42), and interest on amounts owing (s 52). Who decides: the Minister exercises valuation and approval discretion under the royalty provisions (ss 44-48); the chief executive receives and publishes the reports and may require hard copies (s 49, s 38).
Key duties and rights
This section lays out the regulation’s principal statutory obligations for tenure holders and geothermal producers, and the concomitant rights to seek administrative determinations. All statutory references are to provisions in the regulation text supplied.
Notices and timing obligations
Ten business days’ notice is required before drilling a geothermal well (s 8(1)), naming the well must not duplicate an identifying name recorded in the register (s 8(2)). A similar 10 business days’ notice applies to geophysical, scientific or technical surveys (s 10(2)) and to intent to carry out hydraulic fracturing (s 12(2)). These notices must include specified content: survey notices must include a proposed identifying name, type of survey, a description of the part of the area to be surveyed, start day, expected duration and spatial information showing the surveyed area (s 10(2)-(3)).
Reporting obligations and contents
Daily drilling reports must be kept for each day of drilling and contain the information stated in schedule 1, section 1; copies must be given with the well completion report and upon request (s 21). Well completion reports are due within 12 months after the rig release day and must contain schedule 1 section 2 information; if the well was plugged and abandoned on or before rig release the well abandonment report must accompany it (s 22). Well abandonment reports are to contain schedule 1 section 3 information and be given either with the well completion report or within 6 months of plugging and abandoning (s 23).
Regular resource, production and injection reporting deadlines are imposed: annual resources reports within 60 business days after each 12-month period (s 24), production reports within 60 business days after each 6-month period (s 25), injection reports within 60 business days after each 12-month period (s 27). Production and injection testing reports have shorter windows after testing ends (ss 26, 28). Geophysical and scientific survey reports are due within 12 months after the survey’s completion day (ss 29-30). A hydraulic fracturing completion report is due within 6 months after completion (s 31).
End-of-tenure, partial relinquishment and surrender reports must contain the information prescribed in ss 17-19 (including general area information as defined in s 15, hazard information, reasons for relinquishment/surrender, geological models, production and injection histories and other directed items).
Technical and environmental duties
Core samples: A core sample for each geothermal well must be kept until the later of the tenure’s end or when the sample is given to the chief executive; the regulation allows exemption where a previous similar sample has already been provided (s 33). When a part of a core is to be given to the chief executive, at least 50% of the core must be provided, with a complete vertical face as practicable, in a long-term storage container labelled with specified well and interval information (s 34).
Plugging and abandonment: The regulation prescribes ways to plug and abandon wells by reference to schedule 2 (s 35). Schedule 2 contains detailed requirements: removing potentially hazardous equipment (sch 2 s 1), sealing casing below ground level and burying the stub at an appropriate depth (sch 2 s 4), cement surface plugs of industry-accepted grade and testing (sch 2 s 7), isolating aquifers and porous formations (sch 2 s 5), removing steel casing from sections within or adjacent to geothermal fluid unless not technically/commercially feasible (sch 2 s 6), and leaving the well full of fluid of sufficient density to maintain structural integrity and prevent gas influx (sch 2 s 9). Special rules apply to horizontal wells: abandonment with a non-steel slotted liner and methane/FRAS risk assessment where relevant (sch 2 s 10).
Shot holes: Must be plugged with solid material and the surrounding disturbed area restored as soon as practicable, with a maximum penalty of 20 penalty units; relevant environmental conditions prevail over s 36 if inconsistent (s 36).
Royalty, financial and administrative duties
Royalty: The geothermal royalty rate is 2.5% of wellhead value for each royalty return period (s 42). Wellhead value is projected amount minus operating expenses and any carry-forward negative wellhead value (s 43). Operating expenses are specified items and may include depreciation allocated over 10 years or shorter at the Minister’s discretion (s 41).
Ministerial powers: The Minister can request information or ask a producer to apply for a geothermal royalty decision if the Minister reasonably believes the producer’s projected amount is understated or operating expenses overstated, including when energy is used in a producer-owned power station or acquired by associated entities (s 44). The Minister may make geothermal royalty decisions and must provide written notice and reasons (ss 45-46). The Minister may amend a decision on material change subject to notice and submission periods (s 47). Producers can also apply to the Minister for decisions and for amendments (ss 45, 48).
Security and rent: Prescribed forms of security include cash and an unconditional security issued by a financial institution with specific content and no expiry date (s 51). Prescribed security amounts are $14,748 for a geothermal permit and $43,017 for a geothermal lease (s 51(2)). Annual rents are set in schedule 4; timing and pro-rata refund rules are prescribed (s 50). Fees are listed in schedule 5 (s 53). Interest on amounts owing to the State is prescribed at 15% per annum (s 52).
Lodgement: The prescribed way to make applications, documents or submissions is the department’s online system; the chief executive may require a hard copy; electronic lodgements after 4.30pm and before 8.30am are taken to be at 8.30am on the next business day (s 49).
Rights and procedural protections
A geothermal producer may apply for a geothermal royalty decision in writing and must include the proposed method/formula and the period for which the decision should apply (s 45). The Minister must make a decision on such an application and give written reasons (s 46). The Minister must give notice and an opportunity to make submissions before amending a geothermal royalty decision on the Minister’s own initiative (s 47).
Confidentiality and publication: The regulation establishes confidentiality periods for required information determined by schedule 3, and prescribes how required information may be published (ss 37-38). The regulation also notes certain exceptions to confidentiality (for example, making a well abandonment report available to a petroleum tenure or mining tenement holder if the well was drilled within that tenure/tenement area; s 37).
The regulation therefore creates a detailed mesh of duties, specific timeframes, labelling and unit standards, technical engineering obligations for wells and plugs, statutory accounting rules for royalties, and administrative processes for dispute-avoidance via geothermal royalty decisions. Rights to seek ministerial determinations and to make submissions are provided, and written reasons must be given for royalty decisions.
Penalties and enforcement
The regulation contains explicit and implicit enforcement mechanisms, monetary specifications and administrative devices that affect compliance risk. The instrument allocates enforcement roles primarily to the Minister and the chief executive and includes a limited catalogue of penalties within its text.
Explicit penalties
Shot hole plugging and remediation carries a specified maximum penalty of 20 penalty units for the tenure holder if the duties in s 36 are not satisfied (s 36(1)). The regulation does not elsewhere specify particular penalty amounts for other breaches in the supplied text; however, it cross-references the Act on multiple occasions and excludes civil penalties under the Act from the category of operating expenses (s 41(2)(e)), which signals that civil penalties are a separate enforcement head arising under the Act rather than under the regulation.
Prescribed financial consequences and credit mechanisms
Geothermal royalty: A positive monetary obligation exists where the wellhead value is positive. The royalty rate is fixed at 2.5% of the wellhead value for each royalty return period (s 42). Where operating expenses exceed projected amounts, a negative wellhead value arises; the regulation allows carry-forward of a negative within the same year but expressly declares producers are not entitled to receive any payment for a negative wellhead value (s 43(2)-(3)). The effect is a limited loss-offset mechanism but no immediate refundable tax credit.
Security: The regulation prescribes acceptable forms of security and specific dollar amounts for permits ($14,748) and leases ($43,017) (s 51). Unconditional securities must be in favour of the State, payable on demand, have no expiry date and must name the type and number of the tenure (s 51(1)). These forms of security are enforceable financial instruments the State may call on if conditions of the Act or regulation warrant it.
Interest on amounts owed to the State: The prescribed interest rate for amounts owing to the State is 15% per annum (s 52). That rate is a statutory default for late payments and therefore increases the cost of non-payment.
Administrative enforcement tools and processes
Information and decision powers: The Minister can request information, require applications for geothermal royalty decisions, and make royalty decisions for components of wellhead value if the Minister forms specific reasonable beliefs (s 44). Non‑compliance with information requests triggers an express consequence: if the producer does not comply or supplies information that does not satisfy the Minister, the Minister may make a geothermal royalty decision as if the producer had applied under s 45 (s 44(7)). This gives the Minister a unilateral decision-making route where information is lacking or not satisfactory.
Procedural safeguards: The Minister’s exercise to amend a geothermal royalty decision on the Minister’s own initiative requires notice at least 60 business days before the next affected royalty return period and an invitation to submit within 30 business days (s 47(2)). The Minister must consider submissions and must provide written notice of the amendment and reasons (s 47(3)-(4)). Producers also have the right to apply for amendments at least 60 business days before the affected royalty return period (s 48).
Publication and confidentiality enforcement
Required information is subject to confidentiality periods set in schedule 3 (s 37); after those periods the chief executive may publish information by prescribed means (s 38). The public availability of spatial data for inspection or purchase and publication on a Queensland Government website creates an enforcement and transparency effect,data that must be reported is likely to become public after the confidentiality period unless excluded by schedule 3.
Implicit and cross-referenced enforcement
The regulation repeatedly references the Act for substantive offences, civil penalty regimes and delegations (for example, s 35 links to the Act’s s 200; s 49 references the Act’s s 363). Enforcement of many duties therefore will occur under the Act’s enforcement architecture, which is not reproduced in the provided regulation. The regulation also excludes civil penalties under the Act from the operating expenses list, signalling the Act contains civil penalty provisions that can affect producers financially (s 41(2)(e)).
Practical enforcement consequences
The combination of binding technical standards (sch 2), time-limited reporting obligations, prescribed monetary security, the Minister’s power to fix components of value, and a high prescribed interest rate for outstanding amounts creates a compliance environment where delayed filings, inadequate documentation, related-party pricing, or technical non-conformity can result in administrative correction, financial charge, or calls on security. The regulation’s internal procedural requirements for notice and reasons (ss 46-47) also create recordable decision points that could be relied on in subsequent contestation under the Act’s review and appeal mechanisms.
How it interacts with other laws
The regulation is drafted to operate as a set of prescriptions that sit under and in support of the principal Act. It also cross-references and imports concepts or exceptions from other statutes and existing environmental conditions. The supplied text reveals the following interactions:
Direct linkage with the Act
Almost every substantive prescription is expressly framed “for [section X] of the Act” or references particular Act provisions (for example, s 4 prescribes criteria for s 16 of the Act; ss 5 and 6 prescribe matters for ss 47 and 89 of the Act; s 33 is for s 193 of the Act; s 35 is for s 200 of the Act; s 37 for s 196 etc.). The regulation therefore does not create standalone offences or entitlements independent of the Act; it specifies how certain Act provisions are to operate in practice. Enforcement against non-compliance is therefore likely to be undertaken pursuant to the Act’s enforcement and review framework, which the regulation invokes.
Interaction with the Mineral Resources Act and mining tenement holders
The regulation provides a specific exception to confidentiality: there is no confidentiality period for making a well abandonment report for a geothermal well available to the holder of a petroleum tenure or a coal or oil shale mining tenement under the Mineral Resources Act if the well was drilled within the area of that tenure or tenement (s 37(2)). This creates an information flow to other resource tenure holders, and therefore a statutory interface between geothermal regulation and the Mineral Resources Act regime.
Use of Corporations Act definitions
The regulation imports the Corporations Act definitions of “associated entity” (s 44(8) referring to Corporations Act s 50AAA) and “related party” (s 44(8) referring to Corporations Act s 228). These cross-references mean the schema for related-party scrutiny in the royalty provisions is anchored to federal corporate law definitions.
Environmental conditions and prevailing conditions
The regulation expressly preserves the primacy of “relevant environmental conditions” where a requirement (for example, s 36’s shot-hole obligations) is inconsistent with such an environmental condition; the environmental condition prevails (s 36(2)). This implies that environmental approvals, conditions, or instruments may override or displace some of the regulation’s technical prescriptions. Tenure holders therefore must reconcile obligations under environmental approvals with the regulation’s technical rules.
Financial and taxation interfaces
The regulation excludes Commonwealth excise levies from operating expenses under the royalty regime (s 41(2)(d)). It also excludes civil penalties and interest payable by a geothermal producer under the Act from operating expenses (s 41(2)(e)). These exclusions preserve interaction with Commonwealth taxation/levy law and with the Act’s penalty regime.
Administrative procedure and departmental systems
The regulation prescribes the department’s online system on the department’s website as the prescribed way to make applications, documents or submissions (s 49), but allows the chief executive to require hard copies in specific circumstances. The department’s website is a practical point of interaction for lodgement, publication and access to procedural information, including the office to which applications must be given for geothermal royalty decisions (s 45(3)).
Transitional operation with the expired regulation
Transitional provisions preserve the operation of the expired Geothermal Energy Regulation 2012 in relation to notices, reports and samples where the obligation was triggered before this regulation’s commencement and the time for compliance had not yet expired (ss 55-56). This creates a temporal interface between the old and new regulatory instruments, ensuring continuity for in-progress obligations.
In sum, the regulation is not a self-contained code; it prescribes how particular Act requirements operate and deliberately imports or defers to other statutory fields (Acts on mineral resources and corporations law) and to environmental conditions and departmental administrative arrangements. To understand compliance fully, a tenure holder must therefore read the regulation together with the Act, the Mineral Resources Act where relevant, the Corporations Act definitions where used, relevant environmental approvals, and the schedules and departmental directions or website content the regulation references.
Amendment history
The supplied regulation text contains limited explicit amendment history but provides the following source-grounded chronology and transitional notes:
Commencement: The regulation commences 1 September 2022 (s 2). That is the operative start date stated within the instrument itself.
Transitional preservation of prior regulation: Sections 54-56 create transitional arrangements referencing the “expired Geothermal Energy Regulation 2012”. Sections 55 and 56 prescribe that, where before commencement a person was already required to give the chief executive a notice, report, information or samples under the Act and the expired 2012 regulation prescribed matters for the requirement, that expired regulation continues to apply to those in-progress requirements as if the 2022 regulation had not been made (ss 55-56). This records a deliberate continuity mechanism for obligations that straddle the change in regulations.
Future-dated application of royalty part: Section 39 disapplies Part 8 (the geothermal royalty provisions) to geothermal energy produced before 1 July 2030. This is a forward-looking temporal carve-out rather than a retroactive amendment, but it is a substantive temporal delimitation embedded in the regulation.
Embedded amendment note in s 37: Section 37 contains an inline notation reading “s 37 amd 2025 SL No. 48 s 14 sch 1” immediately after the provision. That notation is part of the supplied text and indicates that section 37 was amended by a 2025 subordinate legislation instrument (Statutory Rule No. 48) at item s 14 sch 1. The presence of that notation within the regulation text provided is a source-grounded acknowledgement of at least one subsequent amendment. The regulation does not reproduce the content of that 2025 amendment beyond the notation; readers should consult the amending instrument (2025 SL No. 48) for the precise changes made to s 37.
Schedules and references to other instruments: The regulation repeatedly references schedules (schedules 1, 2, 3, 4 and 5) and departmental forms/directions. Schedule 2 is reproduced in the supplied text and sets detailed technical rules for well abandonment. Schedules 1, 3, 4 and 5 are cited for content (report contents, confidentiality durations, annual rent amounts and fees) but are not printed in full in the provided extract. Practically, this means that a current comprehensive compliance picture requires consulting the schedules and any later amending instruments or departmental directions.
Because the supplied text includes an amendment notation for s 37 and transitional clauses referring to the expired 2012 regulation, a complete legislative history will require checking the Act’s amendment records, subordinate legislation registers and the departmental website. The regulation itself, as supplied, establishes the 2022 baseline, preserves specific prior requirements in transition, and records at least one later amendment notation in respect of the confidentiality provision.
Litigation history
The regulation as supplied contains no citations to judicial or tribunal decisions and does not reproduce any litigation history. The instrument is prescriptive and administrative in nature; accordingly, the text does not record precedent. The following are source-based observations about the kinds of disputes and litigation points the regulation’s text creates or makes likely, grounded in the regulation’s provisions:
Administrative decisions and reasons: The regulation requires the Minister to give written notice and reasons for geothermal royalty decisions (s 46(4)) and for amendments of such decisions (s 47(4)). Those written reasons are recordable administrative acts that could found merits review, judicial review or other challenges under applicable administrative law frameworks in the Act. The regulation itself does not state the review pathway; it does establish the existence of discrete ministerial decisions and reasons.
Valuation and related-party transactions: Section 44 empowers the Minister to act where the Minister reasonably believes the producer’s projected amount is understated or operating expenses are overstated, including where energy is used in a producer-owned power station or acquired by related parties or associated entities (s 44(2)). Disputes about market value calculations, whether an element is an operating expense, and the reasonableness of related-party pricing are potential factual and legal disputes that could lead to challenge of a Ministerial determination under the Act’s review mechanisms.
Compliance with technical abandonment standards: Schedule 2 sets out technical prescriptions for plugging and abandoning wells. Non-compliance with those standards could give rise to enforcement action under the Act or to civil claims by landowners or other tenure holders where statutory obligations overlap (for example, where casing burial depth must not adversely interfere with landowner activities, sch 2 s 4(2)(b)). The regulation itself prescribes standards but not the remedy pathways.
Confidentiality and publication: Section 37 ties confidentiality periods to schedule 3 and allows certain compulsory disclosures to other resource tenure holders (s 37(2)). Disputes about whether information remains confidential or may be published could lead to administrative review actions. The regulation requires publication methods (s 38) which may produce tension where confidentiality periods are interpreted differently.
Procedural prerequisites: The regulation sets notice and submission periods for amendment of geothermal royalty decisions (s 47(2)-(3)). A failure by the Minister to comply with those procedure steps (for example, providing insufficient notice) could be the basis for a procedural challenge to a decision.
The regulation thus creates discrete decision points and technical standards whose application in particular factual contexts may be litigated under the Act’s available review mechanisms. The supplied text does not itself identify any case law or tribunal decisions, nor does it specify appeal routes; those will be contained in the Act and general administrative law. Readers needing the litigation record should consult judicial and tribunal databases and the Act for precise review pathways and any reported decisions that have engaged the regulation’s provisions.
Gotchas
The regulation contains numerous specific drafting choices that can be sources of compliance error, surprise costs, or administrative friction if not noticed. The following are source-grounded “gotchas” to watch for; each refers to the regulation provision cited.
Tight and recurring 10 business-day minimum notice windows: Start dates for drilling, surveys and hydraulic fracturing require at least 10 business days’ notice to the chief executive (ss 8(1), 10(2), 12(2)). Those are business-day notices, not calendar days, so weekends and public holidays matter. The regulation does not provide statutory flexibility for emergencies in these notice clauses; missing the window means non-compliance with a strict statutory duty.
Unique naming requirement for wells and surveys: Proposed identifying names for wells and surveys must not be the same, or substantially the same, as identifying names already recorded in the register (ss 8(2), 10(4)). This is a practical naming constraint that can force renaming and associated administrative updates where names overlap.
Report content referenced to schedules not reproduced here: Many reports must contain the information stated in schedule 1 (ss 21-31). The supplied extract does not include schedule 1 contents. Practically, tenure holders must obtain schedule 1 and confirm exact report fields; omission or incomplete reports risk non-compliance.
Units and base-temperature reporting: Section 32 prescribes the units that must be used for reporting items such as injected water, geothermal fluid (tonnes), energy generation (MWh), specific enthalpy (kJ/kg), and geothermal resources (PJth or PJe). The section also requires base temperature disclosure for heat amounts. Using other units or failing to state the base temperature will contravene the regulation’s explicit reporting standard.
Core sample fraction and labelling: Where a part of a core must be given to the chief executive, at least 50% of the core recovered must be supplied and the container must be labelled with specified interval and well identification details (s 34). If a tenure holder discards or fails to retain sufficient core, an exemption process exists but requires a written application to the chief executive supported by a previous similar sample having been given (s 33(2)).
Negative wellhead value carry-forward but no refund: If operating expenses exceed the projected amount, the excess is a negative wellhead value that can only be deducted within the same calendar year in later royalty return periods; the regulation expressly disallows any payment to the producer for a negative wellhead value (s 43(2)-(3)). Producers cannot claim refunds against negative wellhead values.
Ministerial discretion and potential unpredictability in royalty calculations: The Minister has multiple discretions that can materially affect a producer’s royalty base: deciding that tolls/tariffs are commercial (s 41(1)(a)), deciding shorter depreciation periods having regard to expected production (s 41(1)(b)), approving other operating expenses (s 41(1)(d)), forming reasonable beliefs about market values and issuing royalty decisions or requests for information (s 44). These discretions can change a producer’s tax base or obligations and create administrative unpredictability.
Minister’s ‘default decision’ power on non-compliance: If a producer fails to answer a Ministerial request about components of wellhead value, the Minister may make a geothermal royalty decision as if the producer had applied (s 44(7)). Non-response therefore creates a material risk of an unfavourable or binding determination.
Security form and content requirements: Unconditional securities must be in favour of the State, payable on demand, have no expiry date, state tenure type and number, and be signed by an authorised officer of the financial institution (s 51(1)(b)). Many banks will require internal procedures to issue such securities; not all security forms will meet these statutory content constraints.
Prescribed interest rate: The statutory interest on amounts owing to the State is 15% per annum (s 52). Late payment costs therefore compound quickly and are not discretionary.
Confidentiality periods tied to schedule 3 and limited exceptions: Confidentiality periods start when information is given to the chief executive and end on dates in schedule 3 (s 37(1)), but the supplied text does not contain schedule 3; tenure holders should not assume indefinite confidentiality. There is also an explicit exception allowing well abandonment reports to be made available to petroleum or mining tenure holders when wells were drilled within those areas (s 37(2)). Expect cross-tenure information sharing.
Publication methods include purchase or inspection for spatial data: Publication is broad , departmental journals, Queensland government websites, public databases, USBs and public inspection or purchase for spatial data (s 38). Spatial data may be made available for purchase; tenure holders should factor in public availability into commercial confidentiality planning.
Transitional carry-over obligations: If a notice, report or sample requirement started under the expired 2012 regulation and its compliance period had not ended before commencement, the old regulation continues to apply in relation to that requirement (s 55). Parties with ongoing obligations around the changeover must track whether they are governed by the old or new instrument.
Environmental condition primacy: Certain technical requirements (shot-hole plugging) are subject to prevailing “relevant environmental conditions”; if inconsistent, the environmental condition prevails (s 36(2)). Tenure holders must ensure coordination with environmental approvals to resolve any conflicts.
Royalty part not applying until after 30 June 2030: Part 8’s royalty rules do not apply to geothermal energy produced before 1 July 2030 (s 39). This creates a temporal carve-out that producers active earlier must note carefully.
Each of the above points is directly traceable to the cited regulation provision and can generate regulatory, contractual or operational risk if overlooked.
How to comply
This section provides a practical, source-grounded compliance checklist and operational sequencing based on the regulation’s prescriptions. It is organised as immediate actions, ongoing recordkeeping, technical well management, financial and royalty compliance, submissions and interaction with the Minister, and publication/confidentiality.
Immediate actions before field activities
Check whether planned production meets the “large-scale” definition (s 4). If total thermal power at the wellhead is 5 MWth or more and the production is commercial/industrial, additional Act obligations tied to large-scale production may apply.
Provide required notices at least 10 business days before starting drilling, surveys or hydraulic fracturing activities (ss 8, 10, 12). For surveys, include the proposed identifying name, type of survey, area description, start day, expected duration and spatial information showing the surveyed area (s 10(2)-(3)). Ensure the proposed identifying name is not the same, or substantially the same, as other names recorded in the register (ss 8(2), 10(4)).
Daily and event-driven recordkeeping
Keep a daily drilling report for each day of drilling and ensure it contains the information required by schedule 1 section 1 (s 21). Copies of daily drilling reports must accompany well completion reports and be provided upon request by the chief executive (s 21(2)-(3)).
Prepare to submit a well completion report within 12 months after the rig release day for the well and, if the well is plugged and abandoned on or before rig release, to include an abandonment report (s 22).
If a well is plugged and abandoned, give a well abandonment report with the completion report or within 6 months after plugging and abandoning in compliance with s 200 of the Act (s 23). Ensure the abandonment report does not duplicate content already included in the completion report if both are submitted together (s 23(3)).
Periodic reporting schedule and data standards
Produce annual resources reports within 60 business days after each 12‑month period of the tenure (s 24); production reports within 60 business days of each 6‑month period (s 25); injection reports within 60 business days after each 12‑month period (s 27). Note the specific 6‑month periods (1 Jan-30 Jun and 1 Jul-31 Dec) for production reporting (s 25(2)).
If production or injection testing is carried out, file production testing reports within 40 business days after the testing period ends and injection testing reports within 60 business days after the testing period ends (ss 26, 28).
When preparing reports, use the units prescribed in s 32 and state the base temperature when reporting heat amounts.
Core samples and physical sample custody
Retain a core sample for each well until the later of tenure end or when the sample is supplied to the chief executive (s 33). If a previous similar sample from the same reservoir has already been supplied, apply in writing to the chief executive for exemption from retaining the new sample (s 33(2)).
When giving part of a core to the chief executive, supply at least 50% of the core recovered, provide as complete a vertical face as practicable, use a suitable long-term container and label it with the well name, top and bottom depths, core number (if multiple cores) and length in metres (s 34).
Well plugging, abandonment and site remediation
Follow the abandonment methods in schedule 2 (s 35). Remove all equipment other than casing that may create a hazard, or, if removal is not reasonably possible, survey the equipment location and include details in the end-of-tenure report (sch 2 s 1).
Ensure casing is sealed below ground and the stub is buried at a depth that allows for later re‑entry and will not interfere with the landowner’s normal activities (sch 2 s 4).
Use cement plugs of industry-accepted grade, tested in accordance with accepted practices and standards and, where inner casing strings do not reach the surface, plug them with cement where required (sch 2 s 7).
Isolate aquifers and porous formations so there is no interconnection of gas, steam or water where intersected by the well (sch 2 s 5).
For horizontal wells, abandon with a slotted non-steel liner; if methane hazard to future mining exists, conduct a risk assessment to determine whether a FRAS liner is required (sch 2 s 10).
Shot holes and surface remediation
If firing explosives for seismic surveys, plug shot holes with solid material and restore the disturbed area as soon as practicable; if the hole caves in after plugging, remedy subsequent damage (s 36). Be aware of the maximum penalty of 20 penalty units for non-compliance with these duties and that relevant environmental conditions prevail where inconsistent (s 36(2)).
Royalty and financial compliance
For royalty purposes, determine whether Part 8 applies to your production: the regulation disapplies Part 8 for energy produced before 1 July 2030 (s 39). If Part 8 applies, calculate wellhead value each 3‑month royalty return period as the projected amount (market-realisation if sold commercially) less operating expenses and any negative wellhead value carry-forward (s 43).
Maintain contemporaneous documentation to support projected amounts and each operating expense claimed under s 41. Note that certain items (lifting costs, remote office overheads, marketing, Commonwealth excise levies, civil penalties under the Act) are not acceptable operating expenses (s 41(2)).
If the Minister requests supporting information to justify that components are market-based or to apply for a geothermal royalty decision, comply within 40 business days or within a longer agreed period (s 44(4)). Non-compliance or unsatisfactory information can trigger the Minister to decide the components as though the producer had applied (s 44(7)).
Consider applying under s 45 for a geothermal royalty decision before production starts or when a material change of circumstances may affect whether components are arms-length market transactions. Applications must be in writing and must include the proposed method/formula and the period to be covered (s 45).
Administrative and lodgement mechanics
Use the department’s online system as the prescribed method for making applications, documents or submissions (s 49). However, be prepared to provide a hard copy if the chief executive requires it. Note the electronic lodgement time rule: documents uploaded after 4.30pm and before 8.30am are taken to be made at 8.30am on the next business day (s 49(3)).
Security, fees, rents and interest
Provide the prescribed security form: cash or an unconditional security issued by a financial institution in favour of the State, payable on demand, no expiry date, signed by an authorised officer, with the tenure type and number and financial institution’s address (s 51(1)). Prepare to lodge $14,748 for permits and $43,017 for leases, unless updated (s 51(2)).
Pay annual rent as stated in schedule 4 and fees in schedule 5; note timing rules for rent and the pro‑rata refund possibility if the tenure ends during the paid year (s 50).
Confidentiality and publication
Check schedule 3 for confidentiality period durations and ensure any commercially sensitive information you provide is managed in light of those durations (s 37). Plan for likely public disclosure routes listed in s 38 (department journal, Queensland government website, publicly available databases, spatial data inspection/purchase).
Prepare for Ministerial interaction and decision processes
If subject to a Ministerial proposed amendment of geothermal royalty decisions, note the required 60 business days’ notice before the affected royalty return period and a 30-business-day submissions window; ensure internal processes can prepare submissions within that timetable (s 47).
Keep records to support market valuation assertions and related-party pricing arrangements; the Minister may scrutinise such relationships and ask for supporting documents (s 44).
Practical filing/documents checklist
Notices: drilling, surveys, hydraulic fracturing (10 business days).
Daily drilling reports: kept and delivered with completion report or on request (s 21).
Well completion report: within 12 months of rig release (s 22).
Well abandonment report: with completion report or within 6 months (s 23).
Production report: every 6 months, within 60 business days (s 25).
Annual resources report and injection report: every 12 months, within 60 business days (ss 24, 27).
Testing, survey and fracturing reports: adhere to the shorter windows specified (ss 26, 28-31).
Core sample handling and transfer: keep until tenure end; provide at least 50% when required and ensure labelling and container standards (ss 33-34).
Plugging and abandonment: follow schedule 2 technical prescriptions; prepare for surveys before plugging if equipment cannot be removed (sch 2 s 1).
In all stages, ensure copies of relevant schedules, the department’s directions and the Act are on hand. The regulation repeatedly refers to schedules and departmental interfaces; full compliance requires consultation of those instruments and, where necessary, early engagement with the chief executive or the Minister where the regulation contemplates applications for decisions or approvals (ss 44-48).
Part pt.2Requirements for proposed work programs and development plans
(a) a description of the geological model for the geothermal reservoirs in the area of the proposed geothermal permit;
(b) an assessment of the potential for the discovery of geothermal resources in the area of the proposed geothermal permit; Examples of information that may be included in an assessment— • an estimate of the recoverable thermal energy in the area using units of petajoules thermal (PJ th ) • the geoscientific information, standards and procedures used to make the estimate of recoverable geothermal energy
• an estimate of the recoverable thermal energy in the area using units of petajoules thermal (PJ th )
• the geoscientific information, standards and procedures used to make the estimate of recoverable geothermal energy
(c) an explanation of the rationale, having regard to the geological model mentioned in paragraph (a) , for the activities proposed to be carried out under the proposed geothermal permit;
(d) an outline of the expected outcomes to be achieved by the proposed work program.
• an estimate of the recoverable thermal energy in the area using units of petajoules thermal (PJ th )
• the geoscientific information, standards and procedures used to make the estimate of recoverable geothermal energy
sec.6 Proposed development plan— Act , s 89
sec.6 Proposed development plan— Act , s 89
For section 89 (1) (e) of the Act , the following matters are prescribed—
for each geothermal reservoir identified in the area of the proposed geothermal lease, the location of the boundaries of the classified geothermal resources in the reservoir;
details, including the location, type and size, of the infrastructure intended to be located in the area of the proposed geothermal lease.
communication systems, compressors, pipelines, powerlines, pumping stations, reservoirs, roads, substations
temporary structures or structures of an industrial or technical nature, including mobile and temporary camps
(a) for each geothermal reservoir identified in the area of the proposed geothermal lease, the location of the boundaries of the classified geothermal resources in the reservoir;
(b) details, including the location, type and size, of the infrastructure intended to be located in the area of the proposed geothermal lease. Examples of infrastructure— • communication systems, compressors, pipelines, powerlines, pumping stations, reservoirs, roads, substations • temporary structures or structures of an industrial or technical nature, including mobile and temporary camps
• temporary structures or structures of an industrial or technical nature, including mobile and temporary camps
pt.3 Notice requirements
Notice requirements
sec.7 Purpose of part
sec.7 Purpose of part
This part prescribes, for section 192 (1) (b) of the Act , the notices that a geothermal tenure holder must give to the chief executive in the approved form.
sec.8 Notice of intention to drill a geothermal well
sec.8 Notice of intention to drill a geothermal well
A geothermal tenure holder must, at least 10 business days before starting to drill a geothermal well in the area of the tenure, give the chief executive a notice stating—
that the well is to be drilled; and
the proposed identifying name for the well.
The proposed identifying name for the geothermal well must not be the same, or substantially the same, as an identifying name for another geothermal well recorded in the register.
(sec.8-ssec.1) A geothermal tenure holder must, at least 10 business days before starting to drill a geothermal well in the area of the tenure, give the chief executive a notice stating— that the well is to be drilled; and the proposed identifying name for the well.
(sec.8-ssec.2) The proposed identifying name for the geothermal well must not be the same, or substantially the same, as an identifying name for another geothermal well recorded in the register.
(a) that the well is to be drilled; and
(b) the proposed identifying name for the well.
sec.9 Notice of completion, change or abandonment of geothermal well
sec.9 Notice of completion, change or abandonment of geothermal well
This section applies if any of the following events happen in relation to a geothermal well in the area of a geothermal tenure—
drilling of the well is completed;
the completion configuration of the well changes;
the well is abandoned.
The geothermal tenure holder must, within 10 business days after the event happens, give the chief executive a notice stating that the event has happened.
For subsection (1) —
drilling of a geothermal well in the area of the geothermal tenure is completed if—
the drilling rig last used to drill the well is moved so it is no longer above the well; and
the geothermal tenure holder does not intend to continue drilling the well; and
the completion configuration of a geothermal well in the area of the geothermal tenure changes if, after drilling of the well is completed—
additional casing is installed in the well; or
any part of the well is plugged, other than for decommissioning the well; or
an interval in the well is changed in any other way.
(sec.9-ssec.1) This section applies if any of the following events happen in relation to a geothermal well in the area of a geothermal tenure— drilling of the well is completed; the completion configuration of the well changes; the well is abandoned.
(sec.9-ssec.2) The geothermal tenure holder must, within 10 business days after the event happens, give the chief executive a notice stating that the event has happened.
(sec.9-ssec.3) For subsection (1) — drilling of a geothermal well in the area of the geothermal tenure is completed if— the drilling rig last used to drill the well is moved so it is no longer above the well; and the geothermal tenure holder does not intend to continue drilling the well; and the completion configuration of a geothermal well in the area of the geothermal tenure changes if, after drilling of the well is completed— additional casing is installed in the well; or any part of the well is plugged, other than for decommissioning the well; or an interval in the well is changed in any other way.
(a) drilling of the well is completed;
(b) the completion configuration of the well changes;
(c) the well is abandoned.
(a) drilling of a geothermal well in the area of the geothermal tenure is completed if— (i) the drilling rig last used to drill the well is moved so it is no longer above the well; and (ii) the geothermal tenure holder does not intend to continue drilling the well; and
(i) the drilling rig last used to drill the well is moved so it is no longer above the well; and
(ii) the geothermal tenure holder does not intend to continue drilling the well; and
(b) the completion configuration of a geothermal well in the area of the geothermal tenure changes if, after drilling of the well is completed— (i) additional casing is installed in the well; or (ii) any part of the well is plugged, other than for decommissioning the well; or (iii) an interval in the well is changed in any other way.
(i) additional casing is installed in the well; or
(ii) any part of the well is plugged, other than for decommissioning the well; or
(iii) an interval in the well is changed in any other way.
(i) the drilling rig last used to drill the well is moved so it is no longer above the well; and
(ii) the geothermal tenure holder does not intend to continue drilling the well; and
(i) additional casing is installed in the well; or
(ii) any part of the well is plugged, other than for decommissioning the well; or
(iii) an interval in the well is changed in any other way.
sec.10 Notice of intention to carry out geophysical survey or scientific or technical survey
sec.10 Notice of intention to carry out geophysical survey or scientific or technical survey
This section applies if a geophysical survey or a scientific or technical survey is to be carried out in the area of a geothermal tenure.
The geothermal tenure holder must, at least 10 business days before the survey starts, give the chief executive a notice stating the following information—
a proposed identifying name for the survey;
the type of survey to be carried out;
seismic, geochemical, geotechnical, gravity, magnetic, MT
a description of the part of the area of the tenure to be surveyed;
the day surveying will start;
the expected duration of the surveying.
The notice must be accompanied by spatial information showing the location of the part of the area of the geothermal tenure to be surveyed.
The proposed identifying name for the survey must not be the same, or substantially the same, as an identifying name for another survey recorded in the register.
(sec.10-ssec.1) This section applies if a geophysical survey or a scientific or technical survey is to be carried out in the area of a geothermal tenure.
(sec.10-ssec.2) The geothermal tenure holder must, at least 10 business days before the survey starts, give the chief executive a notice stating the following information— a proposed identifying name for the survey; the type of survey to be carried out; seismic, geochemical, geotechnical, gravity, magnetic, MT a description of the part of the area of the tenure to be surveyed; the day surveying will start; the expected duration of the surveying.
(sec.10-ssec.3) The notice must be accompanied by spatial information showing the location of the part of the area of the geothermal tenure to be surveyed.
(sec.10-ssec.4) The proposed identifying name for the survey must not be the same, or substantially the same, as an identifying name for another survey recorded in the register.
(a) a proposed identifying name for the survey;
(b) the type of survey to be carried out; Examples— seismic, geochemical, geotechnical, gravity, magnetic, MT
(c) a description of the part of the area of the tenure to be surveyed;
(d) the day surveying will start;
(e) the expected duration of the surveying.
sec.11 Notice of completion of geophysical survey or scientific or technical survey
sec.11 Notice of completion of geophysical survey or scientific or technical survey
This section applies if a geophysical survey or a scientific or technical survey has been completed in the area of a geothermal tenure.
The geothermal tenure holder must, within 10 business days after the survey is completed, give the chief executive a notice stating that the survey has been completed.
For subsection (1) , a survey is completed when all of the raw data for the survey has been recorded.
(sec.11-ssec.1) This section applies if a geophysical survey or a scientific or technical survey has been completed in the area of a geothermal tenure.
(sec.11-ssec.2) The geothermal tenure holder must, within 10 business days after the survey is completed, give the chief executive a notice stating that the survey has been completed.
(sec.11-ssec.3) For subsection (1) , a survey is completed when all of the raw data for the survey has been recorded.
sec.12 Notice of intention to carry out hydraulic fracturing activities
sec.12 Notice of intention to carry out hydraulic fracturing activities
This section applies if a geothermal tenure holder intends to carry out hydraulic fracturing activities in the area of the tenure.
The holder must, at least 10 business days before starting the hydraulic fracturing activities, give the chief executive a notice stating the day the activities are to start.
(sec.12-ssec.1) This section applies if a geothermal tenure holder intends to carry out hydraulic fracturing activities in the area of the tenure.
(sec.12-ssec.2) The holder must, at least 10 business days before starting the hydraulic fracturing activities, give the chief executive a notice stating the day the activities are to start.
sec.13 Notice of completion of hydraulic fracturing activities
sec.13 Notice of completion of hydraulic fracturing activities
This section applies if a geothermal tenure holder has completed hydraulic fracturing activities in the area of the tenure.
The holder must, within 10 business days after completing the hydraulic fracturing activities, give the chief executive a notice stating the day the activities were completed.
(sec.13-ssec.1) This section applies if a geothermal tenure holder has completed hydraulic fracturing activities in the area of the tenure.
(sec.13-ssec.2) The holder must, within 10 business days after completing the hydraulic fracturing activities, give the chief executive a notice stating the day the activities were completed.
pt.4 Report requirements
Report requirements
pt.4-div.1 Particular reports required under the Act
Particular reports required under the Act
sec.14 Definitions for division
sec.14 Definitions for division
In this division—
general area information , for a geothe
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