Part 1
Legislative formalities and background
Part 1 Legislative formalities and background
Part 1.1 Legislative formalities and background
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New South Wales act
What this law does (mechanics, in plain English)
Creates a single, territory-based licensing and regulatory system for non‑petroleum minerals found in the State’s coastal waters (the first 3 nautical miles seaward of the baseline) — e.g. sand, gravel, ores, coal but not petroleum (see s 16, s 22, s 35).
Establishes five permit types and what each authorises (see Part 2):
Sets out the full lifecycle for licences: how to apply, advertising and consultation requirements, provisional grant, what a provisional holder must do to properly accept (written acceptance, lodge security if required, pay fees), registration and when a licence takes effect (see e.g. ss 54–71; ss 76–86; ss 199–216; registration Part 3: ss 328–337).
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Direct links to the current provisions in Offshore Minerals Act 1999.
Part 1.1 Legislative formalities and background
2 Commencement
This Act commences on a day or days to be appointed by proclamation.
3 Commonwealth–State agreement (the Offshore Constitutional Settlement)
(1) The Commonwealth and the States have agreed that:
(a) Commonwealth offshore mining legislation should be limited to the area that is outside State coastal waters, and
(b) the States should share, in the manner provided by the Offshore Minerals Act 1994 of the Commonwealth, in the administration of the Commonwealth offshore mining legislation, and
(c) State offshore mining legislation should apply to State coastal waters beyond the baseline for the territorial sea (that is, the first 3 nautical miles of the territorial sea), and
(d) the Commonwealth and the States should try to maintain, as far as practicable, common principles, rules and practices in regulating and controlling offshore mining beyond the baseline of Australia’s territorial sea.
Note 1—
So far as the agreement relates to petroleum, it is reflected in this State’s legislation by the Petroleum (Offshore) Act 1982.
Note 2—
Some sections of the Commonwealth Act contain provisions that are not relevant to the operation of this Act. To keep uniformity between this Act and the Commonwealth Act the numbers of the sections that are not relevant have not been used in the numbering of this Act.
(2) Other Acts that provide background in this State to the agreement (commonly referred to as the “Offshore Constitutional Settlement”) are:
(a) the Seas and Submerged Lands Act 1973, the Coastal Waters (State Powers) Act 1980, the Coastal Waters (State Title) Act 1980 and the Offshore Petroleum Act 2006 of the Commonwealth, and
(b) the Petroleum (Offshore) Act 1982 of this State.
Note 1—
The Seas and Submerged Lands Act 1973:
• declares and enacts that the sovereignty in respect of the territorial sea and the associated airspace, seabed and subsoil is vested in and exercisable by the Crown in right of the Commonwealth, gives the Governor-General power to declare, by Proclamation, the limits of the territorial sea, declares and enacts that the sovereignty in respect of waters of the sea that are on the landward side of the baseline of the territorial sea (but not within the limits of a State) and in respect of the associated airspace, seabed and subsoil is vested in and exercisable by the Crown in right of the Commonwealth, declares and enacts that the sovereign rights of Australia as a coastal State in respect of the Continental Shelf of Australia (for the purpose of exploring it and exploiting its natural resources) are vested in and exercisable by the Crown in right of the Commonwealth,
• gives the Governor-General power to declare, by Proclamation, the limits of the Continental Shelf of Australia.
Note 2—
The Coastal Waters (State Powers) Act 1980 was enacted following a request from the Parliaments of all the States under section 51 (xxxviii) of the Commonwealth Constitution and provides that the legislative powers exercisable under the Constitution of each State extend to the making of certain laws that would operate offshore.
Note 3—
The Coastal Waters (State Title) Act 1980 vests in each State certain property rights in the seabed beneath the coastal waters of the State.
Note 4—
The Offshore Petroleum and Greenhouse Gas Storage Act 2006 of the Commonwealth and the Petroleum (Offshore) Act 1982 of this State make provision, based on the agreement referred to in subsection (1), for the licensing regime that applies to the exploration for and recovery of petroleum in coastal waters and offshore areas of this State.
s 3: Am 2007 No 27, Sch 1.32 [1]; 2011 No 27, Sch 2.34.
Division 1 General
4 Notes in the text
Notes in this Act are provided to assist understanding and do not form part of the Act.
5 Interpretation
In this Act:
appropriate application fee means the application fee determined from time to time by the Minister, with the concurrence of the Treasurer, for the purposes of the provision in which that term appears.
approved means approved by the Minister under section 41.
associate has the meaning given by section 26 (1).
associated agent of a holder has the meaning given by section 26 (3).
associated agent of an associated contractor has the meaning given by section 26 (4).
associated contractor of a holder has the meaning given by section 26 (2).
associated employee of a holder has the meaning given by section 26 (5).
associated employee of an associated contractor has the meaning given by section 26 (6).
block means a portion of the coastal waters constituted according to section 17.
caveat on a licence means a caveat against:
(a) the registration of dealings in relation to the licence, or
(b) the registration of a person as a holder of the licence under section 340.
Chief Commissioner means the Chief Commissioner of State Revenue.
coastal waters has the meaning given by section 16 (1) and (2).
Commonwealth Act means the Offshore Minerals Act 1994 of the Commonwealth.
Commonwealth Minister means a Minister of State for the Commonwealth.
compliance inspection has the meaning given by section 377.
confidential information has the meaning given by section 27.
confidential sample has the meaning given by section 28.
consent area means the block or blocks specified in a special purpose consent.
dealing in a licence means a transaction that creates, transfers, affects or otherwise deals with an interest in the licence and includes:
(a) a transfer of the licence, and
(b) a transfer of a share in the licence,
but does not include a document that comes within section 337 (1) other than a document by which a block or a licence is surrendered.
discrete area has the meaning given by section 21.
document file means a document file kept for the purposes of Part 3.1.
exploration has the meaning given by section 23.
holder of a licence has the meaning given by section 25 (1).
hydrocarbon means a hydrocarbon whether in a gaseous, liquid or solid state.
inspector means an inspector appointed under section 421.
interest, in relation to a licence, includes:
(a) an equitable interest in the licence, and
(b) a security interest in the licence.
licence means:
(a) an exploration licence, or
(b) a retention licence, or
(c) a mining licence, or
(d) a works licence.
licence area means the block or blocks covered by a licence.
licence holder has the meaning given by section 25 (1).
mineral has the meaning given by section 22.
offshore exploration or mining activities means:
(a) the exploration for minerals in coastal waters, or
(b) the recovery of minerals from coastal waters, or
(c) activities carried out in coastal waters under a works licence.
offshore mining register means the register kept for the purposes of Part 3.1.
petroleum means:
(a) a hydrocarbon or a mixture of hydrocarbons, or
(b) a mixture of one or more hydrocarbons and one or more of the following:
(i) hydrogen sulphide,
(ii) nitrogen,
(iii) helium,
(iv) carbon dioxide.
primary payment period for the provisional grant or provisional renewal of a licence means the period of 30 days after the day on which the applicant is given a written notice:
(a) in the case of the grant of an exploration licence, under section 66, and
(b) in the case of the renewal of an exploration licence, under section 110, and
(c) in the case of the grant of a retention licence, under section 147, and
(d) in the case of the renewal of a retention licence, under section 169, and
(e) in the case of the grant of a mining licence, under section 210, and
(f) in the case of the renewal of a mining licence, under section 246, and
(g) in the case of the grant of a works licence, under section 279, and
(h) in the case of the renewal of a works licence, under section 296.
provisional holder means a person who has been provisionally granted a licence.
recovery has the meaning given by section 24.
registered means registered in the offshore mining register.
reserved block means a block that is declared to be reserved under section 18.
responsible Commonwealth Minister means the Commonwealth Minister who is responsible for the administration of the Commonwealth Act.
sample of the seabed or subsoil includes a core or cutting from the seabed or subsoil.
secondary payment period for the provisional grant or provisional renewal of a licence means the period of 30 days after the day on which an extension of the primary payment period for the grant or renewal concerned ends.
share in a licence has the meaning given by section 6 (1), (2) and (3).
special purpose consent means a consent granted under Part 2.6.
standard block has the meaning given by section 19.
State Minister means:
(a) a Minister of State for a State, or
(b) a Minister of State for the Northern Territory.
successor licence to a licence has the meaning given by section 8.
surrender day for an exploration licence means:
(a) the day on which the initial term of the licence ends, or
(b) a day on which the term of a renewal of the licence ends.
tender block has the meaning given by section 20.
transfer:
(a) when used in relation to a licence, has the meaning given by section 7 (1), and
(b) when used in relation to a share in a licence, has the meaning given by section 7 (2) and (3).
vary a licence condition includes revoke or suspend.
s 5: Am 2014 No 37, Sch 4.3 [1].
6 Shares in a licence
(1) A person has a share in a licence if the person is the holder, or one of the holders, of the licence.
(2) If a holder is entitled to a particular percentage of the value of the rights conferred by a licence, that percentage is the holder’s share in the licence.
Note—
A sole holder has a 100% share in the licence.
(3) If:
(a) a person is a registered holder of a licence, and
(b) the person is shown in the offshore mining register as being entitled to a specified percentage of the value of the rights conferred by the licence,
the person’s share in the licence is taken to be the percentage specified in the register.
7 Transfer of a licence
(1) For the purposes of this Act, a licence is transferred if:
(a) the licence has only one holder and the holder transfers the whole of his or her interest in the licence to another person or other persons, or
(b) the licence has 2 or more holders and the holders all transfer the whole of their interests in the licence to another person or other persons.
(2) For the purposes of this Act, a share in a licence is transferred if:
(a) the licence has only one holder and the holder transfers a part of the holder’s share in the licence to another person or other persons, or
(b) the licence has 2 or more holders and:
(i) some, but not all, of the holders transfer the whole of their shares in the licence to another person, or
(ii) some or all of the holders transfer a part of their shares in the licence to another person.
(3) The other person referred to in subsection (2) (b) may be an existing licence holder.
8 Successor licences
(1) If:
(a) a mining licence takes effect immediately after an exploration licence expires, and
(b) the holder of the mining licence immediately after it takes effect was the holder of the exploration licence immediately before it expired,
the mining licence is a successor licence to the exploration licence.
(2) If:
(a) a retention licence takes effect immediately after an exploration licence expires, and
(b) the holder of the retention licence immediately after it takes effect was the holder of the exploration licence immediately before it expired,
the retention licence is a successor licence to the exploration licence.
(3) If:
(a) a mining licence takes effect immediately after a retention licence expires, and
(b) the retention licence took effect immediately after an exploration licence expired, and
(c) the holder of the mining licence immediately after it takes effect was the holder of the retention licence immediately before it expired, and
(d) the holder of the retention licence immediately after it took effect was the holder of the exploration licence immediately before it expired,
the mining licence is a successor licence to the exploration licence and the retention licence.
9 Section number not used
See note 2 to section 3 (1).
10 Position on the Earth’s surface
(1) The position of a point, line or area on the Earth’s surface is to be worked out for the purposes of this Act and subordinate instruments by reference to the Geocentric Datum of Australia within the meaning of the Surveying and Spatial Information Act 2002.
(2) In subsection (1):
subordinate instrument means:
(a) the regulations, and
(b) an instrument made under this Act or the regulations.
s 10: Am 2002 No 83, Sch 2.14; 2009 No 119, Sch 2.17.
11 Section number not used
See note 2 to section 3 (1).
12 Power to revoke and amend instruments
(1) A provision of this Act that confers a power to do something in writing is also taken to confer the power to revoke or amend the written document by which that thing is done.
(2) The power to revoke or amend:
(a) must also be exercised in writing, and
(b) is subject to the same procedural requirements as the original power, and
(c) is subject to the same conditions as those that governed the exercise of the original power.
Division 2 Basic concepts
13–15 Section numbers not used
See note 2 to section 3 (1).
16 Coastal waters, and effect of change in baseline
(1) Subject to this section, the coastal waters of the State are so much of the area described in Schedule 1 as is constituted by the first 3 nautical miles of the territorial sea from the baseline.
(2) The coastal waters do not include any waters that are inside the baseline.
(3) If:
(a) a licence has been granted on the basis that an area is within coastal waters, and
(b) there is a change to the baseline or, because new data is obtained or existing data is reconsidered, the location of the baseline is reassessed, and
(c) as a result of the change to, or reassessment of the location of, the baseline, the area ceases to be within coastal waters,
this Act applies as if the area were still within coastal waters.
(4) Subsection (3) continues to apply to the area only while the licence (and any successor licence) remains in force.
(5) If:
(a) a licence under the Commonwealth Act has been granted on the basis that an area is within the offshore area under the Commonwealth Act, and
(b) there is a change to the baseline or, because new data is obtained or existing data is reconsidered, the location of the baseline is reassessed, and
(c) as a result of the change to, or reassessment of the location of, the baseline, the area:
(i) ceases to be within the offshore area under the Commonwealth Act, and
(ii) falls within coastal waters,
this Act does not apply to the area.
(6) Subsection (5) continues to apply to the area only while the licence under the Commonwealth Act (and any successor licence within the meaning of that Act) remains in force.
(7) This section has effect subject to section 172A of the Mining Act 1992.
(8) In this section:
baseline means the baseline adjacent to the coast of the State (including the coast of any island forming part of the State) as for the time being determined under section 7 (2) (b) of the Seas and Submerged Lands Act 1973 of the Commonwealth.
Note—
Generally the baseline is the lowest astronomical tide along the coast but it also includes lines enclosing bays and indentations that are not bays and straight baselines that depart from the coast. See Australia’s territorial sea baseline published 1988 by the Australian Government Printing Service.
17 Blocks
This is how a block is constituted in coastal waters:
(a) assume that there is laid over the coastal waters a grid constituted by:
(i) lines running along meridians drawn through each degree of longitude and the minutes between those degrees, and
(ii) lines running along parallels drawn through each degree of latitude and the minutes between those degrees,
(b) take a bounded space defined by the grid,
(c) the seabed and subsoil within the coastal waters that is under that space is a block.
18 Reserved block
(1) Subject to subsection (2), the Minister may declare that a block in coastal waters is a reserved block.
Note 1—
A reserved block may be put up for tender by the Minister publishing in the Gazette a tender block licence notice (see sections 74 and 218).
Note 2—
Section 8 (c) of the Interpretation Act 1987 allows a single declaration under this subsection to be made in respect of 2 or more blocks.
(2) A declaration under subsection (1) must not be made in relation to a block if:
(a) a licence over that block is in force, or
(b) an application for a licence over that block has been made and has not been determined.
(3) A declaration under subsection (1) must be made by notice published in the Gazette.
19 Standard block
A standard block is a block that is not the subject of a declaration under section 18 (1).
20 Tender block
A tender block is a block that is the subject of a tender block licence notice published by the Minister under section 74 or 218.
21 Discrete area
(1) A group of blocks forms a discrete area if the area formed by the blocks is continuous.
(2) Two blocks that are joined at one point only do not form a continuous area.
22 Minerals
(1) A mineral is a naturally occurring substance or a naturally occurring mixture of substances.
Note—
This Act does not apply to petroleum (see section 35).
(2) Without limiting subsection (1), a mineral may be in the form of sand, gravel, clay, limestone, rock, evaporites, shale, oil-shale or coal.
23 Exploration
(1) For the purposes of this Act, exploration for minerals includes any activity that is directly related to the exploration for minerals.
(2) For the purposes of this Act, exploration does not include the exploration for minerals of the subsoil of coastal waters that is carried out by means of underground mining from land in the State if that exploration is carried out in accordance with the Mining Act 1992.
24 Recovery
(1) For the purposes of this Act, recovery of minerals includes any activity that is directly related to the recovery of minerals.
(2) For the purposes of this Act, recovery does not include the recovery of minerals from the subsoil of coastal waters that is carried out by means of underground mining from land in the State if that recovery is carried out in accordance with the Mining Act 1992.
25 Licence holder
(1) References in this Act to the holder of a licence or the licence holder are references to the person whose name is entered in the offshore mining register as the person who holds the licence.
Note 1—
This Act is based upon the grant and registration of licences.
Note 2—
If a licence is granted to a person, that person’s name is entered in the register (see section 333).
Note 3—
The entry in the register in relation to a licence will be varied if there is a change in the holder of the licence (see section 338 (4)).
(2) A licence may be held by more than one person.
26 Associates
(1) For the purposes of this Act, the following are the associates of a licence holder:
(a) associated contractors of the holder,
(b) associated agents of the holder,
(c) associated agents of associated contractors,
(d) associated employees of the holder,
(e) associated employees of associated contractors.
(2) A person is an associated contractor of the holder if:
(a) the person enters into an agreement with the holder for carrying out activities under the licence, or
(b) the person enters into an agreement with a person who is an associated contractor under paragraph (a) or this paragraph for carrying out activities under the licence.
(3) A person is an associated agent of the holder if the person is the agent of, or acts on behalf of, the holder in relation to carrying out activities under the licence.
(4) A person is an associated agent of an associated contractor if the person is the agent of, or acts on behalf of, the associated contractor in relation to carrying out activities under the licence.
(5) A person is an associated employee of the holder if the person is employed by the holder and, in the course of that employment, carries out activities under the licence.
(6) A person is an associated employee of an associated contractor if the person is employed by the associated contractor and, in the course of that employment, carries out activities under the licence.
27 Confidential information
(1) For the purposes of this Act, information is confidential information if:
(a) a licence holder has given it to the Minister, and
(b) it is in a record, return, report or document, and
(c) it relates to activities authorised by the licence, and
(d) it relates to an area of the seabed or subsoil that is covered by the licence or a successor licence to the licence.
(2) However, if:
(a) a person is required to give the Minister a report in relation to particular blocks, and
(b) the person gives the Minister a report that relates not only to those blocks but also to other blocks, and
(c) the Minister is required to make the report available under section 376,
the information that relates to those other blocks is not confidential information.
(3) A reference in this section to information given to the Minister by a licence holder includes a reference to a return or other information relating to royalty under this Act that is obtained by the Minister, or a delegate of the Minister, from a tax officer (within the meaning of the Taxation Administration Act 1996).
s 27: Am 2014 No 37, Sch 4.3 [2].
28 Confidential sample
For the purposes of this Act, a sample is a confidential sample if:
(a) a licence holder has given it to the Minister, and
(b) it was recovered in the course of activities authorised by the licence, and
(c) it was recovered from an area of the seabed or subsoil that is covered by the licence or a successor licence to the licence.
29 Definitions
In this Part:
associated revenue Act has the same meaning as in the Commonwealth Act.
Commonwealth–State offshore area means the Commonwealth–State offshore area in respect of the State within the meaning of section 13 of the Commonwealth Act.
30 Minister as member of Joint Authority, or as Designated Authority
(1) The Minister may perform any function that the Minister has under the Commonwealth Act or an associated revenue Act:
(a) as a member of the Joint Authority for the Commonwealth–State offshore area provided for by section 32 (2) of the Commonwealth Act, or
(b) as the Designated Authority for that area provided for by section 29 (2) of that Act.
(2) The Minister must perform any such function that the Minister is required to perform by the Commonwealth Act or an associated revenue Act.
31 State officer acting under delegation
An officer or temporary employee within the meaning of the Public Sector Management Act 1988 to whom a delegation is made under section 419 of the Commonwealth Act may perform any function that the officer or employee has under that delegation and must perform any such function that the officer or employee is required to perform under the Commonwealth Act.
32–34 Section numbers not used
See note 2 to section 3 (1).
35 Act does not apply to exploration for or recovery of petroleum
This Act does not apply to the exploration for or recovery of petroleum.
Note 1—
For “petroleum” see section 5.
Note 2—
Offshore petroleum exploration and mining are regulated by the Offshore Petroleum and Greenhouse Gas Storage Act 2006 of the Commonwealth and the Petroleum (Offshore) Act 1982 of this State.
s 35: Am 2007 No 27, Sch 1.32 [2]; 2011 No 27, Sch 2.34.
36 Section number not used
See note 2 to section 3 (1).
37 Act applies to all individuals and corporations
(1) This Act applies to all individuals, including:
(a) individuals who are not Australian citizens, and
(b) individuals who are not resident in New South Wales.
(2) This Act applies to all corporations, including:
(a) corporations that are not incorporated in New South Wales, and
(b) corporations that do not carry on business in New South Wales.
Part 2.1 General
38 General prohibition on exploring and mining without appropriate authorisation
A person must not:
(a) explore for minerals in coastal waters, or
(b) recover minerals from coastal waters,
unless the exploration or recovery is authorised by a licence or special purpose consent granted under this Act.
Maximum penalty: $30 000.
Note—
A works licence may be necessary because “exploration” includes activities that are directly related to exploration (see section 23 (1)) and “recovery” includes activities that are directly related to recovery (see section 24 (1)).
38A Exploration and mining in waters subject to fishing closures
Despite:
(a) the grant of a licence or special purpose consent, or
(b) any provision of this Act,
offshore exploration or mining activities may be carried out under the licence or consent in waters the subject of a fishing closure under the Fisheries Management Act 1994 only with the written consent of the Minister administering that Act, who may:
(c) refuse consent, or
(d) give consent subject to such terms and conditions as he or she specifies in the consent.
s 38A: Subst 2014 No 72, Sch 4.11.
38B Protecting the environment to be taken into account
(1) In deciding whether or not to grant or renew a licence, or to extend the term of a licence, the Minister is to take into account the need to conserve and protect:
(a) the flora, fauna, fish, fisheries and scenic attractions in the area concerned, and
(b) the features of Aboriginal, archaeological, historical or geological interest of the area.
(2) The Minister may cause such studies (including environmental impact studies) to be carried out as the Minister considers necessary to enable such a decision to be made.
38C Inclusion of conditions for protecting the environment
The conditions subject to which a licence is granted or renewed must, if the Minister considers it appropriate, include conditions relating to the conservation and protection of:
(a) the flora, fauna, fish, fisheries and scenic attractions in the area concerned, and
(b) the features of Aboriginal, archaeological, historical or geological interest of the area.
39 Licences and consents available under this Act
This Act provides for the grant of:
(a) exploration licences (see Part 2.2), and
(b) retention licences (see Part 2.3), and
(c) mining licences (see Part 2.4), and
(d) works licences (see Part 2.5), and
(e) special purpose consents (see Part 2.6).
Note 1—
An exploration licence is designed to cover the exploration phase of a project and authorises:
• exploration, and
• the recovery of mineral samples.
Note 2—
A retention licence is designed to ensure the retention of rights pending the transition of a project from the exploration phase to the commercial mining phase and authorises:
• exploration, and
• the recovery of minerals but not as part of a commercial mining operation.
Note 3—
A mining licence is designed to cover the commercial mining phase of a project and authorises:
• exploration, and
• full commercial recovery.
Note 4—
A project might make use of any of the following 3 licence arrangements:
• an exploration licence leading to a mining licence,
• an exploration licence leading to a retention licence and then a mining licence,
• a mining licence (without progressing through an exploration/retention licence stage).
Note 5—
A licence is granted over a particular area (constituted by blocks).
The licence holder may need to carry out engineering or other activities outside the licence area. If so, the licence holder or someone else must obtain a works licence to carry out those activities.
Note 6—
If a person wants to carry out:
• a scientific investigation, or
• a reconnaissance survey, or
• the collection of only small amounts of minerals,
in coastal waters, the person must obtain a special purpose consent under Part 2.6 to carry out the activity.
Note 7—
Even though a person has a licence or special purpose consent, the person must not interfere unnecessarily with navigation, native title, fishing, resource conservation or other activities in the area (see section 44).
40 Steps involved in the grant of a fully effective licence
(1) The following 3 steps must occur before a licence comes into force:
(a) provisional grant of the licence,
(b) proper acceptance of the grant,
(c) registration of the grant.
Note—
See sections 88, 154, 232 and 286.
(2) If a licence is provisionally granted to a person, the person must do the following to properly accept the grant:
(a) give the Minister a written acceptance,
(b) lodge any security that the Minister has required,
(c) pay the fee that is payable under section 425.
Note—
See sections 70, 84, 151, 214, 228 and 283.
(3) The following 3 steps must occur before a renewal of a licence comes into force:
(a) provisional renewal of the licence,
(b) proper acceptance of the renewal,
(c) registration of the renewal.
Note—
See sections 89, 155, 233 and 287.
(4) If a licence is provisionally renewed, the holder must do the following to properly accept the renewal:
(a) give the Minister a written acceptance of the renewal,
(b) lodge any security that the Minister has required,
(c) pay the fee that is payable under section 425.
Note—
See sections 114, 173, 250 and 300.
41 Approval of form and manner of applications etc
(1) The Minister may approve the form and the manner in which the following are to be made:
(a) applications for licences over blocks in coastal waters,
(b) applications for the renewal of licences over blocks in coastal waters.
(2) An approval under subsection (1) is to be made in writing.
42 Rights to minerals recovered
(1) Any minerals recovered by a licence holder or special purpose consent holder from a block covered by the licence or consent become the property of the holder when they are recovered.
(2) If the licence or consent authorises the exploration for and the recovery of minerals only of a particular kind, subsection (1) only applies to the recovery of minerals of that kind.
(3) Subsection (1) does not apply to the recovery of minerals by a works licence holder.
(4) The minerals recovered are not subject to the rights of any other person.
(5) Subsection (4) does not apply to rights that the licence or consent holder transfers to the other person.
43 Effect of grant of licence or special purpose consent on native title
(1) This section applies to the following acts:
(a) the grant, renewal, variation or extension of a licence or special purpose consent,
(b) the amendment or variation of a condition of a licence or special purpose consent.
(2) An act to which this section applies does not extinguish native title in the licence or consent area.
(3) While a licence or special purpose consent is in force over an area, native title in the area is subject to the rights conferred by the licence or consent.
(4) If compensation is payable under section 24MD or 24NA of the Native Title Act 1993 of the Commonwealth in respect of an act to which this section applies that is attributable to the State, the person who applied for the grant, renewal, amendment or variation is declared, in accordance with section 24MD (4) (b) (i) or 24NA (7) (b) (i) of that Act (as the case requires), to be liable to pay the compensation.
44 Licence etc does not authorise unnecessary interference with other activities in the licence area
A person who carries out activities in coastal waters under a licence or special purpose consent granted under this Act must not do so in a way that interferes with:
(a) navigation, or
(b) the exercise of native title rights and interests, or
(c) fishing, or
(d) the conservation of the resources of the sea or the seabed, or
(e) any activities that someone else is lawfully carrying out,
to a greater extent than is necessary for:
(f) the reasonable exercise of the person’s rights under the licence or consent, or
(g) the performance of the person’s duties under the licence or consent.
Maximum penalty: $10 000.
Note—
The person referred to here might be the licence or consent holder or might be an associated person.
45 Exploration licences
(1) This Part provides for the grant of exploration licences over blocks in coastal waters.
(2) An exploration licence may be granted over a standard block (see Division 2) or over a tender block (see Division 3).
Note—
A tender block is a block that has been declared available for tender. A standard block is any block that is not a reserved block (see sections 19 and 20).
46 Activities authorised by an exploration licence
(1) Subject to subsection (2), an exploration licence holder may:
(a) explore for minerals in the licence area, and
(b) take samples of minerals in the licence area.
Note—
Under section 23 (1) the concept of “exploration” extends to activities that are directly related to exploration.
(2) If the licence is expressed to restrict the kind of minerals covered by the licence, the holder is not permitted to explore for, or to take samples of, minerals not covered by the licence.
(3) A restriction on the kind of minerals covered by the licence may be inclusive (for example, only minerals A, B and C) or exclusive (for example, all minerals except A, B and C).
(4) For the purposes of subsection (2), the holder does not take samples of an excluded mineral if, in the course of exploring for, or taking samples of, another mineral, the holder recovers some excluded mineral.
47 Minister may cancel or not renew exploration licence without compensation
No compensation is payable because of the cancellation or non-renewal of an exploration licence by the Minister.
Note 1—
The Minister may cancel the licence under section 130.
Note 2—
The Minister may refuse under section 108 to renew the licence.
48 Licence rights may be suspended
(1) The Minister must suspend particular rights conferred by an exploration licence if the Minister is satisfied that it is necessary in the public interest to do so.
(2) The Minister may suspend rights under subsection (1) for a specified period or for an indefinite period.
(3) The Minister may end a suspension at any time.
(4) A suspension or the ending of a suspension must be in writing.
(5) If the Minister:
(a) suspends rights conferred by an exploration licence, or
(b) ends a suspension,
the Minister must give the licence holder a written notice that informs the holder of the suspension or the ending of the suspension.
Note—
See section 122 for the effect of the suspension on the obligations associated with the licence.
(6) A suspension takes effect when:
(a) the holder has been given notice of the suspension under subsection (5), and
(b) the suspension has been registered under section 337.
49 Compensation for acquisition of property due to suspension of rights
(1) If:
(a) the Minister suspends licence rights under section 48, and
(b) the suspension results in the acquisition of property from a person, and
(c) the State and the person agree on an amount of compensation for the acquisition,
the State must pay the person the agreed amount of compensation.
(2) If:
(a) the Minister suspends licence rights under section 48, and
(b) the suspension results in the acquisition of property from a person, and
(c) the State and the person do not agree on an amount of compensation for the acquisition, and
(d) the person brings an action for compensation against the State in the Supreme Court,
the State must pay the person the amount of compensation (if any) that is determined by that Court.
(3) In this section:
acquisition of property has the same meaning as it has in section 51 (xxxi) of the Commonwealth Constitution.
50 Application for exploration licence over standard block
(1) A person may apply to the Minister for an exploration licence over a standard block if:
(a) the block is vacant, and
(b) the block is not excluded.
Note—
For “excluded blocks” see section 51.
(2) A standard block is vacant if no exploration, retention or mining licence is in force over the block.
(3) A person may apply for an exploration licence over a group of standard blocks if:
(a) the group forms a discrete area, and
(b) there are not more than 500 blocks in the group.
Note—
The Minister may, in certain circumstances, allow an application to be made for an exploration licence covering up to 3 discrete areas (see section 53).
51 Excluded blocks
(1) A block is excluded if:
(a) an exploration licence over the block has been surrendered or cancelled, and
(b) a period of 30 days after the day on which the licence was surrendered or cancelled has not ended.
(2) A block is excluded for a particular applicant if:
(a) the applicant previously applied for an exploration licence over the block, and
(b) the application was refused, and
(c) a period of 6 months after the day on which the previous application was refused has not ended.
(3) A block is excluded for a particular applicant if:
(a) the applicant was previously the holder of an exploration, retention or mining licence over the block, and
(b) that previous licence was surrendered or cancelled, and
(c) a period of 6 months after the day on which the previous licence was surrendered or cancelled has not ended.
(4) A block is excluded for a particular applicant if:
(a) the applicant was previously the holder of an exploration, retention or mining licence over the block, and
(b) the holder was:
(i) required by the licence conditions, or
(ii) given a direction under section 387 or 392,
to provide the Minister with information, and
(c) the holder provided the information, and
(d) the holder surrendered the licence, and
(e) a period of 6 months from the day on which the holder provided the information has not ended.
52 Minister may determine that excluded block is available
(1) A person who wants to apply for an exploration licence over a block that is excluded may apply to the Minister for a determination under subsection (2).
(2) The Minister may determine that the person may apply for the licence over the block despite section 51.
(3) The determination is to be made in writing.
53 Minister may allow application for more than one discrete area
(1) If:
(a) a person (the first applicant) applies for an exploration licence, and
(b) another person (the second applicant) subsequently applies for an exploration licence for a group of blocks that includes a block covered by the application made by the first applicant, and
(c) an exploration licence is then granted to the first applicant, and
(d) as a result of the grant, the blocks for which the second applicant can be granted an exploration licence no longer form a discrete area,
the second applicant may apply to the Minister for approval for the application to proceed even though the blocks it covers no longer form a discrete area.
Note—
See also section 59.
(2) Subject to subsection (3), the Minister may approve the application proceeding even though the blocks that the application covers do not form a discrete area.
(3) The Minister may give an approval under subsection (2) only if the blocks covered by the application form not more than 3 discrete areas.
54 How to apply
(1) The application must:
(a) be made in accordance with the approved form, and
(b) be made in the approved manner, and
(c) specify the blocks for which the application is made, and
(d) include details of:
(i) the activities that the applicant intends to carry out on the block or blocks covered by the application, and
(ii) the amount of money that the applicant intends to spend on those activities, and
(iii) the technical qualifications of the applicant and of the applicant’s employees who are likely to be involved in activities authorised by the licence, and
(iv) the technical advice available to the applicant, and
(v) the financial resources available to the applicant, and
(vi) if the licence is to be held by more than one person, the share in the licence that each prospective holder will hold, and
(e) be accompanied by maps that:
(i) relate to the blocks, and
(ii) comply with the regulations, and
(f) specify an address for service of notices under this Act and the regulations.
Note 1—
For paragraphs (a) and (b) see section 41.
Note 2—
Paragraph (c): the Minister may, after consulting the applicant, vary the blocks applied for (see section 59).
(2) The applicant may include in the application any other information that the applicant thinks is relevant.
55 Effect of inclusion of unavailable block in application
If:
(a) a person applies for a licence over a group of standard blocks, and
(b) because of section 18, 50 or 51 an exploration licence cannot be granted over one or more of the blocks in the group,
the Minister may still deal with the application to the extent to which the application covers blocks for which an exploration licence can be granted.
Note—
An exploration licence cannot be granted over a block that is not vacant or is excluded (see sections 50 and 51) or over a reserved block (see section 18).
56 Payment of fee
(1) The applicant must pay the appropriate application fee.
(2) The fee must be paid when the application is made.
(3) The Minister may refund any fee paid under subsection (1) but only if the Minister is satisfied that special circumstances exist that justify the refund of the fee.
57 Application must be advertised
(1) The applicant must advertise the application in a newspaper circulating throughout the State.
(2) The advertisement must contain:
(a) the applicant’s name and address, and
(b) a map and description of the blocks applied for that are sufficient for the blocks to be identified, and
(c) the address of the Minister, and
(d) a statement:
(i) that the applicant has applied for an exploration licence over the blocks described in the notice, and
(ii) that invites comment from the public on the application, and
(iii) that requests that comments be sent to the applicant and the Minister within 30 days after the day on which the advertisement is published.
(3) The advertisement must be published:
(a) as soon as possible after the applicant makes the application, and
(b) in any case, subject to subsection (4), within 14 days after the day on which the applicant makes the application.
(4) If:
(a) the applicant applies to the Minister within the 14 day period referred to in subsection (3) for an extension of the period, and
(b) the Minister extends the period,
the advertisement must be published within the period as extended by the Minister.
58 How multiple applications are dealt with
(1) Subject to subsection (2), if a block is covered by 2 or more applications for an exploration or mining licence, the Minister must deal with the applications in the order in which they are made.
Note—
See also section 203.
(2) If:
(a) the applications are lodged within a particular time of each other, and
(b) the time is less than the time prescribed by the regulations,
the Minister must determine the order in which the applications are to be dealt with by drawing lots in the way prescribed by the regulations.
59 Discussions about blocks applied for
(1) The Minister may ask the applicant to discuss with the Minister the blocks covered by the application.
(2) The request under subsection (1) must be:
(a) made in writing, and
(b) given to the applicant.
(3) If, after discussions, the Minister and the applicant agree on the blocks to be covered by the application, the applicant is taken to have applied for an exploration licence over the blocks agreed on.
(4) The Minister must give the applicant written confirmation of the agreement as soon as possible after the agreement is reached.
(5) The Minister may include in the written confirmation a direction that the applicant must advertise the revised application under section 60.
(6) If the Minister and the applicant do not agree on the blocks to be covered by the application:
(a) the Minister may make a written determination specifying the blocks to be covered by the application, and
(b) the applicant is taken to have applied for an exploration licence over the blocks specified in the determination.
(7) The Minister may include in the written determination a direction that the applicant must advertise the revised application under section 60.
(8) If the Minister makes a determination under subsection (6), the Minister must give a copy of the determination to the applicant as soon as possible after the determination is made.
60 Advertising revised application
(1) If:
(a) the application has been revised under section 59, and
(b) the applicant has been given a direction under section 59 (5) or (7),
the applicant must advertise the revised application in a newspaper circulating throughout the State.
(2) The advertisement must contain:
(a) the applicant’s name and address, and
(b) a map and description of the blocks covered by the revised application that are sufficient for the blocks to be identified, and
(c) the address of the Minister, and
(d) a statement:
(i) that the applicant has applied for an exploration licence over the blocks described in the notice, and
(ii) that invites comment from the public on the application, and
(iii) that requests that comments be sent to the applicant and the Minister within 30 days after the day on which the advertisement is published.
(3) The advertisement must be published:
(a) if the Minister and the applicant agree on the blocks applied for under section 59 (3), as soon as possible after the applicant is given written confirmation of the agreement under section 59 (4), or
(b) if the Minister makes a determination of the blocks applied for under section 59 (6), as soon as possible after the applicant is given a copy of the determination under section 59 (8),
but in any case, subject to subsection (4), within 14 days after the applicant is given the confirmation or copy.
(4) If:
(a) the applicant applies to the Minister within the 14 day period referred to in subsection (3) for an extension of the period, and
(b) the Minister extends the period,
the advertisement must be published within the period as extended by the Minister.
61 Request for further information
(1) The Minister may ask the applicant for further information about the application.
(2) The request must:
(a) be in writing, and
(b) be given to the applicant, and
(c) specify the time within which the information must be provided.
(3) Information requested under subsection (1) must be provided:
(a) in writing, and
(b) within the time specified in the request.
62 Section number not used
See note 2 to section 3 (1).
63 Minister may provisionally grant licence
If the applicant does what is required by sections 54 to 61, the Minister may:
(a) provisionally grant an exploration licence to the applicant, or
(b) refuse the application.
Note—
Under section 88, the grant of the licence cannot be effective before it is registered (see section 333 for registration). The grant will not be registered until it has been properly accepted (see section 70 for “proper acceptance”).
64 Section number not used
See note 2 to section 3 (1).
65 Matters to be specified in the licence
The licence must specify:
(a) the blocks covered by the licence, and
(b) the term of the licence, and
(c) the licence conditions.
Note—
For the term of a licence see section 88.
66 Applicant must be notified
(1) The Minister must give the applicant written notice of a decision under section 63.
(2) If the Minister provisionally grants an exploration licence:
(a) the Minister must give the licence to the provisional holder, and
(b) the notice under subsection (1) must contain the following information:
(i) notification of any determination under section 399 that the provisional holder must lodge a security,
(ii) notification that the provisional grant will lapse unless the provisional holder, before the end of the primary payment period:
(A) gives the Minister a written acceptance of the grant, and
(B) lodges any security required under section 399, and
(C) pays the fee that must be paid for the licence under section 425.
67 Amendment of conditions
(1) If the provisional holder is dissatisfied with a licence condition, the provisional holder may ask the Minister to amend the condition.
(2) The request must be made within 30 days after the day on which the provisional holder is given the licence under section 66.
(3) If a request is made under subsection (1), the Minister may amend the licence conditions and, with the consent of the provisional holder, any other licence condition.
(4) The Minister must give the provisional holder written notice of a decision under this section.
68 Amendment of security requirements
(1) If the provisional holder:
(a) is notified of a security requirement, and
(b) is dissatisfied with the amount of the security required,
the provisional holder may ask the Minister to make a new determination under section 399.
(2) The request must be made within 30 days after the day on which the provisional holder is given notice under section 66.
(3) If a request is made under subsection (1), the Minister may make a new determination under section 399.
(4) The Minister must give the provisional holder written notice of the new determination.
69 Extension of primary payment period
(1) If the provisional holder makes a request under section 67 or 68, the provisional holder may ask the Minister to extend the primary payment period.
(2) The request must be made within 30 days after the day on which the provisional holder is given notice under section 66.
(3) If the Minister agrees to the request, the Minister must:
(a) determine the period of the extension, and
(b) give the provisional holder a written notice of the period of the extension.
70 Acceptance of grant of exploration licence for standard block
(1) The provisional grant of the exploration licence is properly accepted by the provisional holder if, before the required time, the provisional holder:
(a) gives the Minister a written acceptance of the grant, and
(b) lodges any security required under section 399, and
(c) pays the fee that must be paid for the licence under section 425.
(2) The required time under subsection (1) is the end of the primary payment period or, if the provisional holder has been granted an extension of the primary payment period under section 69, the end of the secondary payment period.
Note—
Under section 88, the grant of the licence cannot be effective before it is registered (see section 333 for registration).
71 Conditions applicable to licence on grant
If the provisional grant of the licence is properly accepted under section 70, it is subject to:
(a) the conditions specified in the licence given to the applicant under section 66, or
(b) if the Minister amended those conditions under section 67, those conditions as amended.
72 Lapse of provisional grant of exploration licence
If the provisional grant of the licence is not properly accepted under section 70, the provisional grant lapses.
Division 3 Application for and grant of exploration licence over tender block
73 Matters to be determined before applications for exploration licence over tender blocks invited
If the Minister proposes to invite applications for the grant of an exploration licence over reserved blocks, the Minister must, before inviting the applications, determine:
(a) the procedure and criteria that the Minister will adopt to allocate the licence, and
(b) the amount of security that will be required for the licence under section 399, and
(c) the licence conditions.
74 Minister may invite applications for exploration licence over tender blocks
(1) Subject to subsection (2), the Minister may invite applications for the grant of an exploration licence over reserved blocks.
(2) Applications may be invited for a licence covering a group of reserved blocks only if the group forms a discrete area.
(3) The Minister is to invite applications by publishing a tender block licence notice for the licence in the Gazette.
75 Tender block licence notice—exploration licence
(1) A tender block licence notice for an exploration licence must:
(a) specify the blocks to be covered by the licence, and
(b) specify the period within which applications may be made, and
(c) specify the procedure and criteria that the Minister will adopt to allocate the licence, and
(d) specify the amount of security that the successful applicant will be required to lodge, and
(e) include a statement to the effect that information about:
(i) the security that the successful applicant will be required to lodge, and
(ii) the licence conditions,
may be obtained from the Minister.
(2) Without limiting subsection (1) (c), the Minister may for the purposes of that paragraph specify that the tender will be determined on the basis of either or both of the following:
(a) the nature and extent of the exploration activity proposed to be carried out,
(b) the amount of money offered for the licence.
(3) The tender block licence notice may specify not more than 500 blocks for the exploration licence.
76 Application for exploration licence over tender blocks
If a tender block licence notice has been published inviting applications for an exploration licence, a person may apply to the Minister for the licence.
77 How to apply
(1) The application must:
(a) be made in accordance with the approved form, and
(b) be made in the approved manner, and
(c) be made before the end of the period specified in the tender block licence notice, and
(d) address the criteria specified under section 75 (1) (c), and
(e) include details of:
(i) the technical qualifications of the applicant and of the applicant’s employees who are likely to be involved in activities authorised by the licence, and
(ii) the technical advice available to the applicant, and
(iii) the financial resources available to the applicant, and
(iv) if the licence is to be held by more than one person, the share in the licence that each prospective holder will hold, and
(f) specify an address for service of notices under this Act and the regulations.
Note—
For paragraphs (a) and (b) see section 41.
(2) The applicant may include in the application any other information that the applicant thinks is relevant.
78 Payment of fee
(1) The applicant must pay the appropriate application fee.
(2) The fee must be paid when the application is made.
(3) The Minister may refund any fee paid under subsection (1) but only if the Minister is satisfied that special circumstances exist that justify the refund of the fee.
79 Request for further information
(1) The Minister may ask the applicant for further information about the application.
(2) The request must:
(a) be in writing, and
(b) be given to the applicant, and
(c) specify the time within which the information must be provided.
(3) Information requested under subsection (1) must be provided:
(a) in writing, and
(b) within the time specified in the request.
80 Section number not used
See note 2 to section 3 (1).
81 Minister may provisionally grant licence
(1) The Minister may provisionally grant an exploration licence to an applicant who has done what is required by sections 77 to 79.
(2) When provisionally granting a licence under subsection (1), the Minister must follow the procedure and apply the criteria specified in the tender block licence notice published for the licence under section 74.
(3) If the Minister refuses to grant a licence under subsection (1), the Minister must give the applicant written notice of the refusal.
82 Section number not used
See note 2 to section 3 (1).
83 Successful applicant must be notified
(1) If the Minister provisionally grants an exploration licence under section 81 or 87, the Minister must give the provisional holder:
(a) the licence, and
(b) written notice that the provisional grant will lapse unless the provisional holder, within 30 days after the day on which the notice is given:
(i) gives the Minister a written acceptance of the grant, and
(ii) lodges any security required under section 399, and
(iii) pays the fee that must be paid for the licence under section 425, and
(iv) if the tender is determined on the basis of the amounts of money offered for the licence, pays to the Minister the amount that the provisional holder offered for the licence under section 77 (1) (d).
(2) The licence must specify:
(a) the blocks covered by the licence, and
(b) the term of the licence, and
(c) the licence conditions.
Note—
For the term of a licence see section 88.
84 Acceptance of grant of exploration licence over tender blocks
The provisional grant of an exploration licence is properly accepted by the provisional holder if, within 30 days after the day on which the provisional holder is given notice under section 83, the provisional holder:
(a) gives the Minister a written acceptance of the grant, and
(b) lodges any security required under section 399, and
(c) pays the fee that must be paid for the licence under section 425, and
(d) if the tender is determined on the basis of the amount of money offered for the licence, pays to the Minister the amount that the provisional holder offered for the licence under section 77 (1) (d).
Note—
Under section 88, the grant of the licence cannot be effective before it is registered (see section 333 for registration).
85 Conditions applicable to licence on grant
If the provisional grant of the licence is properly accepted, the licence is subject to the conditions determined under section 73.
86 Lapse of provisional grant of exploration licence
If the provisional grant of the licence is not properly accepted under section 84, the provisional grant lapses.
87 Provisional grant to next applicant if grant lapses
(1) If the provisional grant of the licence lapses under section 86, the Minister may provisionally grant the licence to another of the applicants for the licence.
(2) When provisionally granting a licence under subsection (1), the Minister must follow the procedure and apply the criteria specified in the tender block licence notice published for the licence under section 74.
Division 4 Duration of exploration licence
88 Initial term of exploration licence
(1) An exploration licence comes into force on:
(a) the day on which the grant of the licence is registered, or
(b) if a day later than the day on which the grant of the licence is registered is specified in the licence as its commencement day, that specified day.
(2) The initial term of an exploration licence ends:
(a) 4 years after the day on which the licence is provisionally granted, or
(b) if a day later than the day on which the licence is provisionally granted is specified in the licence as its commencement day, 4 years after that specified day.
Note—
The licence may be surrendered at any time (see section 127).
89 Term of renewal of exploration licence
(1) A renewal of an exploration licence comes into force on:
(a) the day on which the renewal is registered, or
(b) the day on which the previous term of the licence expires,
whichever is the later.
Note—
See Division 6 for renewal.
(2) The term of a renewal of a licence ends 2 years after the day on which the previous term of the licence expires.
Note—
The licence may be surrendered at any time (see section 127).
(3) In working out the previous term of the licence, section 90 is to be disregarded.
(4) An exploration licence is not to be renewed more than 3 times.
90 Effect of suspension of rights on term of exploration licence
(1) If the Minister suspends rights conferred by an exploration licence for a specified period under section 48, the Minister may extend the term of the licence.
(2) An extension of a licence term under subsection (1):
(a) must not be for a period that is longer than the period for which the licence rights were suspended, and
(b) must be in writing.
(3) If the Minister extends the term of a licence under subsection (1), the Minister must give the licence holder a written notice that informs the holder:
(a) that the licence has been extended, and
(b) of the period of the extension.
91 Effect of application for renewal on term of exploration licence
If:
(a) an exploration licence holder applies to renew the licence under section 101, and
(b) the current term of the licence expires, and
(c) a renewal of the licence does not take effect immediately after the current term expires,
the licence remains in force after the current term expires until:
(d) a renewal of the licence takes effect, or
(e) a provisional renewal of the licence lapses, or
(f) the application for renewal is withdrawn or refused.
92 Effect of application for retention licence or mining licence on term of exploration licence
If:
(a) an exploration licence holder applies for:
(i) a retention licence (see section 137), or
(ii) a mining licence (see section 198),
over the licence area, or part of the licence area, of the exploration licence, and
(b) the current term of the exploration licence expires, and
(c) a grant of the retention licence or mining licence does not take effect before the current term of the exploration licence expires,
the exploration licence remains in force until:
(d) the grant of the retention licence or mining licence takes effect, or
(e) a provisional grant of the retention licence or mining licence lapses, or
(f) the application for the retention licence or mining licence is withdrawn or refused.
93 Effect of application for extension on term of licence
If:
(a) an exploration licence holder applies for an extension of the term of the licence under section 94 or 96, and
(b) the holder has also applied to renew the licence under section 101, and
(c) the extension application is not decided before the licence is due to expire,
then:
(d) the renewal application lapses, and
(e) the licence remains in force until:
(i) if the Minister extends the term of the licence under section 95 or 97 for a specified period, 30 days after the day on which that period ends, or
(ii) if the Minister refuses to extend the term of the licence under section 95 or 97, 30 days after the day on which the holder is given notice of the refusal under section 98.
94 Extension of licence—activities disrupted
(1) If:
(a) an exploration licence authorises the licence holder to carry out an activity, and
(b) circumstances beyond the control of the holder prevent the holder from carrying out the activity,
the holder may apply to the Minister for an extension of the term of the licence.
(2) The application must be made:
(a) within 30 days after the day on which the holder first became aware of the circumstances, and
(b) before the licence expires.
95 Grant of licence extension—activities disrupted
(1) Subject to subsection (2), if an exploration licence holder applies for an extension under section 94, the Minister:
(a) must grant an extension of the term of the licence if the Minister is satisfied that:
(i) the holder is or has been unable to carry out the activities authorised by the licence, and
(ii) the holder is or has been unable to do so because of circumstances beyond the holder’s control, and
(iii) no excluded time is included in the period of inability for which an extension is sought, and
(b) must refuse the application for extension if the Minister is not satisfied of the matters referred to in paragraph (a).
(2) The period for which the extension is granted must not be longer than the disruption period for the licence less any excluded time for the licence.
(3) The extension may be granted subject to whatever conditions the Minister thinks appropriate.
(4) In this section:
disruption period for a licence means the period during which the licence holder is unable to carry out activities authorised by the licence because of circumstances beyond the holder’s control.
excluded time for a licence means any period during which the licence was in force because of section 90, 91, 92 or 93.
Note—
Under section 90, if the Minister has under section 48 suspended rights under a licence for a period, the Minister may extend the term of the licence for an equivalent period. Under section 91, the term of a licence is automatically extended if there is an application for the renewal of a licence undecided when the licence is due to expire. Under section 92, the term of a licence is automatically extended if the holder applies for a retention or mining licence over the licence area. Under section 93, the term of a licence is automatically extended if there is an application for an extension of the licence undecided when the licence is due to expire.
96 Extension of licence—other circumstances
(1) An exploration licence holder may apply to the Minister for an extension of the term of the licence if, under section 121, the Minister:
(a) suspends a licence condition, or
(b) exempts the holder from complying with a licence condition.
(2) The application must be made not later than 30 days before the licence expires.
97 Grant of licence extension—other circumstances
(1) Subject to subsection (2), if an exploration licence holder applies for an extension under section 96, the Minister:
(a) may grant an extension of the term of the licence, or
(b) may refuse to grant an extension of the term of the licence.
(2) The extension must not be for a period that is longer than the period of the suspension or exemption.
(3) The extension may be granted subject to whatever conditions the Minister thinks appropriate.
98 Notification of decision
(1) If the Minister grants an extension of the term of the exploration licence under section 95 or 97, the Minister must give the licence holder a written notice that informs the holder of:
(a) the grant of extension, and
(b) the period of the extension, and
(c) if the extension is subject to conditions, the conditions.
(2) If the Minister refuses an application for a licence extension, the Minister must give the licence holder a written notice that informs the holder of:
(a) the refusal, and
(b) the reasons for the refusal.
Division 5 Voluntary surrender of part of exploration licence area
99 Voluntary surrender of blocks if discrete area remains
(1) An exploration licence holder may surrender a block or some of the blocks covered by the licence if the remaining blocks in the licence area form a discrete area.
Note—
See section 127 for the surrender of the whole licence.
(2) A surrender under subsection (1) must:
(a) be made in writing, and
(b) identify the blocks surrendered, and
(c) be given to the Minister.
Note—
The surrender takes effect when it is registered under section 337 (see section 337 (5)).
100 Voluntary surrender of blocks if up to 3 discrete areas remain
(1) If:
(a) an exploration licence holder wants to surrender some of the blocks covered by the licence, and
(b) the blocks remaining in the licence area after the proposed surrender would form not more than 3 discrete areas,
the holder may apply to the Minister for approval of the proposed surrender.
(2) The application:
(a) must be in writing, and
(b) must include a surrender proposal that identifies the blocks in the licence area that the holder proposes to surrender, and
(c) may include any other information that the holder thinks is relevant.
(3) If the Minister agrees with the surrender proposal, the Minister may approve the surrender of the blocks specified in the proposal by giving the holder written notice of the approval.
Note—
The surrender takes effect when it is registered under section 337 (see section 337 (5)).
(4) If the Minister does not agree with the surrender proposal, the Minister may ask the holder to discuss the proposal.
(5) If the Minister and the holder agree, after discussions, on the blocks to be surrendered the Minister may approve the surrender of the blocks agreed on by giving the holder written confirmation of the agreement.
Note—
The surrender takes effect when it is registered under section 337 (see section 337 (5)).
(6) If, after discussions, the Minister and the holder do not agree on the surrender proposal, no blocks are surrendered.
Division 6 Application for and grant of renewal of exploration licence
101 Application for renewal of exploration licence
An exploration licence holder may apply to the Minister to renew the licence.
Note 1—
Part of the licence area must be surrendered on each renewal (see section 104).
Note 2—
At each renewal, the licence conditions are reviewed (see section 118).
102 When application to be made
(1) Subject to subsections (2) and (3), the application must be made at least 30 days before the day on which the licence is to expire.
Note—
If an application for extension of a licence is made, the expiry of the licence is postponed (see section 93). For expiry of a licence see section 126.
(2) The Minister may accept an application that is made later than 30 days before the day on which the licence is to expire if:
(a) the application is made before the day on which the licence expires, and
(b) the Minister believes that there are reasonable grounds for accepting the application.
(3) If a licence remains in force because of section 93 (e) (ii), the application may be made at any time before the licence ceases to be in force.
103 How to apply for renewal
(1) The application must:
(a) be made in accordance with the approved form, and
(b) be made in the approved manner, and
(c) include details of:
(i) the activities carried out by the applicant under the licence during its current term, and
(ii) the amount of money spent by the applicant in relation to the blocks covered by the licence during its current term, and
(iii) the activities that the applicant intends to carry out under the licence during the term applied for, and
(iv) the amount of money that the applicant intends to spend on those activities during the term applied for, and
(d) specify the blocks that the applicant nominates for surrender in accordance with section 104.
Note—
For paragraphs (a) and (b) see section 41.
(2) The applicant may include in the application any other information that the applicant thinks is relevant.
104 Mandatory reduction of licence area on renewal of exploration licence
(1) This section deals with the mandatory reduction of the licence area covered by an exploration licence when the licence is renewed.
(2) Subject to subsection (4) (b), on each surrender day of an exploration licence, the licence holder must surrender:
(a) 50% of the number of blocks in the licence area, or
(b) if 50% of that number of the blocks is a whole number and a fraction, the next higher whole number of the blocks.
(3) Subject to subsection (4) (a), the blocks that remain in the licence area after a surrender under subsection (2) must form a discrete area.
(4) The Minister may:
(a) give permission for the surrender of blocks in a licence area if the licence area remaining after the proposed surrender would consist of not more than 3 discrete areas, or
(b) give permission for a licence area to be reduced by less than 50% if the Minister considers that there are special circumstances present in relation to the renewal application.
105 Request for further information
(1) The Minister may ask the applicant to provide further information about the application.
(2) The request must:
(a) be in writing, and
(b) be given to the applicant, and
(c) specify the time within which the information must be provided.
(3) Information requested under subsection (1) must be provided:
(a) in writing, and
(b) within the time specified in the request.
106 Payment of fee
(1) The applicant must pay the appropriate application fee.
(2) The fee must be paid when the application is made.
(3) The Minister may refund any fee paid under subsection (1) but only if the Minister is satisfied that special circumstances exist that justify the refund of the fee.
107 Section number not used
See note 2 to section 3 (1).
108 Decision on an application for renewal
After considering an application for the renewal of an exploration licence, the Minister may:
(a) provisionally renew the licence, or
(b) refuse to renew the licence.
Note 1—
Under section 89, the renewal of the licence cannot be effective before it is registered (see section 334 for registration). The renewal will not be registered until it has been properly accepted (see section 114 for proper acceptance).
Note 2—
Under section 118, new conditions may be imposed on renewal.
s 108: Subst 2015 No 40, Sch 3.5.
109 Section number not used
See note 2 to section 3 (1).
110 Applicant must be notified
(1) The Minister must give the applicant written notice of the Minister’s decision under section 108.
(2) If the Minister provisionally renews the exploration licence under section 108, the notice must contain the following information:
(a) notification of the conditions of the renewed licence,
(b) notification of any determination under section 399 that the applicant must lodge a security or a further security,
(c) notification that the provisional renewal will lapse unless the applicant, before the end of the primary payment period:
(i) gives the Minister a written acceptance of the renewal, and
(ii) lodges any security required by the Minister under section 399, and
(iii) pays the fee that must be paid under section 425.
Note—
Section 118 provides for renewals to be granted subject to conditions.
111 Amendment of conditions
(1) If the licence holder:
(a) has been provisionally granted a renewal of the licence under section 108, and
(b) is notified of the licence conditions, and
(c) is dissatisfied with a condition,
the holder may ask the Minister to amend the condition.
(2) The request must be made within 30 days after the day on which the holder is given notice under section 110.
(3) If a request is made under subsection (1), the Minister may amend the licence conditions and, with the consent of the holder, any other licence condition.
(4) The Minister must give the holder written notice of a decision under this section.
112 Amendment of security requirements
(1) If the licence holder:
(a) has been provisionally granted a renewal of the licence under section 108, and
(b) is notified of a security requirement, and
(c) is dissatisfied with the amount of the security required,
the holder may ask the Minister to make a new determination under section 399.
(2) The request must be made within 30 days after the day on which the holder is given notice under section 110.
(3) If a request is made under subsection (1), the Minister may make a new determination under section 399.
(4) The Minister must give the holder written notice of the new determination.
113 Extension of primary payment period
(1) If the licence holder makes a request under section 111 or 112, the holder may ask the Minister to extend the primary payment period.
(2) The request must be made within 30 days after the day on which the holder is given notice under section 110.
(3) If the Minister agrees to the request, the Minister must:
(a) determine the period of the extension, and
(b) give the holder a written notice informing the holder of the period of the extension.
114 Acceptance of renewal of exploration licence
(1) The provisional renewal of an exploration licence is properly accepted by the licence holder if, before the required time, the holder:
(a) gives the Minister a written acceptance of the renewal, and
(b) lodges any security required under section 399, and
(c) pays the fee that must be paid under section 425.
(2) The required time under subsection (1) is the end of the primary payment period or, if the licence holder has been granted an extension of the primary payment period under section 113, the end of the secondary payment period.
Note—
Under section 89, the renewal of the licence cannot be effective before it is registered (see section 334 for registration).
115 Conditions applicable to licence on renewal
If the provisional renewal is properly accepted under section 114, the renewed licence is subject to:
(a) the conditions specified in the notice given to the licence holder under section 110, or
(b) if the Minister amended those conditions under section 111, those conditions as amended.
116 Lapse of provisional renewal of exploration licence
If the provisional renewal of an exploration licence is not properly accepted under section 114, the provisional renewal lapses.
Division 7 Obligations associated with exploration licence
117 General
(1) The sources of obligations associated with an exploration licence are:
(a) the licence conditions, and
(b) obligations arising from directions under section 387 or 392 given by the Minister, and
(c) obligations imposed by this Act and the regulations.
Note—
For paragraph (a) see sections 118 to 120. For paragraph (c) see sections 44, 123 to 125, 372 and 391 (1).
(2) If an exploration licence has 2 or more holders, all the holders are jointly and severally bound by the obligations that attach to the licence.
118 Conditions of exploration licence
(1) The Minister may grant or renew an exploration licence subject to whatever conditions the Minister thinks appropriate.
(2) If the Minister grants or renews an exploration licence subject to conditions, the conditions must be specified in the licence.
(3) Without limiting subsection (1), the Minister may attach the following kinds of conditions to the grant or renewal of an exploration licence:
(a) a condition requiring the licence holder to take out insurance as required by the Minister,
(b) a condition requiring the holder to carry out certain work in or in relation to the licence area during the term of the licence,
(c) a condition requiring the holder to spend a specified amount of money in carrying out the work referred to in paragraph (b),
(d) a condition requiring the holder to lodge a security with the Minister,
(e) a condition requiring the holder to keep specified information,
(f) a condition requiring the holder to give the Minister, on request, specified information,
(g) a condition requiring the holder to take steps to protect the environment of the licence area, including conditions relating to:
(i) protecting wildlife, or
(ii) minimising the effect on the environment of the licence area and the area surrounding the licence area of activities carried out in the licence area,
(h) a condition requiring the holder to repair any damage to the environment caused by activities in the licence area,
(i) a condition requiring the holder to pay a specified penalty to the State if the holder does not comply with a licence condition.
(4) A condition under subsection (3) (d) must specify:
(a) the amount of the security required, and
(b) the kind of security required, and
(c) the manner and form in which the security is to be lodged.
(5) Without limiting subsection (3) (d), a condition under that paragraph may require the lodgment of a security in the form of a guarantee and if a guarantee is required the condition may specify:
(a) the kind of person who is to give the guarantee, and
(b) the terms of the guarantee.
119 No conditions requiring payment of money
Except for a condition requiring the payment of a penalty or lodgment of security, a licence condition must not require the payment of money to the State.
120 Variation of conditions
(1) If:
(a) an exploration licence holder requests the Minister in writing to vary a licence condition, or
(b) an exploration licence continues in force because of section 93, or
(c) an extension of the term of an exploration licence is granted under section 95, or
(d) part of the licence area of an exploration licence is surrendered under section 99 or 100,
the Minister may vary a licence condition.
(2) If the Minister gives:
(a) a direction under section 387, or
(b) an approval, consent or exemption under the regulations,
to an exploration licence holder, the Minister may vary a licence condition to the extent necessary to avoid inconsistency between the licence conditions and the direction, approval, consent or exemption.
(3) The Minister may vary a licence condition subject to whatever conditions the Minister thinks appropriate.
(4) If the Minister varies a licence condition, the Minister must give the licence holder a written notice that:
(a) informs the holder of the variation, and
(b) specifies the conditions which have been varied, and
(c) specifies any conditions to which the variation is subject.
121 Exemption from or suspension of conditions
(1) If:
(a) an exploration licence holder requests the Minister in writing to:
(i) suspend a licence condition, or
(ii) exempt the holder from complying with a licence condition, or
(b) an exploration licence continues in force because of section 93, or
(c) an extension of the term of an exploration licence is granted under section 95, or
(d) part of the licence area of an exploration licence is surrendered under section 99 or 100,
the Minister may:
(e) suspend a licence condition, or
(f) exempt the holder from complying with a licence condition.
(2) If the Minister gives:
(a) a direction under section 387, or
(b) an approval, consent or exemption under the regulations,
to an exploration licence holder, the Minister may suspend a licence condition, or exempt the holder from compliance with a licence condition, to the extent necessary to avoid inconsistency between the licence conditions and the direction, approval, consent or exemption.
(3) The Minister may:
(a) suspend a licence condition, or
(b) exempt the licence holder from complying with a licence condition,
subject to whatever conditions the Minister thinks appropriate.
(4) If the Minister:
(a) suspends a licence condition, or
(b) exempts the licence holder from complying with a licence condition,
the Minister must give the holder a written notice that:
(c) informs the holder of the exemption or suspension, and
(d) specifies the conditions which have been suspended or affected by the exemption, and
(e) specifies any conditions to which the suspension or exemption is subject.
Note—
A suspension or exemption of a condition cannot be effective before it is registered (see section 337).
122 Automatic suspension of conditions if licence rights are suspended
If:
(a) the Minister suspends particular rights conferred by an exploration licence under section 48, and
(b) a licence condition is affected by the suspension,
the licence condition is suspended for the period of the suspension of the rights.
123 Work practices
A person who is an exploration licence holder or an associate of the holder, in carrying out activities in the licence area that are authorised by the licence, must take all reasonable steps:
(a) to ensure that the activities are carried out at a standard that is accepted as reasonable and proper in the mining industry, and
(b) to maintain in good repair all structures and equipment erected in, or brought into, the licence area by the person, and
(c) to remove from the licence area any structure, equipment or other property that:
(i) belongs to the person, or is under the person’s control, and
(ii) is not being used, or is not going to be used, in connection with the activities.
Maximum penalty: $20 000.
Note—
The safety of offshore exploration activities is governed by the Work Health and Safety (Mines and Petroleum Sites) Act 2013.
s 123: Am 2002 No 129, Sch 2.13; 2004 No 74, Sch 4.7; 2013 No 54, Sch 3.8; 2015 No 43, Sch 4.8.
124 Licence holder must keep specified records etc
An exploration licence holder must:
(a) keep whatever records and samples, and
(b) give whatever records and samples to the Minister for inspection, and
(c) make whatever returns,
as are necessary to comply with:
(d) the regulations, or
(e) the licence conditions, or
(f) a direction given by the Minister under section 387.
Maximum penalty: $10 000.
Note—
Under sections 386 and 387 the Minister may direct a person to keep records and samples, to give records and samples to the Minister, and to make returns.
125 Licence holder must assist inspectors
An exploration licence holder must provide an inspector with reasonable facilities and assistance so that the inspector is able to carry out compliance inspections.
Maximum penalty: $5 000.
Note—
See sections 377 to 384 for compliance inspections.
Division 8 Expiry of exploration licence
126 General
(1) An exploration licence expires if:
(a) the term of the licence ends without the licence being renewed, or
(b) the licence holder surrenders the licence, or
(c) a retention licence is granted over the blocks in the licence area of the exploration licence, or
(d) a mining licence is granted over the blocks in the licence area of the exploration licence, or
(e) the licence is cancelled.
Note—
For paragraph (a) see Division 6. For paragraph (b) see section 127. For paragraph (c) see section 128. For paragraph (d) see section 129. For paragraph (e) see section 130.
(2) In subsection (1) (a) the reference to the term of the licence includes any period during which the licence is in force under section 90, 91, 92 or 93.
127 Voluntary surrender of exploration licence
An exploration licence holder may surrender the licence.
Note 1—
See Division 5 for voluntary surrender of part of a licence area.
Note 2—
The surrender takes effect when it is registered under section 337 (see section 337 (5)).
128 Automatic expiry of exploration licence when retention licence takes effect
If:
(a) an exploration licence is in force, and
(b) a retention licence over all or some of the blocks in the exploration licence area comes into force under section 154,
the exploration licence expires in relation to the blocks covered by the retention licence.
129 Automatic expiry of exploration licence when mining licence takes effect
If:
(a) an exploration licence is in force, and
(b) a mining licence over all or some of the blocks in the exploration licence area comes into force under section 232,
the exploration licence expires in relation to the blocks covered by the mining licence.
130 Cancellation of exploration licence
(1) Subject to subsection (5), the Minister may cancel an exploration licence if the licence holder:
(a) breaches a licence condition, or
(b) contravenes a provision of this Act or the regulations, or
(c) breaches a condition attached to an approval under section 365 (2).
(2) If the Minister proposes to cancel a licence under subsection (1), the Minister must give the licence holder a written notice that informs the holder of the proposed cancellation.
(3) The notice must:
(a) specify the reason for the proposed cancellation, and
(b) invite the holder to make submissions in relation to the proposed cancellation, and
(c) specify the day by which submissions may be given to the Minister, and
(d) specify an address where submissions are to be lodged.
(4) The day specified under subsection (3) (c) must be not less than 60 days after the day on which the notice is given.
(5) The Minister may cancel the licence only if:
(a) the holder has been given a notice under subsection (2), and
(b) the Minister has considered:
(i) any submission made by the holder in accordance with subsection (3), and
(ii) any steps taken by the holder to remedy the breach or contravention that led to the proposal to cancel the licence and to prevent any similar breach or contravention from happening again, and
(c) the Minister is satisfied that no special circumstances exist that justify the licence not being cancelled.
131 Obligations of former exploration licence holders and former associates
(1) Subject to subsection (4), if:
(a) a person was:
(i) an exploration licence holder, or
(ii) an associate of an exploration licence holder, and
(b) the licence:
(i) expires, or
(ii) is cancelled, or
(iii) is surrendered, and
(c) an obligation associated with the licence arising out of:
(i) a licence condition, or
(ii) a direction given under section 387, or
(iii) this Act or the regulations,
has not been discharged, and
(d) the person was bound by that obligation when the person was the licence holder or an associate,
the person remains bound by the obligation until the obligation is discharged.
(2) Subsection (1) does not continue an obligation to carry out exploration or recovery activities.
(3) Subsection (1) continues an obligation that a person had to carry out exploration or recovery activities in a particular manner if the person carries them out.
(4) The Minister may determine that the person is not subject to:
(a) any particular obligation under this section, or
(b) all the person’s remaining obligations under this section.
(5) A determination under subsection (4) is to be in writing.
132 Retention licences
This Part provides for the grant of retention licences over blocks in coastal waters.
Note—
A retention licence is designed to allow an exploration licence holder to retain rights over an area if:
• the holder has identified and evaluated a significant mineral deposit in the exploration licence area, and
• mining the deposit is not commercially viable in the short term, and
• there is a reasonable prospect of development of the deposit in the longer term.
See section 145 for the grounds on which a retention licence may be granted.
133 Activities authorised by a retention licence
(1) Subject to subsections (2) and (3), a retention licence holder may:
(a) explore for minerals in the licence area, and
(b) recover minerals in the licence area.
Note 1—
The retention licence may specify a restricted range of activities that are the only ones authorised by the licence (see section 146 (3)).
Note 2—
Under section 23 (1) the concept of “exploration” extends to activities that are directly related to exploration.
Note 3—
Under section 24 (1) the concept of “recovery” extends to activities that are directly related to the recovery of minerals.
(2) A retention licence does not authorise the recovery of minerals as part of a commercial mining operation.
(3) If the licence is expressed to restrict the kind of minerals covered by the licence, the holder is not permitted to explore for, or to recover, minerals not covered by the licence.
(4) A restriction on the kind of minerals covered by the licence may be inclusive (for example, only minerals A, B and C) or exclusive (for example, all minerals except A, B and C).
(5) For the purposes of subsection (3), the holder does not recover an excluded mineral if, in the course of exploring for, or recovering, another mineral, the holder recovers some excluded mineral.
134 Minister may cancel or not renew retention licence without compensation
No compensation is payable because of the cancellation or non-renewal of a retention licence by the Minister.
Note 1—
The Minister may cancel the licence under section 189 or 190.
Note 2—
The Minister may refuse under section 165 to renew the licence.
135 Licence rights may be suspended
(1) The Minister must suspend particular rights conferred by a retention licence if the Minister is satisfied that it is necessary in the public interest to do so.
(2) The Minister may suspend rights under subsection (1) for a specified period or for an indefinite period.
(3) The Minister may end a suspension at any time.
(4) A suspension or the ending of a suspension must be in writing.
(5) If the Minister:
(a) suspends rights conferred by a retention licence, or
(b) ends a suspension,
the Minister must give the licence holder a written notice that informs the holder of the suspension or the ending of a suspension.
Note—
See section 181 for the effect of the suspension on the obligations associated with the licence.
(6) A suspension takes effect when:
(a) the holder has been given notice of the suspension under subsection (5), and
(b) the suspension has been registered under section 337.
136 Compensation for acquisition of property due to suspension of rights
(1) If:
(a) the Minister suspends licence rights under section 135, and
(b) the suspension results in the acquisition of property from a person, and
(c) the State and the person agree on an amount of compensation for the acquisition,
the State must pay the person the agreed amount of compensation.
(2) If:
(a) the Minister suspends licence rights under section 135, and
(b) the suspension results in the acquisition of property from a person, and
(c) the State and the person do not agree on an amount of compensation for the acquisition, and
(d) the person brings an action for compensation against the State in the Supreme Court,
the State must pay the person the amount of compensation (if any) that is determined by that Court.
(3) In this section:
acquisition of property has the same meaning as it has in section 51 (xxxi) of the Commonwealth Constitution.
137 Application for retention licence
(1) An exploration licence holder may apply to the Minister for a retention licence over blocks within the exploration licence area.
(2) A person may apply for a retention licence over a group of blocks only if:
(a) the group forms a discrete area, and
(b) there are not more than 20 blocks in the group.
(3) The exploration licence holder may apply for 2 or more retention licences over different parts of the exploration licence area.
138 How to apply
(1) The application must:
(a) be made in accordance with the approved form, and
(b) be made in the approved manner, and
(c) specify the blocks for which the application is made, and
(d) include details of:
(i) the reasons why the applicant is applying for a retention licence rather than a mining licence, and
(ii) the mineral deposit that the applicant has identified and evaluated and that the applicant believes is commercially viable in the longer term, and
(iii) the applicant’s assessment of the present and potential commercial viability of the mineral deposit, and
(iv) the overall work program that the applicant has already carried out under the exploration licence on the blocks covered by the application, and
(v) the amount of money that the applicant has already spent under the exploration licence on and in connection with the blocks covered by the application, and
(vi) the activities that the applicant intends to carry out on the blocks covered by the application, and
(vii) the amount of money that the applicant intends to spend on and in connection with those activities, and
(viii) the technical qualifications of the applicant and of the applicant’s employees who are likely to be involved in activities authorised by the licence, and
(ix) the technical advice available to the applicant, and
(x) the financial resources available to the applicant, and
(e) be accompanied by maps that:
(i) relate to the blocks, and
(ii) comply with the regulations, and
(f) specify an address for service of notices under this Act and the regulations.
Note—
For paragraphs (a) and (b) see section 41.
(2) The mineral deposit details given under subsection (1) (d) (ii) must include:
(a) a full description of the mineral deposit, and
(b) both factual information about the deposit and the applicant’s interpretation of the factual information.
(3) The applicant may include in the application any other information that the applicant thinks is relevant.
139 Payment of fee
(1) The applicant must pay the appropriate application fee.
(2) The fee must be paid when the application is made.
(3) The Minister may refund any fee paid under subsection (1) but only if the Minister is satisfied that special circumstances exist that justify the refund of the fee.
140 Application must be advertised
(1) The applicant must advertise the application in a newspaper circulating throughout the State.
(2) The advertisement must contain:
(a) the applicant’s name and address, and
(b) a map and description of the blocks applied for that are sufficient for the blocks to be identified, and
(c) the address of the Minister, and
(d) a statement:
(i) that the applicant has applied for a retention licence for the blocks described in the notice, and
(ii) that invites comment from the public on the application, and
(iii) that requests that comments be sent to the applicant and the Minister within 30 days after the day on which the advertisement is published.
(3) The advertisement must be published:
(a) as soon as possible after the applicant makes the application, and
(b) in any case, subject to subsection (4), within 14 days after the day on which the applicant makes the application.
(4) If:
(a) the applicant applies to the Minister within the 14 day period referred to in subsection (3) for an extension of the period, and
(b) the Minister extends the period,
the advertisement must be published within the period as extended by the Minister.
141 Request for further information
(1) The Minister may ask the applicant for further information about the application.
(2) The request must:
(a) be in writing, and
(b) be given to the applicant, and
(c) specify the time within which the information must be provided.
(3) Information requested under subsection (1) must be provided:
(a) in writing, and
(b) within the time specified in the request.
142 Section number not used
See note 2 to section 3 (1).
143 Minister may provisionally grant licence
If the applicant does what is required by sections 138 to 141, the Minister may:
(a) subject to section 145, provisionally grant a retention licence to the applicant, or
(b) refuse the application.
Note—
Under section 154, the grant of the licence cannot be effective before it is registered (see section 333 for registration). The grant will not be registered until it has been properly accepted (see section 151 for proper acceptance).
144 Section number not used
See note 2 to section 3 (1).
145 Grounds for granting retention licence
(1) The Minister may provisionally grant the retention licence only if the Minister is satisfied that:
(a) the exploration licence holder has identified and evaluated a significant mineral deposit in the exploration licence area, and
(b) there are reasonable grounds for the holder not applying immediately for a mining licence.
(2) Without limiting subsection (1), reasonable grounds for not applying immediately for a mining licence include the following:
(a) the need to obtain government approvals (for example, relating to environmental protection) before mining activities can commence,
(b) the need to carry out further exploration or evaluation in order to establish the commercial viability of a mineral deposit found in the licence area,
(c) the need to develop technologies before mining activities can commence,
(d) the need to arrange finance, or to secure additional capital reserves, before mining activities can commence,
(e) the existence of economic considerations (for example, the prevailing condition of the commodity market for the minerals concerned) that effectively preclude mining activities in the immediate future,
(f) the existence of political considerations that effectively preclude mining activities in the immediate future.
146 Matters to be specified in the licence
(1) The licence must specify:
(a) the blocks covered by the licence, and
(b) the term of the licence, and
(c) the licence conditions.
(2) The term specified under subsection (1) (b) is not to exceed 5 years.
(3) The licence may specify the activities that may be carried out under the licence.
(4) If the licence includes a specification under subsection (3), the licence authorises only the specified activities.
147 Applicant must be notified
(1) The Minister must give the applicant written notice of a decision under section 143.
(2) If the Minister provisionally grants a retention licence:
(a) the Minister must give the licence to the provisional holder, and
(b) the notice under subsection (1) must contain the following information:
(i) notification of any determination under section 399 that the provisional holder must lodge a security,
(ii) notification that the provisional grant will lapse unless the provisional holder, before the end of the primary payment period:
(A) gives the Minister a written acceptance of the grant, and
(B) lodges any security required under section 399, and
(C) pays the fee that must be paid for the licence under section 425.
148 Amendment of conditions
(1) If the provisional holder is dissatisfied with a licence condition, the provisional holder may ask the Minister to amend the condition.
(2) The request must be made within 30 days after the day on which the provisional holder is given the licence under section 147.
(3) If a request is made under subsection (1), the Minister may amend the licence condition and, with the consent of the provisional holder, any other licence condition.
(4) The Minister must give the provisional holder written notice of a decision under this section.
149 Amendment of security requirements
(1) If the provisional holder:
(a) is notified of a security requirement, and
(b) is dissatisfied with the amount of the security required,
the provisional holder may ask the Minister to make a new determination under section 399.
(2) The request must be made within 30 days after the day on which the provisional holder is given notice under section 147.
(3) If a request is made under subsection (1), the Minister may make a new determination under section 399.
(4) The Minister must give the provisional holder written notice of the new determination.
150 Extension of primary payment period
(1) If the provisional holder makes a request under section 148 or 149, the provisional holder may ask the Minister to extend the primary payment period.
(2) The request must be made within 30 days after the day on which the provisional holder is given notice under section 147.
(3) If the Minister agrees to the request, the Minister must:
(a) determine the period of the extension, and
(b) give the provisional holder a written notice of the period of the extension.
151 Acceptance of grant of retention licence
(1) The provisional grant of a retention licence is properly accepted by the provisional holder if, before the required time, the provisional holder:
(a) gives the Minister a written acceptance of the grant, and
(b) lodges any security required under section 399, and
(c) pays the fee that must be paid for the licence under section 425.
(2) The required time under subsection (1) is the end of the primary payment period or, if the provisional holder has been granted an extension of the primary payment period under section 150, the end of the secondary payment period.
Note—
Under section 154, the grant of the licence cannot be effective before the grant is registered (see section 333 for registration).
152 Conditions applicable to licence on grant
If the provisional grant of the licence is properly accepted under section 151, it is subject to:
(a) the conditions specified in the licence given to the applicant under section 147, or
(b) if the Minister amended those conditions under section 148, those conditions as amended.
153 Lapse of provisional grant of retention licence
If the provisional grant of the licence is not properly accepted under section 151, the provisional grant lapses.
154 Initial term of retention licence
(1) A retention licence comes into force on:
(a) the day on which the grant of the licence is registered, or
(b) if a day later than the day on which the grant of the licence is registered is specified in the licence as its commencement day, that specified day.
(2) The initial term of a retention licence expires at the end of the period specified in the licence under section 146 (1).
Note 1—
For the maximum initial term see section 146 (2).
Note 2—
The licence may be surrendered at any time (see section 187).
(3) The period runs from:
(a) the day on which the licence is provisionally granted, or
(b) if a day later than the day on which the licence is provisionally granted is specified in the licence as its commencement day, that specified day.
155 Term of renewal of licence
(1) A renewal of a retention licence comes into force on:
(a) the day on which the renewal is registered, or
(b) the day on which the previous term of the licence expires,
whichever is the later.
Note—
See Division 5 for renewal.
(2) The term of a renewal of a licence expires at the end of the period specified in the notice under section 169.
Note 1—
For the maximum term of renewal see section 169 (3).
Note 2—
The licence may be surrendered at any time (see section 187).
(3) The period runs from the expiry of the previous term of the licence.
(4) In working out the period referred to in subsection (3) section 156 is to be disregarded.
156 Effect of application for renewal on term of retention licence
If:
(a) a retention licence holder applies to renew the licence under section 159, and
(b) the current term of the licence expires, and
(c) a renewal of the licence does not take effect immediately after the current term expires,
the licence remains in force after the current term expires until:
(d) a renewal of the licence takes effect, or
(e) a provisional renewal of the licence lapses, or
(f) the application for renewal is withdrawn or refused.
157 Effect of application for mining licence on term of retention licence
If:
(a) a retention licence holder applies for a mining licence over the licence area, or part of the licence area, of the retention licence, and
(b) the current term of the retention licence expires, and
(c) a grant of the mining licence does not take effect before the current term of the retention licence expires,
the retention licence remains in force until:
(d) the grant of the mining licence takes effect, or
(e) a provisional grant of the mining licence lapses, or
(f) the application for the mining licence is withdrawn or refused.
158 Voluntary surrender of blocks if discrete area remains
(1) A retention licence holder may surrender a block or some of the blocks covered by the licence if the remaining blocks in the licence area form a discrete area.
Note—
See section 187 for the surrender of the whole licence.
(2) A surrender under subsection (1) must:
(a) be made in writing, and
(b) identify the blocks surrendered, and
(c) be given to the Minister.
Note—
The surrender takes effect when it is registered under section 337 (see section 337 (5)).
159 Application for renewal of retention licence
A retention licence holder may apply to the Minister to renew the licence.
Note—
At each renewal, the licence conditions are reviewed (see section 177).
160 When application to be made
(1) Subject to subsection (2), the application must be made at least 6 months before the day on which the licence is to expire.
(2) The Minister may accept an application that is made later than 6 months before the day on which the licence is to expire if:
(a) the application is made before the day on which the licence expires, and
(b) the Minister believes that there are reasonable grounds for accepting the application.
161 How to apply for renewal
(1) The application must:
(a) be made in accordance with the approved form, and
(b) be made in the approved manner, and
(c) include details of:
(i) the reasons why the applicant is applying to renew the retention licence rather than applying for a mining licence, and
(ii) the activities carried out by the applicant under the licence during its current term, and
(iii) the amount of money spent by the applicant in relation to the blocks covered by the licence during its current term, and
(iv) the results obtained by the applicant from carrying out the activities referred to in subparagraph (ii), and
(v) the activities that the applicant intends to carry out under the licence during the term applied for, and
(vi) the amount of money that the applicant intends to spend in relation to activities authorised by the licence during the term applied for.
Note—
For paragraphs (a) and (b) see section 41.
(2) The applicant may include in the application any other information that the applicant thinks is relevant.
162 Request for further information
(1) The Minister may ask the applicant to provide further information relating to the application.
(2) The request must:
(a) be in writing, and
(b) be given to the applicant, and
(c) specify the time within which the information must be provided.
(3) Information requested under subsection (1) must be provided:
(a) in writing, and
(b) within the time specified in the request.
163 Payment of fee
(1) The applicant must pay the appropriate application fee.
(2) The fee must be paid when the application is made.
(3) The Minister may refund any fee paid under subsection (1) but only if the Minister is satisfied that special circumstances exist that justify the refund of the fee.
164 Section number not used
See note 2 to section 3 (1).
165 Provisional renewal of retention licence
The Minister may:
(a) provisionally renew the licence, or
(b) subject to section 168, refuse to renew the licence.
Note 1—
Under section 155, the renewal of the licence cannot be effective before it is registered (see section 334 for registration). The renewal will not be registered until it has been properly accepted (see section 173 for proper acceptance).
Note 2—
Under section 177, new conditions may be imposed on renewal.
166 Section number not used
See note 2 to section 3 (1).
167 Matters that may be taken into account
In determining whether to renew the licence, the Minister may have regard to:
(a) whether mining activities are commercially viable in the retention licence area, and
(b) whether the applicant has complied with:
(i) this Act, and
(ii) the regulations, and
(iii) any licence conditions.
168 Refusal of application for renewal
(1) If the Minister proposes to refuse to renew the licence, the Minister must give the applicant notice of the proposed refusal.
Note—
The retention licence remains in force until the application for renewal has been finally determined (ie until the Minister decides whether or not to renew the licence) (see section 156).
(2) The notice must:
(a) be in writing, and
(b) give details of the Minister’s reasons for the proposal not to renew the licence, and
(c) invite the applicant to make written submissions on the proposed non-renewal to the Minister, and
(d) specify the day by which submissions may be made to the Minister.
(3) The day specified under subsection (2) (d) is to be at least 30 days after the day on which the notice under subsection (1) is given to the applicant.
(4) The Minister, in deciding whether to refuse to renew the licence, must have regard to any submissions made by the applicant in response to the notice under subsection (1).
169 Applicant must be notified
(1) The Minister must give the applicant written notice of the Minister’s decision under section 165.
(2) If the Minister provisionally renews the licence under section 165, the notice must contain the following information:
(a) notification of the term of the renewal,
(b) notification of the conditions of the renewed licence,
(c) notification of any determination under section 399 that the applicant must lodge a security or a further security,
(d) notification that the provisional renewal will lapse unless the applicant, before the end of the primary payment period:
(i) gives the Minister a written acceptance of the renewal, and
(ii) lodges any security required under section 399, and
(iii) pays the fee that must be paid under section 425.
Note—
Paragraph (b): section 177 provides for renewals to be granted subject to conditions.
(3) The term specified under subsection (2) (a) is not to exceed 5 years.
170 Amendment of conditions
(1) If the licence holder:
(a) has been provisionally granted a renewal of the licence under section 165, and
(b) is notified of the licence conditions, and
(c) is dissatisfied with a condition,
the holder may ask the Minister to amend the condition.
(2) The request must be made within 30 days after the day on which the applicant is given notice under section 169.
(3) If a request is made under subsection (1), the Minister may amend the licence conditions and, with the consent of the holder, any other licence condition.
(4) The Minister must give the holder written notice of a decision under this section.
171 Amendment of security requirements
(1) If the licence holder:
(a) has been provisionally granted a renewal of the licence under section 165, and
(b) is notified of a security requirement, and
(c) is dissatisfied with the amount of the security required,
the holder may ask the Minister to make a new determination under section 399.
(2) The request must be made within 30 days after the day on which the holder is given notice under section 169.
(3) If a request is made under subsection (1), the Minister may make a new determination under section 399.
(4) The Minister must give the holder written notice of the new determination.
172 Extension of primary payment period
(1) If the licence holder makes a request under section 170 or 171, the holder may ask the Minister to extend the primary payment period.
(2) The request must be made within 30 days after the day on which the holder is given notice under section 169.
(3) If the Minister agrees to the request to extend the primary payment period, the Minister must:
(a) determine the period of the extension, and
(b) give the holder a written notice informing the holder of the period of the extension.
173 Acceptance of renewal of retention licence
(1) The provisional renewal of a retention licence is properly accepted by the licence holder if, before the required time, the holder:
(a) gives the Minister a written acceptance of the renewal, and
(b) lodges any security required under section 399, and
(c) pays the fee that must be paid under section 425.
(2) The required time under subsection (1) is the end of the primary payment period or, if the licence holder has been granted an extension of the primary payment period under section 172, the end of the secondary payment period.
Note—
Under section 155, the renewal of the licence cannot be effective before it is registered (see section 334 for registration).
174 Conditions applicable to licence on renewal
If the provisional renewal is properly accepted under section 173, the renewed licence is subject to:
(a) the conditions specified in the notice given to the licence holder under section 169, or
(b) if the Minister amended those conditions under section 170, those conditions as amended.
175 Lapse of provisional renewal of retention licence
If the provisional renewal of a retention licence is not properly accepted under section 173, the provisional renewal lapses.
176 General
(1) The sources of obligations associated with a retention licence are:
(a) the licence conditions, and
(b) obligations arising from directions under section 387 or 392 given by the Minister, and
(c) obligations imposed by this Act and the regulations.
Note—
For paragraph (a) see section 177. For paragraph (c) see sections 44, 177 to 185, 372 and 391 (1).
(2) If a retention licence has 2 or more holders, all the holders are jointly and severally bound by the obligations that attach to the licence.
177 Conditions of retention licence
(1) The Minister may grant or renew a retention licence subject to whatever conditions the Minister thinks appropriate.
(2) If the Minister grants or renews a retention licence subject to conditions, the conditions must be specified in the licence.
(3) Without limiting subsection (1), the Minister may attach the following kinds of conditions to the grant or renewal of a retention licence:
(a) a condition requiring the licence holder to take out insurance as required by the Minister,
(b) a condition requiring the holder to carry out certain activities in or in relation to the licence area during the term of the licence,
(c) a condition requiring the holder to spend a specified amount of money in carrying out the activities referred to in paragraph (b),
(d) a condition requiring the holder to lodge a security with the Minister,
(e) a condition requiring the holder to keep specified information,
(f) a condition requiring the holder to give the Minister, on request, specified information,
(g) a condition requiring the holder to take steps to protect the environment of the licence area, including conditions relating to:
(i) protecting wildlife, or
(ii) minimising the effect on the environment of the licence area and the area surrounding the licence area of activities carried out in the licence area,
(h) a condition requiring the holder to repair any damage to the environment caused by activities in the licence area,
(i) a condition requiring the holder to pay a specified penalty to the State if the holder does not comply with a licence condition.
(4) A condition under subsection (3) (d) must specify:
(a) the amount of the security required, and
(b) the kind of security required, and
(c) the manner and form in which the security is to be lodged.
(5) Without limiting subsection (3) (d), a condition under that provision may require the lodgment of a security in the form of a guarantee and if a guarantee is required the condition may specify:
(a) the kind of person who is to give the guarantee, and
(b) the terms of the guarantee.
178 No conditions requiring payment of money
Except for a condition requiring the payment of a penalty or lodgment of a security, a licence condition must not require the payment of money to the State.
179 Variation of conditions
(1) If:
(a) a retention licence holder requests the Minister in writing to vary a licence condition, or
(b) part of the licence area of a retention licence is surrendered under section 158,
the Minister may vary a licence condition.
(2) If a Minister gives:
(a) a direction under section 387, or
(b) an approval, consent or exemption under the regulations,
to a retention licence holder, the Minister may vary a licence condition to the extent necessary to avoid inconsistency between the licence conditions and the direction, approval, consent or exemption.
(3) The Minister may vary a licence condition subject to whatever conditions the Minister thinks appropriate.
(4) If the Minister varies a licence condition, the Minister must give the licence holder a written notice that:
(a) informs the holder of the variation, and
(b) specifies the conditions which have been varied, and
(c) specifies any conditions to which the variation is subject.
180 Exemption from or suspension of conditions
(1) If:
(a) a retention licence holder requests the Minister in writing to:
(i) suspend a licence condition, or
(ii) exempt the holder from complying with a licence condition, or
(b) part of the licence area of a retention licence is surrendered under section 158,
the Minister may:
(c) suspend a licence condition, or
(d) exempt the holder from complying with a licence condition.
(2) If the Minister gives:
(a) a direction under section 387, or
(b) an approval, consent or exemption under the regulations,
to a retention licence holder, the Minister may suspend a licence condition, or exempt the holder from compliance with a licence condition, to the extent necessary to avoid inconsistency between the licence conditions and the direction, approval, consent or exemption.
(3) The Minister may:
(a) suspend a licence condition, or
(b) exempt the licence holder from compliance with a licence condition,
subject to whatever conditions the Minister thinks appropriate.
(4) If the Minister:
(a) suspends a licence condition, or
(b) exempts the licence holder from complying with a licence condition,
the Minister must give the holder a written notice that:
(c) informs the holder of the exemption or suspension, and
(d) specifies the conditions which have been suspended or affected by the exemption, and
(e) specifies any conditions to which the suspension or exemption is subject.
Note—
A suspension or exemption of a condition does not take effect until registered (see section 337).
181 Automatic suspension of conditions if licence rights are suspended
If:
(a) the Minister suspends particular rights conferred by a retention licence under section 135, and
(b) a licence condition is affected by the suspension,
the licence condition is suspended for the period of the suspension of the rights.
182 Significant changes in circumstances to be reported to Minister
(1) A retention licence holder must notify the Minister of any change of circumstances that significantly affects the long term viability of mining activities in the retention licence area.
Note—
The Minister may cancel the retention licence if the Minister believes that circumstances have changed so that mining activities can now commence (see section 190).
(2) Subsection (1) applies to a change of circumstances whether favourable or unfavourable to the long term viability of mining activities in the retention licence area.
183 Work practices
A person who is a retention licence holder, or an associate of the holder, in carrying out activities in the licence area that are authorised by the licence, must take all reasonable steps:
(a) to ensure that the activities are carried out at a standard that is accepted as reasonable and proper in the mining industry, and
(b) to maintain in good repair all structures and equipment erected in, or brought into, the licence area by the person, and
(c) to remove from the licence area any structure, equipment or other property that:
(i) belongs to the person, or is under the person’s control, and
(ii) is not being used, or is not going to be used, in connection with the activities.
Maximum penalty: $20 000.
Note—
The safety of offshore exploration and mining activities is governed by the Work Health and Safety (Mines and Petroleum Sites) Act 2013.
s 183: Am 2002 No 129, Sch 2.13; 2004 No 74, Sch 4.7; 2013 No 54, Sch 3.8; 2015 No 43, Sch 4.8.
184 Licence holder must keep specified records etc
A retention licence holder must:
(a) keep whatever records and samples, and
(b) give whatever records and samples to the Minister for inspection, and
(c) make whatever returns,
are necessary to comply with:
(d) the regulations, or
(e) the licence conditions, or
(f) a direction given by the Minister under section 387.
Note—
Under sections 386 and 387 the Minister may direct a person to keep records and samples and to give records and samples to the Minister, and to make returns.
Maximum penalty: $10 000.
185 Licence holder must assist inspectors
A retention licence holder must provide an inspector with reasonable facilities and assistance so that the inspector is able to carry out compliance inspections.
Note—
See sections 377 to 384 for compliance inspections.
Maximum penalty: $5 000.
186 General
A retention licence expires if:
(a) the term of the licence ends without the licence being renewed, or
(b) the licence holder surrenders the licence, or
(c) a mining licence is granted over the blocks in the licence area of the retention licence, or
(d) the licence is cancelled.
Note—
For paragraph (a) see Division 5. For paragraph (b) see section 187. For paragraph (c) see section 188. For paragraph (d) see sections 189 and 190.
187 Voluntary surrender of retention licence
A retention licence holder may surrender the licence.
Note 1—
See Division 4 for voluntary surrender of part of a licence area.
Note 2—
The surrender takes effect when it is registered under section 337 (see section 337 (5)).
188 Automatic expiry of retention licence when mining licence takes effect
If:
(a) a retention licence is in force, and
(b) a mining licence over all or some of the blocks in the retention licence area comes into force under section 232,
the retention licence expires in relation to the blocks covered by the mining licence.
189 Cancellation of retention licence, breach of condition etc
(1) Subject to subsection (5), the Minister may cancel a retention licence if the licence holder:
(a) breaches a licence condition, or
(b) contravenes a provision of this Act or the regulations, or
(c) breaches a condition attached to an approval under section 365 (2).
(2) If the Minister proposes to cancel a licence under subsection (1), the Minister must give the holder a written notice that informs the holder of the proposed cancellation.
(3) The notice must:
(a) specify the reason for the proposed cancellation, and
(b) invite the holder to make submissions in relation to the proposed cancellation, and
(c) specify the day by which submissions may be made to the Minister, and
(d) specify an address where submissions are to be lodged.
(4) The day specified under subsection (3) (c) must be not less than 60 days after the day on which the notice is given.
(5) The Minister may cancel the licence only if:
(a) the holder has been given a notice under subsection (2), and
(b) the Minister has considered:
(i) any submission made by the holder in accordance with subsection (3), and
(ii) any steps taken by the holder to remedy the breach or contravention that led to the proposal to cancel the licence and to prevent any similar breach or contravention from happening again, and
(c) the Minister is satisfied that no special circumstances exist that justify the licence not being cancelled.
Sourced from legislation.nsw.gov.au, CC BY 4.0.
Part 1.1 Legislative formalities and background
1 Name of Act
This Act is the Offshore Minerals Act 1999.
2 Commencement
This Act commences on a day or days to be appointed by proclamation.
3 Commonwealth–State agreement (the Offshore Constitutional Settlement)
(1) The Commonwealth and the States have agreed that:
(a) Commonwealth offshore mining legislation should be limited to the area that is outside State coastal waters, and
(b) the States should share, in the manner provided by the Offshore Minerals Act 1994 of the Commonwealth, in the administration of the Commonwealth offshore mining legislation, and
(c) State offshore mining legislation should apply to State coastal waters beyond the baseline for the territorial sea (that is, the first 3 nautical miles of the territorial sea), and
(d) the Commonwealth and the States should try to maintain, as far as practicable, common principles, rules and practices in regulating and controlling offshore mining beyond the baseline of Australia’s territorial sea.
Note 1—
So far as the agreement relates to petroleum, it is reflected in this State’s legislation by the Petroleum (Offshore) Act 1982.
Note 2—
Some sections of the Commonwealth Act contain provisions that are not relevant to the operation of this Act. To keep uniformity between this Act and the Commonwealth Act the numbers of the sections that are not relevant have not been used in the numbering of this Act.
(2) Other Acts that provide background in this State to the agreement (commonly referred to as the “Offshore Constitutional Settlement”) are:
Gives the Minister broad, structured powers:
Provides an explicit registration and title‑management system: the Minister keeps the offshore mining register and document file, registration is required for transfers and other dealings, transfers need Ministerial approval before registration, caveats can be lodged and give limited blocking rights until resolved (Part 3: ss 328–361; transfers and approvals ss 338, 362–365; caveats ss 341–351).
Enforcement and compliance mechanisms: inspectors (appointments, identity cards), inspection powers (with/without warrant), directions, penalties for non‑compliance, and the Minister’s power to carry out work and recover costs (ss 421–423, 377–384, 385–397).
Financial regime and fiscal sharing:
Confidentiality and data handling: the Act defines "confidential information" and "confidential samples" and makes unauthorised disclosure an offence; it also allows limited sharing inside government and for administration purposes and sets rules when holders publish or consent to release (ss 27–28, 374–376).
Environmental and other constraints: the Minister must take conservation and cultural values into account when deciding to grant/renew licences (s 38B) and may include environmental conditions (s 38C, ss 118/177/254/304). Exploration or mining in waters subject to certain fishing closures requires consent of the fisheries Minister (s 38A). Safety zones around structures can be declared (ss 403–404).
Native title: licence acts do not extinguish native title; native title is subordinated to licence rights while the licence is in force and compensation may be required under the Commonwealth Native Title Act where the State is the attributable party (s 43).
Who this affects
Why it matters (practical incentives, costs and trade‑offs — with the Act references)
Who pays: licence applicants and holders bear application fees, annual licence fees, security deposits, compliance costs, rehabilitation/removal costs, penalties and royalties (ss 56, 425, 399–400, 401–402, 436, 429–434). Where the Minister steps in to do work the Minister can recover costs as a debt (s 396).
Who decides: the Minister exercises the primary allocation and regulatory discretion — grant, renewal, conditions, suspensions, approvals of transfers, and enforcement (see ss 63, 108, 165, 206, 365, 387). Many decisions are explicitly subject to written notice processes and opportunities to make submissions (e.g. ss 130, 189, 265 for cancellation; ss 168, 245 for refusals of renewal).
Investment and transaction effects:
Operating costs and incentives:
Environmental and third‑party constraints: the Act empowers environmental and other protective conditions to be attached to licences and gives the Minister directions powers for protection and remediation (ss 38B–38C, 118, 177, 254, 386–395). Exploration/mining in fishing‑closed waters needs fisheries minister consent (s 38A). These raise timing and cost considerations for projects.
Information and confidentiality: the Act protects commercially sensitive information (ss 27–28, 374) while permitting limited sharing for administration (s 375) and requiring some reports to be released if they concern areas no longer under licence (s 376). This balances confidentiality with public administration and third‑party access.
Priority and dispute mechanisms: the registration, caveat and Supreme Court remedies create a formal system for competing interests and disputes (ss 341–351, 331, 354). Caveats can delay registration of dealings for up to 30 days unless consent is given or a court extends the caveat (s 348), which is a transaction friction.
Concentrated benefits vs diffuse costs: licence holders gain exclusive recovery rights and control over recovered minerals (s 42), while the broader public (through State fiscal receipts, environmental protections and procedural safeguards) bears diffuse interests. Administrative decisions (approvals, security levels, royalty settings) can concentrate economic value in successful holders while imposing compliance and fiscal obligations.
Practical implementation risks and compliance burden
High administrative discretion by the Minister (granting, conditions, transfer approvals, variation of securities) creates timing and regulatory‑risk exposure for investors (ss 63, 365, 399, 118).
The requirement to advertise applications, consult affected licence/works holders, and the ability for caveats and formal objections increase transaction and lead costs for applicants (ss 57, 140, 202, 320, 321, 341–349).
Securities, rehabilitation/removal and environmental conditions can require substantial up‑front or contingent capital (ss 399–400, 401–402, ss 118/177/254/304).
Royalties are administered as a tax and linked into State tax machinery (ss 435A, 437A), creating an additional compliance channel via the Chief Commissioner.
Sources cited in this summary (select relevant sections): s 5 (definitions), s 16 (coastal waters), s 22 (minerals), s 35 (excludes petroleum), ss 38–38C (environment/fishing closures), Parts 2.2–2.6 (licence types and processes), ss 63–71, 83–86, 151, 214, 283 (provisional grant/acceptance), s 104 (mandatory reduction), ss 118/177/254/304 (conditions), ss 328–340, 341–351 (register/caveats), ss 367–376 (information/confidentiality), ss 377–384 (inspections), ss 386–396 (directions and cost recovery), ss 398–400 (securities), ss 425, 429–435A, 437A (fees and royalties), s 435 (State to Commonwealth share), ss 421–423 (inspectors), s 362–365 (transfer approvals).
(a) the Seas and Submerged Lands Act 1973, the Coastal Waters (State Powers) Act 1980, the Coastal Waters (State Title) Act 1980 and the Offshore Petroleum Act 2006 of the Commonwealth, and
(b) the Petroleum (Offshore) Act 1982 of this State.
Note 1—
• declares and enacts that the sovereignty in respect of the territorial sea and the associated airspace, seabed and subsoil is vested in and exercisable by the Crown in right of the Commonwealth, gives the Governor-General power to declare, by Proclamation, the limits of the territorial sea, declares and enacts that the sovereignty in respect of waters of the sea that are on the landward side of the baseline of the territorial sea (but not within the limits of a State) and in respect of the associated airspace, seabed and subsoil is vested in and exercisable by the Crown in right of the Commonwealth, declares and enacts that the sovereign rights of Australia as a coastal State in respect of the Continental Shelf of Australia (for the purpose of exploring it and exploiting its natural resources) are vested in and exercisable by the Crown in right of the Commonwealth,
• gives the Governor-General power to declare, by Proclamation, the limits of the Continental Shelf of Australia.
Note 2—
The Coastal Waters (State Powers) Act 1980 was enacted following a request from the Parliaments of all the States under section 51 (xxxviii) of the Commonwealth Constitution and provides that the legislative powers exercisable under the Constitution of each State extend to the making of certain laws that would operate offshore.
Note 3—
The Coastal Waters (State Title) Act 1980 vests in each State certain property rights in the seabed beneath the coastal waters of the State.
Note 4—
The Offshore Petroleum and Greenhouse Gas Storage Act 2006 of the Commonwealth and the Petroleum (Offshore) Act 1982 of this State make provision, based on the agreement referred to in subsection (1), for the licensing regime that applies to the exploration for and recovery of petroleum in coastal waters and offshore areas of this State.
s 3: Am 2007 No 27, Sch 1.32 [1]; 2011 No 27, Sch 2.34.
Part 1.2 Interpretation
Division 1 General
4 Notes in the text
Notes in this Act are provided to assist understanding and do not form part of the Act.
5 Interpretation
In this Act:
appropriate application fee means the application fee determined from time to time by the Minister, with the concurrence of the Treasurer, for the purposes of the provision in which that term appears.
approved means approved by the Minister under section 41.
associate has the meaning given by section 26 (1).
associated agent of a holder has the meaning given by section 26 (3).
associated agent of an associated contractor has the meaning given by section 26 (4).
associated contractor of a holder has the meaning given by section 26 (2).
associated employee of a holder has the meaning given by section 26 (5).
associated employee of an associated contractor has the meaning given by section 26 (6).
block means a portion of the coastal waters constituted according to section 17.
caveat on a licence means a caveat against:
(a) the registration of dealings in relation to the licence, or
(b) the registration of a person as a holder of the licence under section 340.
Chief Commissioner means the Chief Commissioner of State Revenue.
coastal waters has the meaning given by section 16 (1) and (2).
Commonwealth Act means the Offshore Minerals Act 1994 of the Commonwealth.
Commonwealth Minister means a Minister of State for the Commonwealth.
compliance inspection has the meaning given by section 377.
confidential information has the meaning given by section 27.
confidential sample has the meaning given by section 28.
consent area means the block or blocks specified in a special purpose consent.
dealing in a licence means a transaction that creates, transfers, affects or otherwise deals with an interest in the licence and includes:
(a) a transfer of the licence, and
(b) a transfer of a share in the licence,
but does not include a document that comes within section 337 (1) other than a document by which a block or a licence is surrendered.
discrete area has the meaning given by section 21.
document file means a document file kept for the purposes of Part 3.1.
exploration has the meaning given by section 23.
holder of a licence has the meaning given by section 25 (1).
hydrocarbon means a hydrocarbon whether in a gaseous, liquid or solid state.
inspector means an inspector appointed under section 421.
interest, in relation to a licence, includes:
(a) an equitable interest in the licence, and
(b) a security interest in the licence.
licence means:
(a) an exploration licence, or
(b) a retention licence, or
(c) a mining licence, or
(d) a works licence.
licence area means the block or blocks covered by a licence.
licence holder has the meaning given by section 25 (1).
mineral has the meaning given by section 22.
offshore exploration or mining activities means:
(a) the exploration for minerals in coastal waters, or
(b) the recovery of minerals from coastal waters, or
(c) activities carried out in coastal waters under a works licence.
offshore mining register means the register kept for the purposes of Part 3.1.
petroleum means:
(a) a hydrocarbon or a mixture of hydrocarbons, or
(b) a mixture of one or more hydrocarbons and one or more of the following:
(i) hydrogen sulphide,
(ii) nitrogen,
(iii) helium,
(iv) carbon dioxide.
primary payment period for the provisional grant or provisional renewal of a licence means the period of 30 days after the day on which the applicant is given a written notice:
(a) in the case of the grant of an exploration licence, under section 66, and
(b) in the case of the renewal of an exploration licence, under section 110, and
(c) in the case of the grant of a retention licence, under section 147, and
(d) in the case of the renewal of a retention licence, under section 169, and
(e) in the case of the grant of a mining licence, under section 210, and
(f) in the case of the renewal of a mining licence, under section 246, and
(g) in the case of the grant of a works licence, under section 279, and
(h) in the case of the renewal of a works licence, under section 296.
provisional holder means a person who has been provisionally granted a licence.
recovery has the meaning given by section 24.
registered means registered in the offshore mining register.
reserved block means a block that is declared to be reserved under section 18.
responsible Commonwealth Minister means the Commonwealth Minister who is responsible for the administration of the Commonwealth Act.
sample of the seabed or subsoil includes a core or cutting from the seabed or subsoil.
secondary payment period for the provisional grant or provisional renewal of a licence means the period of 30 days after the day on which an extension of the primary payment period for the grant or renewal concerned ends.
share in a licence has the meaning given by section 6 (1), (2) and (3).
special purpose consent means a consent granted under Part 2.6.
standard block has the meaning given by section 19.
State Minister means:
(a) a Minister of State for a State, or
(b) a Minister of State for the Northern Territory.
successor licence to a licence has the meaning given by section 8.
surrender day for an exploration licence means:
(a) the day on which the initial term of the licence ends, or
(b) a day on which the term of a renewal of the licence ends.
tender block has the meaning given by section 20.
transfer:
(a) when used in relation to a licence, has the meaning given by section 7 (1), and
(b) when used in relation to a share in a licence, has the meaning given by section 7 (2) and (3).
vary a licence condition includes revoke or suspend.
s 5: Am 2014 No 37, Sch 4.3 [1].
6 Shares in a licence
(1) A person has a share in a licence if the person is the holder, or one of the holders, of the licence.
(2) If a holder is entitled to a particular percentage of the value of the rights conferred by a licence, that percentage is the holder’s share in the licence.
Note—
A sole holder has a 100% share in the licence.
(3) If:
(a) a person is a registered holder of a licence, and
(b) the person is shown in the offshore mining register as being entitled to a specified percentage of the value of the rights conferred by the licence,
the person’s share in the licence is taken to be the percentage specified in the register.
7 Transfer of a licence
(1) For the purposes of this Act, a licence is transferred if:
(a) the licence has only one holder and the holder transfers the whole of his or her interest in the licence to another person or other persons, or
(b) the licence has 2 or more holders and the holders all transfer the whole of their interests in the licence to another person or other persons.
(2) For the purposes of this Act, a share in a licence is transferred if:
(a) the licence has only one holder and the holder transfers a part of the holder’s share in the licence to another person or other persons, or
(b) the licence has 2 or more holders and:
(i) some, but not all, of the holders transfer the whole of their shares in the licence to another person, or
(ii) some or all of the holders transfer a part of their shares in the licence to another person.
(3) The other person referred to in subsection (2) (b) may be an existing licence holder.
8 Successor licences
(1) If:
(a) a mining licence takes effect immediately after an exploration licence expires, and
(b) the holder of the mining licence immediately after it takes effect was the holder of the exploration licence immediately before it expired,
the mining licence is a successor licence to the exploration licence.
(2) If:
(a) a retention licence takes effect immediately after an exploration licence expires, and
(b) the holder of the retention licence immediately after it takes effect was the holder of the exploration licence immediately before it expired,
the retention licence is a successor licence to the exploration licence.
(3) If:
(a) a mining licence takes effect immediately after a retention licence expires, and
(b) the retention licence took effect immediately after an exploration licence expired, and
(c) the holder of the mining licence immediately after it takes effect was the holder of the retention licence immediately before it expired, and
(d) the holder of the retention licence immediately after it took effect was the holder of the exploration licence immediately before it expired,
the mining licence is a successor licence to the exploration licence and the retention licence.
9 Section number not used
See note 2 to section 3 (1).
10 Position on the Earth’s surface
(1) The position of a point, line or area on the Earth’s surface is to be worked out for the purposes of this Act and subordinate instruments by reference to the Geocentric Datum of Australia within the meaning of the Surveying and Spatial Information Act 2002.
(2) In subsection (1):
subordinate instrument means:
(a) the regulations, and
(b) an instrument made under this Act or the regulations.
s 10: Am 2002 No 83, Sch 2.14; 2009 No 119, Sch 2.17.
11 Section number not used
See note 2 to section 3 (1).
12 Power to revoke and amend instruments
(1) A provision of this Act that confers a power to do something in writing is also taken to confer the power to revoke or amend the written document by which that thing is done.
(2) The power to revoke or amend:
(a) must also be exercised in writing, and
(b) is subject to the same procedural requirements as the original power, and
(c) is subject to the same conditions as those that governed the exercise of
This is an opening excerpt, not the complete document.