Part 4Administration

Chapter 4—Administration Part 4.1—Information management 367—Minister may ask person for information (1) The Minister may ask a person to give the Minister information if— (a) the information is relevant to the operation of this Act; and (b) the Minister has reasonable grounds for believing that the person is able to give the information. (2) The Minister may ask the person to give the information to— (3) The request must— (a) be made by written notice given to the person; and (b) specify the person to whom the information is to be given; and (c) specify the period within which the information is to be given. (4) The information must be given— (b) before the end of the period specified in the request. (5) The document containing the information must be signed by— (a) if the information is given by a body corporate, an authorised officer of the body corporate; or (b) if the information is provided by an individual, the individual. 368—Power to ask person to appear (1) If the Minister has reasonable grounds for believing that a person is able to give information that is relevant to the operation of this Act, the Minister may ask the person to appear personally to— (a) give the information; and (b) answer questions about the activity to which the information relates. (2) The Minister may ask a person to appear before— (3) The request must— (a) be made by written notice given to the person; and (b) specify the activity about which the information is sought or questions will be asked; and (c) specify the address at which the person is to attend; and (d) specify the day on which and the time at which the person is to attend; and (e) indicate whether the appearance is to be before the Minister or before a nominated inspector. 369—Power to examine on oath or affirmation (1) Where, following a notice under section 368, a person appears before the Minister or a nominated inspector, the Minister or the inspector may— (a) administer an oath or affirmation to the person; and (b) request the person to answer any question that comes within the terms of the notice. (2) The oath or affirmation to be administered is an oath or affirmation that the person will truthfully answer the questions put by the Minister or the inspector. 370—Minister may ask for documents (1) The Minister may ask a person to produce a document if— (a) the document is relevant to the operation of this Act; and (b) the Minister has reasonable grounds for believing that the person is able to produce the document. (2) The Minister may ask the person to produce the document to— (3) The request— (a) must be made by written notice given to the person; and (b) must specify the person to whom, and the address at which, the document is to be produced; and (c) must specify— (i) the period within which the document is to be produced; or (ii) the day on which and the time at which the document is to be produced; and (d) may specify whether the original or a copy of the document is to be produced. (4) The regulations may provide for the manner in which the Minister is to deal with the document. (5) Without limiting subsection (4), the regulations may authorise the Minister or inspector to take a copy of the document. 371—Minister may ask for samples (1) The Minister may ask a person to produce a sample taken from the seabed or subsoil in coastal waters if— (a) the sample is relevant to the operation of this Act; and (b) the Minister has reasonable grounds for believing that the person is able to produce the sample. (2) The Minister may ask the person to give the sample to— (3) The request— (a) must be made by written notice given to the person; and (b) must specify the person to whom, and the address at which, the sample is to be given; and (c) must specify— (i) the period within which the sample is to be given; or (ii) the day on which and the time at which the sample is to be given. (4) The regulations may provide for the manner in which the Minister or inspector is to deal with the sample. (5) Without limiting subsection (4), the regulations may authorise the Minister or inspector to test or analyse the sample. 372—Obligation to comply with request under section 367, 368, 369, 370 or 371 (1) A person must not, without reasonable excuse, fail to comply with a request under section 367, 368, 369, 370 or 371. (2) A person is not excused from complying with the request on the ground that complying with the request might tend to incriminate the person or make the person liable to a penalty. Section 373 provides immunity for the response to the request. (3) A person must not give false or misleading information— (a) in response to a request under section 367, 368, 370 or 371; or (b) in response to a question asked under section 369(1). 373—Immunity from use of information etc given in response to request under section 367, 368, 369, 370 or 371 (1) Where a person gives the Minister information in response to a request under section 367 or 368, or to a question under section 369(1), the following are not admissible in evidence against the person in any proceedings— (a) the document containing the information given in response to the request; (b) the answer to the question; or (c) any information, document or thing obtained as a direct or indirect consequence of the giving of the information or answer. (2) If a person produces a document in response to a request under section 370, the following are not admissible in evidence against the person in any proceedings— (a) the document; (b) the fact of the production of the document by the person; (c) any information, document or thing obtained as a direct or indirect consequence of the production of the document. (3) If a person produces a sample in response to a request under section 371, the following are not admissible in evidence against the person in any proceedings— (a) the sample; (b) the fact of the production of the sample by the person; (c) any information, document or thing obtained as a direct or indirect consequence of the production of the sample. (4) The immunity provided by subsections (1), (2) and (3) does not apply to proceedings for an offence against section 372(3). 374—Restrictions on release of confidential material (1) Subject to sections 375 and 376, if the Minister holds confidential information— (b) a Commonwealth or State Minister who is given the information under section 375; and (c) a person acting on behalf of the Minister or of a Minister referred to in paragraph (b); and (d) a person who is given the information under section 375(3), must not— (e) publish the information; or (f) make the information available to a person. Maximum penalty: Imprisonment for two years. (2) Subject to section 375, if the Minister holds a confidential sample— (b) a Commonwealth or State Minister who is given access to the sample under section 375; and (c) a person acting on behalf of the Minister or of a Minister referred to in paragraph (b); and (d) a person who is given access to the sample under section 375(4), must not— (e) allow a person to inspect the sample; or (f) publish information about the sample. Maximum penalty: Imprisonment for two years. 375—Circumstances in which confidential material may be released (a) a licence holder gives confidential information to the Minister; and (b) the holder— (i) makes the information publicly available; or (ii) consents in writing to the information being made publicly available, the Minister, or another State Minister or a Commonwealth Minister who is given access to the information, may make the information available to any person. (a) a licence holder gives a confidential sample to the Minister; and (b) the holder— (i) publishes details of the sample; or (ii) consents in writing to the details being made publicly available; or (iii) consents in writing to the sample being made available for public inspection, the Minister, or another State Minister or a Commonwealth Minister who is given access to the sample, may— (c) make details of the sample available to any person; or (d) allow any person to inspect the sample. For confidential information and confidential sample see sections 27 and 28. (3) Confidential information may be made available to a person if the information is made available for the purposes of the administration of this Act or the Stamp Duties Act 1923. (4) A person may be given access to a confidential sample if the access is given for the purposes of the administration of this Act or the Stamp Duties Act 1923. 376—Certain reports to be made available If— (a) in order to comply with— (i) the regulations; or (ii) a direction under section 387 or 392; or (iii) a licence condition, a licence holder gives the Minister a report; and (b) the report relates to blocks that are no longer covered by the licence or by a successor licence to the licence; and (c) another person requests the Minister to make the report available to the person, the Minister must make the report available to the person. Part 4.2—Monitoring and enforcement Division 1—Inspections 377—Compliance inspections For the purposes of this Act, a compliance inspection is an inspection carried out to determine whether— (a) a licence holder, a special purpose consent holder or an associate has complied with or is complying with— (i) this Act or the regulations; or (ii) the licence or consent conditions; or (iii) a direction under section 387 or 392; or (b) a person is exploring for or recovering minerals in breach of section 38. An inspector may carry out a compliance inspection under— • section 379 (inspection of licence-related premises etc without a warrant); • section 380 (inspection of other premises etc with consent of the occupier); • section 381 (inspection of premises etc with a warrant). 378—Powers exercisable in course of inspection (1) If an inspector may carry out a compliance inspection, the inspector may do anything that is reasonable and necessary to carry out the inspection. (2) Without limiting subsection (1), the inspector may— (a) examine things that are being used for exploration or mining purposes and things that appear to the inspector to be intended to be used for those purposes; and (b) test equipment (for example, by operating it); and (c) examine, and copy, documents; and (d) remove documents; and (e) take photographs and videotapes; and (f) examine, and take samples from the seabed or subsoil; and (g) enter or go onto any land, building or structure; and (h) enter or board any vehicle, vessel or aircraft. (3) If the compliance inspection is being carried out under a warrant under section 382, subsection (2) has effect subject to the restrictions that are specified in the warrant. (4) Subject to subsections (5) and (6), if an inspector removes a document under subsection (2)(d), the inspector may retain the document for as long as is necessary to determine whether the licence holder, the consent holder or the associate has complied with or is complying with— (a) this Act and the regulations; or (b) the licence or consent conditions; or (c) a direction under section 387 or 392. (5) Subject to subsection (6), the inspector must not retain the document for more than 60 days. (6) If— (a) proceedings for an offence against a provision of this Act or the regulations are commenced within that period of 60 days; and (b) the document may afford evidence of the commission of the offence, the inspector may retain the document until the proceedings are completed. (7) For the purposes of subsection (6) the proceedings for an offence are taken to include any appeal to a court in relation to those proceedings. (8) While an inspector is retaining the document under subsection (4), the inspector must allow a person to inspect the document if the person would have a right to inspect the document if it were not in the inspector's possession. 379—Inspection of licence-related premises etc without warrant (1) Subject to subsections (2), (3) and (4), an inspector may, without a warrant, carry out a compliance inspection of— (a) licence-related land; or (b) a licence-related building, structure, vehicle, vessel or aircraft, if the inspection is reasonably necessary. (2) An inspection under subsection (1) must be made at a reasonable time. (3) An inspector may not enter premises under subsection (1) if— (a) the premises are a residence; and (b) the occupier has not consented to the entry. (4) An inspector may not carry out a compliance inspection under subsection (1) if— (a) the person occupying or in charge of the land, building, structure, vehicle, vessel or aircraft concerned asks the inspector to produce the inspector's identity card for inspection by the person; and (b) the inspector does not comply with the person's request. (5) For the purposes of this section, land or a building, structure, vehicle, vessel or aircraft is licence-related if— (a) it is used in connection with activities carried out under a licence or special purpose consent; or (b) records about activities of that kind are kept there. 380—Inspection of other premises etc with occupier's consent An inspector may carry out a compliance inspection of land or a building, structure, vehicle, vessel or aircraft with the consent of the person who occupies or is in charge of the land, building, structure, vehicle, vessel or aircraft. 381—Inspection of other premises etc with warrant An inspector may carry out a compliance inspection in accordance with a warrant issued under section 382. 382—Procedure for obtaining warrant (1) An inspector may apply to a magistrate for a warrant to carry out a compliance inspection of land or of a building, structure, vehicle, vessel or aircraft. (2) The application must be supported by a statement on oath or affirmation that sets out the grounds on which the inspector is applying for the warrant. (3) If the magistrate is satisfied that the compliance inspection is reasonably necessary, the magistrate may issue a warrant to the inspector to carry out the inspection. (4) The warrant must state— (a) the name of the inspector; and (b) whether the inspection may be carried out at any time or only during specified hours of the day; and (c) the day on which the warrant ceases to have effect; and (d) the purposes for which the warrant is issued. (5) The day specified under subsection (4)(c) is not to be more than 7 days after the day on which the warrant is issued. (6) The purposes specified under subsection (4)(d) must include the identification of— (a) the land, building, structure, vehicle, vessel or aircraft to be inspected; and (b) any equipment that the inspector may test; and (c) any documents that the inspector may examine and copy; and (d) any cores or cuttings from the seabed or subsoil that the inspector may examine and take samples of. 383—Further provisions as to exercise of powers under warrant (1) If a warrant for a compliance inspection is issued to an inspector under section 382, the warrant authorises the inspector to carry out the inspection— (a) with such assistance as is reasonable and necessary; and (b) by such force as is reasonable and necessary. (2) An inspector may not carry out a compliance inspection under a warrant if— (a) the person occupying or in charge of the land, building, structure, vehicle, vessel or aircraft concerned asks the inspector to produce the inspector's identity card for inspection by the person; and (b) the inspector does not comply with the person's request. 384—Occupier to cooperate with inspector If an inspector carries out a compliance inspection of land or of a building, structure, vehicle, vessel or aircraft under section 379 or 381, the person who occupies or is in charge of it must provide the inspector with the facilities and assistance that the inspector reasonably requires for carrying out the inspection. Division 2—Directions 385—Directions by Minister must be obeyed (1) A person must comply with a direction under section 387 or 392. (2) A person must comply with a supplementary direction given under section 391(2). 386—Scope of directions (1) The Minister may give a direction under section 387 or 392 if it is necessary or convenient to do so to carry out or give effect to this Act or the regulations. (2) Without limiting subsection (1), directions may be given in relation to— (a) the control of offshore exploration or mining activities; and (b) the conservation and protection of the mineral resources in coastal waters; and (c) the remedying of— (i) damage caused to the seabed or subsoil in coastal waters by offshore exploration or mining activities; or (ii) damage caused by the escape of substances as a result of offshore exploration or mining activities; and (d) the protection of the environment; and (e) the keeping of records and samples; and (f) the giving of records and samples to the Minister for inspection; and (g) the making of returns. (3) For the purposes of subsection (2), the control of offshore exploration or mining activities extends to the control of— (a) the construction, maintenance and operation of installations used in or for use in exploration or mining activities in coastal waters; and (b) the flow or discharge of fluids arising from exploration or mining activities in coastal waters; and (c) the safety, health and welfare of persons working in offshore exploration or mining activities; and (d) the maintenance of structures, equipment and property used in or for use in offshore exploration or mining activities. 387—Minister may give directions (1) Subject to subsections (2), (3) and (4), the Minister may direct a licence holder or special purpose consent holder to do or not to do the thing specified in the direction. (2) The direction must be in writing and is given by serving it on the holder. (3) The Minister must not give a direction of a permanent or standing nature except after consultation with the responsible Commonwealth Minister. (4) A failure to comply with subsection (3) does not affect the validity of the direction concerned. 388—Direction may incorporate material in another document (1) A direction under section 387 may apply, adopt or incorporate a code of practice or a standard that is contained in another document. (2) The application, adoption or incorporation of the other document may be made with or without modification. (3) The other document may be one issued outside Australia. (4) The direction may apply, adopt or modify the other document— (a) as in force at the time when the direction is given; or (b) as in force from time to time. (5) If a direction applies, adopts or incorporates material in another document, a copy of the document must be attached to the direction when it is given to the licence holder or special purpose consent holder. 389—Direction may impose absolute prohibition Without limiting section 387 a direction under that section may— (a) prohibit absolutely the doing of a thing; or (b) prohibit the doing of a thing unless a person's consent or approval is obtained. 390—Direction may extend to associates (1) A direction under section 387 to a licence holder or special purpose consent holder may extend to an associate specified in the direction. (2) An associate may be specified by name or by class. (3) The direction may provide that only particular obligations specified in the direction extend to a particular associate. 391—Holder to give notice of direction to associates (1) If a direction under section 387 extends to an associate, the licence holder or special purpose consent holder must either— (a) give a copy of the direction to the associate; or (b) display a copy of the direction at a place that the associate goes to in the course of carrying out activities under the licence or consent. (2) The Minister may give the licence holder or special purpose consent holder a supplementary direction that specifies the manner in which, or the places at which, copies of a direction are to be displayed under subsection (1)(b). (3) A supplementary direction is to have effect as if it were part of the original direction. 392—Power to give directions after licence etc ends (1) If a person is bound by an obligation because of section 131, 191, 266 or 314, the Minister may direct the person to do a thing or not to do a thing specified in the direction. (2) A direction may be given only for the following purposes— (a) to ensure that the obligation is complied with; (b) a purpose that is incidental to the purpose in paragraph (a). Sections 131, 191, 266 and 314 provide for undischarged obligations to continue to bind a former licence holder or associate after the licence ends. (3) A direction must be in writing and is given by serving it on the person bound by the obligation. 393—Effect of directions on other instruments (1) A later direction under section 387 or 392 overrides an earlier direction if they are inconsistent. (2) A direction has effect despite anything in— (a) the regulations; or (b) a licence condition that relates to safety or environmental matters. 394—Minister may specify time for compliance (1) If the Minister gives a direction under section 387 or 392 to a person, the Minister may— (a) specify in the direction a time for compliance with the direction; or (b) give the person a supplementary direction specifying a time for compliance with the direction. (2) A supplementary direction is to have effect as if it were part of the original direction. 395—Minister may take action if holder fails to comply (1) The Minister may do all or any of the things required by a direction under section 387 or 392 if— (a) the time for compliance specified under section 394 has ended; and (b) the person to whom the direction was given or to whom it extended has not complied with the direction. (2) If the direction required consultation under section 387(3), the Minister must not take action under subsection (1) without similar consultation. 396—Costs incurred by Minister in taking action under section 395 (a) the Minister takes action under section 395 in relation to a direction under section 387 given to a licence holder or special purpose consent holder; and (b) the direction does not extend to an associate of the holder, the costs and expenses incurred by the Minister in taking that action are a debt due to the State by the holder. (a) a direction under section 387 specifies that a particular associate of a licence holder or special purpose consent holder is subject to a particular obligation; and (b) the Minister takes action under section 395 in relation to that obligation, the costs and expenses incurred by the Minister in taking that action are a debt due to the State by the holder and the associate. (3) The associate and the holder are jointly and severally liable to pay the debt arising under subsection (2). (4) A debt under this section is recoverable in a court of competent jurisdiction. 397—Defences to actions to recover debts (1) It is a defence to an action to recover the debt from the licence holder, special purpose consent holder or the associate if— (a) the holder or associate produces evidence that the holder or associate took all reasonable steps to comply with the direction; and (b) the evidence is not rebutted. (2) It is a defence to an action to recover the debt from the associate if— (a) the associate produces evidence that the associate did not know of, and could not reasonably be expected to know of, the existence of the direction; and (b) the evidence is not rebutted. Division 3—Securities 398—Securities (1) A person may be required to lodge a security with the Minister under— (a) section 399 (security as prerequisite for proper acceptance of provisional grant or provisional renewal); or (b) section 118 (exploration licence conditions), 177 (retention licence conditions), 254 (mining licence conditions) or 304 (works licence conditions). (2) Securities are required as a way of ensuring compliance with this Act and with licence conditions. (3) Securities may only be used for the purposes laid down in section 400. 399—Determination of requirement to lodge security (1) The Minister may determine that a person who has been provisionally granted a licence must lodge a security with the Minister. 1 The provisional holder will be given notice of the determination under section 66 or 83 (exploration licence), 147 (retention licence), 210 or 227 (mining licence) or 279 (works licence). 2 If the provisional holder does not lodge the security within a particular time provided for in this Act, the provisional grant will lapse (see section 72 or 86 (exploration licence), 153 (retention licence), 216 or 230 (mining licence) or 285 (works licence)). (2) If the Minister provisionally renews a licence, the Minister may determine that the licence holder must lodge a security with the Minister. 1 The licence holder will be given notice of the determination under section 110 (exploration licence), 169 (retention licence), 246 (mining licence) or 296 (works licence). 2 If the holder does not lodge the security within a particular time provided for in this Act, the provisional renewal will lapse (see section 116 (exploration licence), 175 (retention licence), 252 (mining licence) or 302 (works licence)). (3) A determination under subsection (1) or (2) must specify— (4) Without limiting subsections (1) and (2), a determination may require the lodgment of a security in the form of a guarantee and if a guarantee is required the determination may specify— (5) The determination is to be in writing. (6) If a person is provisionally granted a licence over a tender block, the amount determined as a security under subsection (1) is to be the amount of security referred to in the tender block licence notice. For the contents of a tender block licence notice see sections 75 and 219. 400—Application of security (a) a person is or was a licence holder; and (b) the person has lodged a security with the Minister, the Minister may use the security to discharge the person's obligations arising from a failure to comply with— (c) this Act or the regulations; or (d) the licence conditions; or (e) a direction under section 387 or 392. (2) Without limiting subsection (1), the holder's financial obligations include the obligation to pay a penalty imposed under the licence conditions. (3) Subject to subsection (1), the Minister is to deal with a security in accordance with the regulations. Division 4—Restoration of environment 401—Removal of property from coastal waters (1) The regulations may provide for— (a) the removal from coastal waters of property that— (i) has been brought into coastal waters for use in offshore exploration or mining activities; and (ii) is not being used and is not intended to be used in exploration or mining activities in accordance with a licence; and (b) the disposal by the Minister of property removed under regulations made for the purposes of paragraph (a); and (c) the recovery of costs and expenses incurred by the Minister or another person in removing or disposing of property in accordance with regulations made for the purposes of paragraph (a) and (b). (2) Regulations made for the purposes of subsection (1)(a) may provide for removal by the Minister or by someone else. (3) Regulations made for the purposes of subsection (1)(c) may provide for the recovery of costs by way of deduction from the proceeds of the disposal. (4) Subject to the regulations, no action lies in respect of the removal or disposal of property in accordance with the regulations. (5) In this section— property includes a structure or equipment. 402—Rehabilitation of damaged areas (1) The regulations may provide for— (a) the rehabilitation of an area in coastal waters that has been damaged or affected by offshore exploration or mining activities of a licence holder; and (b) the recovery of costs and expenses incurred by the Minister in rehabilitating an area under regulations made for the purposes of paragraph (a). (2) Regulations made for the purposes of subsection (1)(a) may provide for the rehabilitation to be carried out by the Minister or someone else. (3) Regulations made for the purposes of subsection (1)(b) may provide for the recovery of costs and expenses by way of deduction from the licence holder's security. Division 5—Safety zones 403—Declaration of safety zone around a structure or equipment (1) The Minister may, by notice published in the Gazette, establish a safety zone around a structure or equipment in coastal waters. (2) A safety zone may only be established for the purpose of protecting the structure or equipment. (3) The safety zone may extend not more than 500 metres from the outer edge of the structure or equipment. (4) The notice may apply to— (a) all vessels; or (b) all vessels except those specified in the notice. 404—Effect of declaration of safety (1) If a safety zone is established by notice under section 403, a vessel to which the notice applies is not to enter or remain in the safety zone without the written consent of the Minister. (2) If a consent is given under subsection (1) on conditions, a vessel to which the consent applies is to enter or remain in the safety zone only in accordance with the conditions. (3) The owner of a vessel and the person in command or in charge of a vessel each commit an indictable offence if the vessel enters or remains in a safety zone in contravention of subsection (1) or (2). Maximum Penalty: Imprisonment for five years. (4) The Magistrates Court may hear and determine proceedings for an offence against subsection (3) as a summary offence if the Court is satisfied that it is appropriate to do so, and the defendant and the prosecutor consent. (5) Where, in accordance with subsection (3), the Magistrates Court convicts a person of the offence, the person is liable to a maximum penalty of a fine of $10 000 or imprisonment for 2 years. (6) It is a defence to a prosecution of a person for an offence against subsection (3) if the person satisfies the Court that— (a) an unforeseen emergency made it necessary for the vessel to enter or remain in the safety zone to attempt to secure the safety of— (i) a human life; or (ii) the vessel; or (iii) another vessel; or (iv) a well, pipeline, structure or equipment; or (b) the vessel entered or remained in the safety zone in circumstances beyond the control of the person who was in command or in charge of the vessel (for example, adverse weather). (7) It is a defence to a prosecution of the owner of a vessel for an offence against subsection (3) if the owner satisfies the Court that the owner— (a) did not aid, abet, counsel or procure the vessel's entering or remaining in the safety zone; and (b) was not in any way, directly or indirectly, knowingly concerned in, or party to, the vessel's entering or remaining in the safety zone. 405 to 420—Section numbers not used Sections 405 to 420—see note 2 to section 3(1). Part 4.3—Inspectors 421—Appointment of inspectors (1) The Minister may appoint a person who is a public sector employee within the meaning of the Public Sector Act 2009 to be an inspector for the purposes of this Act and the regulations. Inspectors have powers under sections 367, 368, 369, 370, 371, 378, 379, 380 and 381. (2) The appointment must be in writing. 422—Identity cards (1) The Minister must issue an inspector with an identity card. (2) The card must— (a) contain a recent photograph of the inspector; and (b) be in the form approved by the Minister. 423—Return of identity card (1) A person who stops being an inspector must, as soon as is practicable, return the person's identity card to the Minister or to an official specified by the Minister in a written notice given to the person. (2) A person must not contravene subsection (1) without reasonable excuse. Maximum penalty: $100. Part 4.4—Licence fees and royalty Division 1—Licence fees 424—Definition In this Division— year, in relation to the period when a licence is in force, means— (a) the period of 12 months commencing on (and including) the day on which the provisional grant of the licence is properly accepted; or (b) a period of 12 months commencing on (and including) an anniversary of that day; or (c) a period of less than 12 months that— (i) commences on (and includes)— (A) the day on which the provisional grant of the licence is properly accepted; or (B) an anniversary of that day; and (ii) ends on the expiry of the licence. 425—Licence fees (1) A licence holder must pay a fee to the Minister for each year during which the licence is in force. (2) Subject to section 426, the amount of the fee for each kind of licence is to be as prescribed by the regulations for that kind of licence. (3) If the licence has 2 or more holders, the holders are jointly and severally liable to pay the fee. 426—Limit on amount of fees (1) The amount of the fee for an exploration licence for a year is not to exceed whichever is the greater of— (a) $2 000; or (b) the amount obtained by multiplying $100 by the number of blocks covered by the licence at the beginning of the year. (2) The amount of the fee for a retention licence for a year is not to exceed the amount obtained by multiplying $1 000 by the number of blocks covered by the licence at the beginning of the year. (3) The amount of the fee for a mining licence for a year is not to exceed the amount obtained by multiplying $1 000 by the number of blocks covered by the licence at the beginning of the year. (4) The amount of the fee for a works licence for a year is not to exceed $100 for each hectare or part of a hectare of the area specified in the licence under section 278(1)(c). 427—Time for payment The fee for a year becomes payable one month after the day on which the year begins. Division 2—Royalty 428—Definition In this Division— royalty period, in relation to a mining licence, means— (a) the period from (and including) the day on which the licence takes effect to (and including) the next 30 June or 31 December whichever is the earlier; and (b) each period of 6 months after that period. 429—Royalty A person who is or has been a mining licence holder must pay to the Minister a royalty for all minerals recovered by the holder under the licence. 430—Rate of royalty (1) Subject to this section, the Minister may, by instrument in writing, determine the rate of royalty payable for a mineral of a kind specified in the instrument. (2) Without limiting subsection (1), the rates of royalty determined under that subsection may include a rate that is related to the landed value, or to the quantity, of the mineral. (3) A rate of royalty determined under subsection (1) applies in relation to any mineral of the relevant kind recovered under a mining licence during the period when the rate is in force. (4) A determination of a rate of royalty under subsection (1) takes effect on the day on which the instrument of determination is published in the Gazette. 431—Reduction of royalty in certain cases (1) The Minister may determine a rate of royalty that is lower than the rate determined under section 430 for— (a) a particular kind of mineral; or (b) all minerals recovered under a particular mining licence. (2) A determination is to be made by instrument in writing and is to specify the period for which the lower rate is to be in force. (3) A determination may only be made under this section if the Minister is satisfied that recovery of the kind of mineral to which it applies would be uneconomic at the rate determined under section 430. 432—Fixing of landed value For the purposes of this Division, the landed value of a mineral is— (a) an amount agreed between the mining licence holder and the Minister; or (b) if there is no agreement within such period as the Minister allows, an amount determined by the Minister by instrument in writing. 433—Fixing of quantity For the purposes of this Division, the quantity of any mineral recovered by a mining licence holder during a royalty period is— (a) the quantity agreed between the holder and the Minister; or (b) if there is no agreement within such period as the Minister allows, the quantity determined by the Minister by instrument in writing. 434—Time for payment Royalty for any mineral recovered during a royalty period is payable within one month after the last day of that royalty period. 435—State to pay 40 per cent of royalties to Commonwealth (1) The State is to pay to the Commonwealth 40 per cent of royalties received under this Division. (2) Payments under subsection (1) are to be made not later than the end of the month that follows the month in which the royalties were received. royalty includes any penalty for late payment of royalty. Division 3—Penalties and recovery 436—Penalty if fee or royalty overdue (1) Subject to this section, a licence holder must pay a penalty to the Minister in respect of any fee or amount of royalty that the holder fails to pay when it becomes payable. (2) The penalty is to be calculated— (a) on the amount of the fee or royalty that remains unpaid; and (b) at the rate of 0.33 per cent for each day during which the fee or royalty is unpaid. (3) A penalty is not payable under subsection (1) on an amount of royalty in respect of any period until 7 days after— (a) the landed value of the mineral has been agreed or determined under section 432, where the rate of royalty is related to the landed value of the mineral; or (b) the quantity of the mineral has been agreed or determined under section 433, where the rate of royalty is related to the quantity of the mineral recovered. 437—Fees etc recoverable as debts The State may recover the amount of any fee, royalty or penalty payable under this Part in a court of competent jurisdiction as a debt due to the State.