162Conditions of petroleum production licences

#### 162 Conditions of petroleum production licences (1) The Joint Authority may grant a petroleum production licence subject to whatever conditions the Joint Authority thinks appropriate. > Note: A grant of a licence may be a grant by way of renewal—see section 11. (2) The conditions (if any) must be specified in the licence. (2A) Subsection (1) does not apply to a petroleum production licence granted under section 183A. Petroleum production licence to which the Royalty Act applies (3) A petroleum production licence to which the Royalty Act applies is subject to a condition that the licensee will comply with the provisions of the Royalty Act. > Note: The Royalty Act applies to a small number of North West Shelf titles. (4) Despite subsection (2), the condition mentioned in subsection (3) does not need to be specified in the licence. General condition (5) A petroleum production licence may be granted subject to a general condition requiring the licensee to: (a) explore for petroleum in the licence area with a view to determining whether there is any additional recoverable petroleum in the licence area; and (b) recover such petroleum if it is commercially viable to do so. (6) Subsection (5) does not limit subsection (1), (12) or (19). Specific conditions (7) Despite subsection (1), a petroleum production licence must not be granted subject to specific conditions requiring the licensee to: (a) make a well in the licence area; or (b) carry out a seismic survey, or any other kind of survey, in, or in relation to, the licence area; or (c) spend particular amounts on the carrying out of work in, or in relation to, the licence area. (8) To avoid doubt, a condition covered by subsection (5) does not breach subsection (7). Renewal conditions (9) In making a decision about the conditions to which a petroleum production licence granted on renewal will be subject, the Joint Authority must have regard to: (a) the investment of the licensee, or of any former licensee, during the term of: (i) the original petroleum production licence; or (ii) any petroleum production licence granted on a previous renewal; where the investment relates to: (iii) operations authorised by the licence concerned; or (iv) any other development connected with those operations; and (b) such other matters (if any) as the Joint Authority considers relevant. Declared petroleum production licences—approval of key petroleum operations (10) A declared petroleum production licence is subject to the condition that the licensee will not carry on key petroleum operations under the licence unless the responsible Commonwealth Minister has approved the operations under section 163. (11) Despite subsection (2), the condition mentioned in subsection (10) does not need to be specified in the licence. (12) If, under section 163, the responsible Commonwealth Minister approves the carrying on of one or more key petroleum operations under a declared petroleum production licence, the responsible Commonwealth Minister may, by written notice given to the licensee, vary the licence by imposing one or more conditions to which the licence is subject. (13) A variation of a declared petroleum production licence under subsection (12) takes effect on the day on which notice of the variation is given to the licensee. (14) A condition imposed under subsection (12) may require the licensee to ensure that: (a) all wells; or (b) one or more specified wells; made in the licence area by any person engaged or concerned in operations authorised by the licence are made in a manner, and to a standard, that will facilitate the plugging or closing off of the wells in a way that restores or maintains the suitability of a part of a geological formation for the permanent storage of greenhouse gas substances. (15) Subsection (14) does not limit: (a) subsection (12); or (b) Part 6.2; or (c) Part 6.4. (16) If: (a) a declared petroleum production licence is subject to a condition; and (b) the condition was imposed under subsection (12); the responsible Commonwealth Minister may, by written notice given to the licensee, vary or revoke the condition. (17) A variation of a declared petroleum production licence under subsection (16) takes effect on the day on which notice of the variation is given to the licensee. (18) Subsection (17) does not limit section 264. Petroleum production licences obtained as a result of a change to the boundary of the coastal waters of a State or Territory (19) The Joint Authority may, by written notice given to the licensee of a petroleum production licence granted under section 183A, vary the licence by imposing one or more conditions to which the licence is subject. (20) A notice under subsection (19) must be given within 14 days after the grant of the licence. (21) A variation under subsection (19) takes effect on the day on which notice of the variation is given to the licensee.