191Unit development

#### 191 Unit development Meaning of unit development (1) In this section, the expression unit development: (a) applies in relation to a petroleum pool (other than either of the Greater Sunrise unit reservoirs) that is partly in a particular licence area of a licensee of a petroleum production licence and partly in: (i) the licence area of another licensee of a petroleum production licence; or (ii) an area that is not within an offshore area but in which a person other than the first‑mentioned licensee is lawfully entitled to carry on petroleum recovery operations from the pool; and (b) means the carrying on of petroleum recovery operations from that pool under cooperative arrangements between the persons entitled to carry on such operations in each of those areas. Unit development agreement (2) A licensee of a petroleum production licence may from time to time enter into a written agreement for, or in relation to, the unit development of a petroleum pool, but nothing in this subsection derogates from the operation of section 487. Direction to enter into unit development agreement (3) The Joint Authority, on the Joint Authority’s own initiative or on application made to the Joint Authority in writing by: (a) a licensee of a petroleum production licence in whose licence area there is a part of a particular petroleum pool; or (b) a person who is lawfully entitled to carry on petroleum recovery operations in an area outside the offshore area that includes part of a particular petroleum pool that extends into the offshore area; may, for the purpose of securing the more effective recovery of petroleum from the petroleum pool, direct any licensee of a petroleum production licence whose licence area includes part of the petroleum pool, by written notice given to the licensee, to: (c) enter into a written agreement, within the period specified in the notice, for, or in relation to, the unit development of the petroleum pool; and (d) lodge an application in accordance with section 488 for approval of any dealing to which the agreement relates. Unit development scheme (4) If: (a) a licensee of a petroleum production licence who is directed under subsection (3) to enter into an agreement for, or in relation to, the unit development of a petroleum pool does not enter into such an agreement within the specified period; or (b) the licensee enters into such an agreement, but: (i) an application for approval of a dealing to which the agreement relates is not lodged with the Titles Administrator; or (ii) if an application is so lodged—the dealing is not approved under section 493; the Joint Authority may, by written notice given to the licensee, direct the licensee to submit to the Joint Authority, within the period specified in the notice, a scheme for, or in relation to, the unit development of the petroleum pool. Directions (5) At any time after the end of the period within which a scheme for, or in relation to, the unit development of a petroleum pool is to be submitted by a licensee under subsection (4), the Joint Authority may, by written notice given to the licensee, give to the licensee such directions as the Joint Authority thinks necessary for the purpose of securing the more effective recovery of petroleum from the petroleum pool. (6) If a person is the licensee of petroleum production licences in relation to 2 or more licence areas in each of which there is part of a particular petroleum pool, the Joint Authority may, by written notice given to the licensee, give to the licensee such directions as the Joint Authority thinks necessary for the purpose of securing the more effective recovery of petroleum from the petroleum pool. (7) If: (a) an agreement under this section is in force; or (b) the Joint Authority has given directions under subsection (5) or (6); the Joint Authority may, having regard to additional information that has become available, by written notice given to the licensee or licensees concerned, give to the licensee or licensees such directions, or further directions, as the case may be, as the Joint Authority thinks necessary for the purpose of securing the more effective recovery of petroleum from the petroleum pool. (8) The Joint Authority must not give a direction under subsection (6) or (7) unless the Titles Administrator has given to the licensee or licensees concerned an opportunity to confer with the Titles Administrator about the proposed direction. (9) Directions under subsection (5), (6) or (7) may include directions as to the rate at which petroleum is to be recovered. Definition (10) In this section: > dealing means a dealing to which Part 4.6 applies. Consultation (11) If a petroleum pool extends, or is reasonably believed by the Titles Administrator to extend, from the offshore area in respect of a State or Territory into lands to which: (a) the laws of that State or Territory relating to exploiting petroleum resources apply; or (b) the laws of another State or Territory relating to exploiting petroleum resources apply; the Titles Administrator must consult about exploiting the petroleum pool with the appropriate authority of a State or Territory referred to in paragraph (a) or (b). > Note: The offshore area of a State or Territory is defined by section 8. Approval (12) If subsection (11) applies in relation to a petroleum pool, a Joint Authority must not: (a) approve an agreement under this section; or (b) give a direction under this section; in relation to that petroleum pool except with the approval of any other Joint Authority concerned and any State or Territory authority concerned.