54Petroleum pool straddling Commonwealth title area and State title area etc.

#### 54 Petroleum pool straddling Commonwealth title area and State title area etc. (1) For the purposes of this Act, if: (a) a petroleum pool is partly in the title area of a title and partly in an area (the State title area) in which the titleholder has authority under the law of a State to explore for, or recover, petroleum; and (b) petroleum is recovered from that pool through a well or wells in the title area of the title, the State title area, or both; then: (c) there is taken to have been recovered in the title area of the title such proportion of all petroleum so recovered as may reasonably be treated as being derived from that area, having regard to the nature and probable extent of the pool; and (d) that proportion is to be determined by agreement between: (i) the titleholder of the title; and (ii) the Joint Authority; and (iii) the responsible State Minister; or, in the absence of agreement, by the Federal Court or a relevant Supreme Court on the application of: (iv) the titleholder of the title; or (v) the Joint Authority; or (vi) the responsible State Minister. Multiple petroleum pools (1A) If: (a) an agreement is in force between: (i) the titleholder of a title; and (ii) the Joint Authority for an offshore area of a State; and (iii) the responsible State Minister for the State; in relation to a petroleum pool that is partly in the title area of a title and partly in an area (the State title area) in which the titleholder has authority under the law of the State to explore for, or recover, petroleum; and (b) the agreement contains a provision (the apportionment provision) that provides that, for the purposes of this section, there will be taken to be recovered in the title area of the title a specified proportion of all of the petroleum recovered from the petroleum pool; and (c) assuming that petroleum were recovered from the part of the seabed that is within the areal and vertical extents specified in the agreement, the specified proportion would be consistent with such proportion of all petroleum so recovered as may reasonably be treated as being derived from the title area of the title, having regard to the nature and probable extent of the petroleum in that part of the seabed; and (d) the agreement contains a provision to the effect that if it becomes apparent that the areal and vertical extents of the petroleum pool, as specified in the agreement: (i) comprise; or (ii) are likely to comprise; more than one petroleum pool, the apportionment set out in the apportionment provision will apply to the petroleum recovered from any or all of those petroleum pools (regardless of their location but within those vertical and areal extents); and (e) after the time of the making of the agreement, it becomes apparent that the areal and vertical extents of the petroleum pool, as specified in the agreement, comprise, or are likely to comprise, 2 or more petroleum pools; and (f) petroleum is recovered from any of those pools through a well or wells in the title area of the title, the State title area, or both; then: (g) for the purposes of this Act, there is taken to have been recovered in the title area of the title such proportion of all petroleum so recovered as is specified in the apportionment provision; and (h) subsection (1) does not apply to any of those pools. (1B) The question of whether there is or was a petroleum pool covered by paragraph (1A)(a) is to be determined on the basis of information known at the time of the making of the agreement. (1C) The question of whether paragraph (1A)(c) applies is to be determined on the basis of information known at the time of the commencement of the apportionment provision. (1D) The location of any of the 2 or more petroleum pools mentioned in paragraph (1A)(e) is immaterial. Specified part of the seabed—apportionment agreement (1E) If: (a) at a particular time after the commencement of this subsection, a petroleum pool is partly in the title area of a title and partly in an area (the State title area) in which the titleholder has authority under the law of a State to explore for, or recover, petroleum; and (b) at that time, an agreement is made between the following parties: (i) the titleholder of the title; (ii) the Joint Authority; (iii) the responsible State Minister; and (c) the agreement specifies a part of the seabed by reference to its areal and vertical extents; and (d) the areal and vertical extents of the specified part consist of: (i) the whole or a part of the title area of the title; and (ii) the whole or part of the State title area; and (e) the areal and vertical extents of the specified part include the petroleum pool; and (f) the agreement contains a provision (the apportionment provision) that provides that, for the purposes of this section, there will be taken to be recovered in the title area of the title a specified proportion of the petroleum recovered from the specified part; and (g) assuming that petroleum were recovered from the specified part, the specified proportion would be consistent with such proportion of all petroleum so recovered as may reasonably be treated as being derived from the title area of the title, having regard to the nature and probable extent of the petroleum in the specified part; and (h) petroleum is recovered from the specified part through a well or wells in the title area of the title, the State title area, or both; then: (i) for the purposes of this Act, there is taken to have been recovered in the title area of the title such proportion of all petroleum so recovered as is specified in the apportionment provision; and (j) subsection (1) does not apply to a petroleum pool located in the specified part. (1F) The question of whether there is or was a petroleum pool covered by paragraph (1E)(a) at a particular time is to be determined on the basis of information known at that time. (1G) The question of whether paragraph (1E)(g) applies is to be determined on the basis of information known at the time of the commencement of the apportionment provision. Supreme Court (2) A reference in this section to a relevant Supreme Court is a reference to the Supreme Court of the State, or one of the States, in the offshore area of which the petroleum pool is wholly or partly situated. Northern Territory (3) This section applies to the Northern Territory as if: (a) that Territory were a State; and (b) the responsible Northern Territory Minister were the responsible State Minister of that State. > Note: The offshore area of a State or Territory is defined by section 8.