Offshore Petroleum and Greenhouse Gas Storage (Regulatory Levies) Act 2003
In ForceCTH
Jurisdiction
Commonwealth
Act Number
117 of 2003
Collection
act
Plain English Summary
8/10 complexity
This Act requires people involved in offshore petroleum and greenhouse‑gas operations to pay levies for regulatory activities. Levies can be triggered by safety investigations, safety cases, well investigations or activities, annual title administration, and environment‑plan submissions; exact triggers and amounts are set by regulation. NOPSEMA inspectors or prescribed regulatory processes determine when levies arise. Operators, titleholders, licensees or applicants pay the levies, shifting specific regulatory costs to private parties and creating recurring and event‑based compliance payments.
This Act creates a statutory framework for imposing, allocating and collecting a set of regulatory levies tied to offshore petroleum and greenhouse gas storage activities. Mechanically, it: (a) defines the kinds of levies that may be imposed (safety investigation levy, safety case levy, well investigation levy, annual well levy, well activity levy, annual titles administration levy, environment plan levy); (b) specifies the trigger events and the persons who are liable for each levy (see Parts 2-4D); and (c) delegates the setting of amounts and detailed conditions to regulations made under section 11. The levies are framed around NOPSEMA activities and instruments created under, and terms used in, the Offshore Petroleum and Greenhouse Gas Storage Act 2006, with frequent cross‑references to Schedule 3 and specified collection and remittance provisions of that Act (notes at ss 5, 7, 9 and 10E).
Operational features to note from the text: safety investigation levies attach when a notifiable accident or dangerous occurrence triggers a NOPSEMA compliance investigation or inspection (ss 5-6). Safety case levies attach where a safety case is in force at any time during a year (ss 7-8). Well investigation levies are triggered after NOPSEMA’s costs in a compliance investigation or inspection exceed $30,000 and written notice is given to the registered titleholder (ss 9-10). Several ongoing, administrative charges attach annually to titles and wells (annual titles administration levy at s 10E; annual well levy at ss 10A-10B). Activity‑based levies attach to submissions or applications concerning wells (well activity levy at ss 10C-10D) and to environment plan submissions or revisions (environment plan levy at ss 10F-10G). The Governor‑General may make regulations to prescribe amounts, differentials and other operational detail (s 11). The Act also defines geographic scope matters such as designated coastal waters and the treatment of cross‑boundary greenhouse gas areas (ss 3A, 3B), extends to external Territories (s 4), and binds the Crown in right of States and the Northern Territory but not the Commonwealth (s 3C). Commencement timing of provisions is recorded at section 2. The Act repeatedly places reliance on subordinate regulations for amounts and particular thresholds; the substantive liability rules are therefore skeletal and depend on regulations and interlinked provisions of the Offshore Petroleum and Greenhouse Gas Storage Act 2006.
Current sections
Direct links to the current provisions in Offshore Petroleum and Greenhouse Gas Storage (Regulatory Levies) Act 2003.
31
Part 1
Introduction
Part 1—Introduction
1
Short title
1 Short title
This Act may be cited as the Offshore Petroleum and Greenhouse Gas Storage (Regulatory Levies) Act 2003.
2
Commencement
2 Commencement
(1) Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.
Note: This table relates only to the provisions of this Act as originally passed by the Parliament and assented to. It will not be expanded to deal with provisions inserted in this Act after assent.
(2) Column 3 of the table contains additional information that is not part of this Act. Information in this column may be added to or edited in any published version of this Act.
3
Definitions
3 Definitions
In this Act, unless the contrary intention appears:
annual titles administration levy means levy imposed by section 10E.
annual well levy means levy imposed by section 10A or 10B.
applicable State or Territory safety law means:
(a) in relation to the designated coastal waters of a State—the State safety law of that State; or
(b) in relation to the designated coastal waters of the Northern Territory—the Territory safety law.
Commonwealth waters has the same meaning as in Part 6.9 of the Offshore Petroleum and Greenhouse Gas Storage Act 2006.
Note: See also section 3B.
compliance investigation means an investigation under Part 3 of the Regulatory Powers (Standard Provisions) Act 2014, in its application under Division 1 of Part 6.5 of the Offshore Petroleum and Greenhouse Gas Storage Act 2006.
construct, in relation to a well, includes:
(a) drill the well; and
(b) install any well‑related equipment associated with the well.
cost includes part of a cost.
cross‑boundary greenhouse gas assessment permit has the same meaning as in the Offshore Petroleum and Greenhouse Gas Storage Act 2006.
cross‑boundary greenhouse gas holding lease has the same meaning as in the Offshore Petroleum and Greenhouse Gas Storage Act 2006.
cross‑boundary greenhouse gas injection licence has the same meaning as in the Offshore Petroleum and Greenhouse Gas Storage Act 2006.
designated coastal waters, in relation to a State or the Northern Territory, has the meaning given by section 3A.
environment plan levy means levy imposed by section 10F or 10G.
expense includes part of an expense.
greenhouse gas assessment permit has the same meaning as in the Offshore Petroleum and Greenhouse Gas Storage Act 2006.
greenhouse gas holding lease has the same meaning as in the Offshore Petroleum and Greenhouse Gas Storage Act 2006.
greenhouse gas injection licence has the same meaning as in the Offshore Petroleum and Greenhouse Gas Storage Act 2006.
infrastructure licence has the same meaning as in the Offshore Petroleum and Greenhouse Gas Storage Act 2006.
lease area has the same meaning as in the Offshore Petroleum and Greenhouse Gas Storage Act 2006.
licence area has the same meaning as in the Offshore Petroleum and Greenhouse Gas Storage Act 2006.
NOPSEMA means the National Offshore Petroleum Safety and Environmental Management Authority.
NOPSEMA inspector has the same meaning as in the Offshore Petroleum and Greenhouse Gas Storage Act 2006.
offshore area, in relation to a State or Territory, has the same meaning as in the Offshore Petroleum and Greenhouse Gas Storage Act 2006.
permit area has the same meaning as in the Offshore Petroleum and Greenhouse Gas Storage Act 2006.
petroleum exploration permit has the same meaning as in the Offshore Petroleum and Greenhouse Gas Storage Act 2006.
petroleum production licence has the same meaning as in the Offshore Petroleum and Greenhouse Gas Storage Act 2006.
petroleum retention lease has the same meaning as in the Offshore Petroleum and Greenhouse Gas Storage Act 2006.
pipeline licence has the same meaning as in the Offshore Petroleum and Greenhouse Gas Storage Act 2006.
prepare, in relation to a well, includes construct.
remedial direction means a direction under section 586, 586A, 587, 587A, 591B, 592, 594A or 595 of the Offshore Petroleum and Greenhouse Gas Storage Act 2006.
safety case levy means levy imposed by section 7 or 8.
safety investigation levy means levy imposed by section 5 or 6.
scheduled area has the same meaning as in the Offshore Petroleum and Greenhouse Gas Storage Act 2006.
State PSLA has the same meaning as in Part 6.9 of the Offshore Petroleum and Greenhouse Gas Storage Act 2006.
State safety law means the provisions of a State PSLA that substantially correspond to Schedule 3 to the Offshore Petroleum and Greenhouse Gas Storage Act 2006.
State/Territory remedial direction means a direction under a provision of a State PSLA or Territory PSLA that substantially corresponds to section 586, 586A, 587, 587A, 591B, 592, 594A or 595 of the Offshore Petroleum and Greenhouse Gas Storage Act 2006.
Territory PSLA has the same meaning as in Part 6.9 of the Offshore Petroleum and Greenhouse Gas Storage Act 2006.
Territory safety law means the provisions of the Territory PSLA that substantially correspond to Schedule 3 to the Offshore Petroleum and Greenhouse Gas Storage Act 2006.
well has the same meaning as in the Offshore Petroleum and Greenhouse Gas Storage Act 2006.
well activity levy means levy imposed by section 10C or 10D.
well investigation levy means levy imposed by section 9 or 10.
well‑related equipment has the same meaning as in the Offshore Petroleum and Greenhouse Gas Storage Act 2006.
year means a 12‑month period beginning on 1 January.
3A
Designated coastal waters
3A Designated coastal waters
(1) For the purposes of this Act, designated coastal waters, in relation to a State or the Northern Territory, means:
(a) so much of the scheduled area for that State or Territory as consists of the territorial sea; and
(b) any area that:
(i) is within the scheduled area for that State or Territory; and
(ii) is on the landward side of the territorial sea; and
(iii) was, immediately before the commencement of the relevant State PSLA or Territory PSLA, the subject of a petroleum exploration permit under the repealed Petroleum (Submerged Lands) Act 1967.
(2) For the purposes of subsection (1), assume that the breadth of the territorial sea of Australia had never been determined or declared to be greater than 3 nautical miles, but had continued to be 3 nautical miles.
(3) Paragraph (1)(b) has effect subject to subsection (4).
(4) For the purposes of this Act, if (whether before or after the commencement of this subsection) an area that is within the designated coastal waters of a State or Territory because it is described in subparagraphs (1)(b)(i), (ii) and (iii) became or becomes an area that is:
(a) not the subject of a petroleum exploration permit under the relevant State PSLA or Territory PSLA; and
(b) not the subject of a petroleum retention lease under the relevant State PSLA or Territory PSLA; and
(c) not the subject of a petroleum production licence under the relevant State PSLA or Territory PSLA; and
(d) not the subject of an application for a petroleum retention lease or petroleum production licence under the relevant State PSLA or Territory PSLA;
the area is taken to have ceased to be part of the designated coastal waters of that State or Territory.
3B
Commonwealth waters—cross‑boundary greenhouse gas titles
3B Commonwealth waters—cross‑boundary greenhouse gas titles
For the purposes of this Act, each of the following areas is taken to be in Commonwealth waters:
(a) the permit area of a cross‑boundary greenhouse gas assessment permit;
(b) the lease area of a cross‑boundary greenhouse gas holding lease;
(c) the licence area of a cross‑boundary greenhouse gas injection licence.
3C
Crown to be bound
3C Crown to be bound
This Act binds, and is taken always to have bound, the Crown in right of each of the States and of the Northern Territory. However, it does not bind, and is taken never to have bound, the Crown in right of the Commonwealth.
3D
Act does not impose a tax on property of a State
3D Act does not impose a tax on property of a State
(1) This Act has no effect, and is taken always to have had no effect, to the extent (if any) to which it imposes a tax on property of any kind belonging to a State.
(2) In this section, property of any kind belonging to a State has the same meaning as in section 114 of the Constitution.
4
Extension to external Territories
4 Extension to external Territories
This Act extends to each external Territory to which the Offshore Petroleum and Greenhouse Gas Storage Act 2006 extends.
Note: See section 34 of the Offshore Petroleum and Greenhouse Gas Storage Act 2006.
Part 2
Safety investigation levy
Part 2—Safety investigation levy
5
Imposition of safety investigation levy—Commonwealth waters
5 Imposition of safety investigation levy—Commonwealth waters
(1) If:
(a) a notifiable accident or occurrence happens in relation to a facility located in Commonwealth waters; and
(b) a NOPSEMA inspector begins to conduct a compliance investigation in relation to the notifiable accident or occurrence; and
(c) the condition or conditions specified in the regulations are satisfied;
levy is imposed on the notifiable accident or occurrence.
(2) Levy imposed by subsection (1) is to be known as safety investigation levy.
(3) Safety investigation levy imposed by subsection (1) is payable by the operator of the facility.
(4) Safety investigation levy is not payable under subsection (1) unless regulations are in force for the purposes of paragraph (1)(c).
Note: For collection of safety investigation levy, see section 686 of the Offshore Petroleum and Greenhouse Gas Storage Act 2006.
Amount of safety investigation levy
(5) The amount of safety investigation levy imposed by subsection (1) in respect of a notifiable accident or occurrence is the amount that is specified in, or worked out in accordance with, the regulations.
(6) The regulations may specify different amounts of safety investigation levy, or different means of working out amounts of safety investigation levy, in relation to different kinds of notifiable accident or occurrence.
(7) Subsection (6) does not limit subsection 33(3A) of the Acts Interpretation Act 1901.
Definitions
(8) In this section:
accident has the same meaning as in Schedule 3 to the Offshore Petroleum and Greenhouse Gas Storage Act 2006.
dangerous occurrence has the same meaning as in Schedule 3 to the Offshore Petroleum and Greenhouse Gas Storage Act 2006.
facility has the same meaning as in Schedule 3 to the Offshore Petroleum and Greenhouse Gas Storage Act 2006.
notifiable accident or occurrence, in relation to a facility, means an accident or dangerous occurrence:
(a) at or near the facility; and
(b) that is required to be notified to NOPSEMA by the operator under clause 82 of Schedule 3 to the Offshore Petroleum and Greenhouse Gas Storage Act 2006.
operator, in relation to a facility, has the same meaning as in Schedule 3 to the Offshore Petroleum and Greenhouse Gas Storage Act 2006.
6
Imposition of safety investigation levy—designated coastal waters
6 Imposition of safety investigation levy—designated coastal waters
(1) If:
(a) a notifiable accident or occurrence happens in relation to a facility located in the designated coastal waters of a State or of the Northern Territory; and
(b) a NOPSEMA inspector begins to conduct an inspection in relation to the notifiable accident or occurrence; and
(c) the condition or conditions specified in the regulations are satisfied;
levy is imposed on the notifiable accident or occurrence.
(2) Levy imposed by subsection (1) is to be known as safety investigation levy.
(3) Safety investigation levy imposed by subsection (1) is payable by the operator of the facility.
(4) Safety investigation levy is not payable under subsection (1) unless regulations are in force for the purposes of paragraph (1)(c).
Note: For collection of safety investigation levy, see section 686 of the Offshore Petroleum and Greenhouse Gas Storage Act 2006.
Amount of safety investigation levy
(5) The amount of safety investigation levy imposed by subsection (1) in respect of a notifiable accident or occurrence is the amount that is specified in, or worked out in accordance with, the regulations.
(6) The regulations may specify different amounts of safety investigation levy, or different means of working out amounts of safety investigation levy, in relation to different kinds of notifiable accident or occurrence.
(7) Subsection (6) does not limit subsection 33(3A) of the Acts Interpretation Act 1901.
Definitions
(8) For the purposes of the application of this section in relation to the designated coastal waters of a State or of the Northern Territory:
accident has the same meaning as in the applicable State or Territory safety law.
dangerous occurrence has the same meaning as in the applicable State or Territory safety law.
facility has the same meaning as in the applicable State or Territory safety law.
inspection has the same meaning as in the applicable State or Territory safety law.
notifiable accident or occurrence, in relation to a facility, means an accident or dangerous occurrence:
(a) at or near the facility; and
(b) that is required to be notified to NOPSEMA by the operator under the provision of the applicable State or Territory safety law that substantially corresponds to clause 82 of Schedule 3 to the Offshore Petroleum and Greenhouse Gas Storage Act 2006.
operator, in relation to a facility, has the same meaning as in the applicable State or Territory safety law.
Part 3
Safety case levy
Part 3—Safety case levy
7
Imposition of safety case levy—Commonwealth waters
7 Imposition of safety case levy—Commonwealth waters
(1) If:
(a) a safety case is in force in relation to a facility at any time during a year; and
(b) the facility is located, or proposed to be located, in Commonwealth waters;
levy is imposed on the safety case in respect of that year.
(2) Levy imposed by subsection (1) is to be known as safety case levy.
(3) Safety case levy imposed by subsection (1) is payable by:
(a) unless any of the following paragraphs apply—the operator of the facility; or
(b) if the facility is a pipeline subject to a pipeline licence and a remedial direction does not apply in relation to the pipeline at any time during the year—the licensee of the pipeline licence; or
(c) if the facility is a pipeline subject to a pipeline licence and a remedial direction applies in relation to the pipeline at any time during the year:
(i) the licensee of the pipeline licence; and
(ii) if the licensee is not subject to the remedial direction—the person who is subject to the remedial direction; or
(d) if the facility is not a pipeline that is subject to a pipeline licence but is a pipeline in relation to which a remedial direction is in force at any time during the year—the person who is subject to the remedial direction.
Note: For collection of safety case levy, see section 687 of the Offshore Petroleum and Greenhouse Gas Storage Act 2006.
Amount of safety case levy
(4) The amount of safety case levy imposed by subsection (1) in respect of a year is the amount that is specified in, or worked out in accordance with, the regulations.
(6) The regulations may specify different amounts of safety case levy, or different means of working out amounts of safety case levy, in relation to different kinds of facilities, circumstances or any other matter.
(7) Subsection (6) does not limit subsection 33(3A) of the Acts Interpretation Act 1901.
Definitions
(8) In this section:
facility has the same meaning as in Schedule 3 to the Offshore Petroleum and Greenhouse Gas Storage Act 2006, and includes a proposed facility.
operator, in relation to a facility, has the same meaning as in Schedule 3 to the Offshore Petroleum and Greenhouse Gas Storage Act 2006.
pipeline has the same meaning as in the Offshore Petroleum and Greenhouse Gas Storage Act 2006, and includes a pipeline that is:
(a) proposed to be constructed or operated; or
(b) being constructed.
pipeline licence has the same meaning as in the Offshore Petroleum and Greenhouse Gas Storage Act 2006.
proposed facility has the same meaning as in Schedule 3 to the Offshore Petroleum and Greenhouse Gas Storage Act 2006.
safety case in force in relation to a facility has the meaning given by prescribed regulations, or a prescribed provision of regulations, made under the Offshore Petroleum and Greenhouse Gas Storage Act 2006.
8
Imposition of safety case levy—designated coastal waters
8 Imposition of safety case levy—designated coastal waters
(1) If:
(a) a safety case is in force in relation to a facility at any time during a year; and
(b) the facility is located, or proposed to be located, in the designated coastal waters of a State or of the Northern Territory;
levy is imposed on the safety case in respect of that year.
(2) Levy imposed by subsection (1) is to be known as safety case levy.
(3) Safety case levy imposed by subsection (1) is payable by:
(a) unless any of the following paragraphs apply—the operator of the facility; or
(b) if the facility is a pipeline subject to a pipeline licence and a State/Territory remedial direction does not apply in relation to the pipeline at any time during the year—the licensee of the pipeline licence; or
(c) if the facility is a pipeline subject to a pipeline licence and a State/Territory remedial direction applies in relation to the pipeline at any time during the year:
(i) the licensee of the pipeline licence; and
(ii) if the licensee is not subject to the State/Territory remedial direction—the person who is subject to the State or Territory remedial direction; or
(d) if the facility is not a pipeline that is subject to a pipeline licence but is a pipeline in relation to which a State/Territory remedial direction is in force at any time during the year—the person who is subject to the remedial direction.
Note: For collection of safety case levy, see section 687 of the Offshore Petroleum and Greenhouse Gas Storage Act 2006.
Amount of safety case levy
(4) The amount of safety case levy imposed by subsection (1) in respect of a year is the amount that is specified in, or worked out in accordance with, the regulations.
(6) The regulations may specify different amounts of safety case levy, or different means of working out amounts of safety case levy, in relation to different kinds of facilities, circumstances or any other matter.
(7) Subsection (6) does not limit subsection 33(3A) of the Acts Interpretation Act 1901.
Transitional
(7A) If, at a particular time during the period:
(a) beginning at the start of 1 January 2010; and
(b) ending at the end of 31 December 2012;
a pipeline safety management plan is in force in relation to a pipeline that is a facility, this section has effect as if, at that time, a safety case was in force in relation to the facility.
(7B) For the purposes of the application of this section in relation to a facility located, or proposed to be located, in the designated coastal waters of a State or the Northern Territory, if, at a particular time during the period:
(a) beginning at the start of 1 January 2010; and
(b) ending at the end of 31 December 2012;
a safety case is in force in relation to the facility (within the meaning of regulations of that State or Territory that substantially correspond to the Petroleum (Submerged Lands) (Management of Safety on Offshore Facilities) Regulations 1996, as those last‑mentioned regulations were in force immediately before the end of 31 December 2009), this section has effect as if, at that time, a safety case was in force in relation to the facility.
Definitions
(8) For the purposes of the application of this section in relation to the designated coastal waters of a State or of the Northern Territory:
facility has the same meaning as in the applicable State or Territory safety law, and includes a proposed facility.
operator, in relation to a facility, has the same meaning as in the applicable State or Territory safety law.
pipeline has the same meaning as in the applicable State or Territory safety law, and includes a pipeline that is:
(a) proposed to be constructed or operated; or
(b) being constructed.
pipeline licence has the same meaning as in the applicable State or Territory safety law.
pipeline safety management plan in force in relation to a pipeline has the same meaning as in regulations of that State or Territory that substantially correspond to the Petroleum (Submerged Lands) (Pipelines) Regulations 2001, as those last‑mentioned regulations were in force immediately before the end of 31 December 2009.
proposed facility has the same meaning as in the applicable State or Territory safety law.
safety case in force in relation to a facility has the same meaning as in regulations of that State or Territory that substantially correspond to prescribed regulations, or a prescribed provision of regulations, made under the Offshore Petroleum and Greenhouse Gas Storage Act 2006.
Part 4
Well investigation levy
Part 4—Well investigation levy
9
Imposition of well investigation levy—Commonwealth titles
9 Imposition of well investigation levy—Commonwealth titles
(1) If:
(a) either:
(i) a well has been used, is being used, has been prepared for use, or is being prepared for use, in connection with operations authorised by an eligible title (the current title); or
(ii) a well has been used in connection with operations authorised by an eligible title from which the current title is derived, and the wellhead is situated in the title area of the current title; and
(b) a NOPSEMA inspector has begun to conduct a compliance investigation relating to a contravention or possible contravention of subclause 13A(1) or (2) or 13B(1) or (2) of Schedule 3 to the Offshore Petroleum and Greenhouse Gas Storage Act 2006; and
(c) the contravention or possible contravention relates to the well; and
(d) a particular time (the threshold time) is the first time when the amount of the costs and expenses reasonably incurred by NOPSEMA in relation to the conduct of the compliance investigation exceeds $30,000; and
(e) NOPSEMA has given the registered holder of the current title a written notice stating that the amount of the costs and expenses reasonably incurred by NOPSEMA in relation to the conduct of the compliance investigation has exceeded $30,000;
levy is imposed on the compliance investigation in respect of:
(f) the period of 3 months beginning at the threshold time; and
(g) each successive 3‑month period at any time during which a NOPSEMA inspector continues to conduct the compliance investigation.
Note 1: Clause 13A of Schedule 3 to the Offshore Petroleum and Greenhouse Gas Storage Act 2006 deals with the duties of petroleum titleholders in relation to wells.
Note 2: Clause 13B of Schedule 3 to the Offshore Petroleum and Greenhouse Gas Storage Act 2006 deals with the duties of greenhouse gas titleholders in relation to wells.
(2) Levy imposed by subsection (1) is to be known as well investigation levy.
(3) Well investigation levy imposed by subsection (1) is payable by the registered holder of the current title.
Amount of well investigation levy
(4) The amount of well investigation levy imposed by subsection (1) on a compliance investigation is the amount that is specified in, or worked out in accordance with, the regulations.
Definitions
(5) In this section:
conduct a compliance investigation includes prepare a written report relating to the compliance investigation.
derived has the same meaning as in Schedule 3 to the Offshore Petroleum and Greenhouse Gas Storage Act 2006.
eligible title means:
(a) a petroleum title; or
(b) a greenhouse gas title.
greenhouse gas title has the same meaning as in Schedule 3 to the Offshore Petroleum and Greenhouse Gas Storage Act 2006.
petroleum title has the same meaning as in Schedule 3 to the Offshore Petroleum and Greenhouse Gas Storage Act 2006.
registered holder, in relation to an eligible title, has the same meaning as in the Offshore Petroleum and Greenhouse Gas Storage Act 2006.
title area:
(a) in relation to a petroleum title—has the same meaning as in clause 13A of Schedule 3 to the Offshore Petroleum and Greenhouse Gas Storage Act 2006; or
(b) in relation to a greenhouse gas title—has the same meaning as in clause 13B of Schedule 3 to the Offshore Petroleum and Greenhouse Gas Storage Act 2006.
well includes well‑related equipment associated with a well.
10
Imposition of well investigation levy—State/Territory titles
10 Imposition of well investigation levy—State/Territory titles
(1) If:
(a) either:
(i) a well has been used, is being used, has been prepared for use, or is being prepared for use, in connection with operations authorised by a State/Territory title (the current title) granted under a State PSLA or Territory PSLA; or
(ii) a well has been used in connection with operations authorised by a State/Territory title from which the current title is derived, and the wellhead is situated in the title area of the current title; and
(b) a NOPSEMA inspector has begun to conduct an inspection concerning a contravention or possible contravention of a provision of the State PSLA or Territory PSLA that substantially corresponds to subclause 13A(1) or (2) or 13B(1) or (2) of Schedule 3 to the Offshore Petroleum and Greenhouse Gas Storage Act 2006; and
(c) the contravention or possible contravention relates to the well; and
(d) a particular time (the threshold time) is the first time when the amount of the costs and expenses reasonably incurred by NOPSEMA in relation to the conduct of the inspection exceeds $30,000; and
(e) NOPSEMA has given the registered holder of the current title a written notice stating that the amount of the costs and expenses reasonably incurred by NOPSEMA in relation to the conduct of the inspection has exceeded $30,000;
levy is imposed on the inspection in respect of:
(f) the period of 3 months beginning at the threshold time; and
(g) each successive 3‑month period at any time during which a NOPSEMA inspector continues to conduct the inspection.
Note 1: Clause 13A of Schedule 3 to the Offshore Petroleum and Greenhouse Gas Storage Act 2006 deals with the duties of petroleum titleholders in relation to wells.
Note 2: Clause 13B of Schedule 3 to the Offshore Petroleum and Greenhouse Gas Storage Act 2006 deals with the duties of greenhouse gas titleholders in relation to wells.
(2) Levy imposed by subsection (1) is to be known as well investigation levy.
(3) Well investigation levy imposed by subsection (1) is payable by the registered holder of the current title.
Amount of well investigation levy
(4) The amount of well investigation levy imposed by subsection (1) on an inspection is the amount that is specified in, or worked out in accordance with, the regulations.
Definitions
(5) In this section:
Commonwealth greenhouse gas title means a greenhouse gas title within the meaning of Schedule 3 to the Offshore Petroleum and Greenhouse Gas Storage Act 2006.
Commonwealth petroleum title means a petroleum title within the meaning of Schedule 3 to the Offshore Petroleum and Greenhouse Gas Storage Act 2006.
conduct an inspection includes prepare a written report relating to the inspection.
derived has the same meaning as in the provisions of the relevant State PSLA or Territory PSLA that substantially correspond to Schedule 3 to the Offshore Petroleum and Greenhouse Gas Storage Act 2006.
inspection has the same meaning as in the provisions of the relevant State PSLA or Territory PSLA that substantially correspond to Schedule 3 to the Offshore Petroleum and Greenhouse Gas Storage Act 2006.
registered holder, in relation to a State/Territory title, means the person whose name is shown in the Register kept under the relevant State PSLA or Territory PSLA as the holder of the title.
State/Territory greenhouse gas title means an instrument under a State PSLA or Territory PSLA that confers, in relation to the designated coastal waters of a State or Territory, some or all of the rights that a Commonwealth greenhouse gas title confers in relation to the offshore area of the State or Territory.
State/Territory petroleum title means an instrument under a State PSLA or Territory PSLA that confers, in relation to the designated coastal waters of a State or Territory, some or all of the rights that a Commonwealth petroleum title confers in relation to the offshore area of the State or Territory.
State/Territory title means:
(a) a State/Territory petroleum title; or
(b) a State/Territory greenhouse gas title.
title area:
(a) in relation to a State/Territory petroleum title—has the same meaning as in the provisions of the relevant State PSLA or Territory PSLA that substantially correspond to clause 13A of Schedule 3 to the Offshore Petroleum and Greenhouse Gas Storage Act 2006; or
(b) in relation to a State/Territory greenhouse gas title—has the same meaning as in the provisions of the relevant State PSLA or Territory PSLA that substantially correspond to clause 13B of Schedule 3 to the Offshore Petroleum and Greenhouse Gas Storage Act 2006.
well includes well‑related equipment associated with a well.
Part 4A
Annual well levy
Part 4A—Annual well levy
10A
Imposition of annual well levy—Commonwealth titles
10A Imposition of annual well levy—Commonwealth titles
(1) If there are one or more eligible wells in relation to an eligible title for a year, levy is imposed on those wells.
Note: For eligible well, see subsections (5) and (6).
(2) Levy imposed by subsection (1) is to be known as annual well levy.
(3) Annual well levy imposed by subsection (1) is payable by the registered holder of the eligible title.
Amount of annual well levy
(4) The amount of annual well levy imposed by subsection (1) in respect of one or more wells is the amount that is specified in, or worked out in accordance with, the regulations.
Eligible well
(5) For the purposes of this section, if:
(a) immediately before the start of a year, a well is wholly or partly situated in the title area of an eligible title (the current title); and
(b) the well is or was drilled under the authority of:
(i) the current title; or
(ii) an eligible title from which the current title is derived; and
(c) the well is not abandoned;
the well is an eligible well in relation to the current title for that year.
(6) For the purposes of this section, if:
(a) during a year, a well began to be drilled in the title area of an eligible title (the current title); and
(b) the well was drilled under the authority of:
(i) the current title; or
(ii) an eligible title from which the current title is derived; and
(c) the well was abandoned during that year;
the well is an eligible well in relation to the current title for the subsequent year.
Abandoned wells
(6A) For the purposes of this section, disregard the abandonment of a well unless the process of abandoning the well was the subject of a notification under a prescribed provision of regulations made under the Offshore Petroleum and Greenhouse Gas Storage Act 2006.
(7) For the purposes of this section, if a well commences to be abandoned, and prescribed regulations, or a prescribed provision of regulations, made under the Offshore Petroleum and Greenhouse Gas Storage Act 2006 (as those prescribed regulations are in force, or as that prescribed provision is in force, at the time when the abandonment commenced) requires the commencement of the abandonment of the well to be approved by NOPSEMA under those regulations, disregard the abandonment unless:
(a) the commencement of the abandonment was approved by NOPSEMA under those regulations; and
(b) if the approval was subject to conditions—the abandonment was in accordance with those conditions.
Definitions
(8) In this section:
derived has the same meaning as in Schedule 3 to the Offshore Petroleum and Greenhouse Gas Storage Act 2006.
eligible title means:
(a) a petroleum title; or
(b) a greenhouse gas title.
greenhouse gas title has the same meaning as in Schedule 3 to the Offshore Petroleum and Greenhouse Gas Storage Act 2006.
petroleum title has the same meaning as in Schedule 3 to the Offshore Petroleum and Greenhouse Gas Storage Act 2006.
registered holder, in relation to an eligible title, has the same meaning as in the Offshore Petroleum and Greenhouse Gas Storage Act 2006.
title area:
(a) in relation to a petroleum title—has the same meaning as in clause 13A of Schedule 3 to the Offshore Petroleum and Greenhouse Gas Storage Act 2006; or
(b) in relation to a greenhouse gas title—has the same meaning as in clause 13B of Schedule 3 to the Offshore Petroleum and Greenhouse Gas Storage Act 2006.
10B
Imposition of annual well levy—State/Territory titles
10B Imposition of annual well levy—State/Territory titles
(1) If:
(a) there are one or more eligible wells in relation to a State/Territory title for a year; and
(b) the State/Territory title was granted under a law of a particular State or Territory; and
(c) at the start of the year, NOPSEMA has functions or powers under regulations of the State or Territory that substantially correspond to prescribed regulations, or a prescribed provision of regulations, made under the Offshore Petroleum and Greenhouse Gas Storage Act 2006;
levy is imposed on those wells.
Note: For eligible well, see subsections (5) and (6).
(2) Levy imposed by subsection (1) is to be known as annual well levy.
(3) Annual well levy imposed by subsection (1) is payable by the registered holder of the State/Territory title.
Amount of annual well levy
(4) The amount of annual well levy imposed by subsection (1) in respect of one or more wells is the amount that is specified in, or worked out in accordance with, the regulations.
Eligible well
(5) For the purposes of this section, if:
(a) immediately before the start of a year, the well is wholly or partly situated in the title area of a State/Territory title (the current title); and
(b) the well is or was drilled under the authority of:
(i) the current title; or
(ii) a State/Territory title from which the current title is derived; and
(c) the well is not abandoned;
the well is an eligible well in relation to the current title for that year.
(6) For the purposes of this section, if:
(a) during a year, a well began to be drilled in the title area of a State/Territory title (the current title); and
(b) the well was drilled under the authority of:
(i) the current title; or
(ii) a State/Territory title from which the current title is derived; and
(c) the well was abandoned during that year;
the well is an eligible well in relation to the current title for the subsequent year.
Abandoned wells
(7) For the purposes of this section, if regulations of a State or Territory that substantially correspond to Part 5 of the old Resource Management and Administration Regulations require the commencement of the abandonment of a well to be approved by NOPSEMA under those regulations of the State or Territory, disregard the abandonment unless:
(a) the commencement of the abandonment was approved by NOPSEMA under those regulations of the State or Territory; and
(b) if the approval was subject to conditions—the abandonment was in accordance with those conditions.
Definitions
(8) In this section:
Commonwealth greenhouse gas title means a greenhouse gas title within the meaning of Schedule 3 to the Offshore Petroleum and Greenhouse Gas Storage Act 2006.
Commonwealth petroleum title means a petroleum title within the meaning of Schedule 3 to the Offshore Petroleum and Greenhouse Gas Storage Act 2006.
derived has the same meaning as in the provisions of the relevant State PSLA or Territory PSLA that substantially correspond to Schedule 3 to the Offshore Petroleum and Greenhouse Gas Storage Act 2006.
old Resource Management and Administration Regulations means the Offshore Petroleum and Greenhouse Gas Storage (Resource Management and Administration) Regulations 2011, as in force before the commencement of the Offshore Petroleum and Greenhouse Gas Storage Legislation Amendment (Well Operations) Regulation 2015.
registered holder, in relation to a State/Territory title, means the person whose name is shown in the Register kept under the relevant State PSLA or Territory PSLA as the holder of the title.
State/Territory greenhouse gas title means an instrument under a State PSLA or Territory PSLA that confers, in relation to the designated coastal waters of a State or Territory, some or all of the rights that a Commonwealth greenhouse gas title confers in relation to the offshore area of the State or Territory.
State/Territory petroleum title means an instrument under a State PSLA or Territory PSLA that confers, in relation to the designated coastal waters of a State or Territory, some or all of the rights that a Commonwealth petroleum title confers in relation to the offshore area of the State or Territory.
State/Territory title means:
(a) a State/Territory petroleum title; or
(b) a State/Territory greenhouse gas title.
title area:
(a) in relation to a State/Territory petroleum title—has the same meaning as in the provisions of the relevant State PSLA or Territory PSLA that substantially correspond to clause 13A of Schedule 3 to the Offshore Petroleum and Greenhouse Gas Storage Act 2006; or
(b) in relation to a State/Territory greenhouse gas title—has the same meaning as in the provisions of the relevant State PSLA or Territory PSLA that substantially correspond to clause 13B of Schedule 3 to the Offshore Petroleum and Greenhouse Gas Storage Act 2006.
Part 4B
Well activity levy
Part 4B—Well activity levy
10C
Imposition of well activity levy—Commonwealth titles etc.
10C Imposition of well activity levy—Commonwealth titles etc.
(1) If:
(a) either:
(i) a person makes an application to NOPSEMA, under prescribed regulations, or a prescribed provision of regulations, made under the Offshore Petroleum and Greenhouse Gas Storage Act 2006, for acceptance of a well operations management plan; or
(ii) a person submits to NOPSEMA, under a prescribed provision of regulations made under the Offshore Petroleum and Greenhouse Gas Storage Act 2006, a proposed revision of a well operations management plan; and
(b) the person is either:
(i) the registered holder of an eligible title; or
(ii) subject to a remedial direction (other than as the registered holder of an eligible title);
levy is imposed on the application or submission.
(2) Levy imposed by subsection (1) is to be known as well activity levy.
(3) Well activity levy imposed by subsection (1) is payable by the person.
Amount of well activity levy
(4) The amount of well activity levy imposed by subsection (1) on an application or submission is the amount that is specified in, or worked out in accordance with, the regulations.
Definitions
(6) In this section:
eligible title means:
(a) a petroleum title; or
(b) a greenhouse gas title.
greenhouse gas title means:
(a) a greenhouse gas assessment permit; or
(b) a greenhouse gas holding lease; or
(c) a greenhouse gas injection licence.
petroleum title means:
(a) a petroleum exploration permit; or
(b) a petroleum retention lease; or
(c) a petroleum production licence.
registered holder, in relation to an eligible title, has the same meaning as in the Offshore Petroleum and Greenhouse Gas Storage Act 2006.
10D
Imposition of well activity levy—State/Territory titles etc.
10D Imposition of well activity levy—State/Territory titles etc.
(1) If:
(a) any of the following subparagraphs applies:
(i) a person makes an application to NOPSEMA, under the regulations of a State or Territory that substantially correspond to prescribed regulations, or a prescribed provision of regulations, made under the Offshore Petroleum and Greenhouse Gas Storage Act 2006, for acceptance of a well operations management plan;
(ii) a person makes an application to NOPSEMA, under regulations of a State or Territory that substantially correspond to Part 5 of the old Resource Management and Administration Regulations, for approval to commence an activity relating to a well;
(iii) a person makes an application to NOPSEMA, under the regulations of a State or Territory that substantially correspond to Part 5 of the old Resource Management and Administration Regulations, for acceptance of a well operations management plan;
(iv) a person submits to NOPSEMA, under a regulation of a State or Territory that substantially corresponds to a prescribed provision of regulations made under the Offshore Petroleum and Greenhouse Gas Storage Act 2006, a proposed revision of a well operations management plan; and
(b) the person is either:
(i) the registered holder of a State/Territory title; or
(ii) subject to a State/Territory remedial direction (other than as the registered holder of a State/Territory title);
levy is imposed on the application or submission.
(2) Levy imposed by subsection (1) is to be known as well activity levy.
(3) Well activity levy imposed by subsection (1) is payable by the person.
Amount of well activity levy
(4) The amount of well activity levy imposed by subsection (1) on an application or submission is the amount that is specified in, or worked out in accordance with, the regulations.
Exemption
(5) If:
(a) at a particular time, a person makes an application to NOPSEMA, under the regulations of a State or Territory that substantially correspond to Part 5 of the old Resource Management and Administration Regulations, for approval to commence an activity relating to a well; and
(b) well activity levy is imposed by subsection (1) on the application; and
(c) during the 6‑month period beginning at that time:
(i) the person makes another application under those regulations for approval to commence an activity relating to the well; or
(ii) another person who has become the registered holder of a State/Territory title makes an application under those regulations for approval to commence an activity relating to the well;
well activity levy is not imposed by subsection (1) on the application referred to in subparagraph (c)(i) or (ii), as the case may be.
Definitions
(6) In this section:
Commonwealth greenhouse gas title means:
(a) a greenhouse gas assessment permit; or
(b) a greenhouse gas holding lease; or
(c) a greenhouse gas injection licence.
Commonwealth petroleum title means:
(a) a petroleum exploration permit; or
(b) a petroleum retention lease; or
(c) a petroleum production licence.
old Resource Management and Administration Regulations means the Offshore Petroleum and Greenhouse Gas Storage (Resource Management and Administration) Regulations 2011, as in force before the commencement of the Offshore Petroleum and Greenhouse Gas Storage Legislation Amendment (Well Operations) Regulation 2015.
registered holder, in relation to a State/Territory title, means the person whose name is shown in the Register kept under the relevant State PSLA or Territory PSLA as the holder of the title.
State/Territory greenhouse gas title means an instrument under a State PSLA or Territory PSLA that confers, in relation to the designated coastal waters of a State or Territory, some or all of the rights that a Commonwealth greenhouse gas title confers in relation to the offshore area of the State or Territory.
State/Territory petroleum title means an instrument under a State PSLA or Territory PSLA that confers, in relation to the designated coastal waters of a State or Territory, some or all of the rights that a Commonwealth petroleum title confers in relation to the offshore area of the State or Territory.
State/Territory title means:
(a) a State/Territory petroleum title; or
(b) a State/Territory greenhouse gas title.
Part 4C
Annual titles administration levy
Part 4C—Annual titles administration levy
10E
Imposition of annual titles administration levy
10E Imposition of annual titles administration levy
(1) Levy is imposed on an eligible title:
(a) for the year beginning on the day the title comes into force; and
(b) for each subsequent year beginning on the anniversary of that day, if the title is in force at the start of the anniversary.
Levy is imposed whether or not the eligible title is in force for the whole of the year.
Note: See section 695M of the Offshore Petroleum and Greenhouse Gas Storage Act 2006 for the remittal or refund of levy imposed for a year by this subsection if the title ceases to be in force before the end of the year.
(2) Levy imposed by subsection (1) is to be known as annual titles administration levy.
(3) Annual titles administration levy imposed by subsection (1) is payable by the registered holder of the title.
Amount of annual titles administration levy
(4) The amount of annual titles administration levy imposed by subsection (1) on a title is the amount that is specified in, or worked out in accordance with, the regulations.
(5) The regulations may specify different amounts of annual titles administration levy, or different means of working out amounts of annual titles administration levy, in relation to different eligible titles.
(6) Subsection (5) does not limit subsection 33(3A) of the Acts Interpretation Act 1901.
Definitions
(7) In this section:
boundary‑change petroleum exploration permit has the same meaning as in the Offshore Petroleum and Greenhouse Gas Storage Act 2006.
cash‑bid petroleum exploration permit has the same meaning as in the Offshore Petroleum and Greenhouse Gas Storage Act 2006.
eligible title means:
(a) a work‑bid petroleum exploration permit; or
(aa) a cash‑bid petroleum exploration permit; or
(b) a special petroleum exploration permit; or
(ba) a boundary‑change petroleum exploration permit; or
(c) a petroleum retention lease; or
(d) a petroleum production licence; or
(e) an infrastructure licence; or
(f) a pipeline licence; or
(g) a work‑bid greenhouse gas assessment permit; or
(ga) a cross‑boundary greenhouse gas assessment permit; or
(h) a greenhouse gas holding lease; or
(i) a greenhouse gas injection licence.
registered holder, in relation to a title, has the same meaning as in the Offshore Petroleum and Greenhouse Gas Storage Act 2006.
special petroleum exploration permit has the same meaning as in the Offshore Petroleum and Greenhouse Gas Storage Act 2006.
work‑bid greenhouse gas assessment permit has the same meaning as in the Offshore Petroleum and Greenhouse Gas Storage Act 2006.
work‑bid petroleum exploration permit has the same meaning as in the Offshore Petroleum and Greenhouse Gas Storage Act 2006.
Part 4D
Environment plan levy
Part 4D—Environment plan levy
10F
Imposition of environment plan levy—activities authorised by Commonwealth titles etc.
10F Imposition of environment plan levy—activities authorised by Commonwealth titles etc.
(1) If:
(a) both:
(i) an environment plan is submitted to NOPSEMA under a prescribed provision of regulations made under the Offshore Petroleum and Greenhouse Gas Storage Act 2006; and
(ii) the activities to which the plan relates are authorised by one or more Commonwealth titles; or
(b) both:
(i) a proposed revision of an environment plan is submitted to NOPSEMA under a prescribed provision of regulations made under the Offshore Petroleum and Greenhouse Gas Storage Act 2006; and
(ii) the activities to which the revised plan relates are authorised by one or more Commonwealth titles; or
(c) both:
(i) an environment plan is submitted to NOPSEMA under a prescribed provision of regulations made under the Offshore Petroleum and Greenhouse Gas Storage Act 2006; and
(ii) the plan is submitted by an applicant for a Commonwealth title mentioned in paragraph (e), (f), (g), (k) or (l) of the definition of Commonwealth title in subsection (7); or
(d) both:
(i) an environment plan is submitted to NOPSEMA under a prescribed provision of regulations made under the Offshore Petroleum and Greenhouse Gas Storage Act 2006; and
(ii) the activities to which the plan relates are carried out for the purposes of complying with a remedial direction; or
(e) both:
(i) a proposed revision of an environment plan is submitted to NOPSEMA under a prescribed provision of regulations made under the Offshore Petroleum and Greenhouse Gas Storage Act 2006; and
(ii) the activities to which the revised plan relates are carried out for the purposes of complying with a remedial direction;
levy is imposed on the submission.
(2) Levy imposed by subsection (1) is to be known as environment plan levy.
(3) Environment plan levy imposed by subsection (1) is payable:
(a) if:
(i) paragraph (1)(a) applies; and
(ii) the activities to which the plan relates are authorised by a single Commonwealth title;
by the titleholder; or
(b) if:
(i) paragraph (1)(a) applies; and
(ii) the activities to which the plan relates are authorised by 2 or more Commonwealth titles;
jointly and severally by the titleholders; or
(c) if:
(i) paragraph (1)(b) applies; and
(ii) the activities to which the revised plan relates are authorised by a single Commonwealth title;
by the titleholder; or
(d) if:
(i) paragraph (1)(b) applies; and
(ii) the activities to which the revised plan relates are authorised by 2 or more Commonwealth titles;
jointly and severally by the titleholders; or
(e) if paragraph (1)(c) applies—by the applicant for the Commonwealth title; or
(f) if paragraph (1)(d) or (e) applies—by the person who is subject to the remedial direction.
Amount of environment plan levy
(4) The amount of environment plan levy imposed by subsection (1) in respect of a submission is the amount that is specified in, or worked out in accordance with, the regulations.
(5) The regulations may specify different amounts of environment plan levy, or different means of working out amounts of environment plan levy, in relation to different circumstances.
(6) Subsection (5) does not limit subsection 33(3A) of the Acts Interpretation Act 1901.
Definitions
(7) In this section:
Commonwealth title means:
(a) a petroleum exploration permit; or
(b) a petroleum retention lease; or
(c) a petroleum production licence; or
(d) an infrastructure licence; or
(e) a pipeline licence; or
(f) a petroleum special prospecting authority; or
(g) a petroleum access authority; or
(ga) a petroleum scientific investigation consent; or
(h) a greenhouse gas assessment permit; or
(i) a greenhouse gas holding lease; or
(j) a greenhouse gas injection licence; or
(k) a greenhouse gas search authority; or
(l) a greenhouse gas special authority; or
(m) a greenhouse gas research consent.
greenhouse gas research consent has the same meaning as in the Offshore Petroleum and Greenhouse Gas Storage Act 2006.
greenhouse gas search authority has the same meaning as in the Offshore Petroleum and Greenhouse Gas Storage Act 2006.
greenhouse gas special authority has the same meaning as in the Offshore Petroleum and Greenhouse Gas Storage Act 2006.
petroleum access authority has the same meaning as in the Offshore Petroleum and Greenhouse Gas Storage Act 2006.
petroleum scientific investigation consent has the same meaning as in the Offshore Petroleum and Greenhouse Gas Storage Act 2006.
petroleum special prospecting authority has the same meaning as in the Offshore Petroleum and Greenhouse Gas Storage Act 2006.
registered holder, in relation to a title, has the same meaning as in the Offshore Petroleum and Greenhouse Gas Storage Act 2006.
titleholder means:
(a) for a title mentioned in any of paragraphs (a) to (g) or (h) to (l) of the definition of Commonwealth title in this subsection—the registered holder of the title; or
(b) for a consent mentioned in paragraph (ga) or (m) of the definition of Commonwealth title in this subsection—the holder of the consent (within the meaning of section 254 or 425 of the Offshore Petroleum and Greenhouse Gas Storage Act 2006).
10G
Imposition of environment plan levy—activities authorised by State/Territory titles etc.
10G Imposition of environment plan levy—activities authorised by State/Territory titles etc.
(1) If either:
(a) both:
(i) an environment plan is submitted to NOPSEMA under a regulation of a State or Territory that substantially corresponds to a prescribed provision of regulations made under the Offshore Petroleum and Greenhouse Gas Storage Act 2006; and
(ii) the activities to which the plan relates are authorised by one or more State/Territory titles; or
(b) both:
(i) a proposed revision of an environment plan is submitted to NOPSEMA under a regulation of a State or Territory that substantially corresponds to a prescribed provision of regulations made under the Offshore Petroleum and Greenhouse Gas Storage Act 2006; and
(ii) the activities to which the revised plan relates are authorised by one or more State/Territory titles; or
(c) both:
(i) an environment plan is submitted to NOPSEMA under a regulation of a State or Territory that substantially corresponds to a prescribed provision of regulations made under the Offshore Petroleum and Greenhouse Gas Storage Act 2006; and
(ii) the plan is submitted by an applicant for a State/Territory title that substantially corresponds to a Commonwealth title mentioned in paragraph (e), (f), (g), (k) or (l) of the definition of Commonwealth title in subsection 10F(7); or
(d) both:
(i) an environment plan is submitted to NOPSEMA under a regulation of a State or Territory that substantially corresponds to a prescribed provision of regulations made under the Offshore Petroleum and Greenhouse Gas Storage Act 2006; and
(ii) the activities to which the plan relates are carried out for the purposes of complying with a State/Territory remedial direction; or
(e) both:
(i) a proposed revision of an environment plan is submitted to NOPSEMA under a regulation of a State or Territory that substantially corresponds to a prescribed provision of regulations made under the Offshore Petroleum and Greenhouse Gas Storage Act 2006; and
(ii) the activities to which the revised plan relates are carried out for the purposes of complying with a State/Territory remedial direction;
levy is imposed on the submission.
(2) Levy imposed by subsection (1) is to be known as environment plan levy.
(3) Environment plan levy imposed by subsection (1) is payable:
(a) if:
(i) paragraph (1)(a) applies; and
(ii) the activities to which the plan relates are authorised by a single State/Territory title;
by the titleholder; or
(b) if:
(i) paragraph (1)(a) applies; and
(ii) the activities to which the plan relates are authorised by 2 or more State/Territory titles;
jointly and severally by the titleholders; or
(c) if:
(i) paragraph (1)(b) applies; and
(ii) the activities to which the revised plan relates are authorised by a single State/Territory title;
by the titleholder; or
(d) if:
(i) paragraph (1)(b) applies; and
(ii) the activities to which the revised plan relates are authorised by 2 or more State/Territory titles;
jointly and severally by the titleholders; or
(e) if paragraph (1)(c) applies—by the applicant for the State/Territory title; or
(f) if paragraph (1)(d) or (e) applies—by the person who is subject to the remedial direction.
Amount of environment plan levy
(4) The amount of environment plan levy imposed by subsection (1) in respect of a submission is the amount that is specified in, or worked out in accordance with, the regulations.
(5) The regulations may specify different amounts of environment plan levy, or different means of working out amounts of environment plan levy, in relation to different circumstances.
(6) Subsection (5) does not limit subsection 33(3A) of the Acts Interpretation Act 1901.
Definitions
(7) In this section:
registered holder, in relation to a State/Territory title, means the person whose name is shown in the Register kept under the relevant State PSLA or Territory PSLA as the holder of the title.
State/Territory title means an instrument under a State PSLA or Territory PSLA that confers, in relation to the designated coastal waters of a State or Territory, some or all of the rights that a Commonwealth title (within the meaning of section 10F) confers in relation to the offshore area of the State or Territory.
titleholder means:
(a) for a State/Territory title that substantially corresponds to a Commonwealth title mentioned in any of paragraphs (a) to (g) or (h) to (l) of the definition of Commonwealth title in subsection 10F(7)—the registered holder of the title; or
(b) for a State/Territory title that substantially corresponds to a consent mentioned in paragraph (ga) or (m) of the definition of Commonwealth title in subsection 10F(7)—the holder of the consent under the relevant State PSLA or Territory PSLA.
Part 5
Regulations
Part 5—Regulations
11
Regulations
11 Regulations
The Governor‑General may make regulations for the purposes of sections 5, 6, 7, 8, 9, 10, 10A, 10B, 10C, 10D, 10E, 10F and 10G.
Source text: opening excerpt
Sourced from the Federal Register of Legislation (legislation.gov.au), CC BY 4.0.
Part 1 Introduction
Part 1—Introduction
1 Short title
1 Short title
This Act may be cited as the Offshore Petroleum and Greenhouse Gas Storage (Regulatory Levies) Act 2003.
2 Commencement
2 Commencement
(1) Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.
The Act uses a small set of recurring legal and operational concepts to allocate levies. Key concepts are defined in Part 1 and then used across Parts 2-4D. The statutory definitions explicitly import terms and regimes from the Offshore Petroleum and Greenhouse Gas Storage Act 2006 and from State or Territory PSLA regimes that “substantially correspond” to particular Commonwealth provisions (see s 3 and multiple definitions in later provisions). Important definitions and conceptual linkages are:
Safety investigation levy: imposed where a notifiable accident or dangerous occurrence results in a NOPSEMA inspector commencing a compliance investigation in Commonwealth waters (s 5) or an inspection in designated coastal waters (s 6). The Act imports definitions of “accident”, “dangerous occurrence”, “facility” and “operator” from Schedule 3 to the Offshore Petroleum and Greenhouse Gas Storage Act 2006 (s 5(8); s 6(8)). Amounts are determined by regulation (s 5(5)-(6); s 6(5)-(6)).
Safety case levy: imposed where a safety case is in force in relation to a facility at any time during a year and the facility is located or proposed to be located in Commonwealth waters (s 7) or designated coastal waters (s 8). The payer is generally the operator, with special rules for pipelines and remedial directions (s 7(3); s 8(3)). Amounts are by regulation (s 7(4)-(6); s 8(4)-(6)). Transitional treatment for pipeline safety management plans and older State/Territory safety cases is provided (s 8(7A)-(7B)).
Well investigation levy: imposed on registered holders where a well associated with an eligible title is the subject of a NOPSEMA compliance investigation or inspection concerning potential contraventions of well duty provisions (clauses 13A/13B of Schedule 3), once NOPSEMA’s reasonably incurred costs and expenses exceed $30,000 and NOPSEMA has given written notice to the registered holder (ss 9(1)(b)-(e); 10(1)(b)-(e)). Amounts are by regulation (ss 9(4), 10(4)).
Annual well levy: an annual charge imposed where there are eligible wells in relation to an eligible title for a year; the registered holder is liable (ss 10A-10B). The definition of “eligible well” links back to whether the well is within the title area and whether abandonment has been properly notified and approved (s 10A(5)-(7); s 10B(5)-(7)).
Well activity levy: attaches to applications to NOPSEMA for acceptance of well operations management plans or revisions, or State/Territory equivalent applications, and is payable by the applicant or person subject to a remedial direction (ss 10C-10D). There is an exemption for repeat State/Territory applications within six months (s 10D(5)). Amounts are by regulation (ss 10C(4), 10D(4)).
Annual titles administration levy: levied on eligible titles annually, including the year the title comes into force, payable by the registered holder (s 10E). Regulations may differentiate amounts by title type (s 10E(4)-(5)). The Act notes a refund/remittal mechanism under the Offshore Petroleum Act (note referencing s 695M).
Environment plan levy: attaches to submissions or revisions of environment plans under prescribed regulations where the activities are authorised by Commonwealth or State/Territory titles, or where plans are submitted for remedial compliance purposes (ss 10F-10G). Liability may be joint and several when multiple titleholders are involved (ss 10F(3)(b), 10G(3)(b)).
Structural characteristics of the regime: the Act sets the triggers and the classes of liable persons but leaves the monetary detail to delegated legislation (s 11). Many definitions are imported rather than restated, creating dependence on the Offshore Petroleum and Greenhouse Gas Storage Act 2006 and corresponding State/Territory instruments for operational meaning. The Act also distinguishes Commonwealth waters from designated coastal waters for levy triggers, and treats cross‑boundary greenhouse gas title areas as Commonwealth waters for levy purposes (s 3B).
Who it affects
The Act allocates payment responsibility to a narrow set of actors within offshore petroleum and greenhouse gas operations. The principal categories of affected persons are:
Registered holders of eligible Commonwealth or State/Territory titles, who are the payers for most levies: annual titles administration levy (s 10E(3)), annual well levy (ss 10A(3), 10B(3)), well investigation levy once NOPSEMA gives notice (ss 9(3), 10(3)), and well activity levy where the applicant is a registered holder making prescribed submissions (s 10C(3)). Registered holder is defined by reference to the Offshore Petroleum Act register or the relevant State/Territory PSLA register (see ss 9(5), 10B(5), 10C(6)).
Operators of facilities, who are the primary payers for safety investigation levies and safety case levies in many circumstances: safety investigation levy is payable by the operator where a NOPSEMA compliance investigation is started following a notifiable accident or dangerous occurrence in Commonwealth waters (s 5(3)) and similarly for designated coastal waters where NOPSEMA inspectors conduct inspections (s 6(3)). Safety case levy is payable by the operator unless specific pipeline or remedial direction rules allocate liability to licensees or persons subject to remedial directions (s 7(3); s 8(3)).
Pipeline licensees and persons subject to remedial directions, who can become co‑liable for safety case levy where a pipeline is subject to a licence and a remedial direction applies, or where a pipeline not subject to a licence has a remedial direction in force (s 7(3)(b)-(d); s 8(3)(b)-(d)).
Applicants for titles, who may be liable for environment plan levies when they submit environment plans as part of a title application process (s 10F(1)(c); s 10G(1)(c)).
Persons subject to remedial directions, who may bear levies tied to activities carried out to comply with remedial directions (ss 10F(1)(d)-(e), 10G(1)(d)-(e)).
Operators and titleholders within State/Territory designated coastal waters, where liability depends on whether the State or Territory has regulations that substantially correspond to prescribed Commonwealth regulations and whether NOPSEMA has functions under such regulations (see 10B(1)(c), 10D(1)(a)(i)-(iii)).
Geographical scope and public actors: the text distinguishes Commonwealth waters from designated coastal waters (s 3A) and expressly treats cross‑boundary greenhouse gas title areas as Commonwealth waters for levy purposes (s 3B). The Act binds the Crown in right of States and the Northern Territory (s 3C) but does not bind the Commonwealth, which shapes sovereign exposure to levies. External Territories are included by extension (s 4). The operative enforcement and investigative actor in most levies is NOPSEMA or a NOPSEMA inspector; triggers for various levies are NOPSEMA investigations, inspections, plan acceptances or plan submissions (see Parts 2-4D).
Key duties and rights
The text lays out specific, contingent duties to pay levies and some statutory rights or conditions affecting those duties. The principal duties are:
Duty to pay safety investigation levy when NOPSEMA begins a compliance investigation or an inspection following a notifiable accident or dangerous occurrence and regulations for the specified condition are in force (s 5(1)-(4); s 6(1)-(4)). The payer is the operator (s 5(3); s 6(3)).
Duty to pay safety case levy for any year during which a safety case is in force in relation to a facility in Commonwealth or designated coastal waters, payable by the operator except for pipelines or when remedial directions allocate liability (s 7(1)-(3); s 8(1)-(3)). The facility need only be in force at any time during the year for levy to apply (s 7(1); s 8(1)).
Duty to pay a well investigation levy following a NOPSEMA compliance investigation or inspection that concerns potential breaches of well duties (clause 13A/13B) and where NOPSEMA’s reasonably incurred costs exceed the statutory threshold of $30,000 and written notice has been given to the current titleholder; the levy is payable by the registered holder of the current title (ss 9(1)(b)-(e), 9(3); s 10(1)(b)-(e), 10(3)). The threshold and written notice are prerequisites.
Duty to pay an annual well levy where eligible wells are in relation to an eligible title for a year; the registered holder pays (ss 10A(1)-(3), 10B(1)-(3)). The levy applies whether or not the title is in force for the whole year (s 10E(1) contains a similar provision for titles). The eligible well concept depends on whether the well is within the title area, whether it was drilled under the title or a derived title, and whether it is abandoned in line with prescribed notifications and approvals (10A(5)-(7); 10B(5)-(7)).
Duty to pay well activity levy on applications or submissions to NOPSEMA for acceptance of well operations management plans or prescribed revisions; payable by the applicant or person subject to a remedial direction (ss 10C-10D). There is an express exemption preventing multiple levies for repeat State/Territory applications within six months in certain circumstances (s 10D(5)).
Duty to pay annual titles administration levy on eligible titles for each year the title is in force, including the year it comes into force; payable by the registered holder (s 10E). The Act notes remittal or refund mechanisms are available under section 695M of the Offshore Petroleum Act (note to s 10E).
Duty to pay environment plan levy on submission or revision of environment plans where the relevant activities are authorised by Commonwealth or State/Territory titles or are required to comply with remedial directions; payers include titleholders jointly and severally where multiple titleholders exist, applicants for titles, and those subject to remedial directions (ss 10F(1)-(3); 10G(1)-(3)).
Key conditional rights and protections built into the Act include:
A levy will not be payable under the safety investigation provisions unless regulations for the relevant condition are in force (s 5(4); s 6(4)), which creates a procedural dependency on subordinate legislation.
The well investigation levy requires a specified cost threshold be crossed and written notice to be given to the registered holder before a levy is imposed (ss 9(1)(d)-(e); 10(1)(d)-(e)).
Abandonment of wells is treated specially: abandoned wells are excluded from annual well levies unless the abandonment process has been the subject of a prescribed notification, and in some cases the abandonment must have been approved by NOPSEMA and carried out in accordance with conditions (s 10A(6A)-(7); s 10B(7)).
Transitional rights: safety case levy provisions treat pipeline safety management plans and earlier State/Territory safety cases as safety cases for specified past periods (s 8(7A)-(7B)), which affects historical liability.
Regulation‑making powers and the repeated statement that amounts are “specified in, or worked out in accordance with, the regulations” (multiple sections) mean that statutory rights concerning quantum and differing rates will depend on regulatory instruments (see s 11).
The Act also creates joint and several liability in specified circumstances, notably environment plan levies where activities are authorised by two or more titles (s 10F(3)(b), s 10G(3)(b)), which influences recovery and risk allocation.
Penalties and enforcement
The Act itself establishes levy liabilities and points to collection and remittance mechanisms in the Offshore Petroleum and Greenhouse Gas Storage Act 2006 rather than spelling out enforcement sanctions in detail. The text includes notes directing readers to collection provisions: for safety investigation levy see section 686 of the Offshore Petroleum Act (note to s 5 and s 6); for safety case levy see section 687 (notes to s 7 and s 8); for annual titles administration levy the Act refers to section 695M of the Offshore Petroleum Act for remittal or refund (note to s 10E). The Act authorises the Governor‑General to make regulations to determine amounts, differentials and other detail (s 11), which is the primary vehicle for specifying enforcement, administrative recovery and procedural matters by reference.
From the text, enforcement mechanics include:
Statutory identification of the liable person: each levy provision names who is required to pay in a given circumstance (operator, registered holder, licensee, applicant, person subject to remedial direction). That identification creates a statutory creditor and debtor relationship that the Commonwealth can enforce through collection processes under the Offshore Petroleum Act.
Preconditions to levy imposition that affect enforceability: for instance, safety investigation levies are not payable unless the relevant regulations are in force (s 5(4); s 6(4)), and well investigation levies require NOPSEMA to have given written notice after costs exceed $30,000 (ss 9(1)(d)-(e)). These conditions affect when enforcement can proceed.
Joint and several liability: where multiple titleholders authorise activities that trigger an environment plan levy, the levy is recoverable jointly and severally from those titleholders (s 10F(3)(b); s 10G(3)(b)), which provides the Commonwealth with multiple recovery targets.
Dependence on subordinate regulations: because quantum and many procedural matters are left to regulations (s 11), the enforcement tools such as interest, penalties for non‑payment and timeframes are likely supplied by those regulations and by the collection machinery in the Offshore Petroleum Act. The Act’s notes point to the specific collection sections in that Act, which will determine the practical enforcement steps.
Limitations and sovereign considerations affecting enforcement are also explicit in the statute: the Act binds State Crown but not the Commonwealth (s 3C), and it asserts it has no effect to the extent it imposes a tax on State property (s 3D). Those provisions may shape whether certain State entities can be pursued for levy payment, and whether any alleged levy would be treated as a tax on State property for constitutional purposes (s 3D cross‑referencing s 114 of the Constitution).
Implementation risk arises from this structure because enforcement depends on multiple instruments (regulations, collection provisions in the Offshore Petroleum Act) and on accurate identification of liable persons, which creates administrative burdens and potential disputes over payer identity, chargeability periods and the application of “substantially correspond” tests for State/Territory equivalence.
How it interacts with other laws
This Act is heavily integrative: it relies on, and defers to, the Offshore Petroleum and Greenhouse Gas Storage Act 2006 and to State and Territory PSLA regimes that substantially correspond to specific Commonwealth provisions. The interaction points in the text are numerous and operationally crucial:
Substantive definitions and operational actions are imported. The Act repeatedly defines terms to have the same meaning as in Schedule 3 of the Offshore Petroleum Act or other provisions of that Act (for example “operator”, “facility”, “accident”, “dangerous occurrence”, “well”, “title area”) (see s 3 and the many definition clauses in Parts 2-4D). Therefore, the meaning of those words for levy purposes is determined primarily by the Offshore Petroleum Act and its regulations.
Collection, remittance and refund mechanisms are handled under the Offshore Petroleum Act. The notes in ss 5 and 6 point to section 686 of that Act for collection of safety investigation levy. Notes in ss 7 and 8 point to section 687 for collection of safety case levy. The note to s 10E refers to section 695M for remittal or refund. Practitioners will therefore need to read those collection and remittance provisions in the Offshore Petroleum Act in tandem with this Act.
State and Territory law equivalence. Multiple levy provisions apply in designated coastal waters only where the applicable State or Territory safety law or regulations “substantially correspond” to Commonwealth regulations, and where NOPSEMA has functions or powers under those State/Territory regulations (see s 3A for the definition of designated coastal waters and the detailed State/Territory references in ss 6, 8, 10B, 10D, 10G). The statutory test of substantial correspondence means the practical operation and the imposition of levies in coastal waters turn on the content and scope of State/Territory PSLA provisions and their implementing regulations.
Cross‑boundary greenhouse gas titles. Section 3B treats certain cross‑boundary greenhouse gas permit/lease/licence areas as Commonwealth waters for levy purposes, thereby displacing the State/Territory label for those particular title areas and centralising levy application under Commonwealth rules.
Administrative law and regulatory instruments. The Act leaves rates, charging rules and varied treatment to regulations (s 11; repeated language in many levy sections). It also invokes the Acts Interpretation Act 1901 (s 33(3A)), signalling the use of variable or indexable regulatory rates. As a result, the regulatory regime under the Governor‑General’s power and the regulations under the Offshore Petroleum Act are the primary instruments for detailed interaction.
Constitutional and sovereign constraints. Section 3C binds the Crown in right of States and the Northern Territory but expressly does not bind the Crown in right of the Commonwealth. Section 3D provides that the Act has no effect to the extent it imposes a tax on property belonging to a State, referencing section 114 of the Constitution. These provisions will influence intergovernmental recovery and may affect whether particular levies can be imposed on State property.
External territories. Section 4 extends the Act to external Territories to which the Offshore Petroleum Act extends, creating territorial interaction with the Offshore Petroleum Act’s geographic application.
In summary, the Act is not a stand‑alone code. It is an overlay that triggers monetary liabilities using events and definitions that originate in the Offshore Petroleum Act and in State/Territory PSLA instruments. Understanding levy scope and collection therefore requires reading this Act, the Offshore Petroleum Act (including Schedule 3 and the specified collection and remittance provisions), and relevant State/Territory PSLA and regulations that purport to substantially correspond to Commonwealth regulations.
Amendment history
The provided text contains several embedded indications of later insertions, transitional provisions and references to subordinate instruments that post‑date the original enactment. The Act’s commencement table (s 2) notes that sections 1 and 2 and anything not covered by that table commenced on the day of Royal Assent, and that sections 3-11 commenced on 1 January 2005. The table itself is described as applying only to provisions as originally passed and as not being expanded to deal with provisions inserted later. Beyond that administrative start point, the Act includes internal textual evidence of subsequent legislative or regulatory interaction:
Transitional provisions in s 8(7A) and s 8(7B) deal with the years 1 January 2010 to 31 December 2012, treating certain pipeline safety management plans and State/Territory safety cases as safety cases for the purposes of safety case levies. Those clauses signal later adaptation of the original safety case provisions to accommodate historic regimes.
The Act references the Offshore Petroleum and Greenhouse Gas Storage (Resource Management and Administration) Regulations 2011 and the Offshore Petroleum and Greenhouse Gas Storage Legislation Amendment (Well Operations) Regulation 2015 in the definitions of “old Resource Management and Administration Regulations” and in the State/Territory equivalents referenced in ss 10B, 10D and elsewhere. Those references indicate that regulatory amendments and changes in subordinate instruments have been considered in later drafting.
The insertion of Parts 4A, 4B, 4C and 4D and their respective sections (10A-10E, 10C-10D, 10F-10G) are present in the text. The structure and placement of those Parts indicate legislative additions expanding the levy framework to cover annual well levies, well activity levies, annual titles administration levies and environment plan levies. The text of the Act, as provided, does not contain a chronological amendment schedule, but the presence of notes and cross‑references to later dated Regulations (2011, 2015) shows the statutory framework has been updated after original enactment.
Section 2 contains an explicit note that the commencement table relates only to provisions as originally passed and will not be expanded to deal with provisions inserted after assent. That cautions the reader that amendment dates and histories are not fully recorded in the provided text.
Because the source provided here is the statute text without a consolidated amendment schedule or an instrument history table, practitioners should consult the Federal Register of Legislation or parliamentary records for a formal consolidated amendment history, including dates of insertion for Parts 4A-4D and for any consequential amendments arising from regulatory changes such as the 2011 and 2015 instruments referenced. The Act authorises regulations (s 11), so many operational changes will have been effected by subordinate instruments rather than by repeated primary amendments.
Litigation history
The Act text supplied contains no case names, judicial decisions, appeals or recorded litigation related to the levy provisions. There are internal cross‑references to collection and remittance sections of the Offshore Petroleum and Greenhouse Gas Storage Act 2006, but no judicial interpretation or reported decisions are cited in the statute text. Therefore, within this source there is no litigation history to summarise.
Practically, the absence of recorded litigation in the text does not mean litigation does not exist in practice. Disputes are plausible over factual questions created by the Act’s structure, such as: whether a particular State/Territory regulation “substantially corresponds” to the Commonwealth provisions used to trigger levies; whether NOPSEMA’s cost calculation meets the “reasonably incurred” standard and the $30,000 threshold for well investigation levies (ss 9(1)(d)-(e)); whether a particular safety case is “in force” for the purpose of the safety case levy (ss 7-8); and whether the statutory treatment of sovereign immunity and taxes on State property affects levy recoverability (ss 3C-3D). Because the Act relies on other instruments for collection (notes referencing sections 686, 687 and 695M of the Offshore Petroleum Act), litigation could also arise in the context of enforcement actions under those collection provisions.
For a complete picture of litigation and judicial interpretation, an external search of reported decisions, tribunal determinations and administrative appeals that involve the levy sections or related collection provisions will be necessary. The Act text itself supplies no case law to cite.
Gotchas
The Act contains a number of drafting and operational features that create traps for practitioners and businesses. These are concrete mechanical risks and compliance pitfalls derived directly from the text:
Heavy delegation of quantum and procedural detail to regulations. Almost every levy provision leaves the amount and often differential treatment to regulations (see s 11 and the repeated phrase “specified in, or worked out in accordance with, the regulations” in ss 5(5), 6(5), 7(4), 8(4), 9(4), 10(4), 10A(4), 10B(4), 10C(4), 10D(4), 10E(4), 10F(4), 10G(4)). Practitioners must monitor subordinate instruments to know actual levy levels and billing procedures.
Regulatory preconditions to liability. Safety investigation levies are not payable under s 5(1) or s 6(1) unless the conditions specified in the regulations are satisfied (s 5(4); s 6(4)). The practical upshot is that an incident can trigger a NOPSEMA investigation but levy liability will not crystallise unless regulations that define the specified condition are in force.
$30,000 cost threshold and notice requirement for well investigation levies. The well investigation levy does not apply until NOPSEMA’s reasonably incurred costs and expenses exceed $30,000 and written notice is given to the registered holder (ss 9(1)(d)-(e); 10(1)(d)-(e)). Liability therefore depends on NOPSEMA’s internal cost accounting and a formal notice. Disputes about what counts as “reasonably incurred” expenses are foreseeable.
Joint and several liability for environment plan levies. Where two or more titleholders authorise activities captured by an environment plan, the levy is recoverable jointly and severally from the titleholders (s 10F(3)(b); s 10G(3)(b)). This can create cross‑party exposure in joint ventures and complicate internal recovery among co‑owners.
Annual levies apply even when title not in force for whole year. Annual titles administration levy applies for the year beginning when the title comes into force and each subsequent anniversary year if the title is in force at the start of the anniversary, “whether or not the eligible title is in force for the whole of the year” (s 10E(1)). Annual well levies (10A-10B) and titles levies can therefore create pro rata anomalies and potential transfer timing risks in transactions.
Abandonment is not an automatic escape. Abandoned wells are disregarded for annual well levy purposes only if the abandonment process was the subject of a prescribed notification and, in some State/Territory cases, only if the abandonment was approved by NOPSEMA and carried out in accordance with conditions (10A(6A)-(7); 10B(7)). Lack of proper notification or approval can leave a registered holder liable for annual levies on wells they believe abandoned.
State/Territory equivalence questions. The Act frequently applies to designated coastal waters or to State/Territory titles only where the State/Territory law or regulations “substantially correspond” to Commonwealth regulations or where NOPSEMA has functions under such regulations (see s 3A, ss 6, 8, 10B(1)(c), 10D(1)(a)). Determining whether “substantial correspondence” exists will often be a matter of legal and administrative assessment, which can cause uncertainty.
Treatment of Crown and taxation concerns. The Act binds the Crown in right of States and the Northern Territory but not the Commonwealth (s 3C). It also states it has no effect to the extent it imposes a tax on State property (s 3D). These provisions can make recovery from state entities operationally or constitutionally complex.
Dependency on other Acts for collection and relief. Collection, remittal and refund mechanisms are outsourced to the Offshore Petroleum Act’s collection sections (notes at ss 5, 7, 9, 10E). Practitioners must reconcile this Act’s liabilities with the collection, objection and appeal procedures in that Act and in the regulations.
Exemption traps for well activity levy in State/Territory applications. Section 10D(5) provides an exemption to avoid duplicate charges for repeat State/Territory applications within six months, but the exemption is narrowly drafted. Practitioners should track timing of repeat applications and title transfers to take advantage of the exemption where available.
Each of these “gotchas” is a direct consequence of the Act’s text and interplay with regulations and the Offshore Petroleum Act. They point to where disputes, billing surprises or unintended costs are most likely to arise.
How to comply
Compliance requires administrative systems and contractual care targeted at the events and persons identified in the Act. The following are concrete steps and control points grounded in the statute’s mechanics:
Map titles, registered holders and operators. Create a register that records for each title the registered holder, title area, wells that are wholly or partly within the title area, whether wells are derived from other titles, any pipeline licences, and whether any remedial directions or safety cases apply. The Act allocates liability principally to registered holders and operators (ss 5-10E). Accurate registers permit correct billing recipients and timely challenge of notices.
Monitor NOPSEMA activity and notices. The well investigation levy expressly requires NOPSEMA to give written notice after its reasonably incurred costs exceed $30,000 before a levy is imposed (ss 9(1)(d)-(e); 10(1)(d)-(e)). Operators and registered holders should establish a process to log any NOPSEMA investigations, track NOPSEMA cost statements and respond promptly to notices. Maintain contemporaneous records of costs and NOPSEMA communications, since “reasonably incurred” expenses may be scrutinised.
Track safety cases and pipeline statuses. Safety case levy applies where a safety case is in force at any time during a year (ss 7-8). For pipelines, check whether a pipeline licence and any remedial directions affect who is liable (s 7(3)). Ensure renewal and acceptance timelines are known so that levies can be forecast.
Maintain abandonment documentation. To avoid annual well levy exposure after planned abandonment, ensure abandonment is notified and approved in accordance with prescribed regulations or State/Territory equivalents; otherwise abandonment may be disregarded and annual levies continue to apply (s 10A(6A)-(7); s 10B(7)). Keep evidence of NOPSEMA approvals and compliance with any conditions.
Budget for annual and activity levies. Because amounts are set by regulation (s 11 and multiple levy sections), keep a compliance watch on changes to regulations that set levy amounts and mechanisms. Allocate budget lines in financial planning for potential safety case levies, annual titles levies, annual well levies and environment plan levies.
Contractual risk allocation. Draft JV agreements, operator agreements and sale/purchase documents to allocate responsibility for levies. The Act creates joint and several liabilities in multi‑title environments (s 10F(3)(b); s 10G(3)(b)), so internal cost recovery clauses are prudent. Transfer and assignment provisions should specify who bears levies for the year in which a transfer occurs, since annual levies can apply for the year even if the title is not in force for the whole year (s 10E(1)).
Manage environment plan submissions and applications. Where environment plan submissions or revisions are required, factor in the environment plan levy and the possibility of joint and several liability for multiple titleholders (ss 10F-10G). For State/Territory applications subject to the “substantially correspond” test, verify whether the State/Territory regulations attract the levy.
Use the State/Territory exemption where available. For State/Territory well activity levies, s 10D(5) provides an exemption from a second levy for repeat applications within a six‑month window in certain circumstances. Keep application timing records to claim the exemption if eligible.
Prepare to challenge quantum and applicability. Because the Act relies on delegated regulations for amounts and on NOPSEMA cost accounting for some levies, retain the capacity to challenge the basis of a levy notice administratively or judicially where appropriate. Keep documentation that supports positions that costs were not “reasonably incurred”, a well did qualify as abandoned, or a safety case was not in force.
Coordinate with legal and regulatory monitoring. Maintain a watch on incoming regulations made under s 11 and on collection provisions in the Offshore Petroleum and Greenhouse Gas Storage Act 2006, as those instruments will determine precise levies, billing cycles and remedies. Because the Act ties scope to terms in the Offshore Petroleum Act and to State/Territory instruments that “substantially correspond”, monitor changes in those instruments and consult counsel when the interplay is unclear.
Practical internal controls: assign responsibility for levy liaison to a small team that includes legal, HSE and commercial staff; reconcile NOPSEMA invoices and notices immediately upon receipt; preserve all communications with NOPSEMA and State/Territory regulators; include levy exposures in divestment due diligence; and review insurance policies to see whether any levies might be recoverable under contractual or liability cover. These steps map directly to requirements created by the Act’s allocation of liability, its reliance on NOPSEMA actions, and the regulatory basis for amounts.
Note: This table relates only to the provisions of this Act as originally passed by the Parliament and assented to. It will not be expanded to deal with provisions inserted in this Act after assent.
(2) Column 3 of the table contains additional information that is not part of this Act. Information in this column may be added to or edited in any published version of this Act.
3 Definitions
3 Definitions
In this Act, unless the contrary intention appears:
annual titles administration levy means levy imposed by section 10E.
annual well levy means levy imposed by section 10A or 10B.
applicable State or Territory safety law means:
(a) in relation to the designated coastal waters of a State—the State safety law of that State; or
(b) in relation to the designated coastal waters of the Northern Territory—the Territory safety law.
Commonwealth waters has the same meaning as in Part 6.9 of the Offshore Petroleum and Greenhouse Gas Storage Act 2006.
Note: See also section 3B.
compliance investigation means an investigation under Part 3 of the Regulatory Powers (Standard Provisions) Act 2014, in its application under Division 1 of Part 6.5 of the Offshore Petroleum and Greenhouse Gas Storage Act 2006.
construct, in relation to a well, includes:
(a) drill the well; and
(b) install any well‑related equipment associated with the well.
cost includes part of a cost.
cross‑boundary greenhouse gas assessment permit has the same meaning as in the Offshore Petroleum and Greenhouse Gas Storage Act 2006.
cross‑boundary greenhouse gas holding lease has the same meaning as in the Offshore Petroleum and Greenhouse Gas Storage Act 2006.
cross‑boundary greenhouse gas injection licence has the same meaning as in the Offshore Petroleum and Greenhouse Gas Storage Act 2006.
designated coastal waters, in relation to a State or the Northern Territory, has the meaning given by section 3A.
environment plan levy means levy imposed by section 10F or 10G.
expense includes part of an expense.
greenhouse gas assessment permit has the same meaning as in the Offshore Petroleum and Greenhouse Gas Storage Act 2006.
greenhouse gas holding lease has the same meaning as in the Offshore Petroleum and Greenhouse Gas Storage Act 2006.
greenhouse gas injection licence has the same meaning as in the Offshore Petroleum and Greenhouse Gas Storage Act 2006.
infrastructure licence has the same meaning as in the Offshore Petroleum and Greenhouse Gas Storage Act 2006.
lease area has the same meaning as in the Offshore Petroleum and Greenhouse Gas Storage Act 2006.
licence area has the same meaning as in the Offshore Petroleum and Greenhouse Gas Storage Act 2006.
NOPSEMA means the National Offshore Petroleum Safety and Environmental Management Authority.
NOPSEMA inspector has the same meaning as in the Offshore Petroleum and Greenhouse Gas Storage Act 2006.
offshore area, in relation to a State or Territory, has the same meaning as in the Offshore Petroleum and Greenhouse Gas Storage Act 2006.
permit area has the same meaning as in the Offshore Petroleum and Greenhouse Gas Storage Act 2006.
petroleum exploration permit has the same meaning as in the Offshore Petroleum and Greenhouse Gas Storage Act 2006.
petroleum production licence has the same meaning as in the Offshore Petroleum and Greenhouse Gas Storage Act 2006.
petroleum retention lease has the same meaning as in the Offshore Petroleum and Greenhouse Gas Storage Act 2006.
pipeline licence has the same meaning as in the Offshore Petroleum and Greenhouse Gas Storage Act 2006.
prepare, in relation to a well, includes construct.
remedial direction means a direction under section 586, 586A, 587, 587A, 591B, 592, 594A or 595 of the Offshore Petroleum and Greenhouse Gas Storage Act 2006.
safety case levy means levy imposed by section 7 or 8.
safety investigation levy means levy imposed by section 5 or 6.
scheduled area has the same meaning as in the Offshore Petroleum and Greenhouse Gas Storage Act 2006.
State PSLA has the same meaning as in Part 6.9 of the Offshore Petroleum and Greenhouse Gas Storage Act 2006.
State safety law means the provisions of a State PSLA that substantially correspond to Schedule 3 to the Offshore Petroleum and Greenhouse Gas Storage Act 2006.
State/Territory remedial direction means a direction under a provision of a State PSLA or Territory PSLA that substantially corresponds to section 586, 586A, 587, 587A, 591B, 592, 594A or 595 of the Offshore Petroleum and Greenhouse Gas Storage Act 2006.
Territory PSLA has the same meaning as in Part 6.9 of the Offshore Petroleum and Greenhouse Gas Storage Act 2006.
Territory safety law means the provisions of the Territory PSLA that substantially correspond to Schedule 3 to the Offshore Petroleum and Greenhouse Gas Storage Act 2006.
well has the same meaning as in the Offshore Petroleum and Greenhouse Gas Storage Act 2006.
well activity levy means levy imposed by section 10C or 10D.
well investigation levy means levy imposed by section 9 or 10.
well‑related equipment has the same meaning as in the Offshore Petroleum and Greenhouse Gas Storage Act 2006.
year means a 12‑month period beginning on 1 January.
3A Designated coastal waters
3A Designated coastal waters
(1) For the purposes of this Act, designated coastal waters, in relation to a State or the Northern Territory, means:
(a) so much of the scheduled area for that State or Territory as consists of the territorial sea; and
(b) any area that:
(i) is within the scheduled area for that State or Territory; and
(ii) is on the landward side of the territorial sea; and
(iii) was, immediately before the commencement of the relevant State PSLA or Territory PSLA, the subject of a petroleum exploration permit under the repealed Petroleum (Submerged Lands) Act 1967.
(2) For the purposes of subsection (1), assume that the breadth of the territorial sea of Australia had never been determined or declared to be greater than 3 nautical miles, but had continued to be 3 nautical miles.
(3) Paragraph (1)(b) has effect subject to subsection (4).
(4) For the purposes of this Act, if (whether before or after the commencement of this subsection) an area that is within the designated coastal waters of a State or Territory because it is described in subparagraphs (1)(b)(i), (ii) and (iii) became or becomes an area that is:
(a) not the subject of a petroleum exploration permit under the relevant State PSLA or Territory PSLA; and
(b) not the subject of a petroleum retention lease under the relevant State PSLA or Territory PSLA; and
(c) not the subject of a petroleum production licence under the relevant State PSLA or Territory PSLA; and
(d) not the subject of an application for a petroleum retention lease or petroleum production licence under the relevant State PSLA or Territory PSLA;
the area is taken to have ceased to be part of the designated coastal waters of that State or Territory.
3B Commonwealth waters—cross‑boundary greenhouse gas titles
3B Commonwealth waters—cross‑boundary greenhouse gas titles
For the purposes of this Act, each of the following areas is taken to be in Commonwealth waters:
(a) the permit area of a cross‑boundary greenhouse gas assessment permit;
(b) the lease area of a cross‑boundary greenhouse gas holding lease;
(c) the licence area of a cross‑boundary greenhouse gas injection licence.
3C Crown to be bound
3C Crown to be bound
This Act binds, and is taken always to have bound, the Crown in right of each of the States and of the Northern Territory. However, it does not bind, and is taken never to have bound, the Crown in right of the Commonwealth.
3D Act does not impose a tax on property of a State
3D Act does not impose a tax on property of a State
(1) This Act has no effect, and is taken always to have had no effect, to the extent (if any) to which it imposes a tax on property of any kind belonging to a State.
(2) In this section, property of any kind belonging to a State has the same meaning as in section 114 of the Constitution.
4 Extension to external Territories
4 Extension to external Territories
This Act extends to each external Territory to which the Offshore Petroleum and Greenhouse Gas Storage Act 2006 extends.
Note: See section 34 of the Offshore Petroleum and Greenhouse Gas Storage Act 2006.
Part 2 Safety investigation levy
Part 2—Safety investigation levy
5 Imposition of safety investigation levy—Commonwealth waters
5 Imposition of safety investigation levy—Commonwealth waters
(1) If:
(a) a notifiable accident or occurrence happens in relation to a facility located in Commonwealth waters; and
(b) a NOPSEMA inspector begins to conduct a compliance investigation in relation to the notifiable accident or occurrence; and
(c) the condition or conditions specified in the regulations are satisfied;
levy is imposed on the notifiable accident or occurrence.
(2) Levy imposed by subsection (1) is to be known as safety investigation levy.
(3) Safety investigation levy imposed by subsection (1) is payable by the operator of the facility.
(4) Safety investigation levy is not payable under subsection (1) unless regulations are in force for the purposes of paragraph (1)(c).
Note: For collection of safety investigation levy, see section 686 of the Offshore Petroleum and Greenhouse Gas Storage Act 2006.
Amount of safety investigation levy
(5) The amount of safety investigation levy imposed by subsection (1) in respect of a notifiable accident or occurrence is the amount that is specified in, or worked out in accordance with, the regulations.
(6) The regulations may specify different amounts of safety investigation levy, or different means of working out amounts of safety investigation levy, in relation to different kinds of notifiable accident or occurrence.
(7) Subsection (6) does not limit subsection 33(3A) of the Acts Interpretation Act 1901.
Definitions
(8) In this section:
accident has the same meaning as in Schedule 3 to the Offshore Petroleum and Greenhouse Gas Storage Act 2006.
dangerous occurrence has the same meaning as in Schedule 3 to the Offshore Petroleum and Greenhouse Gas Storage Act 2006.
facility has the same meaning as in Schedule 3 to the Offshore Petroleum and Greenhouse Gas Storage Act 2006.
notifiable accident or occurrence, in relation to a facility, means an accident or dangerous occurrence:
(a) at or near the facility; and
(b) that is required to be notified to NOPSEMA by the operator under clause 82 of Schedule 3 to the Offshore Petroleum and Greenhouse Gas Storage Act 2006.
operator, in relation to a facility, has the same meaning as in Schedule 3 to the Offshore Petroleum and Greenhouse Gas Storage Act 2006.
6 Imposition of safety investigation levy—designated coastal waters
6 Imposition of safety investigation levy—designated coastal waters
(1) If:
(a) a notifiable accident or occurrence happens in relation to a facility located in the designated coastal waters of a State or of the Northern Territory; and
(b) a NOPSEMA inspector begins to conduct an inspection in relation to the notifiable accident or occurrence; and
(c) the condition or conditions specified in the regulations are satisfied;
levy is imposed on the notifiable accident or occurrence.
(2) Levy imposed by subsection (1) is to be known as safety investigation levy.
(3) Safety investigation levy imposed by subsection (1) is payable by the operator of the facility.
(4) Safety investigation levy is not payable under subsection (1) unless regulations are in force for the purposes of paragraph (1)(c).
Note: For collection of safety investiga
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