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Petroleum Act 1984
116Commencement of criminal proceedings
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116 Commencement of criminal proceedings
(1) Despite any other law, proceedings for an offence under this Act
may be brought at any time.
(2) Proceedings for an offence against this Act may only be
commenced by:
(a) the CEO; or
(b) an inspector or other person authorised by the CEO.
117AAA Application
This Division does not apply in relation to a substance that is
prescribed under the Waste Management and Pollution Control
Act 1998 to be an ozone-depleting substance.
117AAB Environmental offences
Petroleum Act 1984 136
(d) the conduct results in significant environmental harm and the
Maximum penalty: 6 500 penalty units or imprisonment for
5 years.
Minimum penalty: 650 penalty units.
(2) An offence against subsection (1) is a summary offence.
(d) the conduct results in material environmental harm and the
(4) Strict liability applies to subsections (1)(b) and (c) and (3)(b)
and (c).
(5) A person commits an offence if:
(d) the conduct results in significant environmental harm.
(6) A person commits an offence if:
Petroleum Act 1984 137
(d) the conduct results in material environmental harm.
Minimum penalty: 130 penalty units.
(7) A person commits an offence if:
(d) the conduct results in environmental harm.
Maximum penalty: 130 penalty units.
(8) An offence against subsection (5), (6) or (7) is an offence of strict
subsection (1), (3), (5), (6) or (7) if the defendant took reasonable
steps and exercised due diligence to prevent the commission of the
117AAC Additional defences for environmental offences
(1) It is a defence to a prosecution of an offence against
section 117AAB if the conduct was authorised under another
provision of this Act or another Act.
subregulation (1) (see section 43BU of the Criminal Code).
(2) If environmental harm is the result of the release of a contaminant
or waste, it is a defence to a prosecution for an offence against
section 117AAB, in relation to a particular contaminant or waste, if
the defendant complied with:
(a) a provision of an environment protection objective as defined
in section 4(1) of the Waste Management and Pollution
Control Act 1998 that fixed maximum allowable levels for the
particular contaminant or waste; or
Petroleum Act 1984 138
(b) a condition of an approval, permit, lease, licence or other
authorisation under this Act or another Act that fixed maximum
allowable levels for the particular contaminant or waste.
Note for subsection (2)
subregulation (2) (see section 43BU of the Criminal Code).
117AAD Alternative verdict
In a proceeding against a person charged with an offence against a
provision specified in the following Table, column 1 (the
prosecuted offence), the trier of fact may find the person not guilty
of the prosecuted offence but guilty of an offence against a
provision specified in the Table as an alternative offence for the
prosecuted offence (the alternative offence) if the trier of fact:
(a) is not satisfied beyond reasonable doubt that the person
committed the prosecuted offence; and
(b) is satisfied beyond reasonable doubt that the person
committed the alternative offence.
Table Alternative offences
Prosecuted offence Alternative offence
section 57A(14) section 57A(16)
section 61E(1) section 61E(3)
section 61E(5) section 61E(7)
section 77(2) section 77(4), (6) or (7)
section 77(4) section 77(7)
section 77(6) section 77(7)
section 89Q(1) section 89Q(3)
section 89Z(1) section 89Z(3)
section 89ZA(3) section 89ZA(5)
section 105(1) section 105(3)
section 105(5) section 105(7)
Petroleum Act 1984 139
Prosecuted offence Alternative offence
section 117AAB(1) section 117AAB(3), (5), (6) or (7)
section 117AAB(3) section 117AAB(6) or (7)
section 117AAB(5) section 117AAB(6) or (7)
117AAE Adverse publicity orders
may make an order (an adverse publicity order) requiring the
person to do any of the following:
(a) to publicise, in the manner specified in the order, the offence,
its consequences, the penalty imposed and any other related
matter;
(b) to notify a specified person or specified class of person, in the
manner specified in the order, of the offence, its
consequences, the penalty imposed and any other related
matter.
(2) A person subject to an adverse order must give the CEO evidence
of compliance with the order within 7 days after the end of the
period specified in the order.
(3) The court may make an adverse publicity order on its own motion
or on the application of the person prosecuting the offence.
(4) The court must, in determining whether to make an adverse
publicity order, take into account any material before the court
relating to the effect of the taking of action or actions that the court
proposes to specify in the order is likely to have on a person other
than the person found guilty of the offence.
(5) If the CEO does not receive evidence in accordance with
subsection (2), the CEO, or a person authorised in writing by the
CEO, may take the action or actions specified in the order.
(6) If the CEO is not satisfied that the person complied with the order,
the CEO may apply to the court for an order authorising the CEO,
or a person authorised in writing by the CEO, to take action.
(7) The CEO is entitled to recover from the person subject to the order
an amount equal to the reasonable costs and expenses of taking
the action or actions as a debt due and payable to the Territory.
Petroleum Act 1984 140
117AAF Order to remedy breach
may, in addition to any sanction that it may impose, make an order
requiring the person to take specified steps, within a specified
period, to remedy any matter caused by the commission of the
offence that appears to the court to be within the person’s power to
remedy.
(2) The period in which an order under this section must be complied
with may be extended, or further extended, by order of the court if
an application for the extension is made before the period expires.
(a) the person is subject to an order under this section; and
(b) the person contravenes the order.
117AAG Recovery of costs
may, in addition to any sanction that it may impose, make an order
requiring the person to pay to the CEO or the Environment CEO:
(a) the costs reasonably incurred for the prosecution of the
offence; and
(b) the costs directly related to the investigation of the offence.
(2) Without limiting subsection (1), the costs covered by the subsection
may include costs for testing, storing or disposing of evidence.
Part VA Civil enforcement, penalties and other
proceedings
117AA Who may bring proceedings
(1) Subject to this Division, an application for an injunction or other
order under this Division may be brought by the following:
(a) the Minister;
Petroleum Act 1984 141
(b) the CEO;
(c) a person who is affected by an alleged act or omission that
contravenes or may contravene this Act;
(d) an interested person;
(e) a person acting on behalf of an unincorporated organisation
that is an interested person;
(f) a person acting with the written consent of the Minister or the
CEO.
interested person is:
(a) an individual who:
(i) has engaged in a series of activities for protection or
conservation of, or research into, the environment at any
time in the 2 years immediately before the
commencement of the application; and
(ii) resides, or ordinarily resides, in the Territory; or
(b) an organisation that:
(i) has objects or purposes that include the protection or
conservation of, or research into, the environment; and
(ii) is incorporated, or operates on a regular basis, in the
117AB Prohibitory injunctions
(1) If a person engaged, is engaging or is proposing to engage in
conduct constituting a contravention of this Act, the Supreme Court
may grant an injunction restraining the person from engaging in the
conduct.
(2) If the Supreme Court grants an injunction restraining a person from
engaging in conduct and in the opinion of the Court it is desirable to
do so, the Court may make an order requiring the person to do a
specified act or thing.
Petroleum Act 1984 142
117ABA Mandatory injunctions
If a person refused or failed, or is refusing or failing, or is proposing
to refuse or fail to do an act or thing, and the refusal or failure did,
does or would constitute a contravention of this Act, the Supreme
Court may grant an injunction requiring the person to do the act or
thing.
117ABB Interim injunctions
(1) Before deciding an application for an injunction under this Division,
the Supreme Court may grant an interim injunction:
(a) restraining a person from engaging in conduct; or
(b) requiring a person to do an act or thing.
(2) The Supreme Court must not require an applicant for an injunction
to give an undertaking as to damages as a condition of granting an
interim injunction.
117ABC Certain considerations for granting injunctions not relevant
(1) The Supreme Court may grant an injunction restraining a person
from engaging in conduct:
(a) whether or not it appears to the Court that the person intends
to engage again, or to continue to engage, in conduct of that
kind; and
(b) whether or not the person previously engaged in conduct of
that kind; and
(c) whether or not there is imminent danger of environmental
harm if the person engages, or continues to engage, in
conduct of that kind.
(2) The Supreme Court may grant an injunction requiring a person to
do a particular act or thing:
(a) whether or not it appears to the Court that the person intends
to refuse or fail again, or to continue to refuse or fail, to do that
act or thing; and
(b) whether or not the person previously refused or failed to do
that act or thing; and
(c) whether or not there is an imminent danger of environmental
harm if the person refuses or fails to do that act or thing.
Petroleum Act 1984 143
117ABD Discharge of injunctions
On application, the Supreme Court may discharge or vary an
injunction.
117ABE Other orders
(1) On application only by the Minister or the CEO, the Supreme Court
may make the following orders in relation to a contravention of this
Act:
(a) if the contravention of this Act resulted in environmental
harm – an order requiring the person who committed the
contravention to:
(i) do a specified act or thing to remediate any specified
environmental harm or to rehabilitate any aspect of the
environment; and
(ii) if appropriate, do a specified act or thing to prevent or
mitigate further environmental harm;
(b) if the Minister or the CEO incurred costs or expenses in doing
an act or thing to prevent or mitigate environmental harm
resulting from the contravention of this Act or to remediate or
rehabilitate the environment as a result of environmental
harm – an order against the person who committed the
contravention for payment of the reasonable costs and
expenses incurred in doing the act or thing.
(2) On application by a person referred to in section 117AA(1)(c) who
suffered loss or damage as a result of a contravention of this Act, or
incurred costs and expenses in doing an act or thing to prevent or
mitigate that loss or damage, the Supreme Court may make an
order against the person who committed the contravention for
payment of:
(a) compensation for the loss or damage; or
(b) the reasonable costs and expenses incurred in doing the act
or thing.
117ABF Supreme Court may vary or revoke order
The Supreme Court may, if it considers it appropriate to do so,
either on its own initiative or on the application of a party, vary or
revoke an order made under section 117ABE.
Petroleum Act 1984 144
117ABG Time for commencing proceedings under this Division
(1) A proceeding under this Division may be commenced by the
Minister or the CEO at any time within 12 months after the date of
the alleged act or omission that contravenes or may contravene this
Act.
(2) A proceeding under this Division may be commenced by a person
referred to in section 117AA(1)(c), (d), (e) or (f) at any time within
6 months after the date of the alleged act or omission that
contravenes or may contravene this Act.
(3) The Supreme Court may, on application, extend the time specified
in subsection (1) or (2).
(4) An application under subsection (3) may be commenced before or
after the end of the time specified in subsection (1) or (2).
(5) In considering an application under subsection (3), the Supreme
Court must consider the following if the information is available:
(a) when the alleged contravention occurred;
(b) whether the impact of the alleged contravention ought to have
been discovered by the applicant if the applicant had
exercised due diligence in finding the impact and whether the
applicant exercised that due diligence;
(c) whether extending the time would prejudice the proposed
respondent's ability to maintain a defence to the proceeding
on the merits;
(d) any other criteria the Court considers relevant.
117ABH Security and undertakings
Subject to section 117D, the Supreme Court may order a person
referred to in section 117AA(1)(c), (d), (e) or (f) who is the applicant
in a proceeding under this Division:
(a) to provide security for the payment of costs that may be
awarded against the applicant if the application is
subsequently dismissed; and
(b) to give an undertaking as to the payment of any amount of
damages that may be awarded under section 117ABJ.
Petroleum Act 1984 145
117ABJ Orders as to damages on application of respondent
(1) The Supreme Court may make an order under this section if, in a
proceeding under this Division in relation to an alleged
contravention of this Act commenced by a person referred to in
section 117AA(1)(c), (d), (e) or (f), the Court determines:
(a) that the respondent has not contravened this Act; and
(b) that the respondent has suffered loss or damage as a result of
the commencement of the proceeding under this Division; and
(c) that in the circumstances it is appropriate to make an order
under this section.
(2) The Supreme Court may, on the application of the respondent, and
in addition to any order as to costs, require a person referred to in
section 117AA(1)(c), (d), (e) or (f) who is the applicant in a
proceeding under this Division to pay to the respondent the amount
determined by the Court to compensate the respondent for the loss
or damage suffered by the respondent.
117ABK Orders as to costs
Subject to section 117D, in any proceeding under this Division, the
Supreme Court may make any order as to costs that it considers
just and reasonable.
117ABL Powers conferred are in addition to other powers of Supreme
Court
The powers conferred on the Supreme Court under this Division are
in addition to the other powers of the Court.
117ABM Enforceable undertaking
(1) An undertaking under this Division is an enforceable promise given
by a person who is alleged to have contravened this Act, in
exchange for the stay of any proceedings in respect of the
(2) An undertaking may contain any terms and conditions that the CEO
considers necessary to promote the objectives of this Act or to
ensure compliance with this Act.
(3) An undertaking must include time limits for the performance of any
obligations and a method to monitor compliance with the
undertaking.
Petroleum Act 1984 146
(4) The process of negotiating an undertaking is without prejudice to
any party's position.
(5) The CEO may accept a written undertaking given by the holder of a
petroleum interest in connection with a contravention or alleged
contravention by the holder of the petroleum interest of:
(a) this Act; or
(b) a term or condition of the petroleum interest.
(6) The CEO must consider the following before accepting an
undertaking:
(a) the nature and gravity of the conduct;
(b) the maximum penalty provided for the alleged contravention;
(c) the benefits of the proposed undertaking and the public
interest;
(d) the interests of justice;
(e) any other factor that the CEO considers relevant.
(7) The CEO must give written notice to the person whether or not the
person's undertaking is accepted.
(8) An enforceable undertaking may require the holder of the petroleum
interest to publish notice of the alleged contravention and any act or
thing done, or to be done, by the holder of the petroleum interest.
(9) The CEO must publish on the Agency's website, or in any other
way determined to be appropriate by the CEO, notice of the
decision to accept the enforceable undertaking and of the reasons
for that decision.
(10) The giving of an undertaking does not constitute an admission of
guilt by the person giving it in relation to the alleged contravention
or offence.
117ABN Enforcement orders
(1) The CEO may apply to the Supreme Court for an order under
subsection (2) if the CEO considers that a holder of a petroleum
interest contravened an enforceable undertaking accepted by the
CEO.
Petroleum Act 1984 147
(2) The Supreme Court may make any of the following enforcement
orders if the Court is satisfied that the holder of the petroleum
interest has contravened an enforceable undertaking:
(a) an order directing the holder of the petroleum interest to
comply with the undertaking;
(b) an order directing the holder of the petroleum interest to do
any specified act or thing for the purpose of complying with the
enforceable undertaking;
(c) an order directing the holder of the petroleum interest to do
any specified act or thing to minimise any harm or other
impact resulting from the contravention of the enforceable
undertaking;
(d) an order that the holder of the petroleum interest pay an
amount to the CEO for any costs or expenses reasonably
incurred by the CEO in taking action to minimise any harm or
other impact resulting from the contravention of the
enforceable undertaking, including any investigation, legal or
court costs;
(e) an order that the holder of the petroleum interest pay an
amount in compensation to any other person who has suffered
loss or damage as a result of the contravention of the
enforceable undertaking;
(f) an order revoking the enforceable undertaking;
(g) any other order the Court considers appropriate in the
circumstances.
117ABP Power of CEO to take action
(1) The CEO may do any act or thing specified in an enforcement order
if the holder of the petroleum interest contravenes the order.
(2) In doing a specified act or thing, the CEO may:
(a) do anything that is necessary or expedient to be done for that
purpose; and
(b) publish notice that the holder of the petroleum interest has
contravened the enforcement order.
(3) The CEO may recover the reasonable costs and expenses incurred
in doing a specified act or thing under this section from the holder of
the petroleum interest in a court of competent jurisdiction as a debt
due and payable to the Territory.
Petroleum Act 1984 148
(4) The CEO may, in writing, authorise another person to exercise a
power or perform a function under subsection (1) or (2) on the
CEO's behalf.
(5) If a person is authorised to exercise a power or perform a function
under subsection (4), anything done by the person in the exercise
of the power or the performance of the function has the same effect
as if it had been done by the CEO.
117ABQ Variation or withdrawal of enforceable undertaking by interest
holder
(1) The holder of a petroleum interest may vary or withdraw an
enforceable undertaking accepted by the CEO with the consent of
the CEO.
(2) Despite subsection (1), the provisions of an enforceable
undertaking cannot be varied to provide for a different
(3) An enforceable undertaking is revoked on the withdrawal of the
undertaking.
(4) The CEO must publish on the Agency's website, or in any other
way determined to be appropriate by the CEO, notice of the
decision to consent to the variation or withdrawal of an enforceable
undertaking and of the reasons for that decision.
117ABR No criminal proceedings while enforceable undertaking in
force
(1) Subject to subsection (3), no proceedings for an alleged
contravention of this Act may be commenced or continued against
a person if an enforceable undertaking in relation to the
contravention:
(a) is in effect; or
(b) is completely discharged.
(2) After accepting an enforceable undertaking from a person, the CEO
must take reasonable steps to have the prosecution against the
person discontinued as soon as possible.
(3) Proceedings may be instituted or resumed against a person who
gave an enforceable undertaking in respect of the alleged
contravention or offence if the undertaking is not complied with.
Petroleum Act 1984 149
117ABS No further proceedings if enforceable undertaking complied
with
If the CEO is satisfied that an enforceable undertaking in relation to
an alleged contravention of this Act has been complied with, a
criminal proceeding for an offence that is constituted by the alleged
contravention may not be commenced.
117ABT Application for civil orders
The CEO may apply to the Local Court for a civil order under this
Division if the CEO is satisfied that a person contravened a
provision of this Act that is:
(a) an offence of strict liability; or
(b) an offence under Part V, Division 2 (not being an offence of
strict liability) that is prescribed for this Division.
117ABU Time for making application
An application under this Division may be commenced at any time
within 3 years after the day of the alleged contravention.
117ABV CEO to have regard to certain matters
In determining whether to make an application under this Division in
relation to a contravention of a provision of this Act, the CEO must
have regard to:
(a) the seriousness of the contravention; and
(b) the previous record of the offender in complying with this Act;
and
(c) any other relevant matter.
117ABW Notice of proposed application to Local Court
(1) The CEO must not apply for a civil order unless the CEO serves on
the person to whom the application relates a notice of the CEO's
intention to make the application.
(2) The notice must:
Petroleum Act 1984 150
(b) specify the maximum amount that the person may be ordered
to pay as a civil penalty; and
(c) include a statement advising the person that the person may
elect to be prosecuted for the relevant contravention by written
notice given to the CEO within the time specified in the notice.
(3) The time specified in the notice must not be less than 30 days.
(4) The CEO must not apply for a civil order in relation to a
contravention if the person serves a written notice on the CEO,
within the time specified in the notice under subsection (2), electing
to be prosecuted for the contravention.
117ABX Civil orders
(1) On the application of the CEO, the Local Court may make the
following orders against a person if the Local Court is satisfied on
the balance of probabilities that the person contravened a provision
of this Act that is an offence referred to in section 117ABT:
(a) an order that the person pay to the Territory a pecuniary
amount as a civil penalty;
(b) an order mentioned in section 117ABZ;
(c) any other order that the Court considers appropriate.
(2) The amount of a civil penalty ordered under this section to be paid
in relation to a contravention of a provision that is an offence must
not exceed the amount specified by this Act as the maximum
penalty for the offence.
117ABY Local Court to have regard to certain matters
In determining the amount to be paid by a person as a civil penalty,
the Local Court must have regard to:
(a) the nature and extent of the contravention; and
(b) any environmental harm resulting from the contravention; and
(c) any financial or economic saving or benefit the person stood
to gain by committing the contravention; and
(d) whether the person has previously been found, in a
proceeding under this Act, to have engaged in any similar
conduct; and
(e) any other matter the Court considers relevant.
Petroleum Act 1984 151
117ABZ Civil orders under section 117ABX(1)(b)
For section 117ABX(1)(b), any of the following orders may be made
against a person:
(a) an order that the person must take specified measures within
a specified time:
(i) to prevent the contravention occurring again; or
(ii) to remediate any environmental harm resulting from the
contravention including by rehabilitating any aspect of
the environment; or
(iii) to enhance the environment in an area for public benefit;
(b) an order requiring the person to compensate the Territory for
the costs of the CEO or the Environment CEO in taking any
remedial or preventive action that was made necessary as a
result of the act or omission that constituted the contravention;
(c) an order directing the person to pay to the Territory an amount
that the Local Court estimates will not exceed the financial or
economic benefit that the person or a person associated with
the person has gained or can reasonably be expected to gain
as a result of the contravention;
(d) an order directing the person to pay an amount in
compensation to any person who has suffered loss or damage
as a result of the contravention;
(e) an order requiring the person to publicise the contravention
and any impact of the contravention in a specified manner.
117ABZA Power to take remedial measures
(1) If a person fails to take any measures specified by an order
mentioned in section 117ABZ(a), the CEO may take those
measures.
(2) The CEO may recover the reasonable costs of taking any
measures under subsection (1) from the person in a court of
competent jurisdiction as a debt due and payable to the Territory.
(3) The CEO may, in writing, authorise another person to exercise a
power or perform a function under subsection (1) or (2) on the
CEO's behalf.
Petroleum Act 1984 152
(4) If a person is authorised to exercise a power or perform a function
under subsection (3), anything done by the person in the exercise
of the power or the performance of the function has the same effect
as if it had been done by the CEO.
117ABZB Civil jurisdiction
(1) The jurisdiction conferred by this Division is part of the civil
jurisdiction of the Local Court.
(2) The jurisdictional limit for a civil proceeding specified under
section 12 of the Local Court Act 2015 does not apply to a
proceeding under this Division.
117ABZC Contravention of 2 or more provisions
If the conduct of a person constitutes a contravention of 2 or more
provisions of this Act that are offences referred to in
section 117ABT, an amount of civil penalty may be ordered to be
paid by the person under this Division in relation to the
contravention of any one or more of the provisions but the person is
not liable to pay more than one amount as a civil penalty in relation
to the same conduct.
117ABZD Stay of proceeding
(1) This section applies to a proceeding for:
(a) a civil order in relation to a contravention of this Act; or
(b) enforcement of a civil order mentioned in paragraph (a).
(2) The proceeding is stayed if a criminal proceeding is commenced or
has already commenced against the person for an offence
constituted by conduct that is substantially the same as the conduct
alleged to constitute the contravention.
(3) The stayed proceeding may only be resumed if the criminal
proceeding does not result in a finding of guilt being made against
the person.
Petroleum Act 1984 153
117ABZE Inadmissibility of evidence in criminal proceedings
(1) Evidence of information given or evidence of the production of
documents by a person is not admissible in a criminal proceeding
against a person if:
(a) the person gave the evidence or produced the documents in
the course of a proceeding under this Division for the recovery
of an amount as a civil penalty in relation to a contravention of
(b) the conduct alleged to constitute the offence is substantially
the same as the conduct alleged to constitute the
(2) Subsection (1) does not prevent the use of information given or a
document produced by a person to locate or identify further
evidence that may be used in evidence against the person in a
proceeding for an offence or the imposition of a penalty.
(3) Subsection (1) does not apply to a criminal proceeding in relation to
the provision of misleading information or documents.
117ABZF Orders as to costs
In a proceeding under this Division, the Local Court may make any
order as to costs that it considers just and reasonable, including an
order requiring the reimbursement of the costs and expenses
incurred by the CEO or the Environment CEO in investigating the
alleged offence.
117ABZG Recovery of amounts ordered to be paid to Territory
Any amount ordered by the Local Court under this Division to be
paid to the Territory may be recovered by the Territory as a
judgment debt.
117ABZH Civil proceedings not to affect compliance directions
A proceeding for a civil order against a person does not affect any
existing compliance direction issued to the person or the issue of a
compliance direction to the person during or after the end of the
proceeding.
Petroleum Act 1984 154
117AD Object of Part
The main objects of this Part are:
(a) to maintain the use of the Australian Geodetic Datum to
determine the position of blocks and certain other areas; and
(b) to enable the position of a point, line, block or other area to be
described in a petroleum interest or other instrument under
this Act, using another datum (but not so as to change the
position of a point, line, block or area).
117AE Definitions
Australian Geodetic Datum means the Australian Geodetic Datum
as defined in the Commonwealth Gazette No. 84 of
changeover time means the time when a declaration under
section 117AG takes effect.
current datum means the datum declared to be the current datum
under section 117AG.
instrument under this Act:
(a) includes a lease referred to in section 119(1); and
(b) does not include the Regulations.
previous datum means:
(a) if a datum is the first datum declared to be the current datum
under section 117AG – the Australian Geodetic Datum; or
(b) in any other case – the datum that was the current datum
immediately before the changeover time.
this Act includes the Regulations.
117AF Australian Geodetic Datum
(1) For the purposes of this Act, the position on the surface of the Earth
of a graticular section or a block is to be determined by reference to
the Australian Geodetic Datum.
Petroleum Act 1984 155
(2) Subject to subsection (3), subsection (1) does not apply for the
purposes of describing, in a petroleum interest or other instrument
under this Act, the position on the surface of the Earth of a point,
line or area.
(3) Until a declaration under section 117AG takes effect, the Australian
Geodetic Datum applies for the purposes of describing, in a
petroleum interest or other instrument under this Act, the position
on the surface of the Earth of a point, line or area.
117AG Current datum and previous datum
The Regulations may declare that, for the purposes of describing
the position on the surface of the Earth of a point, line or area in a
petroleum interest or other instrument under this Act, a specified
datum:
(a) is the current datum; and
(b) replaces the previous datum.
117AH Use of current datum
For the purposes of this Act, the position on the surface of the Earth
of:
(a) an exploration permit area the subject of an exploration permit
granted or renewed after the changeover time;
(b) the licence area the subject of a licence granted or renewed
after the changeover time;
(c) an access authority area the subject of an access authority
granted or renewed after the changeover time; or
(d) a point, line or area set out in any other instrument made,
granted or renewed under this Act after the changeover time,
is to be described by reference to the current datum, and the
exploration permit, licence, access authority or instrument may be
annotated accordingly.
117AI Use of previous datum
(1) This section applies subject to section 117AJ.
Petroleum Act 1984 156
(2) For the purposes of this Act, the position on the surface of the Earth
of:
(a) an exploration permit area the subject of an exploration permit
in force immediately before the changeover time;
(b) a licence area the subject of a licence in force immediately
before the changeover time;
(c) an access authority area the subject of an access authority in
force immediately before the changeover time; or
(d) a point, line or area set out in any other instrument in force
under this Act immediately before the changeover time,
is to be described by reference to the previous datum.
117AJ Variation of petroleum interests etc.
The Regulations may authorise the Minister to issue an instrument
varying:
(a) an exploration permit in force immediately before the
changeover time for the sole purpose of relabelling the
exploration permit area the subject of the exploration permit
using geographic co-ordinates based on the current datum;
(b) a licence in force immediately before the changeover time for
the sole purpose of relabelling the licence area the subject of
the licence using geographic co-ordinates based on the
current datum;
(c) an access authority in force immediately before the
changeover time for the sole purpose of relabelling the access
authority area the subject of the access authority using
geographic co-ordinates based on the current datum;
(d) any other instrument under this Act that:
(i) is in force immediately before the changeover time; and
(ii) sets out a point, line or area,
for the sole purpose of relabelling the point, line or area using
geographic co-ordinates based on the current datum; or
(e) any other instrument under this Act for the sole purpose of
inserting an annotation about the applicable datum.
Petroleum Act 1984 157
117AK Variation of applications for petroleum interests
The Regulations may authorise the Minister to issue an instrument
varying an application for a petroleum interest under this Act for the
sole purpose of relabelling a point, line or area by reference to
geographic co-ordinates based on the current datum.
117AL No change to actual position of point, line or area
This Part does not authorise any change to the position on the
surface of the Earth of a point, line or area.
117AM Transitional Regulations
The Regulations may make provision for matters of a transitional
nature arising from the change from the previous datum to the
current datum.
117AN Types of security
There are 2 kinds of security for the purposes of this Part:
(a) environmental securities; and
(b) petroleum infrastructure decommissioning securities.
117AP Requirement for security
(1) The Minister may determine the form of security required in a
particular case after taking into account any direction of the
Treasurer about acceptable or appropriate securities under this
Part.
Examples for subsection (1)
A form of security might be:
(a) a cash bond posted to the Territory Government and held in trust; or
(b) a bank guarantee; or
(c) a surety bond or insurance bond.
(2) The Minister may require that more than one security be provided in
a particular case.
Petroleum Act 1984 158
(3) Unless otherwise determined by the Minister, a security does not
extend to an activity or work that does not require approval under
an environment management plan, well operations management
plan or petroleum surface infrastructure plan.
117AQ General provisions
(1) An environmental security is a form of security to secure costs and
to contribute to the management of risks associated with the
remediation and rehabilitation of environmental impacts resulting
from activities to which an approved environment management plan
relates.
(2) Without limiting subsection (1), an environmental security may
provide security for:
(a) standardised costs to address specific costs, liabilities and
risks associated with environmental impacts and risk of
environmental harm resulting from activities to which an
approved environment management plan relates, including
costs for remediation and rehabilitation; and
(b) standardised costs to manage residual risk of environmental
harm, including monitoring, after remediation and rehabilitation
has been undertaken; and
(c) a contingency amount to reduce the risk that the value of the
security is inadequate.
(3) The actual amount or value to be included in or provided by a
particular security will be determined by applying an approach or
methodology determined by the Environment Minister and
published on the Agency's website.
(4) The Environment Minister may vary or substitute an approach or
methodology from time to time.
(5) A variation or substitution:
(a) must be published on the Agency's website; and
(b) may, if the Environment Minister so determines, apply in
relation to one or more securities for an existing petroleum
interest.
Petroleum Act 1984 159
(6) An approach or methodology under this section must reflect:
(a) the requirement that the cost of remediation and rehabilitation
reflect market conditions; and
(b) the circumstances of the Northern Territory petroleum
industry.
(7) The Environment Minister may adopt different approaches or
methodologies for different kinds of petroleum interests.
117AR Assessment
(1) The Environment Minister will determine the appropriate security or
securities when the Environment Minister decides to approve an
environment management plan.
(2) An interest holder must not commence activities under an approved
environment management plan without providing security in
accordance with a determination of the Environment Minister under
(3) The Environment Minister may allow an interest holder to provide
an amount of security less than would otherwise apply if satisfied
that the level of activity or stage in the performance of work does
not require the full security.
(4) The Environment Minister may act under subsection (3) on the
condition that the amount of the security will be increased at a later
time or times.
117AS Review
(1) An environmental security must be reviewed:
(a) if the approved environment management plan is revised; or
(b) if required by the Environment Minister.
(2) An interest holder must review the environmental security in
accordance with any requirements specified by the Environment
Minister by written notice to the interest holder.
(3) The Environment Minister may require that a security be varied or
substituted, or that a new security be provided, after the completion
of a review.
Division 3 Petroleum infrastructure decommissioning securities
Petroleum Act 1984 160
117AT Release and extension
(1) The Environment Minister may release an interest holder from an
environmental security when satisfied that:
(a) all environmental obligations to which the security relates are
satisfied and that the interest holder satisfied all relevant
regulatory requirements; or
(b) it is appropriate to provide a release in the particular
circumstances.
(2) The Environment Minister may require that an environmental
security extend beyond the period for which the approved
environment management plan is in force to cover residual
remediation or rehabilitation, provide for monitoring or address
other relevant circumstances.
117AU Claim on security
The Minister may, at the request of the Environment Minister, make
a claim on an environmental security in accordance with the terms
and conditions of the security.
Division 3 Petroleum infrastructure decommissioning
securities
117AV General provisions
(1) A petroleum infrastructure decommissioning security is a form of
security to secure costs and liabilities associated with:
(a) well decommissioning to which an approved well operations
management plan relates; and
(b) decommissioning petroleum surface infrastructure to which an
approved petroleum surface infrastructure plan relates; and
(c) decommissioning appraisal production infrastructure.
(2) Without limiting subsection (1), a petroleum infrastructure
decommissioning security may provide security for:
(a) standardised costs associated with well decommissioning; and
(b) standardised costs associated with petroleum surface
infrastructure decommissioning; and
(c) standardised costs associated with appraisal production
infrastructure decommissioning.
Division 3 Petroleum infrastructure decommissioning securities
Petroleum Act 1984 161
(3) The actual amount or value to be included in or provided by a
particular security will be determined by applying an approach or
methodology determined by the Minister and published on the
Agency's website.
(4) The Minister may vary or substitute an approach or methodology
from time to time.
(5) A variation or substitution:
(a) must be published on the Agency's website; and
(b) may, if the Minister so determines, apply in relation to one or
more securities for an existing petroleum interest.
(6) An approach or methodology under this section must reflect:
(a) the requirement that the cost of decommissioning reflect
market conditions; and
(b) the circumstances of the Northern Territory petroleum
industry.
(7) The Minister may adopt different approaches or methodologies for
different kinds of petroleum interests.
117AW Assessment
(1) The Minister will determine the appropriate security or securities
when the Minister decides to approve:
(a) a well operations management plan or a petroleum surface
infrastructure plan; or
(b) the recovery of petroleum on an appraisal basis.
(2) An interest holder must not commence activities under an approved
well operations management plan or a petroleum surface
infrastructure plan, or to recover petroleum on an appraisal basis,
without providing security in accordance with a determination of the
Minister under subsection (1).
(3) The Minister may allow an interest holder to provide a reduced
amount of security if satisfied that the interest holder's resources or
reserves are large enough that a reduction is reasonable.
Petroleum Act 1984 162
117AX Review
(1) A petroleum infrastructure decommissioning security must be
reviewed:
(a) if an approved plan relevant to the security is revised; or
(b) if there is a material change in an estimate of petroleum
reserves in a relevant field management plan or other plan or
report under this Act; or
(c) if required by the Minister.
(2) An interest holder must review the petroleum infrastructure
decommissioning security in accordance with any requirements
specified by the Minister by written notice to the interest holder.
(3) The Minister may require that a security be varied or substituted, or
that a new security be provided, after the completion of a review.
117AY Release and extension
The Minister may release an interest holder from a petroleum
infrastructure decommissioning security when satisfied:
(a) that all obligations to which the security relates are satisfied
and that the relevant decommissioning satisfied all relevant
regulatory requirements; or
(b) that it is appropriate to provide a release in the particular case.
117AZ Claim on security
The Minister may make a claim on a petroleum infrastructure
decommissioning security in accordance with the terms and
conditions of the security.
117AZA Administration of securities
(1) The Minister must hold all environmental securities and petroleum
infrastructure decommissioning securities.
(2) An environmental security must be administered by the Minister
acting on the advice of the Environment Minister.
(3) A petroleum infrastructure decommissioning security must be
administered by the Minister.
Petroleum Act 1984 163
(4) The Minister must establish a fund for the purpose of holding
money under a bond or other security that requires the payment of
cash.
117AZB Mandatory condition
It is a condition of a petroleum interest that the interest holder must:
(a) provide the security or securities required under this Part; and
(b) not commence an activity or work without providing security in
accordance with this Part; and
(c) review a security as required under this Part; and
(d) comply with any requirement of the Minister or the
Environment Minister to vary or substitute a security, or to
provide a new security, in accordance with this Part.
117AZC Action if interest holder in default
(1) The CEO may do any act or thing for which a security under this
Part was obtained if the relevant interest holder fails to do that act
or thing.
(2) The CEO may, in writing, authorise another person to act on the
CEO's behalf under subsection (1).
(3) If the CEO acts under subsection (1) and the security is insufficient
to cover the CEO's reasonable costs and expenses, the CEO may
recover from the interest holder the outstanding amount in a court
of competent jurisdiction as a debt due and payable to the Territory.
117AZD Information about securities
The CEO must publish on the Agency's website:
(a) a list of all securities held under this Part with sufficient detail
to allow members of the public to understand the securities
held in relation to each petroleum interest; and
(b) the total value of securities held from time to time for all
petroleum interests.
Petroleum Act 1984 164
117AZE Definition
levy means the monitoring and compliance levy under this Part.
117AZF Monitoring and compliance levy
(1) There is a monitoring and compliance levy.
(2) The levy is imposed to provide funding for the following purposes:
(a) monitoring activities to ensure that they are consistent with
approvals, conditions attached to petroleum interests, plans
approved under this Act, and other requirements under this
Act;
(b) compliance and enforcement activities undertaken by the
CEO, the Environment CEO, public sector employees in an
Agency involved in the administration of this Act, and
inspectors;
(c) recovering costs, or raising funds to cover future costs,
connected with obtaining information, undertaking studies,
making assessments and monitoring activities, outcomes and
impacts associated with a petroleum interest or a proposed or
potential petroleum interest, or in relation to an area that may
be affected by a petroleum interest or a proposed or potential
petroleum interest;
(d) other activities relating to the administration of this Act (insofar
as those activities are not funded by fees and charges
collected under this Act).
(3) The levy is an amount calculated and imposed in relation to
activities specified by regulation and approved to be carried on
under this Act during each financial year.
(4) An additional levy may be imposed during a financial year if
additional activities are approved during the financial year.
(5) The levy is imposed from the beginning of the 2023/2024 financial
year.
(6) The levy is payable to the Territory.
Petroleum Act 1984 165
(7) Any unpaid levy may be recovered as a debt due and payable to
the Territory.
117AZG Liability for monitoring and compliance levy
A person is liable to pay a levy if the person is in a class of persons
specified by regulation to be liable to pay the levy.
117AZH Amount and imposition of levy
(1) The amount of levy to be paid by a person must be determined in
accordance with the regulations.
(2) The regulations may deal with matters relevant to the
determination, payment and collection of a levy.
(3) The regulations may provide for the amount of a levy, and the
method of calculating a levy, to be different in relation to different
classes of actions, factors or circumstances.
(4) The regulations may allow a particular matter under subsection (1),
(2) or (3) about the scope or application of a particular component
of the levy to be determined according to the discretion of the
(5) A levy paid by a person is not refundable.
(6) Interest accrues on unpaid levy in accordance with the regulations.
117AZJ Returns
A person liable to pay a levy must provide a return, in the approved
form, to the Minister at the time of the payment of the levy.
117AZK Definitions
levy means the orphan well levy under this Part.
orphan well, see section 117AZL.
Petroleum Act 1984 166
117AZL Meaning of orphan well
An orphan well is a well where:
(a) the well is located on an area that has been subject to:
(i) a petroleum interest granted under this Act; or
(ii) a permit or lease granted under the repealed Act; or
(iii) any other form of authority or title under a law applying in
the Territory with respect to petroleum exploration,
recovery or production; and
(b) the authority or title under which the well was established has
ceased to exist; and
(c) the Territory has assumed responsibility for the monitoring,
maintenance, management or rectification of the well.
117AZM Orphan well levy
(1) There is an orphan well levy.
(2) The levy is imposed to provide funding for the following purposes:
(a) monitoring and assessing the integrity of orphan wells;
(b) obtaining expert reports relating to the integrity of an orphan
well;
(c) performing, or engaging appropriately qualified persons to
perform, maintenance work on orphan wells;
(d) preparing remediation plans to rectify the loss of integrity of
orphan wells;
(e) carrying out work to rectify the loss of integrity of an orphan
well;
(f) undertaking well and infrastructure decommissioning;
(g) undertaking other work and activities appropriate in
connection with the orphan wells.
(3) The levy is payable in relation to each financial year.
(4) The levy is imposed from the beginning of the 2023/2024 financial
year.
(5) The levy is payable to the Minister.
Petroleum Act 1984 167
(6) Any unpaid levy may be recovered as a debt due and payable to
the Territory.
117AZN Liability for orphan well levy
Each interest holder is liable to pay the orphan well levy.
117AZP Basis and calculation of levy
(1) The levy for each financial year is calculated by reference to the
number of blocks held by an interest holder at the beginning of the
financial year.
(2) The levy is imposed at the specified rate per block as at the
beginning of the financial year.
(3) The specified rate is:
(a) 84 revenue units; or
(b) a prescribed number of revenue units.
117AZQ Payment of levy
(1) A levy must be paid by 31 July of the financial year to which the
levy relates.
(2) A levy paid by a person is not refundable.
(3) Interest accrues on unpaid levy in accordance with the regulations.
117AZR Returns
A person liable to pay a levy must provide a return, in the approved
form, to the Minister at the time of the payment of the levy.
117AZS Payment into Fund
The Minister must pay money received in payment of the orphan
well levy into the Orphan Well Fund.
117AZT Establishment of Fund
(1) The Orphan Well Fund must be established under the Financial
Management Act 1995.
(2) The regulations may deal with matters relevant to the Fund.
(3) The purpose of the Fund is to hold money in trust to be used by the
Minister for purposes for which the orphan well levy is imposed.
Petroleum Act 1984 168
117AZU Publication of information
The Minister must publish on the Agency's website, within 3 months
after the end of each financial year, the following information:
(a) the amount of orphan well levy collected for that financial year;
(b) the opening and closing balances of the Orphan Well Fund for
that financial year;
(c) an outline of the work and activities funded from the Orphan
Well Fund during that financial year.
117AZV Codes of practice
(1) The Minister may establish a code of practice for the purposes of
this Act and may vary or revoke a code of practice.
(2) The Minister and the Environment Minister must consult with each
other before establishing, varying or revoking a code of practice
under subsection (1).
(3) A code of practice may apply, adopt or incorporate any matter
contained in a document formulated, issued or published by a
person or body whether:
(a) with or without modification; and
(b) as in force at a particular time or from time to time.
(4) A code of practice, or a variation or revocation of a code of practice,
takes effect by Gazette notice.
(5) The Minister must ensure that notice of a code of practice, or of a
variation or revocation of a code of practice, is published in the
Gazette and on the Agency's website.
(6) The CEO must ensure that a copy of each of the following is
available for inspection by members of the public without charge at
the principal office of the Agency during normal business hours:
(a) any code of practice currently in effect;
(b) any document applied, adopted or incorporated (to any extent)
in a code of practice.
Petroleum Act 1984 169
117AZW Use of codes of practice in proceedings
(1) This section applies in a proceeding for an offence against this Act.
(2) A code of practice is admissible in the proceeding as evidence of
whether or not a requirement under this Act was complied with.
(3) Without limiting subsection (2), a court may have regard to the code
of practice as evidence of what is known about:
(a) maintaining well or infrastructure integrity; or
(b) managing environmental impacts and risks; or
(c) ensuring the security of supply.
(4) Nothing in this section:
(a) prevents a person from introducing evidence of compliance
with this Act in a manner that is different from a code of
practice but provides an outcome that satisfies the relevant
requirement; or
(b) limits the operation of a code of practice to the extent to which
compliance with the code may be mandatory under another
provision of this Act.
117AMA Licence etc. not personal property
For section 8(1)(k) of the Personal Property Securities Act 2009
(Cth), each of the following is not personal property for that Act:
(a) an access authority;
(b) an exploration permit;
(c) a retention licence;
(d) a production licence;
(e) an interest in an authority, permit or licence mentioned in
paragraph (a), (b), (c) or (d).
Note for section 117AMA
A law of the Commonwealth, a State or a Territory may declare a right, licence or
authority granted by or under that law not to be personal property for the
Personal Property Securities Act 2009 (Cth).
Petroleum Act 1984 170