Petroleum and Gas (Production and Safety) Act 2004 (Queensland) — Zoe

Queensland act

Petroleum and Gas (Production and Safety) Act 2004

In ForceQLD

Jurisdiction

Queensland

Act Number

25 of 2004

Collection

act

Plain English Summary

9/10 complexity

What this law does, simply

This Act sets out who may look for, produce, store, transport and process petroleum and related gases in Queensland, what permissions are needed, and how safety and environmental risks must be managed.

Mechanically, the Act does the following:

Creates different kinds of statutory permissions—authorities to prospect, petroleum leases, data‑acquisition and water‑monitoring authorities, survey licences, pipeline licences, petroleum facility licences, gas work licences/authorisations and gas device approvals—and defines what each permits the holder to do (see lists in s.18 and activity rules in ss.32, 109–113, 438–443, 419–426).
Makes petroleum in the ground State property (s.26) but gives the producer property in petroleum once it is produced, subject to specified exceptions (s.28). A petroleum authority does not itself create a property interest in land (s.30).
Requires work programs for exploration and development plans for leases; these documents must be approved and are enforceable conditions of authorities (see ss.23–24, ch.2 parts on work programs and development plans referenced throughout).
Regulates pipelines and facilities: defining what counts as a pipeline or facility (s.16, s.17), requiring licences, prescribing construction/operation obligations, completion notices and annual fees, and giving the Minister/chief inspector powers to change licence conditions (ss.419–436, ss.423–425).
Establishes a safety regime for operating plant and fuel gas activities that requires operators to prepare, keep and implement a Safety Management System (SMS) meeting specified content requirements (ss.670–676, s.675), and to prepare joint interaction management plans where petroleum activities overlap with coal mining (s.705C and following).

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Deep Dive

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What it does

The Petroleum and Gas (Production and Safety) Act 2004 establishes a framework to facilitate and regulate responsible petroleum activities while developing a safe, efficient and viable petroleum and fuel gas industry. Its main purpose is to manage the State’s petroleum resources with regard to ecologically sustainable development and for the benefit of all Queenslanders, enhance knowledge of the State’s petroleum resources, create effective and efficient regulatory systems for petroleum activities, fuel gas use and pipeline construction and operation, encourage appropriate competition, minimise conflict with other land uses, optimise coal seam gas production and coal or oil shale mining in a safe and efficient way, appropriately compensate owners or occupiers of land, encourage responsible land management, facilitate constructive consultation with affected people, and regulate and promote safety of persons in relation to operating plant (s 3(1)). Petroleum activities encompass exploration, distillation, production, processing, refining, storage and transport of petroleum, the same activities for fuel gas, authorised activities for petroleum authorities, and other activities authorised under the Act for petroleum authorities (s 3(2)).

Additional purposes include facilitating the operation of the Geothermal Energy Act 2010 and the Greenhouse Gas Storage Act 2009, and facilitating and regulating construction and operation of pipelines for regulated hydrogen as a key authorised activity for pipeline licences in a safe, effective and efficient way (s 3A(1)). The Act facilitates the Geothermal Energy Act 2010 by applying safety provisions to particular authorised activities for geothermal tenures and applying investigation and some enforcement provisions (s 3A(2)). It facilitates the Greenhouse Gas Storage Act 2009 by providing for survey licences and pipeline licences for GHG streams and applying safety, investigation and some enforcement provisions (s 3A(3)).

Current sections

Direct links to the current provisions in Petroleum and Gas (Production and Safety) Act 2004.

1632

Official source available

Zoe has indexed the source text for search and analysis. Use the official register for the original document and download formats.

View on official register

Sourced from Queensland Legislation (legislation.qld.gov.au), CC BY 4.0.

Who pays: holders and applicants bear direct costs—application/tender fees, annual rents and licence fees (ss.89(2), 127–133, ss.423–424), security requirements (s.488 referenced in multiple grant/division provisions), potential costs of required remediation or corrective action the State may later recover as a debt (ss.580–586, s.788), and royalty and rent obligations (chapter 6 and ss.227–229). The Minister may require payment of costs for independent assessments (s.233). Storage owners must pay storage rent (s.227).
Who decides: the Minister and delegated officials (chief executive, chief inspector) hold final discretionary powers to grant/refuse, impose or vary conditions, approve coordination arrangements, and to take noncompliance action (e.g. ss.127–134 for tenders; ss.234–240 for coordination arrangements; ss.790–799 for noncompliance). Administrative decision processes include mandatory consultation and internal review/appeal rights (chs.11–12 procedures such as ss.796–799, ss.817–828).
Compliance burden: holders face paperwork and process burdens—preparing and getting approved work programs and development plans (ss.23–24; ch.2 provisions), commercial viability reports and evaluation programs for potential commercial areas (ss.89–92, ss.230–233), obligations to keep detailed SMSs and records for operating plants including formal safety assessments and KPIs (ss.674–678A), and strict notification and incident reporting duties (ss.706–707, s.705CA). Many approvals require lodging copies, giving notice to overlapping authority holders and keeping registers (e.g. ss.219–224, ss.392BE–392BF).
Bureaucratic discretion and implementation risk: the Minister/chief executive/chief inspector exercise wide discretion (e.g. declaring potential commercial areas s.90, approving coordination arrangements s.236, imposing licence amendments s.434–436, taking noncompliance action s.790). These choices determine who gets exclusive rights, what conditions apply and when granting or cancellation occurs—creating administrative gatekeeping and risk that outcomes hinge on procedural decisions and subjective assessments (see s.236 approval criteria and s.798 suitability tests).
Effects on private choice and markets: the Act curtails unilateral land use by making petroleum a State resource (s.26), restricting extraction without licences and sometimes overriding landowner objections via statutory authorities and entry permissions (e.g. ss.399–441, part 5 permissions ss.468–473). Tendering, cash‑bid components and Ministerial conditions influence who enters the market and on what terms (s.127). Coordination arrangements (s.234) and overlap rules with mining tenements (s.6 and ch.3 provisions) can change which activity goes first and who must adjust plans—shifting incentives for investment and timing.
Concentrated benefits, diffuse costs and capture risks: benefits of successful leases and pipeline rights are likely concentrated to holders; compliance costs, environmental risks and public safety consequences are spread more widely. The Act channels allocation decisions through Ministerial processes and coordination arrangements (ss.127, 234, 236), which—because they replace open contracting or market mechanisms in part—create opportunities for negotiated allocations that depend on administrative discretion (see s.236 and s.131 on preferred tenderer obligations). Those mechanisms increase the importance of transparent decision‑making and of the statutory appeal and review pathways (chs.11–12).
Substitution and unintended consequences supported in the text: where land overlaps mining tenements, the Act often stops petroleum activities unless agreement is reached or specific conditions met (s.6; ch.3 parts 3–4). That mechanism explicitly forces one activity to give way or to negotiate, which can delay projects or raise transaction costs (see s.310 consultation duties and s.321 preference criteria). Safety rules (JIMPs and SMSs at ss.675 and 705C) add operational constraints and reporting that can materially affect project design and timing.

Main concepts

Petroleum is a substance consisting of hydrocarbons that occur naturally in the earth’s crust, a substance necessarily extracted or produced as a by-product of extracting or producing such a hydrocarbon, a fluid extracted or produced from coal or oil shale by a chemical or thermal process or a by-product of that process that consists of or includes hydrocarbons, another substance prescribed under a regulation consisting of or including hydrocarbons, or a gas that occurs naturally in the earth’s crust as prescribed under a regulation (s 10(1)). A substance mentioned in s 10(1)(c) is a gasification or retorting product (s 10(2)). Petroleum does not include alginite, coal, lignite, peat, oil shale, torbanite or water (s 10(3)). A substance does not cease to be petroleum merely because it is injected or reinjected into a natural underground reservoir (s 10(4)). Hydrocarbon means a hydrocarbon in a gaseous, liquid or solid state (s 10(6)).

LPG is a substance in a gaseous state at standard temperature and pressure, predominantly propane, propylene or butane, and processed to be suitable for use by consumers (s 11(1)). Fuel gas is LPG, processed natural gas, hydrogen or a hydrogen gas blend used or intended to be used as a fuel to produce heat, light or power, or another substance prescribed by regulation similar to LPG or processed natural gas (s 11(2)). A hydrogen gas blend is processed natural gas and hydrogen blended together (s 11(3)). Processed natural gas is a substance in a gaseous state at standard temperature and pressure, consisting of hydrocarbons that occur naturally and other substances, more than half by volume methane, and processed to be suitable for use by consumers of fuel gas (s 11(4)). Standard temperature and pressure means an absolute pressure of 101.325 kPa at a temperature of 15°C (s 11(4)). Regulated hydrogen is hydrogen, a hydrogen gas blend, or another substance prescribed by regulation involved in or produced for a process related to the storage or transport of hydrogen (s 11A). A prescribed storage gas is a gas associated with or resulting from petroleum production, fuel gas produced at a processing plant, another gas prescribed under a regulation as suitable for storage in a natural underground reservoir, or gases produced from a waste disposal tip (s 12).

A natural underground reservoir is a part of a geological formation or structure in which petroleum or another gas prescribed under a regulation has accumulated, or that is suitable to store petroleum or a prescribed storage gas (s 13(1)). A geological formation or structure does not cease to be a natural underground reservoir merely because it has been modified for petroleum production or storage or to store a prescribed storage gas (s 13(2)). Geological formation includes a coal seam (s 13(3)). Exploring for petroleum is carrying out an activity for the purpose of finding petroleum or natural underground reservoirs, including conducting a geochemical, geological or geophysical survey, drilling a well, carrying out testing in relation to a well, or taking a sample for chemical or other analysis (s 14). Petroleum is produced when recovered to ground level from a natural underground reservoir in which it has been contained or released to ground level from a natural underground reservoir from which it is extracted (s 15(1)). If under the Mineral Resources Act a coal or oil shale mining lease holder mines coal seam gas, the lease holder produces it for this Act (s 15(2)). Produced water is CSG water or associated water for a petroleum tenure, including treated and untreated CSG water and concentrated saline water produced during treatment of CSG water (s 15A).

A pipeline is a pipe or system of pipes for transporting generally petroleum, fuel gas, produced water, prescribed storage gases or regulated hydrogen, GHG streams, or substances prescribed under s 402 (s 16(1)). A reference to a pipeline includes a part of the pipeline including its end points and a thing connected to or associated with the pipeline necessary for its operation, such as meter stations, scraper stations, valve stations, pumping stations or compressor stations, plant and equipment, machinery and tanks, corrosion protection apparatus, and communications equipment and towers (s 16(2)). A pipeline’s end points are the points at which a substance will enter or exit the pipeline on the day it first operates if it has not operated, or otherwise the points at which the substance enters or exits (s 16(3)). There is no automatic right to use a pipeline for GHG streams or substances prescribed under s 402, a condition of a pipeline licence may extend rights (s 16(1) note). A distribution pipeline is a pipeline that transports fuel gas as part of a reticulation system within a gas market or a single point-to-point pipeline that transports fuel gas to a place other than a major user facility or another such pipeline to a place other than a major user facility, but not if it transports fuel gas to a pipeline mentioned in s 16A(1)(a) or (b)(ii) (s 16A(1)-(2)). Major user facility means a facility within the area of a resource authority, a facility operated as a place of export for fuel gas (including a port), a facility operated for liquefaction of fuel gas before transport to such a facility, a facility that produces non-organic fertiliser, a petroleum facility, a power station or a smelter (s 16A(3)). Point-to-point pipeline means a pipeline from a particular point or points to another particular point or points (s 16A(3)).

A petroleum facility is a facility for the distillation, processing, refining, storage or transport of petroleum, other than a distribution pipeline, including a storage depot, meter station, petroleum processing plant, oil refinery or LPG separation plant (s 17). Types of authority under the Act are an authority to prospect (granted under s 41, continued under s 83 or 119, or renewed under s 84), a petroleum lease (granted under s 120, 132, 340 or 356 or ch 15, continued under s 163, or renewed under s 164), a data acquisition authority (granted under s 178), a water monitoring authority (granted under s 192), a survey licence (granted under s 396), a pipeline licence (granted under s 410, continued under s 481, or renewed under s 482), a petroleum facility licence (granted under s 446, continued under s 481, or renewed under s 482), a gas work licence (granted under ch 9 pt 6 div 3 sub-div 1), a gas work authorisation (granted under ch 9 pt 6 div 3 sub-div 1), and a gas device approval authority (granted under ch 9 pt 6A div 2) (s 18(1)). Authorities other than gas work licences, authorisations or gas device approval authorities are collectively petroleum authorities (s 18(2)). Authorities to prospect and petroleum leases are collectively petroleum tenures (s 18(3)). Survey licences, pipeline licences and petroleum facility licences are collectively licences (s 18(4)).

An eligible person is an adult, a company or registered body under the Corporations Act, or a government owned corporation (s 19). Conditions of a petroleum authority are the conditions stated in it from time to time, the holder’s obligations under chs 2 to 5, any condition under chs 2 to 5, and a condition that the holder must ensure each person acting for the holder who carries out an authorised activity complies with its conditions to the extent they apply (s 20(1)). A condition mentioned in s 20(1)(b) or (c) is a mandatory condition (s 20(2)). If a Coordinator-General’s condition applies to a petroleum lease, pipeline licence or petroleum facility licence or proposed such authority for a coordinated project and conflicts with a mandatory condition, the Coordinator-General’s condition prevails to the extent of the inconsistency (s 20(3)). A reference to an authority under the Act includes a reference to its provisions, a reference to the provisions is a reference to its mandatory or other conditions and any thing written in it (s 21). An authorised activity for a petroleum authority is an activity that its holder is under the Act or the authority entitled to carry out in relation to the authority (s 22(1)). The provisions of the authority may restrict carrying out authorised activities (s 22(1) note). Carrying out authorised activities is subject to the restrictions and the holder’s rights and obligations under chs 2 to 5 (s 22(1) note). Carrying out particular activities on particular land in a petroleum authority’s area may not be authorised following taking of the land under a resumption law (s 22(1) note). Authorised activities for a coal or oil shale mining tenement, GHG authority or geothermal tenure are defined by reference to the Mineral Resources Act, GHG storage Act or Geothermal Energy Act 2010 respectively (s 22(2)-(4)).

The work program for an authority to prospect is its current initial or later work program approved under ch 2 pt 1 div 3 as amended from time to time under ch 2 pt 1 div 3 sub-div 6, and is current if the period to which it applies has started and not ended (s 23). The development plan for a petroleum lease is its current initial or later development plan approved under ch 2 pt 2 div 4, and is current if the period to which it applies has started and has not ended (s 24). All petroleum on the surface of land if produced in the State, and petroleum in a natural underground reservoir in the State (other than petroleum produced outside the State and injected or reinjected), is and always has been the property of the State, subject to s 28 and ch 2 pt 6 div 3 (s 26(2)). A person does not acquire property in petroleum merely by discovering it in a natural underground reservoir, the provision applies whether or not the land or reservoir is freehold or other land (s 26(3)). The State does not include the adjacent area under the Petroleum (Submerged Lands) Act 1982 (s 26(5)).

Who it affects

The Act affects eligible persons who may hold petroleum authorities, including adults, companies or registered bodies under the Corporations Act, or government owned corporations (s 19). It directly impacts holders of authorities to prospect, petroleum leases, data acquisition authorities, water monitoring authorities, survey licences, pipeline licences, petroleum facility licences, gas work licences, gas work authorisations and gas device approval authorities (s 18(1)). Petroleum authorities other than gas work licences, authorisations or gas device approval authorities are held by these persons, while authorities to prospect and petroleum leases are petroleum tenures and survey licences, pipeline licences and petroleum facility licences are licences (s 18(2)-(4)). Operators of operating plants, including those for petroleum, fuel gas, geothermal or GHG storage activities, are affected, as are executive safety managers defined under s 687 for jointly authorised activities, coal mining-CSG operating plants and other cases, and site safety managers appointed under s 692.

Land owners and occupiers are affected where authorised activities occur on their land, including through entry rights, compensation obligations and resumption processes under ch 4 pts 4-5. Native title holders have procedural and other rights under the Commonwealth Native Title Act, s 224 that apply despite other provisions (s 8). Coal or oil shale mining lease holders are affected where they produce coal seam gas under the Mineral Resources Act (s 15(2)) or where operations overlap with petroleum activities under ch 9 pt 4 div 5. Existing users of natural underground reservoirs for storage are affected under ch 2 pt 6, as are proposed users seeking access to available capacity. Gas device designers, importers, manufacturers, modifiers, suppliers and installers must comply with safety requirements under ch 9 pt 4 div 1. Persons carrying out gas work on gas devices (type A) or (type B) require licences or authorisations under ch 9 pt 6. The State is bound by the Act (s 4), and the chief executive, chief inspector, Minister and other officials exercise powers and functions under it. Recipients of gas supplied from Prospective Gas Production Land Reserve land must comply with Australian market supply conditions (s 175C(3)-(4)). Public road authorities have obligations regarding pipelines on public roads under ss 426-432.

Key duties and rights

Holders of petroleum authorities have rights to carry out authorised activities in the authority’s area, subject to restrictions in the authority provisions, chs 2 to 5, mandatory conditions and any exclusions or restrictions (s 22(1)). Petroleum tenure holders may take or interfere with underground water during or resulting from authorised activities, with taken water from a well being associated water usable for any purpose inside or outside the tenure area (s 185). They have limited additional rights until 5 years in the Surat CMA or 2 years post-commencement or until a water licence or permit is granted, and must measure and report volume (s 186). Water monitoring activities are authorised to comply with obligations (s 187). Taking, interference or use is taken as authorised under the Water Act (s 188), but cannot occur unless authorised under this part or the Water Act (s 189). Petroleum tenure holders may apply for water monitoring authorities over stated land outside the tenure to comply with underground water obligations, which may overlap other petroleum authorities or cover multiple tenures (s 190).

Pipeline licence holders may construct or operate each pipeline on pipeline land or public land in the licence area, despite owner or occupier rights but subject to subdiv 2, ch 5, mandatory and other conditions, and any licence exclusions or restrictions (ss 398, 401). They may carry out incidental activities reasonably necessary for construction or operation, such as plant or works including bridges, powerlines, roads, trenches or tunnels, temporary or industrial structures including mobile camps, and vegetation removal for safety, but no office or residential structures other than temporary (s 403). Petroleum facility licence holders have analogous rights to construct or operate facilities on petroleum facility land (s 438). Survey licence holders may enter the licence area to investigate and survey potential and suitability for pipelines or petroleum facilities and identify possible routes (s 394(1)). Data acquisition authority holders may carry out geophysical surveys on contiguous land and enter for that purpose, despite owner or occupier rights but subject to s 6, ch 3 pt 4 div 2, ch 3A pt 5, ch 5, mandatory and other conditions, and any exclusion or restriction (s 180).

Executive safety managers must nominate an individual representative if the operator is a corporation, ensure the operator has a safety management system for each stage of the plant, approve the system before implementation, and ensure effective risk management (s 688). Site safety managers must take all reasonable steps to ensure appropriate induction for entrants, compliance with standard operating and emergency procedures, safe performance of functions, availability, maintenance and accessibility of first aid, safety and like equipment, and training of relevant staff in first aid, emergency and general safety procedures (s 693). Operators must not create unacceptable risk to adjacent or overlapping coal mining operations or authorised activities under adjacent or overlapping tenures (s 699). Persons at an operating plant must comply with the safety management system to the extent it applies, comply with lawful safety instructions from the operator or supervisor, and not wilfully or recklessly do an act or omission adversely affecting safety (ss 702-704). In overlapping areas with coal or oil shale mining leases, operators must make and comply with a joint interaction management plan before activities, after reasonable consultation attempts, having regard to proposals within 20 days, and either reaching agreement or seeking arbitration (s 705). Selling entities must keep prescribed records for prescribed period and way and provide copies on chief executive notice (s 175H). Existing users of storage capacity must give lease holders reasonably required safe and reliable use information (s 207). Proposed users may require negotiations for available capacity within reasonable time in good faith (s 209) and may request all reasonably necessary available capacity information, which must be given reasonably and non-discriminatorily (s 211).

Mandatory conditions for pipeline licences include notice to the chief inspector of safety management study intention at least 20 business days before for initial pipelines on area licence, complete construction by stated completion day, notice to chief inspector of construction start at least 20 business days before, lodge completion notice within relevant period with day completed, pipeline land or public land description, diagram including depth, and handling fee, notice to public road authority of location on public road within 6 months and keep records, operate to ensure continuing safe and reliable transport capacity for stated substances and not unused for continuous more than 3 years unless Minister agrees, hold relevant environmental authority and water licence for produced water transport, and pay annual licence fee (ss 418-423). Similar mandatory conditions apply to petroleum facility licences, including complete construction by stated day and operate to ensure continuing for licensed purpose (ss 452-453). Holders must pay annual rent as prescribed for data acquisition authorities (s 184A) and water monitoring authorities (s 202A). For Prospective Gas Production Land Reserve land, holders must not supply gas other than to the Australian market and must include the condition in contracts (s 175C(1)-(2)).

Penalties and enforcement

Maximum penalties vary by provision and include 1,000 penalty units for supplying gas contrary to Australian market supply conditions under s 175C(1)(a) or (3)(a), with executive officer liability under s 814A. Selling entities face a maximum of 500 penalty units for failing to keep prescribed records or provide copies under s 175H, with executive officer liability. Executive safety managers face a maximum of 2,000 penalty units for failing to ensure a safety management system is in place, approved and effectively implemented under s 688. Operators or others face a maximum of 500 penalty units for failing to appoint a site safety manager where required under s 692, with the chief inspector able to direct appointment. Site safety managers face a maximum of 1,000 penalty units for failing to take reasonable steps on induction, procedures, equipment and training under s 693. General obligations to keep risk to an acceptable level attract a maximum of 100 penalty units under s 699, while creating unacceptable risk to overlapping coal mining operations attracts a maximum of 1,500 penalty units. Compliance with the safety management system or lawful instructions attracts a maximum of 100 penalty units, while wilfully or recklessly affecting safety attracts a maximum of 500 penalty units (ss 702-704).

Designers, importers, manufacturers, modifiers and suppliers of plant or equipment face a maximum of 500 penalty units for failing to ensure compliance with safety requirements or inform of defects or hazards, with executive liability under s 814. Installers face a maximum of 300 penalty units for failing to ensure installation complies, not operate if aware of safety risk, or certify compliance, with executive liability under s 814A. In overlapping areas, failure to make or comply with a joint interaction management plan attracts a maximum of 500 penalty units, with review and revision obligations at 200 penalty units. Notification of prescribed incidents requires telephone notification as soon as possible and approved form within 2 business days, with a maximum of 500 penalty units for failing to restrict access or protect the site. Unauthorised entry or remaining at an incident site attracts a maximum of 500 penalty units. Non-compliance with safety requirements attracts a maximum of 500 penalty units, with executive liability under s 814A, while non-compliance with safety instructions attracts a maximum of 100 penalty units. Causing detriment for raising a safety issue attracts a maximum of 1,000 penalty units under s 708C. Allowing persons under 16 to operate or maintain equipment attracts a maximum of 100 penalty units under s 708E.

Gas work on type A devices without a licence attracts a maximum of 500 penalty units, as does directing unlicensed work or work contravening safety requirements. Gas work on type B devices without authorisation attracts a maximum of 500 penalty units, with executive liability under s 814A. Supply, installation or use of unapproved gas devices attracts a maximum of 200 penalty units, with executive liability under s 814. Non-compliance with conditions on gas work licences or authorisations attracts a maximum of 250 penalty units, with executive liability under s 814A. Boards of inquiry may impose a maximum of 200 penalty units for non-compliance with summons or document production, and a maximum of 500 penalty units for false or misleading statements or documents, with executive liability under s 814A. Contempt of the board attracts a maximum of 200 penalty units. For third party storage access, prohibition on conduct preventing access attracts a maximum of 1,000 penalty units, with executive officer liability under s 814A. Existing users failing to provide information face a maximum of 500 penalty units, with executive officer liability. Proposed users failing to negotiate in good faith face a maximum of 500 penalty units. Water monitoring authority holders interfering with petroleum tenure or other authority activities face a maximum of 1,000 penalty units, with executive officer liability.

Enforcement includes information notices for refusal or conditional grant of applications, such as under s 175AD for changes to production commencement day or s 179 for data acquisition authorities. The District Court may grant injunctions or other orders on chief executive application for supply contrary to s 175C (s 175I) or for access to storage capacity (s 229). The Minister may establish boards of inquiry for prescribed incidents by gazette notice, with powers to summon witnesses, require documents, hold hearings and report findings and recommendations (ch 9 pt 5). Inspectors may take or direct action at incident sites. The chief inspector may issue safety alerts or safety instructions that prevail over safety requirements (ss 708A-708B). The chief executive may make public statements identifying offences and offenders if in the public interest (s 851A), and the Minister, CEO or chief inspector may publish information on incidents (s 851B). Officials have protection from civil liability for honest acts or omissions without negligence (s 856). Applications may be refused for non-compliance with requirements to complete or correct or provide information (s 843A), or for failure to do anything required to allow decision (s 843B). Amendments to authorities may be made to correct errors or with holder agreement, but not inconsistent with mandatory conditions (s 848).

How it interacts with other laws

The Act is subject to the Nature Conservation Act 1992, ss 27 and 70QA (s 6A). The relationship with the Geothermal Energy Act 2010 and the Greenhouse Gas Storage Act 2009 and authorities under them is provided for under ch 3A of this Act, ch 5 of the Geothermal Energy Act 2010 and ch 4 of the Greenhouse Gas Storage Act 2009 (s 6B). The relationship with the Common Provisions Act is provided for under the Common Provisions Act, s 6 (s 6BA). A petroleum authority is declared not to be personal property under the Personal Property Securities Act 2009 (Cwlth) (s 6C). Subject to ss 294, 563A and 856 and ch 3 pt 8, the Act does not affect or limit civil rights or remedies apart from the Act, and compliance does not necessarily satisfy civil obligations apart from the Act (s 7). Native title holders retain rights under the Commonwealth Native Title Act, s 224 despite other provisions (s 8). The Act applies to coastal waters but not the adjacent area under the Petroleum (Submerged Lands) Act 1982 (s 5). Under the related retrieval context, the Gas Pipelines Access (Commonwealth) Act 1998, s 9 provides that if this Act applies in the offshore area in respect of a State or the Northern Territory because of s 69 of the Offshore Petroleum Act 2006, the Gas Pipelines Access Law also applies in that offshore area as a law of the Commonwealth. Section 10 of the Gas Pipelines Access (Commonwealth) Act 1998 similarly applies the Gas Pipelines Access Regulations in those offshore areas. The Australian Energy Market Act 2004, s 11A provides that the National Gas Law set out in the Schedule to the National Gas (South Australia) Act 2008 applies as a law of the Commonwealth in the offshore area of each State and the Northern Territory, Norfolk Island, the Territory of Ashmore and Cartier Islands, Christmas Island and Cocos (Keeling) Islands.

Taking or interference with water is taken as authorised under the Water Act (ss 188, 196), but cannot occur unless authorised under this Act or the Water Act (ss 189, 197). Coal seam gas production by mining lease holders under the Mineral Resources Act is treated as production under this Act (s 15(2)). Overlapping operations with coal or oil shale mining are regulated under ch 9 pt 4 div 5, with joint interaction management plans required and compliance with the Coal Mining Safety and Health Act, s 198 satisfying incident notification obligations. Easements for pipelines are created by registration under the Land Act 1994 or Land Title Act 1994 and treated as public utility easements (s 437A). The Acquisition of Land Act applies with modifications to taking of land for authorised activities (s 458). Coordinator-General conditions for coordinated projects prevail over inconsistent mandatory conditions (ss 20(3), 412A, 447A). The Penalties and Sentences Act 1992 applies to court powers (s 7). Regulations under this Act may be made in the same instrument as under the 1923 Act (s 859). The Taxation Administration Act 2001 applies to royalty provisions and delegations (ss 857, 859). The Surveyors Act 2003 may apply to surveys required for petroleum authority applications (s 843). The Judicial Review Act 1991, s 32 applies to notices of refusal for data acquisition authorities (s 179). The Public Interest Disclosure Act 2010, ch 4, pt 1 is unaffected by reprisal provisions (s 708C).

Recent changes and why

The source text records specific insertions and amendments to provisions. Section 175AC was inserted by 2012 No.20 s269 to address deciding applications to change production commencement day, with the Minister required to consider substantial lease compliance, optimisation of petroleum production in the State’s best interests and public interest, and able to refuse if relevant arrangements are not arms-length commercial transactions or supply is unlikely. Section 175AD was inserted by the same Act to require an information notice about refusal decisions. Chapter 2 pt 2A on Prospective Gas Production Land Reserve was inserted by 2011 No.16 s16, introducing Australian market supply conditions under s 175A and s 175B, obligations on holders and recipients under s 175C, urgent exemptions under s 175D, suspension or exemption applications under s 175E, commercial viability assessments under s 175F, grants and information notices under s 175G, record keeping under s 175H, and District Court injunction powers under s 175I. Amendments to these provisions occurred by 2013 No.51 s229 sch1 and 2012 No.20 s125 sch1.

Data acquisition authority provisions under ch 2 pt 3 were amended by 2004 No.26 s108, 2005 No.3 s105 sch, 2012 No.20 s96 and 2014 No.47 s617, including requirements for environmental authorities and rent payment. Water rights under ch 2 pt 4 were amended by 2010 No.53 s81, 2013 No.23 s169, 2014 No.64 s14 and 2018 No.24 s206, with additional limited rights and measurement obligations inserted by 2014 No.64 s15. Water monitoring authority provisions under ch 2 pt 5 were amended by 2004 No.26 s111, 2010 No.53 s83, 2012 No.20 s98 and 2014 No.47 s540, including conditions becoming part of related tenures. Third party storage access under ch 2 pt 6 was amended by 2004 No.26 s115, 2009 No.16 s78 and 2011 No.2 ss121, 122 sch, with prohibition on preventing access and District Court orders. Commercial viability assessment under ch 2 pt 7 was amended by 2011 No.2 ss121, 122 sch and 2012 No.20 s281 sch2.

Surveying activities under ch 4 were detailed with amendments including 2009 No.3 s549 and 2012 No.20 s97. Pipeline and petroleum facility licence provisions under ch 4 pts 2-3 include mandatory conditions on construction notices, completion, operation and fees, with amendments by 2011 No.2 s121 and 2012 No.20 s281 sch2. Taking land and Pt 5 permissions under ch 4 pts 4-5 were amended by 2004 No.26 s69(2) sch. Amendment, renewal and security provisions under ch 4 pt 6-7 and ch 5 were amended by 2012 No.20 s281 sch2 and 2014 No.47 s553. Executive safety manager provisions under ch 9 pt 3 div 1 were inserted or amended with obligations under s 688 attracting 2,000 penalty units. Site safety manager and information notice provisions under ch 9 pt 3 div 2-3 include 500 penalty unit penalties. Other safety obligations under ch 9 pt 4 were amended by 2013 No.51 s229 sch1, with joint interaction management plans under div 5 and incident notification under div 6. Reprisal provisions under ch 9 pt 4A were introduced with 1,000 penalty unit penalties. Gas work and device approval provisions under ch 9 pts 6-6A include 500 and 200 penalty unit penalties, with executive liability under s 814A. Application requirements under ch 14 pt 1 were amended by 2012 No.20 s281 sch2, with substantial compliance under s 842 and requirements for additional information under s 843. Miscellaneous provisions under ch 14 pt 2-3 include validation for late work program and development plan approvals under ss 851AB and 851AC, and public statement powers under ss 851A and 851B. Transitional provisions under ch 15 record conversions from the 1923 Act and other prior legislation, with amendments by 2010 No.53, 2011 No.16, 2012 No.20, 2013 No.51, 2014 No.47 and 2014 No.64.

Court challenges and controversies

The source text does not name any specific court challenges. The Act provides mechanisms for judicial involvement in disputes and enforcement. Under s 175I the District Court may grant injunctions or other orders on chief executive application if a person is supplying gas contrary to s 175C(1)(a) or (3)(a), although the court may decline if s 790(1)(b) or (c) provides a more appropriate remedy. Under s 229 the District Court may grant injunctions, compensation or other orders on application in relation to conduct preventing access to available storage capacity in a natural underground reservoir, and may decline if another part of the Act provides a better remedy. Boards of inquiry established under ch 9 pt 5 for prescribed incidents not covered by the Coal Mining Safety and Health Act, s 202(1) have powers to inquire into circumstances and probable causes, hold hearings, summon witnesses with fees, require production of documents or things, and impose a maximum of 200 penalty units for non-compliance with reasonable excuse for self-incrimination. False or misleading statements or documents to the board attract a maximum of 500 penalty units with executive liability under s 814A, and contempt attracts a maximum of 200 penalty units. Inquiries observe natural justice, proceed with minimal formality, are not bound by evidence rules, may be public or private, and members, representatives and witnesses have Supreme Court immunities and protections. Proceedings may continue despite other proceedings.

Provisions for third party storage access under ch 2 pt 6 include priority rules for negotiations, information requirements and post-lease end claims processes decided by the Minister with information notices on refusal, which may lead to District Court involvement via s 229. Overlapping operations with coal or oil shale mining under ch 9 pt 4 div 5 require joint interaction management plans with consultation, agreement or arbitration, and disputes on review or revision are referable to arbitration. Reprisal provisions under s 708C create a tort with damages and remedies available in the Supreme or District Court, decided by judge alone under s 708D. Application decisions, such as refusals for data acquisition authorities under s 179 or changes to production commencement day under s 175AD, are subject to information notices, with the Judicial Review Act 1991, s 32 referenced for certain refusals. Officials have protection from civil liability for honest acts or omissions without negligence under s 856, with liability attaching to the State. The Act preserves civil rights and remedies apart from the Act under s 7, and does not limit court powers under the Penalties and Sentences Act 1992 or another law.

Gotchas

Applicants must use approved forms and pay prescribed fees, with applications lapsing if local government notice is not given within 10 business days for pipeline or facility licence applications (ss 409, 445). The relevant person must refuse receipt or processing of purported applications not meeting requirements, although substantial compliance may be allowed if satisfied, with notice and refund on refusal (s 842). The relevant person may require completion, correction, additional information or independent reports or statutory declarations within a reasonable period, and failure to comply to satisfaction allows refusal despite other provisions requiring grant (s 843A). The Minister may require anything needed under this Act or another Act within at least 20 business days to allow decision, with refusal possible for non-compliance (s 843B). Amendment of applications is permitted only before decision, with relevant person agreement, applicant agreement on changes and fee payment, but work programs or development plans cannot be amended after preferred tenderer status in tenders (s 844). Withdrawal is by lodged notice before decision, but for tenders the Minister may retain tender security (s 845).

Data acquisition authorities cannot be applied for or granted over land in another petroleum tenure’s area (s 176). Pipeline licences cannot be granted for distribution pipelines (s 405). Where land is also in a pre-existing geothermal, GHG or mining lease, authorised activities for pipelines or facilities are permitted only if the existing lease holder agrees in writing with copy to chief executive or the activity is consistent with an agreed co-existence plan, which must identify parties, overview activities, compliance with mining safety legislation, optimisation of State resources, compensation, period of effect and prescribed information, with negotiation notice, good faith negotiation and arbitration after 3 months (s 400). Similar restrictions apply to petroleum facility licences (s 440). For area pipeline licences, construction must be completed by stated day and safety management study notice given at least 20 business days before for initial pipelines, with completion notice lodged within 6 months for point-to-point or 40 business days for area, including diagram with depth (ss 419, 420). Operation must ensure continuing safe and reliable transport capacity and not be unused for continuous more than 3 years unless Minister agrees (s 422). Annual licence fees must be paid with 15 per cent civil penalty for non-payment (s 424).

Executive safety managers face a maximum of 2,000 penalty units for failing to ensure safety management systems are made after worker consultation, approved and effectively implemented for risk management (s 688). Joint holders must notify the chief inspector of the responsible corporation or organisation (s 687A). In overlapping areas, joint interaction management plans must be made before activities, stored with the safety management system, identify hazards, risks, triggers, response procedures, responsibilities and review processes, with notification to chief inspector and review before changes (s 705). Incident notification requires telephone as soon as possible and form within 2 business days, with site access restricted and protected until inspector directs otherwise (s 706). Reprisals for raising safety issues are prohibited with a maximum of 1,000 penalty units and create a tort actionable in court (ss 708C-708D). Gas work on type A devices requires a licence, with exemptions only for cylinder connection or prescribed safety management system work at operating plants (s 726). Supply of unapproved gas devices is prohibited, with written notice required for type B devices (s 731AA). For Prospective Gas Production Land Reserve land, supply must be only to the Australian market with contracts including the restriction, subject to 30-day urgent exemptions for technical problems and suspensions or exemptions based on market analysis or commercial viability (ss 175C-175G). Record keeping for prescribed period and way is required with 500 penalty unit penalty (s 175H). Post-lease end, claims for stored petroleum or gas must be made within 30 business days by gazette notice, with unsuccessful claims resulting in State property (ss 213-216). Ownership change notices are required until storage ceases or new lease granted (s 219). Current owners pay storage rent until ownership ceases (s 227). State property arises on relinquishment or 5th anniversary post-decision unless lease granted (s 226).

How to comply

To apply for an authority to prospect, petroleum lease, data acquisition authority, water monitoring authority, survey licence, pipeline licence or petroleum facility licence, submit in approved form with prescribed fee, addressing relevant criteria such as financial and technical resources and ability to manage activities (ss 177, 191, 395, 407, 443). For survey licences, state pipeline or facility type, proposed use, terminal points, period, extent and nature of activities (s 395). For pipeline licences, state land description, pipeline type, purpose, substances, terminal points, completion day, extent and nature of activities including incidental, impacts on other authorities, and give notice to relevant local government within 10 business days (ss 407, 409). For petroleum facility licences, state facility, proposed land, precise location, purpose, completion day, extent and nature of activities, impacts, and give local government notice (ss 443, 445). Include prescribed information and address decision criteria on resources, purpose, impacts, public interest and minimum area (ss 397, 415, 448). For coordinated projects, obtain Coordinator-General report before grant (ss 412A, 447A). Pay first-year fee or security if required before grant (ss 178, 192, 410, 446). Ensure relevant environmental authority is issued (ss 178, 192, 396, 410, 446).

For pipeline and facility licences, ensure pipeline or facility land is owned, subject to easement, written permission or Pt 5 permission, with written permission binding successors (ss 399, 439, 399A). For overlapping mining leases, obtain written agreement or comply with co-existence plan (ss 400, 440). Complete construction by stated completion day, give safety management study and construction start notices at least 20 business days before where required, lodge completion notice with details and diagram within required periods, notify public road authority of location within 6 months, and operate to ensure safe and reliable capacity without extended non-use (ss 418-422, 452-453). Pay annual licence fees and rents as prescribed, with civil penalties for late payment (ss 423-424, 454-455). For data acquisition and water monitoring authorities, pay annual rent as prescribed (ss 184A, 202A). For Prospective Gas Production Land Reserve land, supply gas only to Australian market, include restriction in contracts, keep prescribed records and provide on notice (ss 175C, 175H). Apply for changes to production commencement day in approved form, with Minister considering compliance, optimisation and public interest (s 175AC).

Appoint executive safety manager and notify chief inspector of operator, manager and representative details in approved form within 10 business days of commencement or change (ss 687A, 694A). Ensure safety management system is made after consultation, approved and implemented for each stage, with effective risk management (s 688). Appoint site safety manager if required by system or chief inspector direction, with appropriate qualifications (s 692). Comply with system, instructions and risk obligations, and in overlapping areas make and comply with joint interaction management plan identifying hazards, risks, responses, responsibilities and review processes, notify chief inspector, and review before changes (ss 699, 702-705). Notify prescribed incidents by telephone as soon as possible and form within 2 business days, restrict site access and protect from tampering (s 706). Comply with safety requirements and any safety instructions issued by chief inspector (ss 708A-708B). For gas work, obtain licence or authorisation, comply with conditions, and ensure devices are approved and labelled before supply, installation or use (ss 726-727, 731AA). For storage access, negotiate in good faith, provide information non-discriminatorily, and for post-lease claims lodge within 30 business days with evidence (ss 209, 211, 213).

Maintain records, provide information on request, and comply with conditions including ensuring persons acting for holder comply (ss 20, 853). For amendments or renewals, apply in approved form with fee only if no outstanding fees or penalties, within time limits, and meet capability and compliance criteria (ss 474-480). Use only stated department office or prescribed way for lodgements (s 851AA). Nominate address for service if required (s 852). When land is taken or Pt 5 permission granted, comply with conditions and pay costs if applicable (ss 456-473). For water, measure and report volumes where limited additional rights apply, and do not take or interfere unless authorised (ss 186, 189, 197). Ensure all activities minimise conflict with other land uses and consult affected people as required by purpose provisions.