sec.234Arrangement to coordinate petroleum activities

### sec.234 Arrangement to coordinate petroleum activities The following persons may make an arrangement about a matter mentioned in subsection (2) — the holder of a 1923 Act lease; the applicant for, or the holder of, a petroleum lease; the applicant for, or the holder of, a mining lease. For subsection (1) , the matters are— the orderly— production of petroleum from a natural underground reservoir under more than 1 of the leases; or carrying out of an authorised activity for any of the leases by any party to the arrangement; and petroleum production from more than 1 natural underground reservoir under more than 1 of the leases. The arrangement may— be for any term; and if each holder of a relevant mining or petroleum lease agrees, provide for a matter that is inconsistent with, to the extent mentioned in subsection (3A) , or not provided for under the leases or their conditions; and provide for— the subleasing of, or of an interest in, a relevant petroleum lease to a party to the arrangement or someone else; and a party to the arrangement to be granted a pipeline licence to transport petroleum or a prescribed storage gas on land subject to the arrangement. For subsection (3) (b) , the arrangement may only be inconsistent with 1 or more of the following— when a petroleum lease holder must start petroleum production under section 154 (1) ; the development plan or the proposed development plan for a lease mentioned in subsection (1) ; the conditions of the lease imposed under— the 1923 Act , section 44 (1) (d) ; or section 123 (3) ; or the Mineral Resources Act , section 276 (1) (n) or (3) . A person other than the holder, or proposed holder, of a coordinated lease may also be a party to a coordination arrangement. A coordination arrangement has no effect unless it is approved by the Minister under section 236 . In this section— authorised activity , for— a mining lease, means an activity that, under the Mineral Resources Act , is an authorised activity for the lease; or a 1923 Act lease, means an activity that, under the 1923 Act , is an authorised activity for the lease. coordinated lease means— 2 or more petroleum leases; or 2 or more 1923 Act leases; or 1 or more petroleum leases and 1 or more 1923 Act leases, in any combination; or 1 or more mining lease and 1 or more petroleum leases or 1923 Act leases, in any combination. Under the Mineral Resources Act , a coal or oil shale mining lease holder has a limited entitlement to mine and use incidental coal seam gas, which is petroleum . See section 10 of this Act and the Mineral Resources Act , chapter 8 , part 8 , division 1 . A coordination arrangement may provide for mining or production from coextensive natural underground reservoirs. See section 114 and the Mineral Resources Act , section 318CQ . production includes mining, extraction, production or release carried out under a mining lease. s 234 amd 2004 No. 26 ss 116 , 69 (2) sch ; 2005 No. 3 ss 53 , 105 sch ; 2007 No. 46 s 168 ; 2012 No. 20 s 125 sch 1 ; 2012 No. 20 ss 281 sch 2 , 323 sch 3 ; 2014 No. 47 s 619 ; 2024 No. 33 s 183 sch 1 pt 2 (sec.234-ssec.1) The following persons may make an arrangement about a matter mentioned in subsection (2) — the holder of a 1923 Act lease; the applicant for, or the holder of, a petroleum lease; the applicant for, or the holder of, a mining lease. (sec.234-ssec.2) For subsection (1) , the matters are— the orderly— production of petroleum from a natural underground reservoir under more than 1 of the leases; or carrying out of an authorised activity for any of the leases by any party to the arrangement; and petroleum production from more than 1 natural underground reservoir under more than 1 of the leases. (sec.234-ssec.3) The arrangement may— be for any term; and if each holder of a relevant mining or petroleum lease agrees, provide for a matter that is inconsistent with, to the extent mentioned in subsection (3A) , or not provided for under the leases or their conditions; and provide for— the subleasing of, or of an interest in, a relevant petroleum lease to a party to the arrangement or someone else; and a party to the arrangement to be granted a pipeline licence to transport petroleum or a prescribed storage gas on land subject to the arrangement. (sec.234-ssec.3A) For subsection (3) (b) , the arrangement may only be inconsistent with 1 or more of the following— when a petroleum lease holder must start petroleum production under section 154 (1) ; the development plan or the proposed development plan for a lease mentioned in subsection (1) ; the conditions of the lease imposed under— the 1923 Act , section 44 (1) (d) ; or section 123 (3) ; or the Mineral Resources Act , section 276 (1) (n) or (3) . (sec.234-ssec.4) A person other than the holder, or proposed holder, of a coordinated lease may also be a party to a coordination arrangement. (sec.234-ssec.5) A coordination arrangement has no effect unless it is approved by the Minister under section 236 . (sec.234-ssec.6) In this section— authorised activity , for— a mining lease, means an activity that, under the Mineral Resources Act , is an authorised activity for the lease; or a 1923 Act lease, means an activity that, under the 1923 Act , is an authorised activity for the lease. coordinated lease means— 2 or more petroleum leases; or 2 or more 1923 Act leases; or 1 or more petroleum leases and 1 or more 1923 Act leases, in any combination; or 1 or more mining lease and 1 or more petroleum leases or 1923 Act leases, in any combination. Under the Mineral Resources Act , a coal or oil shale mining lease holder has a limited entitlement to mine and use incidental coal seam gas, which is petroleum . See section 10 of this Act and the Mineral Resources Act , chapter 8 , part 8 , division 1 . A coordination arrangement may provide for mining or production from coextensive natural underground reservoirs. See section 114 and the Mineral Resources Act , section 318CQ . production includes mining, extraction, production or release carried out under a mining lease. - (a) the holder of a 1923 Act lease; - (b) the applicant for, or the holder of, a petroleum lease; - (c) the applicant for, or the holder of, a mining lease. - (a) the orderly— (i) production of petroleum from a natural underground reservoir under more than 1 of the leases; or (ii) carrying out of an authorised activity for any of the leases by any party to the arrangement; and - (i) production of petroleum from a natural underground reservoir under more than 1 of the leases; or - (ii) carrying out of an authorised activity for any of the leases by any party to the arrangement; and - (b) petroleum production from more than 1 natural underground reservoir under more than 1 of the leases. - (i) production of petroleum from a natural underground reservoir under more than 1 of the leases; or - (ii) carrying out of an authorised activity for any of the leases by any party to the arrangement; and - (a) be for any term; and - (b) if each holder of a relevant mining or petroleum lease agrees, provide for a matter that is inconsistent with, to the extent mentioned in subsection (3A) , or not provided for under the leases or their conditions; and - (c) provide for— (i) the subleasing of, or of an interest in, a relevant petroleum lease to a party to the arrangement or someone else; and (ii) a party to the arrangement to be granted a pipeline licence to transport petroleum or a prescribed storage gas on land subject to the arrangement. - (i) the subleasing of, or of an interest in, a relevant petroleum lease to a party to the arrangement or someone else; and - (ii) a party to the arrangement to be granted a pipeline licence to transport petroleum or a prescribed storage gas on land subject to the arrangement. - (i) the subleasing of, or of an interest in, a relevant petroleum lease to a party to the arrangement or someone else; and - (ii) a party to the arrangement to be granted a pipeline licence to transport petroleum or a prescribed storage gas on land subject to the arrangement. - (a) when a petroleum lease holder must start petroleum production under section 154 (1) ; - (b) the development plan or the proposed development plan for a lease mentioned in subsection (1) ; - (c) the conditions of the lease imposed under— (i) the 1923 Act , section 44 (1) (d) ; or (ii) section 123 (3) ; or (iii) the Mineral Resources Act , section 276 (1) (n) or (3) . - (i) the 1923 Act , section 44 (1) (d) ; or - (ii) section 123 (3) ; or - (iii) the Mineral Resources Act , section 276 (1) (n) or (3) . - (i) the 1923 Act , section 44 (1) (d) ; or - (ii) section 123 (3) ; or - (iii) the Mineral Resources Act , section 276 (1) (n) or (3) . - (a) a mining lease, means an activity that, under the Mineral Resources Act , is an authorised activity for the lease; or - (b) a 1923 Act lease, means an activity that, under the 1923 Act , is an authorised activity for the lease. - (a) 2 or more petroleum leases; or - (b) 2 or more 1923 Act leases; or - (c) 1 or more petroleum leases and 1 or more 1923 Act leases, in any combination; or - (d) 1 or more mining lease and 1 or more petroleum leases or 1923 Act leases, in any combination. Notes— 1 Under the Mineral Resources Act , a coal or oil shale mining lease holder has a limited entitlement to mine and use incidental coal seam gas, which is petroleum . See section 10 of this Act and the Mineral Resources Act , chapter 8 , part 8 , division 1 . 2 A coordination arrangement may provide for mining or production from coextensive natural underground reservoirs. See section 114 and the Mineral Resources Act , section 318CQ . - 1 Under the Mineral Resources Act , a coal or oil shale mining lease holder has a limited entitlement to mine and use incidental coal seam gas, which is petroleum . See section 10 of this Act and the Mineral Resources Act , chapter 8 , part 8 , division 1 . - 2 A coordination arrangement may provide for mining or production from coextensive natural underground reservoirs. See section 114 and the Mineral Resources Act , section 318CQ . - 1 Under the Mineral Resources Act , a coal or oil shale mining lease holder has a limited entitlement to mine and use incidental coal seam gas, which is petroleum . See section 10 of this Act and the Mineral Resources Act , chapter 8 , part 8 , division 1 . - 2 A coordination arrangement may provide for mining or production from coextensive natural underground reservoirs. See section 114 and the Mineral Resources Act , section 318CQ .