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Petroleum and Gas (Royalty) Regulation 2021
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Turn the raw legal text into a practical explanation grounded in Petroleum and Gas (Royalty) Regulation 2021.
This section applies if— a person (the non-tenure holder ) is a participant in a joint venture, or other arrangement, involving the production of petroleum and does not hold a petroleum tenure under which the petroleum for the joint venture or other arrangement is produced; and another person (the tenure holder ) holds a petroleum tenure under which the petroleum for the joint venture or other arrangement is produced (the joint venture tenure ). The non-tenure holder may apply to the revenue commissioner to be taken to be a petroleum producer, in relation to a stated amount of petroleum produced under the joint venture tenure, for a royalty provision. The application must— be in the approved form; and identify the joint venture tenure; and state the proposed amount of petroleum produced under the joint venture tenure for which the non-tenure holder is to be taken to be a petroleum producer for a royalty provision; and state the proposed day for the election period for the joint venture tenure to start; and state either— the proposed day for the election period for the joint venture tenure to end; or that the election period for the joint venture tenure is to end under section 49 ; and be accompanied by the consent to the application of the tenure holder. The revenue commissioner must decide the application by— granting the application in the way proposed; or granting the application in another way, with the written agreement of the non-tenure holder and tenure holder; or refusing to grant the application. The revenue commissioner may grant the application only if the revenue commissioner is satisfied the decision would not adversely affect the protection of the public revenue. The election period must not— start on a day earlier than the first day of the current royalty return period; or if a day is stated under subsection (3) (e) (i) —end on a day later than the stated day. The revenue commissioner must give the non-tenure holder and the tenure holder notice of the decision. If the decision is to refuse to grant the application, the notice must include reasons for the decision. If the revenue commissioner decides to grant the application, for the election period for the joint venture tenure— the non-tenure holder is taken to produce the amount of petroleum produced under the joint venture tenure that is decided by the revenue commissioner; and the non-tenure holder is taken to be a petroleum producer, in relation to the amount of petroleum mentioned in paragraph (a) , for a royalty provision; and the non-tenure holder is taken to be a taxpayer under the Taxation Administration Act 2001 in relation to petroleum royalty payable on the amount of petroleum mentioned in paragraph (a) ; and a provision relating to when a royalty return is required to be lodged is taken to apply to the non-tenure holder as if the non-tenure holder held the joint venture tenure; and sections 591 and 591A of the Act are taken to apply, in relation to the amount of petroleum mentioned in paragraph (a) , as if the non-tenure holder held the joint venture tenure. This section does not affect the tenure holder’s liability to pay petroleum royalty on the amount of petroleum mentioned in subsection (9) (a) if the non-tenure holder does not pay the royalty. In this section— current royalty return period means the royalty return period applying in relation to the joint venture tenure on the day the application under this section is made. (sec.48-ssec.1) This section applies if— a person (the non-tenure holder ) is a participant in a joint venture, or other arrangement, involving the production of petroleum and does not hold a petroleum tenure under which the petroleum for the joint venture or other arrangement is produced; and another person (the tenure holder ) holds a petroleum tenure under which the petroleum for the joint venture or other arrangement is produced (the joint venture tenure ). (sec.48-ssec.2) The non-tenure holder may apply to the revenue commissioner to be taken to be a petroleum producer, in relation to a stated amount of petroleum produced under the joint venture tenure, for a royalty provision. (sec.48-ssec.3) The application must— be in the approved form; and identify the joint venture tenure; and state the proposed amount of petroleum produced under the joint venture tenure for which the non-tenure holder is to be taken to be a petroleum producer for a royalty provision; and state the proposed day for the election period for the joint venture tenure to start; and state either— the proposed day for the election period for the joint venture tenure to end; or that the election period for the joint venture tenure is to end under section 49 ; and be accompanied by the consent to the application of the tenure holder. (sec.48-ssec.4) The revenue commissioner must decide the application by— granting the application in the way proposed; or granting the application in another way, with the written agreement of the non-tenure holder and tenure holder; or refusing to grant the application. (sec.48-ssec.5) The revenue commissioner may grant the application only if the revenue commissioner is satisfied the decision would not adversely affect the protection of the public revenue. (sec.48-ssec.6) The election period must not— start on a day earlier than the first day of the current royalty return period; or if a day is stated under subsection (3) (e) (i) —end on a day later than the stated day. (sec.48-ssec.7) The revenue commissioner must give the non-tenure holder and the tenure holder notice of the decision. (sec.48-ssec.8) If the decision is to refuse to grant the application, the notice must include reasons for the decision. (sec.48-ssec.9) If the revenue commissioner decides to grant the application, for the election period for the joint venture tenure— the non-tenure holder is taken to produce the amount of petroleum produced under the joint venture tenure that is decided by the revenue commissioner; and the non-tenure holder is taken to be a petroleum producer, in relation to the amount of petroleum mentioned in paragraph (a) , for a royalty provision; and the non-tenure holder is taken to be a taxpayer under the Taxation Administration Act 2001 in relation to petroleum royalty payable on the amount of petroleum mentioned in paragraph (a) ; and a provision relating to when a royalty return is required to be lodged is taken to apply to the non-tenure holder as if the non-tenure holder held the joint venture tenure; and sections 591 and 591A of the Act are taken to apply, in relation to the amount of petroleum mentioned in paragraph (a) , as if the non-tenure holder held the joint venture tenure. (sec.48-ssec.10) This section does not affect the tenure holder’s liability to pay petroleum royalty on the amount of petroleum mentioned in subsection (9) (a) if the non-tenure holder does not pay the royalty. (sec.48-ssec.11) In this section— current royalty return period means the royalty return period applying in relation to the joint venture tenure on the day the application under this section is made.