New South Wales act

Petroleum (Offshore) Act 1982

In ForceNSW

Jurisdiction

New South Wales

Act Number

23 of 1982

Collection

act

Plain English Summary

8/10 complexity

This Act sets the legal rules for offshore petroleum exploration, production and pipelines in New South Wales’ adjacent offshore area. It creates permits, licences and pipeline licences, prescribes application, renewal, transfer and approval processes, gives the Minister powers to impose conditions, direct unit development and set safety zones, and establishes offences, royalties, registers and confidentiality rules. It matters because it decides who may carry out offshore petroleum activity, what costs and compliance they face, and how safety, access and revenue are administered.

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What it does

The Petroleum (Offshore) Act 1982 (NSW) is the New South Wales implementing legislation for the cooperative Commonwealth-State offshore petroleum regulatory scheme. It replaced the Petroleum (Submerged Lands) Act 1967 and gives effect to an agreement reached between the Commonwealth, all States and the Northern Territory about the regulation of petroleum exploration and production in Australia's offshore areas.

The Act applies to the "adjacent area" of New South Wales: the continental shelf seabed and subsoil beyond the three-nautical-mile coastal waters boundary. It appoints the NSW Minister as Designated Authority for the Commonwealth offshore area relating to NSW and as NSW's member of the Joint Authority, enabling the Minister to exercise the powers conferred by the Commonwealth Act (the Offshore Petroleum and Greenhouse Gas Storage Act 2006 (Cth)) that are expressed to be exercisable by the Designated Authority or the Joint Authority.

Part 3 of the Act extends NSW laws to the adjacent area for all acts, omissions, matters and things connected with petroleum exploration or recovery in that area. Vessels, aircraft, structures, installations and equipment present in the adjacent area for petroleum purposes are brought within the scope of NSW law. The effect is that NSW criminal, civil and regulatory law applies offshore to the same extent as if the adjacent area were part of NSW, subject to any applicable Commonwealth law.

Main concepts

Current sections

Direct links to the current provisions in Petroleum (Offshore) Act 1982.

200

Part 1

Preliminary

Part 1 Preliminary

Name of Act

1 Name of Act

This Act may be cited as the Petroleum (Offshore) Act 1982.

s 1: Am 2007 No 27, Sch 1.39 [1].

Commencement

2 Commencement

(1) This section and section 1 shall commence on the date of assent to this Act.

(2) Except as provided by subsection (1), this Act shall commence on the first day on which all of the following Acts of the Parliament of the Commonwealth, with or without amendments, are in operation, namely, the Seas and Submerged Lands Amendment Act 1980, the Coastal Waters (State Powers) Act 1980, the Coastal Waters (State Title) Act 1980 and the Petroleum (Submerged Lands) Amendment Act 1980.

(3) The Minister shall as soon as is practicable after the commencement of this Act cause notice of the commencement to be published in the Gazette.

Repeals, amendments and transitional provisions

3 Repeals, amendments and transitional provisions

(1) The Petroleum (Submerged Lands) Act 1967 and the Petroleum (Submerged Lands) Taxation Act 1967 are repealed.

(2), (3) (Repealed)

(4) The scheme agreed on between the Commonwealth, the States and the Northern Territory, being the scheme set out in Schedule 3, so far as that scheme relates to the operation of this Act, has the force of law by virtue of this subsection.

(5) For the purposes of the scheme set out in Schedule 3, this Act is the State Act of New South Wales and the Minister is the Designated Authority under this Act.

(6) A reference to the Designated Authority in a new permit (within the meaning of the scheme set out in Schedule 3) or a new pipeline licence (within the meaning of that scheme) shall for the purposes of that permit or pipeline licence and this Act be read as a reference to the Minister.

(7) A reference in any other Act, or in any regulation, by-law or other statutory instrument or in any other document, whether of the same or of a different kind, to the “Petroleum (Submerged Lands) Act 1967” shall be read and construed as a reference to the “Petroleum (Submerged Lands) Act 1982”.

(8) Schedule 4 (Savings, transitional and other provisions) has effect.

(9) During the period commencing on the date of commencement of this subsection and ending at the time the Petroleum (Submerged Lands) (Cash Bidding) Amendment Act 1985 of the Commonwealth ceases to be in force this Act shall be read as if the amendments set forth in Schedule 5 (Applications for exploration permits by way of cash bidding) were in force.

s 3: Am 1986 No 59, Sch 1 (1); 1999 No 85, Sch 4.

4

4 (Repealed)

Definitions

5 Definitions

(1) In this Act, except in so far as the context or subject-matter otherwise indicates or requires—

access authority means an access authority under Part 4.

application for a primary licence means an application under section 41 (1) or (2) or 41A (1) or (2).

application for a secondary licence means an application under section 41 (3) or 41A (3).

approved means approved by the Minister.

block means a block constituted as provided by section 18.

Chief Commissioner means the Chief Commissioner of State Revenue.

construct includes place.

corresponding law means an Act of another State or a law in force in a Territory of the Commonwealth giving effect to the agreement between the Commonwealth, the States and the Northern Territory referred to in the preamble to this Act.

document includes any map, book, record or writing.

good oil-field practice means all those things that are generally accepted as good and safe in the carrying on of exploration for petroleum, or in operations for the recovery of petroleum, as the case may be.

graticular section means a section referred to in section 18.

inspector means a person appointed under section 126.

lease means a retention lease under Part 4.

lease area means the area constituted by the blocks that are the subject of a lease.

lessee means the registered holder of a lease.

licence means a production licence for petroleum under Part 4.

licence area means the area constituted by the blocks that are the subject of a licence.

licensee means the registered holder of a licence.

location means a block or blocks in respect of which a declaration under section 38 is in force.

natural resources has the same meaning as in the Convention.

partly cancelled means—

(a) in relation to a permit or licence—cancelled as to 1 or more but not all of the blocks the subject of the permit or licence, and

(b) in relation to a pipeline licence—cancelled as to a part of the pipeline the subject of the licence.

partly determined, in relation to a permit or lease, means determined as to 1 or more but not all of the blocks the subject of the permit or lease.

permit means an exploration permit for petroleum under Part 4.

permit area means the area constituted by the blocks that are the subject of a permit.

permittee means the registered holder of a permit.

petroleum means—

(a) any naturally occurring hydrocarbon, whether in a gaseous, liquid or solid state,

(b) any naturally occurring mixture of hydrocarbons, whether in a gaseous, liquid or solid state, or

(c) any naturally occurring mixture of 1 or more hydrocarbons, whether in a gaseous, liquid or solid state, and 1 or more of the following, that is to say, hydrogen sulphide, nitrogen, helium and carbon dioxide,

and includes any petroleum as defined by paragraph (a), (b) or (c) that has been returned to a natural reservoir in the adjacent area.

petroleum pool means a naturally occurring discrete accumulation of petroleum.

pipeline means a pipe or system of pipes in the adjacent area for conveying petroleum but does not include a pipe or system of pipes—

(a) for returning petroleum to a natural reservoir,

(b) for conveying petroleum for use for the purposes of petroleum exploration operations or operations for the recovery of petroleum,

(c) for conveying petroleum that is to be flared or vented, or

(d) for conveying petroleum from a well to a terminal station without passing through another terminal station, whether the terminal station to which the petroleum is conveyed is in the adjacent area or not.

pipeline licence means a licence under Part 4 to construct and operate a pipeline.

pipeline licensee means the registered holder of a pipeline licence.

primary entitlement means—

(a) in relation to a permittee—the number of blocks forming part of a location in the permit area in respect of which that permittee may make an application under section 41 (1), and

(b) in relation to a lessee—the number of blocks in the lease area in respect of which that lessee may make an application under section 41A (1).

primary licence means a licence granted on an application under section 41 (1) or (2).

pumping station means equipment for pumping petroleum or water and includes any structure associated with that equipment.

Register means the Register kept in pursuance of Division 5 of Part 4.

registered holder, in relation to a permit, lease, licence, pipeline licence, special prospecting authority or access authority, means the person whose name is for the time being shown in the Register as being the holder of the permit, lease, licence, pipeline licence, special prospecting authority or access authority.

regulations means regulations made under this Act.

royalty period, in relation to a permit, lease or licence, means—

(a) the period from and including the date from which the permit, lease or licence comes into force to the end of the month of the year during which that date occurs, and

(b) each month thereafter.

secondary licence means a licence granted on an application under section 41 (3).

secondary line means a pipe or system of pipes for any purpose referred to in paragraphs (a), (b), (c) and (d) of the definition of pipeline in this subsection.

special prospecting authority means a special prospecting authority under Part 4.

tank station means a tank or system of tanks for holding or storing petroleum and includes any structure associated with that tank or system of tanks.

terminal station means a pumping station, a tank station or a valve station declared to be a terminal station under section 64 or under the Commonwealth Act or a corresponding law.

the adjacent area means the area specified in Schedule 2 as being the adjacent area of New South Wales.

the applied provisions means the provisions applied in accordance with section 15.

the Commonwealth Act means the Offshore Petroleum and Greenhouse Gas Storage Act 2006 of the Parliament of the Commonwealth as amended from time to time and any Act of Parliament of the Commonwealth with which that Act is incorporated.

the Convention means the Convention entitled “Convention on the Continental Shelf” signed at Geneva on 29 April 1958, being the Convention a copy of which in the English language is set out in Schedule 1.

the Joint Authority means the Commonwealth–New South Wales Offshore Petroleum Joint Authority established by the Commonwealth Act.

the relinquished area means—

(a) in relation to a permit, lease or licence that has expired—the area constituted by the blocks in respect of which the permit, lease or licence was in force but has not been renewed,

(b) in relation to a permit or lease that has been wholly determined or partly determined—the area constituted by the blocks as to which the permit or lease was so determined,

(c) in relation to a permit or licence that has been wholly cancelled or partly cancelled—the area constituted by the blocks as to which the permit or licence was so cancelled,

(ca) in relation to a lease that has been wholly cancelled—the area constituted by the blocks in respect of which the lease was in force,

(d) in relation to a pipeline licence that is no longer in force—the part of the adjacent area in which the pipeline was constructed,

(e) in relation to a pipeline licence that has been wholly cancelled or partly cancelled—the part of the adjacent area in which the pipeline or the part of the pipeline, as the case may be, was constructed, and

(f) in relation to a special prospecting authority or access authority that has been surrendered or cancelled or has expired—the area constituted by the blocks in respect of which that authority was in force.

valve station means equipment for regulating the flow of petroleum and includes any structure associated with that equipment.

vessel means a vessel used in navigation, other than air navigation, and includes a barge, lighter or other floating vessel.

water line means a pipe or system of pipes for conveying water in connexion with petroleum exploration operations or operations for the recovery of petroleum.

well means a hole in the sea-bed or subsoil made by drilling, boring or any other means in connexion with exploration for petroleum or operations for the recovery of petroleum, but does not include a seismic shot hole.

wholly cancelled, in relation to a permit, lease, licence or pipeline licence, means cancelled as to all the blocks, or as to the whole of the pipeline, the subject of the permit, lease, licence or pipeline licence.

wholly determined, in relation to a permit or lease, means determined as to all the blocks the subject of the permit or lease.

(2) In this Act, a reference to the term of a permit, lease, licence, pipeline licence, special prospecting authority or access authority is a reference to the period during which the permit, lease, licence, pipeline licence, special prospecting authority or access authority remains in force and a reference to the date of expiration of a permit, lease, licence, pipeline licence, special prospecting authority or access authority is a reference to the day on which the permit, lease, licence, pipeline licence, special prospecting authority or access authority ceases to be in force.

(3) In this Act, a reference to a year of the term of a permit, lease, licence or pipeline licence is a reference to a period of 1 year commencing on the day on which the permit, lease, licence or pipeline licence, as the case may be, comes into force or on any anniversary of that day.

(4) In this Act, a reference to the renewal, or to the grant of a renewal, of a permit is a reference to the grant of a permit in respect of all or some of the blocks specified in the firstmentioned permit to commence on the day after the date of expiration of the firstmentioned permit or on the day after the date of expiration of the permit granted upon a previous renewal of the firstmentioned permit.

(4A) In this Act, a reference to the renewal, or the grant of a renewal, of a lease is a reference to the grant of a lease in respect of the blocks in respect of which the firstmentioned lease was in force to commence on the day after the date of expiration of the firstmentioned lease or on the day after the date of expiration of the lease granted upon a previous renewal of the firstmentioned lease.

(5) In this Act, a reference to the renewal, or to the grant of a renewal, of a licence in respect of the blocks specified in the licence is a reference to the grant of a licence in respect of those blocks to commence on the day after the date of expiration of the firstmentioned licence or on the day after the date of expiration of the licence granted upon a previous renewal of the firstmentioned licence.

(6) In this Act, a reference to the renewal, or to the grant of a renewal, of a pipeline licence in respect of a pipeline is a reference to the grant of a pipeline licence in respect of that pipeline to commence on the day after the date of expiration of the firstmentioned pipeline licence or on the day after the date of expiration of the pipeline licence granted upon a previous renewal of the firstmentioned pipeline licence.

(7) In this Act, a reference to a pipeline includes a reference to a part of a pipeline.

(8) In this Act, a reference to a permit, lease, licence, pipeline licence or access authority is a reference to the permit, lease, licence, pipeline licence or access authority as varied for the time being under this Act.

(9) The power conferred by this Act to make, grant or issue any instrument shall, unless the contrary intention appears, be construed as including a power exercisable in the like manner and subject to the like conditions, if any, to repeal, rescind, revoke, amend or vary any such instrument.

s 5: Am 1985 No 129, Sch 1 (1); 1986 No 59, Sch 1 (2); 2007 No 27, Sch 1.39 [2]; 2011 No 27, Sch 2.37; 2014 No 37, Sch 4.5 [1].

Spaces above and below adjacent areas

6 Spaces above and below adjacent areas

For the purposes of this Act and the regulations—

(a) the space above or below the adjacent area shall be deemed to be in that area, and

(b) the space above or below an area that is part of the adjacent area shall be deemed to be in that part.

Ascertaining points and other matters

7 Ascertaining points and other matters

(1) The position on the surface of the Earth of a point, line or area that is necessary to be determined for the purposes of this Act (other than Schedule 2), or of any order, instrument or notification under this Act, is to be determined by reference to the Geocentric Datum of Australia within the meaning of the Surveying and Spatial Information Act 2002.

(2) The points of latitude and longitude referred to in Schedule 2 are to be determined by reference to a spheroid having its centre at the centre of the Earth and a major (equatorial) radius of 6,378,160 metres and a flattening of 100/29825 and by reference to the position of the Johnston Geodetic Station in the Northern Territory of Australia, which is taken to be situated at 133 degrees, 12 minutes and 30.0771 seconds of East Longitude and at 25 degrees, 56 minutes and 54.5515 seconds of South Latitude and to have a ground level of 571.2 metres above that spheroid.

s 7: Subst 1999 No 30, Sch 2.3. Am 2002 No 83, Sch 2.16; 2005 No 35, Sch 2 [1] [2]; 2009 No 119, Sch 2.19.

Petroleum pool extending into 2 licence, permit or lease areas

8 Petroleum pool extending into 2 licence, permit or lease areas

(1) The provisions of this section have effect for the purposes of this Act and of licences.

(2) Where a well-head is situated in a licence area and the well from that well-head is inclined so as to enter a petroleum pool, being a pool that does not extend to that licence area, at a place within an adjoining licence area of the same licensee, any petroleum recovered through that well shall be deemed to have been recovered in that adjoining licence area under the licence in respect of that area.

(3) Where a petroleum pool is partly in 1 licence area and partly in an adjoining licence area of the same licensee and petroleum is recovered from that pool through a well or wells in 1 or both of the licence areas, there shall be deemed to have been recovered in each of the licence areas, under the licence in respect of that area, such proportion of all petroleum so recovered as may reasonably be treated as being derived from that area, having regard to the nature and probable extent of the pool, and the respective proportions shall be determined in accordance with subsection (4).

(4) The proportions to be determined for the purposes of subsection (3) may be determined by agreement between the licensee and the Minister or, in the absence of agreement, may be determined by the Supreme Court on the application of the licensee or the Minister.

(5) Where a petroleum pool is partly in a licence area and partly in an area (in this subsection referred to as the Commonwealth licence area) in which the licensee has authority under the Commonwealth Act to explore for, or recover, petroleum, and petroleum is recovered from that pool through a well or wells in the licence area, the Commonwealth licence area or both, there shall be deemed to have been recovered in the licence area such proportion of all petroleum so recovered as may reasonably be treated as being derived from that area, having regard to the nature and probable extent of the pool, and that proportion shall be determined in accordance with subsection (6).

(6) The proportion to be determined for the purposes of subsection (5) may be determined by agreement between the licensee, the Joint Authority and the Minister or, in the absence of agreement, may be determined by the Supreme Court on the application of the licensee, the Joint Authority or the Minister.

(7) Where a petroleum pool is partly in a licence area and partly in an area (in this section called the other State licence area) in which the licensee has authority, under a corresponding law, to explore for, or recover, petroleum, and petroleum is recovered from that pool through a well or wells in the licence area, the other State licence area or both, there shall be deemed to have been recovered in the licence area such proportion of all petroleum so recovered as may reasonably be treated as being derived from that area, having regard to the nature and probable extent of the pool, and that proportion shall be determined in accordance with subsection (8).

(8) The proportion to be determined for the purposes of subsection (7) may be determined by agreement between the licensee, the Minister and the Minister of the other State administering the corresponding law or, in the absence of agreement, may be determined by the Supreme Court on the application of any of those persons.

(9) Where—

(a) a petroleum pool is partly in a licence area and partly in another area, being an area which is outside the adjacent area and in which the licensee has, under the Commonwealth Act or a corresponding law, authority to explore for, or recover, petroleum,

(b) petroleum is recovered from that pool, and

(c) the Supreme Court of another State makes a determination, under the Commonwealth Act or a corresponding law, of the proportion of the petroleum recovered from that pool that is, for the purposes of the Commonwealth Act or the corresponding law, to be deemed to have been recovered from the other area,

the Supreme Court shall not make a determination under this section that is inconsistent with the determination of the Supreme Court of the other State.

(10) Where—

(a) a petroleum pool is partly in a licence area and partly in another area, whether in the adjacent area or not, in respect of which another person has authority, whether under this Act, the Commonwealth Act or a corresponding law, to explore for or recover petroleum,

(b) a unit development agreement in accordance with section 60 is in force between the licensee and that other person, and

(c) petroleum is recovered from that pool through a well or wells in the licence area, the other area or both,

there shall be deemed to have been recovered in the licence area such proportion of all petroleum so recovered as is specified in, or determined in accordance with, the agreement.

(11) In this section, a reference to a licence, a licensee or a licence area shall be read as including a reference to a permit and a lease, a permittee and a lessee or a permit area and a lease area.

s 8: Am 1986 No 59, Sch 1 (3).

Application of Act

9 Application of Act

This Act applies to all natural persons, whether Australian citizens or not and whether resident in New South Wales or not, and to all corporations, whether incorporated or carrying on business in New South Wales or not.

Part 2

Administration of the Commonwealth offshore area

Part 2 Administration of the Commonwealth offshore area

pt 2, hdg: Am 2007 No 27, Sch 1.39 [3].

Definition

10 Definition

In this Part, the Commonwealth offshore area means the offshore area for New South Wales for the purposes of the Commonwealth Act.

s 10: Subst 2007 No 27, Sch 1.39 [4].

Minister as member of Joint Authority

11 Minister as member of Joint Authority

(1) The Minister may exercise any power which the Commonwealth Act is expressed to authorize the Minister to exercise as a member of the Joint Authority.

(2) The Minister shall perform any function which the Commonwealth Act is expressed to require the Minister to perform as a member of the Joint Authority.

Minister as Designated Authority

12 Minister as Designated Authority

The Minister is authorized to perform the functions and exercise the powers which the Commonwealth Act is expressed to require or empower the Designated Authority in respect of the Commonwealth offshore area to perform or exercise.

ss 12–14: Am 2007 No 27, Sch 1.39 [5].

Delegations under Commonwealth Act

13 Delegations under Commonwealth Act

Where, in the exercise of a power which the Commonwealth Act is expressed to confer upon the Designated Authority in respect of the Commonwealth offshore area the Minister delegates a power to a person who is a public servant or who holds any office in the service of New South Wales, the person may exercise the power.

ss 12–14: Am 2007 No 27, Sch 1.39 [5].

Public servants performing functions under Commonwealth Act

14 Public servants performing functions under Commonwealth Act

A public servant shall perform any function which the Minister, as the Designated Authority in respect of the Commonwealth offshore area, or as a member of the Joint Authority, requires the public servant to perform in relation to the Commonwealth Act.

ss 12–14: Am 2007 No 27, Sch 1.39 [5].

Part 3

Application of laws

Part 3 Application of laws

Application of laws in the adjacent area

15 Application of laws in the adjacent area

(1) Subject to this Act and the regulations, the provisions of the laws, whether written or unwritten, in force in New South Wales for the time being (other than laws of the Commonwealth) and the provisions of any instrument having effect under any of those laws, apply, as provided by this section, in the adjacent area and so apply as if that area were part of New South Wales.

(2) The laws referred to in subsection (1) do not include laws that for the time being apply in the adjacent area by virtue of the Crimes at Sea Act 1998 or the Application of Laws (Coastal Sea) Act 1980.

(3) A law shall be taken to be a law in force in New South Wales notwithstanding that that law applies to part only of New South Wales.

(4) The provisions referred to in subsection (1) apply to and in relation to all acts, omissions, matters, circumstances and things touching, concerning, arising out of or connected with the exploration of the sea-bed or subsoil of the adjacent area for petroleum and the exploitation of the natural resources, being petroleum, of that sea-bed or subsoil.

(5) Without limiting the operation of subsection (4), the provisions referred to in subsection (1) apply—

(a) to and in relation to—

(i) an act or omission that takes place in, on, above, below or in the vicinity of, and

(ii) a matter, circumstance or thing that exists or arises with respect to or in connection with,

a vessel, aircraft, structure or installation, or equipment or other property, that is in the adjacent area for any reason touching, concerning, arising out of or connected with the exploration of the sea-bed or subsoil of the adjacent area for petroleum or the exploitation of the natural resources, being petroleum, of that sea-bed or subsoil,

(b) to and in relation to a person who—

(i) is in the adjacent area for a reason of the kind referred to in paragraph (a), or

(ii) is in, on, above, below or in the vicinity of a vessel, aircraft, structure or installation, or equipment or other property, that is in the adjacent area for a reason of the kind referred to in paragraph (a), and

(c) to and in relation to a person in respect of the person’s carrying on any operation or doing any work in the adjacent area for a reason of the kind referred to in paragraph (a).

(6) This section does not extend to the provisions of any law or instrument—

(a) in so far as they apply to or in relation to exploration for, or operations for the recovery of, petroleum,

(b) in so far as they apply to or in relation to the construction or operation of pipelines,

(c) in so far as they are incapable of application in the adjacent area, or

(d) in so far as they are expressed not to extend to or apply in the adjacent area.

(7) This section does not limit the operation that any law or instrument has apart from this section.

(8) The regulations may provide that such of the provisions referred to in subsection (1) as are specified in the regulations do not apply by reason of this section or so apply with such modifications as are specified in the regulations.

(9) For the purposes of subsection (8), modification includes the omission or addition of a provision or the substitution of a provision for another provision.

s 15: Am 1998 No 173, Sch 2.2.

Jurisdiction of State courts

16 Jurisdiction of State courts

(1) Subject to this section, the several courts of New South Wales are invested with jurisdiction in all matters arising under the applied provisions, this Act or the regulations.

(2) The jurisdiction with which the several courts are invested by subsection (1) is invested within the limits (other than limits having effect by reference to localities) of their several jurisdictions.

(3) (Repealed)

(4) This section does not limit the jurisdiction that any court has apart from this section.

s 16: Am 1999 No 31, Sch 4.70; 2001 No 121, Sch 2.165 [1].

Part 4

Mining for petroleum

Part 4 Mining for petroleum

Division 1

Preliminary

Division 1 Preliminary

Delegation

17 Delegation

(1) The Minister may, either generally or as otherwise provided by the instrument of delegation, by writing signed by the Minister delegate to a person any of the Minister’s powers or functions under this Act or the regulations, other than this power of delegation.

(2) A power or function so delegated, when exercised or performed by the delegate, shall, for the purposes of this Act or the regulations, be deemed to have been exercised or performed by the Minister.

(3) A delegation under this section may be expressed as a delegation to the person for the time being holding, or performing the duties of, a specified office under the Commonwealth, a State or a Territory.

(4) A delegation under this section made at any time by a person who is at that time the Minister continues in force notwithstanding that at some subsequent time a different person is the Minister or there is no person who is the Minister, but such a delegation may be revoked or varied by any person who is for the time being the Minister.

(5) A delegation under this section of a power or function does not prevent the exercise of the power or the performance of the function by the Minister.

(6) A copy of each instrument making, varying or revoking a delegation shall be published in the Gazette.

Graticulation of Earth’s surface and constitution of blocks

18 Graticulation of Earth’s surface and constitution of blocks

(1) For the purposes of this Act, the surface of the Earth shall be deemed to be divided—

(a) by the meridian of Greenwich and by meridians that are at a distance from that meridian of 5 minutes, or a multiple of 5 minutes, of longitude, and

(b) by the equator and by parallels of latitude that are at a distance from the equator of 5 minutes, or a multiple of 5 minutes, of latitude,

into sections, each of which is bounded—

(c) by portions of 2 of those meridians that are at a distance from each other of 5 minutes of longitude, and

(d) by portions of 2 of those parallels of latitude that are at a distance from each other of 5 minutes of latitude.

(2) For the purposes of this Act—

(a) a graticular section that is wholly within the adjacent area constitutes a block, and

(b) if a part only of a graticular section is, or parts only of a graticular section are, within the adjacent area, the area of that part, or of those parts, constitutes a block.

(3) In this Act—

(a) a reference to a block that is constituted by a graticular section includes a reference to a block that is constituted by the area of a part only, or by the areas of parts only, of a graticular section, and

(b) a reference to a graticular section that constitutes a block includes a reference to a graticular section part only of which constitutes, or parts only of which constitute, a block.

Reservation of blocks

19 Reservation of blocks

(1) The Minister may, by instrument published in the Gazette, declare that a block specified in the instrument (not being a block in respect of which a permit, lease or licence is in force or over or in which there is a pipeline) shall not be the subject of a permit, lease, licence, special prospecting authority or access authority and that a pipeline licence shall not be granted in respect of a pipeline over or in that block.

(2) While a declaration under subsection (1) remains in force in respect of a block, a permit, lease, licence, special prospecting authority or access authority shall not be granted in respect of that block and a pipeline licence shall not be granted in respect of a pipeline over or in that block.

s 19: Am 1986 No 59, Sch 2.

Division 2

Exploration permits for petroleum

Division 2 Exploration permits for petroleum

Exploration for petroleum

20 Exploration for petroleum

(1) A person shall not explore for petroleum in the adjacent area except—

(a) under and in accordance with a permit, or

(b) as otherwise permitted by this Part.

Maximum penalty—500 penalty units or imprisonment for 5 years, or both.

(2) For the purposes of subsection (1), a person who does anything preparatory to, or knowingly connected with, exploration for petroleum is taken to explore for petroleum.

s 20: Am 1991 No 85, Sch 2 (1); 1992 No 112, Sch 1.

Advertisement of blocks

21 Advertisement of blocks

(1) The Minister may, by instrument published in the Gazette—

(a) invite applications for the grant of a permit in respect of the block or blocks specified in the instrument, and

(b) specify a period within which applications may be made.

(2) The Minister may, for reasons that the Minister thinks sufficient, in an instrument under subsection (1), direct that section 22 (2) or (3) does not apply, or that both of those subsections do not apply, to or in relation to the applications.

(3)–(5) (Repealed)

s 21: Am 1991 No 85, Sch 1 (1).

Application for permit

22 Application for permit

(1) An application under section 21—

(a) shall be in accordance with an approved form,

(b) shall be made in an approved manner,

(c) shall be in respect of not more than 400 blocks,

(d) shall be accompanied by particulars of—

(i) the proposals of the applicant for work and expenditure in respect of the blocks specified in the application,

(ii) the technical qualifications of the applicant and of the applicant’s employees,

(iii) the technical advice available to the applicant, and

(iv) the financial resources available to the applicant,

(e) may set out any other matters that the applicant wishes the Minister to consider, and

(f) shall be accompanied by the prescribed fee.

(2) The number of blocks specified in the application—

(a) if 16 blocks or more are available—shall not be less than 16, or

(b) if less than 16 blocks are available—shall be the number available.

(3) The blocks specified in the application shall be blocks that are constituted by graticular sections that—

(a) constitute a single area, and

(b) are such that each graticular section in that area has a side in common with at least 1 other graticular section in that area.

(4) The Minister may, at any time, by instrument in writing served on the applicant, require the applicant to furnish, within the time specified in the instrument, further information in writing in connection with the application.

(5) (Repealed)

s 22: Am 1991 No 6, Sch 1 (1).

Grant or refusal of permit in relation to application

23 Grant or refusal of permit in relation to application

(1) Where an application has been made under section 21, the Minister may—

(a) by instrument in writing served on the applicant, inform the applicant that the Minister is prepared to grant to the applicant a permit in respect of the block or blocks specified in the instrument, or

(b) refuse to grant a permit to the applicant.

(2) An instrument under subsection (1) shall contain—

(a) a summary of the conditions subject to which the permit is to be granted, and

(b) a statement to the effect that the application will lapse if the applicant does not make a request under subsection (3) in respect of the grant of the permit.

(3) An applicant on whom there has been served an instrument under subsection (1) may, within a period of 1 month after the date of service of the instrument on the applicant, or within such further period, not exceeding 1 month, as the Minister, on application in writing served on the Minister before the expiration of the firstmentioned period of 1 month, allows, by instrument in writing served on the Minister, request the Minister to grant to the applicant the permit referred to in the firstmentioned instrument.

(4) Where an applicant on whom there has been served an instrument under subsection (1) has made a request under subsection (3) within the period applicable under subsection (3), the Minister shall grant to the applicant an exploration permit for petroleum in respect of the block or blocks specified in the instrument.

(5) Where an applicant on whom there has been served an instrument under subsection (1) has not made a request under subsection (3) within the period applicable under subsection (3), the application lapses upon the expiration of that period.

s 23: Am 1991 No 85, Sch 2 (6).

Application for permit in respect of surrendered etc blocks

24 Application for permit in respect of surrendered etc blocks

(1) Where—

(a) a lease is surrendered, cancelled or determined as to a block or blocks,

(aa) a licence is surrendered or cancelled as to a block or blocks, or

(b) a permit is surrendered, cancelled or determined as to a block or blocks and, at the time of the surrender, cancellation or determination, the block was, or was included in, or the blocks were, or were included in, a location,

the Minister may, at any subsequent time, by instrument published in the Gazette, invite applications for the grant of a permit in respect of that block or such of those blocks as are specified in the instrument and specify a period within which applications may be made.

(2), (3) (Repealed)

(4) An application under this section—

(a) shall be in accordance with an approved form,

(b) shall be made in an approved manner,

(c) shall be accompanied by the particulars referred to in section 22 (1) (d),

(d) shall specify an amount that the applicant is prepared to pay to the Minister, in addition to the fee referred to in section 25 (1) (a), in respect of the grant of a permit on the application, and

(e) may set out any other matters that the applicant wishes the Minister to consider.

(5) The Minister may, at any time, by instrument in writing served on the applicant, require the applicant to furnish, within the time specified in the instrument, further information in writing in connexion with this application.

s 24: Am 1986 No 59, Sch 3 (1); 1991 No 85, Sch 1 (2).

Application fee etc

25 Application fee etc

(1) An application under section 24 shall be accompanied by—

(a) the prescribed fee, and

(b) a deposit of 10 per cent of the amount specified in the application under section 24 (4) (d).

(2) Where a permit is not granted on the application, the amount of the deposit is, subject to subsection (3), to be refunded to the applicant.

(3) Where an applicant on whom there has been served an instrument under section 26 does not request the Minister, in accordance with section 27, to grant the permit referred to in the instrument, the deposit shall not, unless the Minister otherwise determines, be refunded to the applicant.

s 25: Am 1991 No 6, Sch 1 (2).

Consideration of application

26 Consideration of application

(1) Where, at the expiration of the period specified in an instrument under section 24 (1), only 1 application has been made under that subsection in respect of the block or blocks specified in the instrument, the Minister may reject the application or may, by instrument in writing served on the applicant, inform the applicant that the Minister is prepared to grant to the applicant a permit in respect of that block or those blocks.

(2) Where, at the expiration of the period specified in an instrument under section 24 (1), 2 or more applications have been made under that subsection in respect of the block or blocks specified in the instrument, the Minister may reject any or all of the applications and, if the Minister does not reject all of the applications, may—

(a) if only 1 application remains unrejected—by instrument in writing served on the applicant, or

(b) if 2 or more applications remain unrejected—by instrument in writing served on the applicant, or on 1 of the applicants, whose application has not been rejected and who has specified as the amount that the applicant is prepared to pay in respect of the grant of a permit to the applicant an amount that is not less than the amount specified by any other applicant whose application has not been rejected,

inform the applicant that the Minister is prepared to grant to the applicant a permit in respect of that block or those blocks.

(3), (4) (Repealed)

(5) An instrument under this section shall contain—

(a) a summary of the conditions subject to which the permit is to be granted, and

(b) a statement to the effect that the application will lapse if the applicant does not—

(i) make a request under section 27 (1), and

(ii) pay the balance of the amount to be paid in respect of the grant of the permit to the applicant or enter into an agreement under section 110 in respect of that balance.

s 26: Am 1991 No 85, Schs 1 (3), 2 (7).

Request by applicant for grant of permit in respect of advertised blocks

27 Request by applicant for grant of permit in respect of advertised blocks

(1) An applicant on whom there has been served an instrument under section 26 may, within a period of 3 months after the date of service of the instrument on the applicant, or within such further period, not exceeding 3 months, as the Minister, on application in writing served on the Minister before the expiration of the firstmentioned period of 3 months, allows—

(a) by instrument in writing served on the Minister, request the Minister to grant to the applicant the permit referred to in the firstmentioned instrument, and

(b) pay the balance of the amount to be paid in respect of the grant of the permit to the applicant or enter into an agreement under section 110 in respect of that balance.

(c) (Repealed)

(2) Where an applicant on whom there has been served an instrument under section 26—

(a) has not made a request under subsection (1), and

(b) has not paid the balance of the amount to be paid in respect of the grant of the permit to the applicant or entered into an agreement under section 110 in respect of that balance,

(c) (Repealed)

within the period applicable under subsection (1), the application lapses upon the expiration of that period.

(3) Where the application of an applicant on whom there has been served an instrument under section 26 (2) lapses as provided by subsection (2), section 26 (2) applies in respect of the application or applications, if any, then remaining unrejected.

s 27: Am 1991 No 85, Sch 2 (8).

Grant of permit on request

28 Grant of permit on request

Where a person on whom there has been served an instrument under section 26—

(a) has made a request under section 27 (1), and

(b) has paid the balance of the amount to be paid in respect of the grant of a permit to the applicant or has entered into an agreement under section 110 in respect of that balance,

(c) (Repealed)

within the period applicable under section 27 (1), the Minister shall grant to that person an exploration permit for petroleum in respect of the block or blocks specified in the instrument.

s 28: Am 1991 No 85, Sch 2 (9).

Rights conferred by permit

29 Rights conferred by permit

A permit, while it remains in force, authorizes the permittee, subject to this Act and the regulations and in accordance with the conditions to which the permit is subject, to explore for petroleum, and to carry on such operations and execute such works as are necessary for that purpose, in the permit area.

Term of permit

30 Term of permit

Subject to this Part, a permit remains in force—

(a) in the case of a permit granted otherwise than by way of the renewal of a permit—for a period of 6 years commencing on the day on which the permit is granted or, if a later day is specified in the permit as being the day on which the permit is to come into force, on that later day, and

(b) in the case of a permit granted by way of the renewal of a permit—for a period of 5 years commencing on the day on which the permit is granted or, if a later day is specified in the permit as being the day on which the permit is to come into force, on that later day.

s 30: Am 1985 No 129, Sch 1 (2).

Application for renewal of permit

31 Application for renewal of permit

(1) Subject to sections 32 and 32A, a permittee may, from time to time, make an application to the Minister for the renewal of the permit in respect of such of the blocks the subject of the permit as are specified in the application.

(2) An application for the renewal of the permit—

(a) shall be in accordance with an approved form,

(b) subject to subsection (3), shall be made in an approved manner not less than 3 months before the date of expiration of the permit, and

(c) shall be accompanied by the prescribed fee.

(3) The Minister may, for reasons that the Minister thinks sufficient, receive an application for the renewal of the permit less than 3 months before, but not in any case after, the date of expiration of the permit.

s 31: Am 1991 No 6, Sch 1 (3); 2005 No 35, Sch 1 [1].

Application for renewal of permit to be in respect of reduced area

32 Application for renewal of permit to be in respect of reduced area

(1) Subject to subsection (3), the number of blocks in respect of which an application for the renewal of a permit may be made shall not exceed the number calculated as follows—

(a) where the number of blocks in respect of which the permit is in force is a number that is divisible by 2 without remainder—one-half of that number, or

(b) where the number of blocks in respect of which the permit is in force is a number that is 1 less or 1 more than a number that is divisible by 4 without remainder—one-half of that lastmentioned number.

(2) A block that is, or is included in, a location and in respect of which the permit is in force shall not be regarded as a block in respect of which the permit is in force for the purpose of making a calculation under subsection (1).

(3) An application for the renewal of a permit may include, in addition to the blocks referred to in subsection (1), a block that is, or is included in, a location and in respect of which the permit is in force, or 2 or more such blocks.

(4) The blocks specified in an application for the renewal of a permit shall be blocks that are constituted by or are within graticular sections that—

(a) constitute a single area or a number of discrete areas, and

(b) are such that each graticular section in the area, or in each area, has a side in common with at least 1 other graticular section in that area.

(5) Where the number of blocks in respect of which an application for the renewal of a permit may be made is 16 or more, each area constituted by blocks in respect of which the application is made shall be constituted by not less than 16 blocks.

(6) Where the maximum number of blocks in respect of which an application for the renewal of a permit may be made in accordance with the preceding provisions of this section is less than 16, the Minister may, by instrument in writing served on the permittee—

(a) inform the permittee that the number of blocks in respect of which the application may be made is such number, not exceeding 16, as is specified in the instrument, and

(b) give such directions as the Minister thinks fit concerning the blocks in respect of which the application may be made.

(7) The Minister may, for reasons that the Minister thinks sufficient—

(a) direct that subsections (4) and (5) do not apply to or in relation to a proposed application for the renewal of a permit, and

(b) give such directions as the Minister thinks fit concerning the blocks in respect of which that application may be made.

32A

Certain permits cannot be renewed more than twice

32A Certain permits cannot be renewed more than twice

(1) This section applies to an application for the renewal of a permit if—

(a) the original permit was granted under section 23—

(i) on or after 1 January 2006, and

(ii) as a result of an application made in response to an invitation in an instrument that was published under section 21 (1) on or after 1 January 2006, or

(b) the original permit was granted under section 28 on or after 1 January 2006.

(2) A permittee must not make such an application if it could result in the original permit being renewed more than twice.

s 32A: Ins 2005 No 35, Sch 1 [2].

Grant or refusal of renewal of permit

33 Grant or refusal of renewal of permit

(1) Where an application has been made for the renewal of a permit, the Minister—

(a) shall, if the conditions to which the permit is, or has from time to time been, subject and the provisions of this Part and of the regulations have been complied with, or

(b) may, if—

(i) any of the conditions to which the permit is, or has from time to time been, subject or any of the provisions of this Part and of the regulations has not been complied with, and

(ii) the Minister is, nevertheless, satisfied that special circumstances exist that justify the granting of the renewal of the permit,

by instrument in writing served on the person who is then the permittee, inform the person that the Minister is prepared to grant to the person the renewal of the permit.

(2) If any of the conditions to which the permit is, or has from time to time been, subject or any of the provisions of this Part and of the regulations has not been complied with, and if the Minister is not satisfied that special circumstances exist that justify the granting of the renewal of the permit, the Minister shall, subject to subsection (3), by instrument in writing served on the person who is then the permittee, refuse to grant the renewal of the permit.

(3) The Minister shall not refuse to grant the renewal of the permit unless—

(a) the Minister has, by instrument in writing served on the permittee, given not less than 1 month’s notice of the Minister’s intention to refuse to grant the renewal of the permit,

(b) the Minister has served a copy of the instrument on such other persons, if any, as the Minister thinks fit,

(c) the Minister has, in the instrument—

(i) given particulars of the reasons for the intention, and

(ii) specified a date on or before which the permittee or a person on whom a copy of the instrument is served may, by instrument in writing served on the Minister, submit any matters that he or she wishes the Minister to consider, and

(d) the Minister has taken into account any matters so submitted to the Minister on or before the specified date by the permittee or by a person on whom a copy of the firstmentioned instrument has been served.

(4) An instrument referred to in subsection (1) shall contain—

(a) a summary of the conditions to which the permit, on the grant of the renewal, is to be subject, and

(b) a statement to the effect that the application will lapse if the permittee does not make a request under subsection (5).

(5) A permittee on whom there has been served an instrument under subsection (1) may, within a period of 1 month after the date of service of the instrument on the permittee, by instrument in writing served on the Minister, request the Minister to grant to the permittee the renewal of the permit.

(6) Where a permittee on whom there has been served an instrument under subsection (1) has made a request under subsection (5) within the period referred to in subsection (5), the Minister shall grant to the permittee the renewal of the permit.

(7) Where a permittee on whom there has been served an instrument under subsection (1) has not made a request under subsection (5) within the period referred to in subsection (5), the application lapses upon the expiration of that period.

(8) Where—

(a) an application for the renewal of a permit has been made, and

(b) the permit expires—

(i) before the Minister grants, or refuses to grant, the renewal of the permit, or

(ii) before the application lapses as provided by subsection (7),

the permit shall be deemed to continue in force in all respects—

(c) until the Minister grants, or refuses to grant, the renewal of the permit, or

(d) until the application so lapses,

whichever first happens.

s 33: Am 1991 No 6, Sch 1 (4); 1991 No 85, Sch 2 (10).

Conditions of permit

34 Conditions of permit

(1) A permit may be granted subject to such conditions as the Minister thinks fit and specifies in the permit.

(2) The conditions referred to in subsection (1) may include conditions with respect to—

(a) work to be carried out by the permittee in or in relation to the permit area during the term of the permit,

(b) amounts to be expended by the permittee in the carrying out of such work, or

(c) both those matters,

and the conditions requiring the permittee to comply with directions given in accordance with the permit concerning the matters referred to in paragraphs (a) and (b).

(3) A permit shall be deemed to contain a condition that the permittee will comply with the provisions of this Act relating to the payment of royalty, as in force from time to time.

Discovery of petroleum to be notified

35 Discovery of petroleum to be notified

(1) Where petroleum is discovered in a permit area, the permittee—

(a) shall forthwith inform the Minister of the discovery, and

(b) shall, within a period of 3 days after the date of the discovery, furnish to the Minister particulars in writing of the discovery.

(2) Where petroleum is discovered in a permit area, the Minister may, from time to time, by instrument in writing served on the permittee, direct the permittee to furnish to him, within the period specified in the instrument, particulars in writing of any 1 or more of the following—

(a) the chemical composition and physical properties of the petroleum,

(b) the nature of the subsoil in which the petroleum occurs, and

(c) any other matters relating to the discovery that are specified by the Minister in the instrument.

(3) A person to whom a direction is given under subsection (2) shall comply with the direction.

Maximum penalty—100 penalty units.

s 35: Am 1992 No 112, Sch 1.

Directions by Minister on discovery of petroleum

36 Directions by Minister on discovery of petroleum

(1) Where petroleum is discovered in a permit area, the Minister may, by instrument in writing served on the permittee, direct the permittee to do, within the period specified in the instrument, such things as the Minister thinks necessary and specifies in the instrument to determine the chemical composition and physical properties of the petroleum and to determine the quantity of petroleum in the petroleum pool to which the discovery relates or, if part only of that petroleum pool is within the permit area, in such part of that petroleum pool as is within the permit area.

(2) A person to whom a direction is given under subsection (1) shall comply with the direction.

Maximum penalty—100 penalty units.

s 36: Am 1992 No 112, Sch 1.

Nomination of blocks as location

37 Nomination of blocks as location

(1) Where a petroleum pool is identified in a permit area, the permittee may nominate the block in which the pool is situated, or the blocks (being blocks within the permit area) to which the pool extends, for declaration as a location.

(2) Where 2 or more petroleum pools are identified in a permit area, the permittee may, instead of making a nomination under subsection (1) in relation to each pool, nominate all of the blocks to which the pools extend, or to which any 2 or more of the pools extend, for declaration as a single location.

(3) A nomination may not be made under subsection (2) unless, in the case of each of the pools to which the nomination relates, at least one of the blocks to which the pool extends immediately adjoins a block to which the other, or another, of those pools extends.

(4) A nomination by a permittee must be in writing and served on the Minister.

(5) A nomination may not be made by a permittee unless the permittee or another person has, whether within or outside the permit area, recovered petroleum from the petroleum pool to which the nomination relates or, if the nomination relates to more than one pool, from each of those pools.

(6) Where—

(a) the Minister is of the opinion that a permittee is entitled to nominate a block or blocks under subsection (1) or (2), and

(b) the permittee has not done so,

the Minister may require the permittee to exercise the permittee’s right to nominate the block or blocks within 3 months after the date of the making of the requirement.

(7) A requirement by the Minister under subsection (6) must be by written notice served on the permittee.

(8) On written request by a permittee within the period fixed by subsection (6), the Minister may extend the time for compliance with a requirement under that subsection by not more than 3 months.

(9) If a permittee fails to comply with a requirement under subsection (6), the Minister may, by written notice served on the permittee, nominate the block or blocks for declaration as a location.

s 37: Am 1986 No 59, Sch 3 (2). Subst 1991 No 85, Sch 1 (4).

Declaration of location

38 Declaration of location

(1) Where—

(a) a permittee has made a nomination under section 37, and

(b) the Minister is of the opinion that the permittee is entitled under that section to nominate the block or blocks specified in the nomination,

the Minister must, by notice published in the Gazette, declare the block or blocks to which the nomination relates to be a location.

(2) Where the Minister has made a nomination under section 37 (9), the Minister must, by notice published in the Gazette, declare the block or blocks to which the nomination relates to be a location.

(3) The Minister may, at the request of the permittee, revoke a declaration.

(4) The Minister may vary a declaration—

(a) by adding to the location a block in the permit area to which, in the opinion of the Minister, a petroleum pool within the location extends, or

(b) by deleting from the location a block to which, in the opinion of the Minister, no petroleum pool within the location extends.

(5) The Minister may not vary a declaration unless—

(a) the Minister has caused to be served on the permittee notice in writing of the proposed variation, identifying the block to be added to, or deleted from, the location, and

(b) the period of 30 days after the date of service of the notice has expired, and

(c) the Minister has considered any matters submitted to the Minister by the permittee in relation to the proposed variation.

(6) Subsection (5) does not apply where a variation is made at the request of the permittee.

s 38: Am 1985 No 129, Sch 1 (3). Subst 1991 No 85, Sch 1 (4).

Immediately adjoining blocks

39 Immediately adjoining blocks

For the purposes of section 37, a block immediately adjoins another block if the graticular section that constitutes or includes that block and the graticular section that constitutes or includes that other block—

(a) have a side in common, or

(b) are joined together at 1 point only.

s 39: Am 1991 No 85, Sch 1 (5).

Division 2A

Retention leases for petroleum

Division 2A Retention leases for petroleum

pt 4, div 2A: Ins 1986 No 59, Sch 4.

39A

Application by permittee for lease

39A Application by permittee for lease

(1) A permittee whose permit is in force in respect of a block that constitutes, or the blocks that constitute, a location may, within the application period, make an application to the Minister for the grant by the Minister of a lease in respect of that block, or in respect of one or more of those blocks, as the case may be.

(2) An application under subsection (1)—

(a) shall be in accordance with an approved form,

(b) shall be made in an approved manner,

(c) shall be accompanied by particulars of—

(i) the proposals of the applicant for work and expenditure in respect of the area comprised in the blocks specified in the application, and

(ii) the commercial viability of the recovery of petroleum from the area comprised in the blocks specified in the application at the time of the application, and particulars of the possible future commercial viability of the recovery of petroleum from that area,

(d) may set out any other matters that the applicant wishes to be considered, and

(e) shall be accompanied by the prescribed fee.

(3) The Minister may, at any time, by instrument in writing served on the applicant, require the applicant to furnish, within the time specified in the instrument, further information in writing in connection with the application.

(4) The application period in respect of an application under this section by a permittee is—

(a) the period of 2 years after the date on which the block that constitutes the location concerned was, or the blocks that constitute the location concerned were, declared to be a location, or

(b) such other period, not less than 2 years or more than 4 years after that date, as the Minister, on application in writing by the permittee, served on the Minister before the end of the firstmentioned period of 2 years, allows.

s 39A: Ins 1986 No 59, Sch 4. Am 1991 No 6, Sch 1 (5).

39B

Grant or refusal of lease in relation to application

39B Grant or refusal of lease in relation to application

(1) Where—

(a) an application has been made under section 39A,

(b) the applicant has furnished any further information as and when required by the Minister under section 39A (3), and

(c) the Minister is satisfied that recovery of petroleum from the area comprised in the blocks specified in the application—

(i) is not, at the time of the application, commercially viable, and

(ii) is likely to become commercially viable within the period of 15 years after that time,

the Minister shall, by instrument in writing served on the applicant, inform the applicant—

(d) that the Minister is prepared to grant to the applicant a lease in respect of the block or blocks specified in the application.

(e) (Repealed)

(2) Where an application has been made under section 39A and—

(a) the applicant has not furnished any further information as and when required by the Minister under section 39A (3), or

(b) the Minister is not satisfied as to the matters referred to in subsection (1) (c) in relation to the blocks specified in the application,

the Minister shall, by instrument in writing served on the applicant, refuse to grant a lease to the applicant.

(3) An instrument under subsection (1) shall contain—

(a) a summary of the conditions subject to which the lease is to be granted, and

(b) a statement to the effect that the application will lapse if the applicant does not make a request under subsection (4) in respect of the grant of the lease.

(4) An applicant on whom there has been served an instrument under subsection (1) may, within a period of one month after the date of service of the instrument, or within such further period, not exceeding one month, as the Minister, on application in writing served on the Minister before the end of the firstmentioned period of one month, allows, by instrument in writing served on the Minister, request the Minister to grant the lease to the applicant.

(5) Where an applicant on whom there has been served an instrument under subsection (1) has made a request under subsection (4) within the period applicable under subsection (4), the Minister shall grant to the applicant a retention lease in respect of the block or blocks specified in the instrument.

(6) Where an applicant on whom there has been served an instrument under subsection (1) has not made a request under subsection (4) within the period applicable under subsection (4), the application lapses upon the expiration of that period.

(7) On the day on which a lease granted under this section in respect of a block or blocks comes into force, the permit in respect of the block or blocks ceases to be in force in respect of those blocks.

s 39B: Ins 1986 No 59, Sch 4. Am 1991 No 85, Sch 2 (11).

39BA

Application of sections 39A and 39B where permit is transferred

39BA Application of sections 39A and 39B where permit is transferred

Where—

(a) after an application has been made under section 39A (1) in relation to a block or blocks in respect of which a permit is in force, and

(b) before a decision has been made by the Minister under section 39B (1) or (2) in relation to the application,

a transfer of the permit is registered under section 78, sections 39A and 39B have effect, after the time of the transfer, as if any reference in those sections to the applicant were a reference to the transferee.

s 39BA: Ins 1991 No 6, Sch 1 (6).

39C

Rights conferred by lease

39C Rights conferred by lease

A lease, while it remains in force, authorizes the lessee, subject to this Act and the regulations and in accordance with the conditions to which the lease is subject, to explore for petroleum, and to carry on such operations and execute such works as are necessary for that purpose, in the lease area.

ss 39C–39E: Ins 1986 No 59, Sch 4.

39D

Term of lease

39D Term of lease

Subject to this Part, a lease (whether granted by way of renewal of a lease or otherwise) remains in force for a period of 5 years commencing on the day on which the lease was granted or, if a later day is specified in the lease as being the day on which the lease is to come into force, on that later day.

ss 39C–39E: Ins 1986 No 59, Sch 4.

39E

Notice of intention to cancel lease

39E Notice of intention to cancel lease

(1) Where—

(a) a lessee has been given a notice of the kind referred to in section 39H (3) during the term of the lease and has carried out, and has informed the Minister of the results of, the re-evaluation required by the notice,

(b) the lessee has not made an application for the renewal of the lease, and

(c) after consideration of the results of the re-evaluation referred to in paragraph (a) and such other matters as the Minister thinks fit, the Minister is of the opinion that recovery of petroleum from the lease area is commercially viable,

the Minister may serve on the lessee and on such other persons as the Minister thinks appropriate an instrument in writing—

(d) informing the lessee or the other person that the Minister has formed that opinion and that the Minister intends to cancel the lease, and

(e) stating that the lessee or the other person may serve an instrument in writing on the Minister within the period specified in the firstmentioned instrument, not being a period ending earlier than one month after the date of service of the firstmentioned instrument, setting out any matters that the lessee or the other person, as the case may be, wishes to be considered.

(2) Where—

(a) an instrument under subsection (1) is served on a lessee, and

(b) the lessee does not, within the period referred to in subsection (1) (e), serve on the Minister an instrument setting out matters that the lessee wishes to be considered or the Minister, after consideration of matters set out in an instrument served on the Minister by the lessee within that period, determines that the lease should be cancelled,

the Minister shall, by instrument in writing served on the lessee, cancel the lease.

(3) The cancellation of a lease under subsection (2) has effect—

(a) in a case to which paragraph (b) does not apply—at the end of the period of 12 months commencing on the date of service of the instrument of cancellation, or

(b) in a case where the lessee makes an application for a licence in respect of one or more of the blocks comprised in the lease within the period referred to in paragraph (a)—when the Minister grants, or refuses to grant, the licence or when the application lapses, whichever first happens.

(4) Where a lease is cancelled under subsection (2), the lease shall be deemed to continue in force in all respects until the cancellation has effect in accordance with subsection (3).

ss 39C–39E: Ins 1986 No 59, Sch 4.

39F

Application for renewal of lease

39F Application for renewal of lease

(1) A lessee may, from time to time, make an application to the Minister for the renewal of the lease.

(2) An application for the renewal of a lease—

(a) shall be in accordance with an approved form,

(b) subject to subsection (3), shall be made in an approved manner not less than 6 months or more than 12 months before the day on which the lease ceases to be in force,

(c) shall be accompanied by particulars of—

(i) the proposals of the applicant for work and expenditure in respect of the lease area, and

(ii) particulars of the commercial viability of recovery of petroleum from the lease at the time of the application and particulars of the possible future commercial viability of recovery of petroleum from the lease area, and

(d) shall be accompanied by the prescribed fee.

(3) The Minister may, for reasons that the Minister thinks sufficient, receive an application for the renewal of the lease less than 6 months before, but not in any case after, the day on which the lease ceases to be in force.

(4) Where an application has been made for the renewal of a lease, the Minister may, at any time, by instrument in writing served on the lessee, require the lessee to furnish, within the time specified in the instrument, further information in writing in connection with the application.

s 39F: Ins 1986 No 59, Sch 4. Am 1991 No 6, Sch 1 (7).

39G

Grant or refusal of renewal of lease

39G Grant or refusal of renewal of lease

(1) Where—

(a) an application for the renewal of a lease has been made under section 39F, and

(b) any further information required by the Minister under section 39F (4) has been furnished in accordance with that subsection, and

(c) the Minister is satisfied that recovery of petroleum from the lease area—

(i) is not, at the time of the application, commercially viable, and

(ii) is likely to become commercially viable within the period of 15 years after that time,

the Minister—

(d) shall, if the conditions to which the lease is, or has from time to time been, subject and the provisions of this Part and of the regulations have been complied with, or

(e) may, if—

(i) any of the conditions to which the lease is, or has from time to time been, subject or any of the provisions of this Part and of the regulations has not been complied with, and

(ii) the Minister is, nevertheless, satisfied that special circumstances exist that justify the granting of the renewal of the lease,

by instrument in writing served on the person who is then the lessee, inform the person that the Minister is prepared to grant to the person the renewal of the lease.

(2) Subject to subsection (3), where an application for the renewal of a lease has been made under section 39F and—

(a) any further information required by the Minister under subsection 39F (4) has not been furnished in accordance with that subsection, or

(b) the Minister is not satisfied as to the matters referred to in subsection (1) (c), or

(c) any of the conditions to which the permit is, or has from time to time been, subject or any of the provisions of this Part and of the regulations has not been complied with and the Minister is not satisfied that special circumstances exist that justify the granting of the renewal of the lease,

the Minister shall, by instrument in writing served on the person who is then the lessee, refuse to grant the renewal of the lease.

(3) The Minister shall not refuse to grant the renewal of the lease unless—

(a) the Minister has, by instrument in writing served on the lessee, given not less than one month’s notice of the Minister’s intention to refuse to grant the renewal of the lease,

(b) the Minister has served a copy of the instrument on such other persons, if any, as the Minister thinks fit,

(c) the Minister has, in the instrument—

(i) given particulars of the reasons for the intention, and

(ii) specified a date on or before which the lessee or a person on whom a copy of the instrument is served may, by instrument in writing served on the Minister, submit any matters that the lessee wishes to be considered, and

(d) the Minister has taken into account any matters so submitted on or before the specified date by the lessee or by a person on whom a copy of the firstmentioned instrument has been served.

(4) An instrument referred to in subsection (1) shall contain—

(a) a summary of the conditions to which the lease, on the grant of the renewal, is to be subject, and

(b) a statement to the effect that the application will lapse if the lessee does not make a request under subsection (6).

(5) An instrument under subsection (2) shall, where the Minister refuses to grant the renewal of a lease by reason only that the Minister is not satisfied as to the matter referred to in subsection (1) (c) (i), contain a statement to the effect that the lessee may, within the period of 12 months after the date of service of the instrument, make an application for a licence in respect of one or more of the blocks comprised in the lease.

(6) A lessee on whom there has been served an instrument under subsection (1) may, within a period of one month after the date of service of the instrument on the lessee, by instrument in writing served on the Minister, request the Minister to grant the renewal of the lease to the lessee.

(7) Where a lessee on whom there has been served an instrument under subsection (1) has made a request under subsection (6) within the period referred to in subsection (6), the Minister shall grant to the lessee the renewal of the lease.

(8) Where a lessee on whom there has been served an instrument under subsection (1) has not made a request under subsection (6) within the period referred to in subsection (6), the application lapses upon the expiration of that period.

(9) Where—

(a) an application for the renewal of a lease has been made, and

(b) the lease expires—

(i) before the Minister grants, or refuses to grant, the renewal of the lease, or

(ii) before the application lapses as provided by subsection (8),

the lease shall be deemed to continue in force in all respects—

(c) until the Minister grants, or refuses to grant, the renewal of the lease, or

(d) until the application so lapses,

whichever first happens.

(10) Where the Minister refuses to grant the renewal of a lease by reason only that the Minister is not satisfied as to the matter referred to in subsection (1) (c) (i), the lease shall be deemed to continue in force in all respects—

(a) in a case to which paragraph (b) does not apply—until 12 months after the date of service of the instrument under subsection (2), or

(b) in a case where the lessee makes an application for a licence in respect of one or more of the blocks comprised in the lease within the period of 12 months after the date referred to in paragraph (a)—until the Minister grants, or refuses to grant, the licence or until the application lapses, whichever first happens.

s 39G: Ins 1986 No 59, Sch 4. Am 1991 No 6, Sch 1 (8); 1991 No 85, Sch 2 (12).

39H

Conditions of lease

39H Conditions of lease

(1) A lease may be granted subject to such conditions as the Minister thinks fit and are specified in the lease.

(2) The conditions referred to in subsection (1) may include conditions with respect to work to be carried out by the lessee in or in relation to the lease area during the term of the lease, or amounts to be expended by the lessee in the carrying out of such work, or conditions with respect to both of those matters, including conditions requiring the lessee to comply with directions given in accordance with the lease concerning those matters.

(3) A lease shall be deemed to contain a condition that the lessee will, within the period of 3 months after the receipt of a written notice from the Minister requesting the lessee to do so or within such further period as the Minister, on application in writing served on the Minister before the end of the firstmentioned period, allows, re-evaluate the commercial viability of petroleum production in the lease area (otherwise than by the drilling of wells) and inform the Minister in writing of the result of the re-evaluation.

(4) Where a lessee has complied with a notice of the kind referred to in subsection (3) during the term of the lease, the Minister shall not give to the lessee during that term a further notice of that kind.

s 39H: Ins 1986 No 59, Sch 4. Am 2005 No 35, Sch 1 [3].

39I

Discovery of petroleum to be notified

39I Discovery of petroleum to be notified

(1) Where petroleum is discovered in a lease area, the lessee—

(a) shall forthwith inform the Minister of the discovery, and

(b) shall, within a period of 3 days after the date of the discovery, furnish to the Minister particulars in writing of the discovery.

(2) Where petroleum is discovered in a lease area, the Minister may, from time to time, by instrument in writing served on the lessee, direct the lessee to furnish to the Minister, within the period specified in the instrument, particulars in writing of any one or more of the following—

(a) the chemical composition and physical properties of the petroleum,

(b) the nature of the subsoil in which the petroleum occurs,

(c) any other matters relating to the discovery that are specified by the Minister in the instrument.

(3) A person to whom a direction is given under subsection (2) shall comply with the direction.

Maximum penalty—100 penalty units.

s 39I: Ins 1986 No 59, Sch 4. Am 1992 No 112, Sch 1.

39J

Directions by Minister on discovery of petroleum

39J Directions by Minister on discovery of petroleum

(1) Where petroleum is discovered in a lease area, the Minister may, by instrument in writing served on the lessee, direct the lessee to do, within the period specified in the instrument, such things as the Minister thinks necessary and specifies in the instrument to determine the chemical composition and physical properties of that petroleum and to determine the quantity of petroleum in the petroleum pool to which the discovery relates or, if part only of that petroleum pool is within the lease area, in such part of that petroleum pool as is within the lease area.

(2) A person to whom a direction is given under subsection (1) shall comply with the direction.

Maximum penalty—100 penalty units.

s 39J: Ins 1986 No 59, Sch 4. Am 1992 No 112, Sch 1.

Division 3

Production licences for petroleum

Division 3 Production licences for petroleum

Recovery of petroleum in adjacent area

40 Recovery of petroleum in adjacent area

A person shall not carry on operations for the recovery of petroleum in the adjacent area except—

(a) under and in accordance with a licence, or

(b) as otherwise permitted by this Part.

Maximum penalty—500 penalty units or imprisonment for 5 years, or both.

s 40: Am 1992 No 112, Sch 1.

Application for licence by holder of permit

41 Application for licence by holder of permit

(1) A permittee whose permit is in force in respect of a block that constitutes, or the blocks that constitute, a location may, within the application period, make an application to the Minister for the grant of a licence—

(a) where 9 or more blocks constitute the location concerned—in respect of 5 of those blocks,

(b) where 8 or 7 blocks constitute the location concerned—in respect of 4 of those blocks,

(c) where 6 or 5 blocks constitute the location concerned—in respect of 3 of those blocks,

(d) where 4 or 3 blocks constitute the location concerned—in respect of 2 of those blocks,

(e) where 2 blocks constitute the location concerned—in respect of 1 of those blocks, or

(f) where 1 block constitutes the location concerned—in respect of that block.

(2) A permittee whose permit is in force in respect of blocks that constitute a location—

(a) instead of making an application under subsection (1) in respect of the permittee’s primary entitlement, may, within the application period, make an application to the Minister for the grant of a licence in respect of a number of those blocks that is less than the permittee’s primary entitlement, and

(b) being the holder of a licence referred to in paragraph (a), may, from time to time within that period, make an application to the Minister for the variation of that licence to include in the licence area a number of those blocks that does not exceed the number, if any, by which the holder’s primary entitlement exceeds the number of blocks in respect of which that licence was granted and the number of blocks, if any, included in that licence by reason of any previous variations of that licence.

(3) Where—

(a) a permittee makes an application under subsection (1) in respect of the permittee’s primary entitlement, or

(b) a permittee who is the holder of a licence in respect of a number of blocks that is less than the permittee’s primary entitlement makes an application under subsection (2) for a variation of that licence, and the number of blocks in respect of which that licence was granted, together with the number of blocks included, and sought to be included, in the licence area by reason of applications under that subsection, is the permittee’s primary entitlement,

the permittee may, within the application period, make an application to the Minister for the grant of a licence in respect of any of the other blocks forming part of the location concerned.

(4) Subject to subsection (5), the application period in respect of an application under this section by a permittee is—

(a) the period of 2 years after the date on which the block that constitutes the location concerned was, or the blocks that constitute the location concerned were, declared to be a location, or

(b) such other period, not less than 2 years or more than 4 years after that date, as the Minister, on application by the permittee, in writing, served on the Minister before the expiration of the period of 2 years, referred to in paragraph (a), allows.

(5) Where—

(a) a permittee applies for the grant by the Minister of a licence in respect of a block or blocks in respect of which the permittee has applied for a lease under section 39A, and

(b) an instrument refusing to grant the lease is served on the permittee pursuant to section 39B (2),

the application period is whichever of the following periods last expires—

(c) the period that is applicable under subsection (4),

(d) the period of 12 months after the day of service of the instrument.

s 41: Am 1986 No 59, Sch 5 (1); 1991 No 6, Sch 1 (9); 1991 No 85, Sch 1 (6).

41A

Application for licence by holder of lease

41A Application for licence by holder of lease

(1) A lessee whose lease is in force may make an application to the Minister for the grant by the Minister of a licence—

(a) where the lease is in respect of 9 blocks—in respect of 5 of those blocks,

(b) where the lease is in respect of 8 or 7 blocks—in respect of 4 of those blocks,

(c) where the lease is in respect of 6 or 5 blocks—in respect of 3 of those blocks,

(d) where the lease is in respect of 4 or 3 blocks—in respect of 2 of those blocks,

(e) where the lease is in respect of 2 blocks—in respect of one of those blocks, or

(f) where the lease is in respect of one block—in respect of that block.

(2) At any time while a lease is in force, the lessee may, instead of making an application under subsection (1) in respect of the lessee’s primary entitlement, make an application to the Minister for the grant by the Minister of a licence in respect of a number of blocks that is less than the lessee’s primary entitlement.

(3) Where an application has been made under subsection (1) in respect of the lessee’s primary entitlement, the lessee may, at any time while the lease concerned is in force, make an application to the Minister for the grant by the Minister of a licence in respect of any of the other blocks forming part of the lease.

s 41A: Ins 1986 No 59, Sch 5 (2). Am 1991 No 6, Sch 1 (10).

Application for licence

42 Application for licence

(1) An application under section 41 or 41A—

(a) shall be in accordance with an approved form,

(b) shall be made in an approved manner,

(c) shall be accompanied by particulars of the proposals of the applicant for work and expenditure in respect of the area comprised in the blocks specified in the application,

(d) may set out any other matters that the applicant wishes the Minister to consider, and

(e) shall, in the case of an application for the grant of a licence, be accompanied by the prescribed fee.

(2) The Minister may, at any time, by instrument in writing served on the applicant, require the applicant to furnish, within the period specified in the instrument, further information in writing in connexion with the application.

s 42: Am 1986 No 59, Sch 5 (3); 1991 No 6, Sch 1 (11).

Determination of rate of royalty

43 Determination of rate of royalty

(1) Where an application for a primary licence has been made and, before or after the grant of the primary licence, the applicant makes an application for a secondary licence, the Minister shall determine a rate at which royalty is to be payable in respect of petroleum recovered, whether under the primary licence or under the secondary licence, being a rate that is not less than 11 per cent nor more than 12 and a half per cent of the value at the well-head of that petroleum.

(2) The Minister shall not, under subsection (1), determine the rate at which royalty is to be payable unless the Minister has given to the applicant an opportunity to confer with the Minister concerning that rate.

Notification as to grant of licence

44 Notification as to grant of licence

(1) Where an application for the grant of a licence has been made under section 41 or 41A and the applicant has furnished any further information as and when required by the Minister under section 42 (2), the Minister, by instrument in writing served on the applicant, must inform the applicant that the Minister is prepared to grant to the applicant a licence in respect of the blocks specified in the application.

(2) An instrument under subsection (1) shall—

(a) contain a summary of the conditions subject to which the licence is to be granted,

(b) if the instrument relates to an application for a secondary licence—specify the rate of royalty determined by the Minister in pursuance of section 43 (1), and

(c) contain a statement to the effect that the application will lapse if the applicant does not make a request under section 45 (1) in respect of the grant of the licence.

s 44: Am 1986 No 59, Sch 5 (4); 1991 No 85, Sch 2 (13).

Grant of licence

45 Grant of licence

(1) An applicant on whom there has been served an instrument under section 44 (1) may, within a period of 3 months after the date of service of the instrument, or within such further period, not exceeding 3 months, as the Minister, on application in writing served before the expiration of the firstmentioned period of 3 months, allows, by instrument in writing served on the Minister, request the Minister to grant to the applicant the licence referred to in the firstmentioned instrument.

(2) Where an applicant on whom there has been served an instrument under section 44 (1) has made a request under subsection (1) within the period applicable under subsection (1), the Minister shall grant to the applicant a production licence for petroleum in respect of the blocks specified in the application.

(3) A secondary licence shall not be granted to a permittee or lessee in respect of any 1 or more of the blocks that constitute a location unless—

(a) a primary licence has been granted in respect of a block or blocks forming part of that location, and

(b) the number of blocks in respect of which the primary licence was granted, together with the number of blocks included in that licence by reason of variations of the licence under section 46, is the permittee’s or lessee’s primary entitlement.

(4) Where an applicant on whom there has been served an instrument under section 44 (1) has not made a request under subsection (1) within the period applicable under subsection (1), the application lapses upon the expiration of that period.

(5) On the day on which a licence granted under this section comes into force, the permit or lease in respect of the blocks in respect of which the licence was granted ceases to be in force in respect of those blocks.

s 45: Am 1985 No 129, Sch 1 (4); 1986 No 59, Sch 5 (5); 1991 No 85, Sch 2 (14).

45A

Application of sections 42–45 where permit etc transferred

45A Application of sections 42–45 where permit etc transferred

Where—

(a) after an application has been made—

(i) under section 41 for the grant of a licence in respect of a block in respect of which a permit is in force, or

(ii) under section 41A for the grant of a licence in respect of a block in respect of which a lease is in force, and

(b) before a decision has been made by the Minister under section 44 (1) in relation to the application,

a transfer of the permit or lease (as the case may be) is registered under section 78, then, after the time of the transfer, sections 42 to 45 (inclusive) have effect in relation to the application as if any reference in those sections to the applicant were a reference to the transferee.

s 45A: Ins 1991 No 6, Sch 1 (12).

Variation of licence area

46 Variation of licence area

(1) Where an application is made under section 41 (2) for a variation of a licence, the Minister shall, by instrument in writing served on the licensee, vary the licence to include in the licence area the blocks specified in the application.

(2) On and from the day on and from which a variation of a licence under this section has effect—

(a) the blocks included in the licence area by reason of the variation are, subject to this Part, for the remainder of the term of the licence, blocks in respect of which the licence is in force, and

(b) the permit that is in force in respect of the blocks so included ceases to be in force in respect of those blocks.

s 46: Am 1985 No 129, Sch 1 (5).

Determination of permit as to block not taken up

47 Determination of permit as to block not taken up

(1) Subject to subsection (2), where—

(a) a permittee who may make an application under section 41 in respect of a block does not, within the application period, make the application, or

(b) all applications made by a permittee under that section in respect of a block have lapsed,

the permit is determined as to that block and the determination has effect—

(c) in a case referred to in paragraph (a)—upon the expiration of the application period, and

(d) in a case referred to in paragraph (b)—

(i) upon the expiration of the application period, or

(ii) upon the lapsing of the application, or the last of the applications, referred to in that paragraph,

whichever is the later.

(1A) Subject to subsection (2), where all applications made by a lessee under section 41A in respect of a block have lapsed, the lease is determined as to that block and the determination has effect upon the lapsing of the last of those applications.

(2) Where a permittee or lessee makes an application for a secondary licence—

(a) the permit or lease is determined as to any blocks forming part of the location concerned that are not the subject of that application or of any application for a primary licence or for the variation of such a licence, and

(b) the determination has effect upon the making of the application.

(3) Subject to subsection (4), where a block or blocks constituting or forming part of a location is or are no longer the subject of a permit or lease, the Minister shall, by instrument published in the Gazette—

(a) in a case where that block or those blocks constitutes or constitute that location—revoke the declaration made under section 38 in respect of that location, or

(b) in a case where that block or those blocks forms or form part of that location—revoke the declaration made under section 38 in respect of that location to the extent that it relates to that block or those blocks.

(4) Subsection (3) does not apply in relation to a block—

(a) in respect of which an application for the grant of a lease or licence has been made, being an application that has not lapsed and in relation to which a decision has not been made by the Minister, or

(b) in respect of which a lease or licence is in force.

(5) Where a lease is granted in respect of a block or blocks forming part of a location, the Minister shall, by instrument published in the Gazette, revoke the declaration made under section 38 to the extent that it relates to the block or blocks that is or are not within the lease area.

(6) Where—

(a) the Minister refuses to grant a lease in respect of a block or blocks constituting or forming part of a location, and

(b) the reason, or one of the reasons, for the refusal is that the Minister is not satisfied as to the matter referred to in section 39B (1) (c) (ii),

the Minister shall, by instrument published in the Gazette, revoke the declaration made under section 38 in respect of that location.

s 47: Am 1985 No 129, Sch 1 (6); 1986 No 59, Sch 5 (6); 1991 No 85, Sch 1 (7).

Application for licence in respect of surrendered etc blocks

48 Application for licence in respect of surrendered etc blocks

(1) Where—

(a) a licence is surrendered or cancelled as to a block, or

(b) a permit or lease is surrendered, cancelled or determined as to a block—

(i) that, at the time of the surrender, cancellation or determination, was, or was included in, a location, and

(ii) in which, in the opinion of the Minister, there is petroleum,

the Minister may, at any subsequent time, by instrument published in the Gazette—

(c) invite applications for the grant of a licence in respect of that block, and

(d) specify a period within which applications may be made.

(2) The Minister shall, in an instrument under subsection (1), state—

(a) that an applicant is required to specify an amount that the applicant would be prepared to pay in respect of the grant of a licence on the application, or

(b) that an applicant is required to specify a rate of royalty that the applicant would be prepared to pay, if a licence were granted on the application, in respect of petroleum recovered under the licence, being a rate that exceeds 10 per cent of the value at the well-head of that petroleum.

(3) Where the Minister, in an instrument under subsection (1), states that an applicant is required to specify a rate of royalty as mentioned in subsection (2) (b), the Minister may, in that instrument, state that an applicant on whose application the Minister is prepared to grant a licence will also be required to pay to the Minister, in respect of the grant of the licence to the applicant, the amount specified in that behalf in that instrument.

(4), (5) (Repealed)

(6) An application under this section—

(a) shall be in accordance with an approved form,

(b) shall be made in an approved manner,

(c) shall be accompanied by the particulars referred to in section 42 (1) (c),

(d) in the case of an application under subsection (1), shall specify, in accordance with the requirement in the instrument by which applications were invited, the amount, or the rate of royalty, that the applicant would be prepared to pay, and

(e) (Repealed)

(f) may set out any other matters that the applicant wishes the Minister to consider.

(7) The Minister may, at any time, by instrument in writing served on the applicant, require the applicant to furnish, within the period specified in the instrument, further information in connexion with the application.

s 48: Am 1986 No 59, Sch 5 (7); 1991 No 85, Sch 1 (8).

Application fee etc

49 Application fee etc

(1) An application under section 48 shall be accompanied by—

(a) the prescribed fee, and

(b) a deposit—

(i) if the applicant has specified an amount that the applicant would be prepared to pay in respect of the grant of a licence to the applicant on the application—of 10 per cent of that amount, or

(ii) if the Minister has, in the instrument by which applications were invited, stated an amount that the applicant will be required to pay in respect of the grant of a licence—of 10 per cent of that amount.

(2) Where a licence is not granted on the application, the amount of the deposit is, subject to subsection (3), to be refunded to the applicant.

(3) Where an applicant on whom there has been served an instrument under section 50 (1) does not request the Minister, under section 50 (6), to grant to the applicant the licence referred to in the instrument, the deposit shall not, unless the Minister otherwise determines, be refunded to the applicant.

s 49: Am 1991 No 6, Sch 1 (13); 1991 No 85, Sch 1 (9).

Request by applicant for grant of licence

50 Request by applicant for grant of licence

(1) Where, at the expiration of the period specified in an instrument under section 48 (1), only 1 application has been made under that subsection in respect of the block specified in the instrument, the Minister may reject the application or may, by instrument in writing served on the applicant, inform the applicant that the Minister is prepared to grant to the applicant a licence in respect of that block.

(2) Where, at the expiration of the period specified in an instrument under section 48 (1), 2 or more applications have been made under that subsection in respect of the block specified in the instrument, the Minister may reject any or all of the applications and, if the Minister does not reject all of the applications, may—

(a) if only 1 application remains unrejected—by instrument in writing served on the applicant, or

(b) if 2 or more applications remain unrejected—by instrument in writing served on the applicant, or on 1 of the applicants, whose application has not been rejected and who has specified in the application an amount, or a rate of royalty, that the applicant would be prepared to pay that is not less than the amount, or the rate of royalty, specified in the application of any other applicant whose application has not been rejected,

inform the applicant—

(c) that the Minister is prepared to grant to the applicant a licence in respect of that block, and

(d) that the applicant will be required to pay—

(i) the amount specified in the application,

(ii) royalty at the rate specified in the application, or

(iii) royalty at the rate specified in the application and the amount specified in the instrument under section 48 (1),

as the case may be.

(3), (4) (Repealed)

(5) An instrument under any of the preceding provisions of this section shall contain—

(a) a summary of the conditions subject to which the licence is to be granted,

(b) a statement of the balance of the amount, if any, that the applicant will be required to pay in respect of the grant of the licence to the applicant, and

(c) a statement to the effect that the application will lapse—

(i) if the applicant does not make a request under subsection (6), or

(ii) in a case where the instrument contains a statement referred to in paragraph (b)—if the applicant does not pay the balance of the amount referred to in that statement or enter into an agreement under section 110 in respect of that balance.

(iii) (Repealed)

(6) An applicant on whom there has been served an instrument under any of the preceding provisions of this section may, within a period of 3 months after the date of service of the instrument on the applicant, or within such further period, not exceeding 3 months, as the Minister, on application in writing served on the Minister before the expiration of the firstmentioned period of 3 months, allows—

(a) by instrument in writing served on the Minister, request the Minister to grant to the applicant the licence, and

(b) if the firstmentioned instrument contains a statement of the balance of an amount that the applicant will be required to pay in respect of the grant of the licence to the applicant—pay that balance or enter into an agreement under section 110 in respect of that balance.

(c) (Repealed)

(7) Where an applicant on whom there has been served an instrument under subsection (1) or (2)—

(a) has not made a request under subsection (6), or

(b) if the instrument contains a statement of the balance of an amount that the applicant will be required to pay in respect of the grant of a licence to the applicant—has not paid that balance or entered into an agreement under section 110 in respect of that balance,

(c) (Repealed)

within the period applicable under subsection (6), the application lapses upon the expiration of that period.

(8) Where the application of an applicant on whom there has been served an instrument under subsection (2) lapses as provided by subsection (7), subsection (2) applies in respect of the application or applications, if any, then remaining unrejected.

s 50: Am 1991 No 85, Schs 1 (10), 2 (15).

Grant of licence on request

51 Grant of licence on request

Where an applicant on whom there has been served an instrument under section 50—

(a) has made a request under section 50 (6), and

(b) if the instrument contains a statement of the balance of an amount that the applicant will be required to pay in respect of the grant of a licence to the applicant—has paid that balance or entered into an agreement under section 110 in respect of that balance,

(c) (Repealed)

within the period applicable under section 50 (6), the Minister shall grant to the applicant a production licence for petroleum in respect of the block specified in the instrument.

s 51: Am 1991 No 85, Sch 2 (16).

Grant of licences in respect of individual blocks

52 Grant of licences in respect of individual blocks

(1) Where a licence (in this section called the original licence) is in force in respect of 2 or more blocks (not being blocks that form, or form part of, a location), the licensee may make an application to the Minister for the grant to the licensee of 2 or more licences in respect of the blocks the subject of the original licence in exchange for the original licence.

(2) An application under subsection (1)—

(a) shall be in accordance with an approved form,

(b) shall be made in an approved manner,

(c) shall specify the number of licences required,

(d) shall specify the block or blocks the subject of the original licence in respect of which each licence is sought, and

(e) shall be accompanied by the prescribed fee.

(3) (Repealed)

(4) Where a licensee has made an application under this section, the Minister shall grant to the licensee production licences for petroleum in accordance with the application.

(5) A licence granted on an application under this section—

(a) remains in force, subject to this Part, but notwithstanding section 54, for the remainder of the term of the original licence, and

(b) shall be granted subject to conditions corresponding as nearly as may be to the conditions to which the original licence was subject.

(6) Where licences are granted on an application under this section—

(a) the original licence is, by force of this subsection, determined, and

(b) the determination has effect on and from the day on which those licences come into force.

s 52: Am 1985 No 129, Sch 1 (7); 1991 No 6, Sch 1 (14); 1991 No 85, Sch 2 (17).

Rights conferred by licence

53 Rights conferred by licence

A licence, while it remains in force, authorizes the licensee, subject to this Act and the regulations and in accordance with the conditions to which the licence is subject—

(a) to recover petroleum in the licence area and to recover petroleum from the licence area in another area to which the licensee has lawful access for that purpose,

(b) to explore for petroleum in the licence area, and

(c) to carry on such operations and execute such works in the licence area as are necessary for those purposes.

Term of licence

54 Term of licence

Subject to this Part, a licence remains in force—

(a) in the case of a licence granted otherwise than by way of renewal of a licence—for the period of 21 years commencing on the day on which the licence is granted or, if a later day is specified in the licence as being the day on which the licence is to come into force, on that later day,

(b) in the case of a licence granted by way of the first renewal of a licence—for the period of 21 years commencing on the day on which the licence is granted or, if a later day is specified in the licence as being the day on which the licence is to come into force, on that later day, and

(c) in the case of a licence granted by way of the renewal, other than the first renewal, of a licence—for such period, commencing on the day on which the licence is granted or, if a later day is specified in the licence as being the day on which the licence is to come into force, on that later day, as the Minister determines and specifies in the licence, being a period not exceeding 21 years.

s 54: Am 1985 No 129, Sch 1 (8).

Application for renewal of licence

55 Application for renewal of licence

(1) A licensee may, from time to time, make an application to the Minister for the renewal of the licence.

(2) An application for the renewal of the licence—

(a) shall be in accordance with an approved form,

(b) subject to subsection (3), shall be made in an approved manner not less than 6 months before the day on which the licence ceases to be in force,

(c) shall be accompanied by particulars of the proposals of the licensee for work and expenditure in respect of the licence area, and

(d) shall be accompanied by the prescribed fee.

(3) The Minister may, for reasons that the Minister thinks sufficient, receive an application for the renewal of the licence less than 6 months before, but not in any case after, the day on which the licence ceases to be in force.

s 55: Am 1985 No 129, Sch 1 (9); 1991 No 6, Sch 1 (15).

Grant or refusal of renewal of licence

56 Grant or refusal of renewal of licence

(1) Where—

(a) an application for the renewal of a licence has been made under section 55, and

(b) the conditions to which the licence is, or has from time to time been, subject and the provisions of this Part and of the regulations have been complied with,

the Minister—

(c) shall, if the application is in respect of the first renewal of the licence, or

(d) may, if the application is in respect of a renewal other than the first renewal of the licence,

by instrument in writing served on the person who is then the licensee, inform the person that the Minister is prepared to grant to the person the renewal of the licence.

(2) Where—

(a) an application for the renewal of a licence has been made under section 55, and

(b) any of the conditions to which the licence is, or has from time to time been, subject or any of the provisions of this Part and of the regulations has not been complied with, but the Minister is, nevertheless, satisfied that special circumstances exist that justify the granting of the renewal of the licence,

the Minister may, by instrument in writing served on the person who is then the licensee, inform the person that the Minister is prepared to grant to the person the renewal of the licence.

(3) If any of the conditions to which the licence is, or has from time to time been, subject or any of the provisions of this Part and of the regulations has not been complied with, and if the Minister is not satisfied that special circumstances exist that justify the granting of the renewal of the licence, the Minister shall, subject to subsection (4), by instrument in writing served on the person who is then the licensee, refuse to grant the renewal of the licence.

(4) The Minister shall not, under subsection (3), refuse to grant the renewal of a licence unless—

(a) the Minister has, by instrument in writing served on the licensee, given not less than 1 month’s notice of the Minister’s intention to refuse to grant the renewal of the licence,

(b) the Minister has served a copy of the instrument on such other persons, if any, as the Minister thinks fit,

(c) the Minister has, in the instrument—

(i) given particulars of the reasons for the intention, and

(ii) specified a date on or before which the licensee or a person on whom a copy of the instrument is served may, by instrument in writing served on the Minister, submit any matters that he or she wishes the Minister to consider, and

(d) the Minister has taken into account any matters so submitted to the Minister on or before the specified date by the licensee or by a person on whom a copy of the firstmentioned instrument has been served.

(5) Where an application has been made under section 55 in respect of a renewal other than the first renewal of the licence, the Minister may, by instrument in writing served on the person who is then the licensee, refuse to grant the renewal of the licence.

(6) (Repealed)

(7) An instrument under subsection (1) or (2) shall contain—

(a) a summary of the conditions to which the licence, on the grant of the renewal, is to be subject, and

(b) a statement to the effect that the application will lapse if the applicant does not make a request under subsection (8).

(8) A licensee on whom there has been served an instrument under subsection (1) or (2) may, within a period of 1 month after the date of service of the instrument on the licensee, by instrument in writing served on the Minister, request the Minister to grant the renewal of the licence to the licensee.

(9) Where a licensee on whom there has been served an instrument under subsection (1) or (2) has made a request under subsection (8) within the period referred to in subsection (8), the Minister shall grant to the licensee the renewal of the licence.

(10) Where a licensee on whom there has been served an instrument under subsection (1) or (2) has not made a request under subsection (8) within the period referred to in subsection (8), the application lapses upon the expiration of that period.

(11) Where—

(a) an application for the renewal of a licence is made under section 55, and

(b) the licence expires—

(i) before the Minister grants, or refuses to grant, the renewal of the licence, or

(ii) before the application lapses as provided by subsection (10),

the licence shall be deemed to continue in force in all respects—

(c) until the Minister grants, or refuses to grant, the renewal of the licence, or

(d) until the application so lapses,

whichever first happens.

s 56: Am 1991 No 6, Sch 1 (16); 1991 No 85, Sch 2 (18).

Conditions of licence

57 Conditions of licence

(1) A licence may be granted subject to such conditions as the Minister thinks fit and specifies in the licence.

(2) A licence shall be deemed to contain a condition that the licensee will comply with the provisions of this Act relating to the payment of royalty as in force from time to time.

58

58 (Repealed)

Directions as to recovery of petroleum

59 Directions as to recovery of petroleum

(1) Where petroleum is not being recovered in a licence area and the Minister is satisfied that there is recoverable petroleum in that area, the Minister may, by instrument in writing served on the licensee, direct the licensee to take all necessary and practicable steps to recover that petroleum.

(2) Where the Minister is not satisfied with the steps taken or being taken by a licensee to whom a direction has been given under subsection (1), the Minister may, by instrument in writing served on the licensee, give to the licensee such directions as the Minister thinks necessary for or in relation to the recovery of petroleum in the licence area.

(3) Where petroleum is being recovered in a licence area, the Minister may, for reasons that he thinks sufficient, by instrument in writing served on the licensee, direct the licensee to take all necessary and practicable steps to increase or reduce the rate at which petroleum is being recovered in the licence area or from a petroleum pool in the licence area to such rate as the Minister specifies in the instrument.

(4) Where the Minister is not satisfied with the steps taken or being taken by a licensee to whom a direction has been given under subsection (3), the Minister may, by instrument in writing served on the licensee, give to the licensee such directions as the Minister thinks necessary for or in relation to the increase or reduction of the rate at which petroleum is being recovered in the licence area or from a petroleum pool in the licence area.

s 59: Am 1985 No 129, Sch 1 (10).

Unit development

60 Unit development

(1) In this section, the expression unit development—

(a) applies in relation to a petroleum pool that is partly in a particular licence area of a licensee and partly in a licence area of another licensee or in an area that is not within the adjacent area but in which a person other than the firstmentioned licensee is lawfully entitled to carry on operations for the recovery of petroleum from the pool, and

(b) means the carrying on of operations for the recovery of petroleum from that pool under co-operative arrangements between the persons entitled to carry on such operations in each of those areas.

(2) A licensee may from time to time enter into an agreement in writing for or in relation to the unit development of a petroleum pool, but nothing in this subsection derogates from the operation of section 81 (2).

(3) The Minister, of the Minister’s own motion or on application made to the Minister in writing by—

(a) a licensee in whose licence area there is a part of a particular petroleum pool, or

(b) a person who is lawfully entitled to carry on operations for the recovery of petroleum in an area outside the adjacent area that includes part of a particular petroleum pool that extends into the adjacent area,

may, for the purpose of securing the more effective recovery of petroleum from the petroleum pool, by instrument in writing served on the licensee, direct any licensee whose licence area includes part of the petroleum pool to enter into an agreement in writing, within the period specified in the instrument, for or in relation to the unit development of the petroleum pool and to lodge an application in accordance with section 81 for approval of any dealing to which the agreement relates.

(4) Where—

(a) a licensee who is directed under subsection (3) to enter into an agreement for or in relation to the unit development of a petroleum pool does not enter into such an agreement within the specified period, or

(b) the licensee enters into such an agreement but an application for approval of a dealing to which the agreement relates is not lodged with the Minister or, if an application is so lodged, the dealing is not approved under section 81,

the Minister may, by instrument in writing served on the licensee, direct the licensee to submit to the Minister, within the period specified in the instrument, a scheme for or in relation to the unit development of the petroleum pool.

(5) At any time after the expiration of the period within which a scheme for or in relation to the unit development of a petroleum pool is to be submitted by a licensee under subsection (4), the Minister may, by instrument in writing served on the licensee, give to the licensee such directions as the Minister thinks necessary for the purpose of securing the more effective recovery of petroleum from the petroleum pool.

(6) Where a person is the licensee in respect of 2 or more licence areas in each of which there is part of a particular petroleum pool, the Minister may, by instrument in writing served on the licensee, give to the licensee such directions as the Minister thinks necessary for the purpose of securing the more effective recovery of petroleum from the petroleum pool.

(7) Where an agreement under this section is in force or the Minister has given directions under subsection (5) or (6), the Minister may, having regard to additional information that has become available, by instrument in writing served on the licensee or licensees concerned, give to the licensee or licensees such directions, or further directions, as the case may be, as he thinks necessary for the purpose of securing the more effective recovery of petroleum from the petroleum pool.

(8) The Minister shall not give a direction under subsection (6) or (7) unless he has given to the licensee or licensees concerned an opportunity to confer with the Minister concerning the proposed direction.

(9) Directions under subsection (5), (6) or (7) may include directions as to the rate at which petroleum is to be recovered.

(10) In this section—

dealing means a dealing to which section 81 applies.

(11) The Minister shall—

(a) if a petroleum pool extends, or is reasonably believed by the Minister to extend, from the adjacent area into lands to which the laws of another State relating to the exploitation of petroleum resources apply, consult with the appropriate authority of that State concerning the exploitation of the petroleum pool,

(b) if a petroleum pool extends, or is reasonably believed by the Minister to extend, from the adjacent area into the adjacent area in respect of a State other than New South Wales within the meaning of the Commonwealth Act, consult with the Designated Authority under the Commonwealth Act in respect of that State concerning the exploitation of the petroleum pool, or

(c) if both paragraph (a) and paragraph (b) apply, comply with both of those paragraphs.

(12) Where subsection (11) applies in relation to a petroleum pool, the Minister shall not approve an agreement under this section, or give a direction under this section, in relation to that petroleum pool except with the approval of any other authority or Designated Authority required by that subsection to be consulted.

s 60: Am 1986 No 59, Sch 5 (8).

Division 4

Pipeline licences

Division 4 Pipeline licences

Construction etc of pipelines etc

61 Construction etc of pipelines etc

(1) A person shall not, in the adjacent area—

(a) commence or continue the construction, or the alteration or reconstruction, of a pipeline, or

(b) operate a pipeline,

except under and in accordance with a pipeline licence.

(2) A person shall not, in the adjacent area—

(a) commence or continue the construction, or the alteration or reconstruction, of a secondary line or water line, or

(b) operate a secondary line or water line,

except with and in accordance with a consent in writing of the Minister.

(3) A person shall not, in the adjacent area—

(a) commence or continue the construction, or the alteration or reconstruction, of a pumping station, tank station or valve station, or

(b) operate a pumping station, tank station or valve station,

except under and in accordance with a pipeline licence or with and in accordance with a consent in writing of the Minister.

(4) A person shall not, in the adjacent area, commence to operate a pipeline, a secondary line or a water line unless—

(a) in the case of a pipeline, it has been constructed and tested in accordance with a pipeline licence,

(b) in the case of a secondary line or water line, it has been constructed and tested in accordance with a consent in writing of the Minister, and

(c) the Minister has certified in writing that the Minister is satisfied that the pipeline, secondary line or water line, as the case may be, has been so constructed and tested and is fit to be operated.

(5) A person shall not, in the adjacent area, recommence to operate a pipeline, a secondary line or a water line, the previous operation of which was discontinued, except with and in accordance with a consent in writing of the Minister.

(6) The Minister may, for reasons that the Minister thinks sufficient, refuse to give a consent or certificate for the purposes of this section and, where the Minister gives a consent, may attach conditions to it.

Maximum penalty—500 penalty units or imprisonment for 5 years, or both.

s 61: Am 1992 No 112, Sch 1.

Acts done in an emergency etc

62 Acts done in an emergency etc

It is not an offence against section 61—

(a) if, in an emergency in which there is a likelihood of loss or injury, or for the purpose of maintaining a pipeline, water line, pumping station, tank station, valve station or secondary line in good order or repair, a person does an act to avoid the loss or injury or to maintain the pipeline, water line, pumping station, tank station, valve station or secondary line in good order and repair and—

(i) as soon as practicable notifies the Minister of the act done, and

(ii) complies with any directions given to the person by the Minister, or

(b) if a person does an act in compliance with a direction under this Act or the regulations.

Removal of pipeline etc constructed in contravention of Act

63 Removal of pipeline etc constructed in contravention of Act

(1) Where—

(a) the construction of a pipeline, water line, pumping station, tank station, valve station or secondary line is commenced, continued or completed in contravention of this Act, or

(b) a pipeline, water line, pumping station, tank station, valve station or secondary line is altered or reconstructed in contravention of this Act,

the Minister may, by instrument in writing served on the appropriate person, direct the person—

(c) to make such alterations to the pipeline, water line, pumping station, tank station, valve station or secondary line as are specified in the instrument, or

(d) to move the pipeline, water line, pumping station, tank station, valve station or secondary line to a specified place in, or to remove it from, the adjacent area,

within the period specified in the instrument.

(2) For the purpose of subsection (1), the appropriate person is—

(a) if the construction of the pipeline, water line, pumping station, tank station, valve station or secondary line has been completed—the owner of the pipeline, water line, pumping station, tank station, valve station or secondary line, or

(b) if the construction of the pipeline, water line, pumping station, tank station, valve station or secondary line has not been completed—the person for whom the pipeline, water line, pumping station, tank station, valve station or secondary line is being constructed.

(3) Where a person on whom there has been served an instrument under subsection (1) does not, within the period specified in the instrument or within such further period, if any, as the Minister, on application in writing served on the Minister before the expiration of the firstmentioned period, allows, comply with the direction, the Minister may do all or any of the things required by the direction to be done.

(4) Costs and expenses incurred by the Minister under subsection (3) are a debt due by the person referred to in that subsection to the Crown and are recoverable in a court of competent jurisdiction.

Terminal station

64 Terminal station

The Minister may, by instrument published in the Gazette, declare a pumping station, a tank station or a valve station in the adjacent area to be a terminal station.

Application for pipeline licence

65 Application for pipeline licence

(1) An application for a pipeline licence—

(a) shall be in accordance with an approved form,

(b) shall be made in an approved manner,

(c) shall be accompanied by particulars of—

(i) the proposed design and construction of the pipeline,

(ii) the proposed size and capacity of the pipeline,

(iii) the proposals of the applicant for work and expenditure in respect of the construction of the pipeline,

(iv) the technical qualifications of the applicant and of the applicant’s employees,

(v) the technical advice available to the applicant,

(vi) the financial resources available to the applicant, and

(vii) any agreements entered into, or proposed to be entered into, by the applicant for or in relation to the supply or conveyance of petroleum by means of the pipeline,

(d) shall be accompanied by a plan, drawn to an approved scale, showing—

(i) the route to be followed by the pipeline,

(ii) the sites of pumping stations, tank stations and valve stations to be used in connexion with the pipeline, and

(iii) the site of any pumping station, tank station or valve station that the applicant desires to be declared under section 64 to be a terminal station in connexion with the pipeline,

(e) may set out any other matters that the applicant wishes the Minister to consider, and

(f) shall be accompanied by the prescribed fee.

(2) Where a notice is published in the Gazette—

(a) of an application by a person other than the licensee for a pipeline licence in respect of the construction of a pipeline for the conveyance of petroleum recovered in a licence area, or

(b) of an application by a person other than the pipeline operator under the Commonwealth Act or a corresponding law for a pipeline licence in respect of the construction of a pipeline for the conveyance of petroleum recovered in a licence area under the Commonwealth Act or a corresponding law,

the licensee or, as the case may be, the pipeline operator under the Commonwealth Act or a corresponding law may, within a period of 3 months after the date of publication of the notice, or within such further period, not exceeding 3 months, as the Minister, on application in writing served on the Minister before the expiration of the firstmentioned period of 3 months, allows, make an application for a pipeline licence referred to in paragraph (a) or (b), as the case requires, and in the application request that the application referred to in the notice be rejected.

(3) Where—

(a) a notice referred to in subsection (2) is published in the Gazette, and

(b) a pipeline licence is granted to the licensee or to the pipeline operator under the Commonwealth Act or a corresponding law on an application under subsection (2),

the Minister shall, by instrument in writing served on the applicant, reject the application referred to in the notice.

(4) The Minister may, at any time, by instrument in writing served on a person who has made an application under this section, require the person to furnish, within the time specified in the instrument, further information in writing in connexion with the application.

(5) In this section, pipeline operator under the Commonwealth Act or a corresponding law has the same meaning as in section 66.

s 65: Am 1991 No 6, Sch 1 (18).

Grant or refusal of pipeline licence

66 Grant or refusal of pipeline licence

(1) Where a person makes an application in accordance with section 65, the Minister may, if that person is not the licensee and the application has not been rejected under section 65 (3), inform the applicant, by instrument in writing served on the applicant, that the Minister is prepared to grant a pipeline licence to that person.

(2) Where an application for a pipeline licence in respect of the construction in an adjacent area of a pipeline for the conveyance of petroleum recovered in a licence area is made in accordance with section 65 by the licensee, the Minister—

(a) shall, if the conditions to which the licence is, or has from time to time been, subject and the provisions of this Part and of the regulations have been complied with, or

(b) may, if—

(i) any of the conditions to which the licence is, or has from time to time been, subject or any of the provisions of this Part and of the regulations has not been complied with, and

(ii) the Minister is, nevertheless, satisfied that special circumstances exist that justify the granting of a pipeline licence,

by instrument in writing served on the person who is then the licensee, inform the person that the Minister is prepared to grant to the person a pipeline licence.

(3) Where an application for a pipeline licence in respect of the construction in an adjacent area of a pipeline for the conveyance of petroleum recovered in a licence area is made in accordance with section 65 by the licensee, the Minister shall, if—

(a) any of the conditions to which the licence is, or has from time to time been, subject or any of the provisions of this Part and of the regulations has not been complied with, and

(b) the Minister is not satisfied that special circumstances exist that justify the granting of a pipeline licence,

by instrument in writing served on the person who is then the licensee, refuse to grant a pipeline licence.

(4) The Minister shall not, under subsection (3), refuse to grant a pipeline licence to a licensee unless—

(a) the Minister has, by instrument in writing served on the licensee, given not less than 1 month’s notice of the Minister’s intention to refuse to grant the pipeline licence,

(b) the Minister has served a copy of the instrument on such other persons, if any, as the Minister thinks fit,

(c) the Minister has, in the instrument—

(i) given particulars of the reasons for the intention, and

(ii) specified a date on or before which the licensee or a person on whom a copy of the instrument is served may, by instrument in writing served on the Minister, submit any matters that he or she wishes the Minister to consider, and

(d) the Minister has taken into account any matters so submitted to the Minister on or before the specified date by the licensee or by a person on whom a copy of the firstmentioned instrument has been served.

(5) Where a person, other than the licensee or the pipeline operator under the Commonwealth Act or a corresponding law, makes an application in accordance with section 65 for a pipeline licence in respect of the construction of a pipeline for the conveyance of petroleum recovered in a licence area or, as the case may be, a licence area under the Commonwealth Act or a corresponding law, the Minister may, by instrument in writing served on the applicant, refuse to grant a pipeline licence.

(6) (Repealed)

(7) An instrument under subsection (1) or (2)—

(a) shall specify the route to be followed by the pipeline,

(b) shall contain a summary of the conditions subject to which the pipeline licence is to be granted, and

(c) shall contain a statement to the effect that the application will lapse if the applicant does not make a request under subsection (9).

(8) The route to be specified in an instrument under subsection (1) or (2) shall be—

(a) the route shown in the plan accompanying the application, or

(b) if the Minister is of the opinion that, for any reason, that route is not appropriate—a route that, in the opinion of the Minister, is appropriate.

(9) A person on whom there has been served an instrument under subsection (1) or (2) may, within a period of 3 months after the date of service of the instrument on the person, or within such further period, not exceeding 3 months, as the Minister, on application in writing served on the Minister before the expiration of the firstmentioned period of 3 months, allows, by instrument in writing served on the Minister, request the Minister to grant to the person the pipeline licence.

(10) Where a person on whom there has been served an instrument under subsection (1) or (2) has made a request under subsection (9) within the period applicable under subsection (9), the Minister shall grant to that person a licence to construct and operate a pipeline in respect of the pipeline specified in the instrument.

(11) Where a person on whom there has been served an instrument under subsection (1) or (2) has not made a request under subsection (9) within the period applicable under subsection (9), the application lapses upon the expiration of that period.

(12) (Repealed)

(13) In this section, pipeline operator under the Commonwealth Act or a corresponding law means a person who is entitled under the Commonwealth Act or a corresponding law to carry on operations for the recovery of petroleum in an area outside the adjacent area and who the Minister is satisfied is or will be entitled to construct a pipeline from the firstmentioned area to the boundary of the adjacent area.

s 66: Am 1991 No 6, Sch 1 (19); 1991 No 85, Sch 2 (19).

Rights conferred by pipeline licence

67 Rights conferred by pipeline licence

A pipeline licence, while it remains in force, authorizes the pipeline licensee, subject to this Act and the regulations and in accordance with the conditions to which the pipeline licence is subject—

(a) to construct in the adjacent area—

(i) a pipeline of the design, construction, size and capacity specified in the pipeline licence along the route, and in the position in relation to the sea-bed in the adjacent area, so specified, and

(ii) the pumping stations, tank stations and valve stations so specified in the positions so specified,

(b) to operate that pipeline and those pumping stations, tank stations and valve stations, and

(c) to carry on such operations, to execute such works and to do all such other things in the adjacent area as are necessary for or incidental to the construction and operation of that pipeline and of those pumping stations, tank stations and valve stations.

Term of pipeline licence

68 Term of pipeline licence

(1) Subject to this Part, a pipeline licence remains in force—

(a) for a period of 21 years, or

(b) where the Minister is of the opinion that, having regard to the dates of expiration of the licences that relate to the licence areas from which petroleum is, or is to be, conveyed by means of the pipeline, it is not necessary for the pipeline licence to remain in force for a period of 21 years—for such period less than 21 years as the Minister determines and specifies in the pipeline licence.

(2) A pipeline licence comes into force on the day on which the pipeline licence is granted or, if a later day is specified in the pipeline licence as being the day on which the pipeline licence is to come into force, on that later day.

s 68: Am 1985 No 129, Sch 1 (11).

Application for renewal of pipeline licence

69 Application for renewal of pipeline licence

(1) A pipeline licensee may, from time to time, make an application to the Minister for the renewal of the pipeline licence.

(2) An application for the renewal of the pipeline licence—

(a) shall be in accordance with an approved form,

(b) subject to subsection (3), shall be made in an approved manner not less than 6 months before the day on which the pipeline licence ceases to be in force, and

(c) shall be accompanied by the prescribed fee.

(3) The Minister may, for reasons that the Minister thinks sufficient, receive an application for the renewal of the pipeline licence less than 6 months before, but not in any case after, the day on which the pipeline licence ceases to be in force.

s 69: Am 1985 No 129, Sch 1 (12); 1991 No 6, Sch 1 (20).

Grant or refusal of renewal of pipeline licence

70 Grant or refusal of renewal of pipeline licence

(1) Where an application has been made under section 69 for the renewal of a pipeline licence, the Minister—

(a) shall, if the conditions to which the pipeline licence is, or has from time to time been, subject and the provisions of this Part and of the regulations have been complied with, or

(b) may, if—

(i) any of the conditions to which the pipeline licence is, or has from time to time been, subject or any of the provisions of this Part and of the regulations has not been complied with, and

(ii) the Minister is, nevertheless, satisfied that special circumstances exist that justify the granting of the renewal of the pipeline licence,

by instrument in writing served on the person who is then the pipeline licensee, inform the person that the Minister is prepared to grant to the person the renewal of the pipeline licence.

(2) Where an application has been made under section 69 for the renewal of a pipeline licence, the Minister shall, if—

(a) any of the conditions to which the pipeline licence is, or has from time to time been, subject or any of the provisions of this Part and of the regulations has not been complied with, and

(b) the Minister is not satisfied that special circumstances exist that justify the granting of the renewal of the pipeline licence,

by instrument in writing served on the person who is then the pipeline licensee, refuse to grant the renewal of the pipeline licence.

(3) The Minister shall not refuse to grant the renewal of the pipeline licence unless—

(a) the Minister has, by instrument in writing served on the pipeline licensee, given not less than 1 month’s notice of the Minister’s intention to refuse to grant the renewal of the pipeline licence,

(b) the Minister has served a copy of the instrument on such other persons, if any, as the Minister thinks fit,

(c) the Minister has, in the instrument—

(i) given particulars of the reasons for the intention, and

(ii) specified a date on or before which the pipeline licensee or a person on whom a copy of the instrument is served may, by instrument in writing served on the Minister, submit any matters that he wishes the Minister to consider, and

(d) the Minister has taken into account any matters so submitted to the Minister on or before the specified date by the pipeline licensee or by a person on whom a copy of the firstmentioned instrument has been served.

(4) An instrument under subsection (1) shall contain—

(a) a summary of the conditions to which the pipeline licence, on the grant of the renewal, is to be subject, and

(b) a statement to the effect that the application will lapse if the pipeline licensee does not make a request under subsection (5).

(5) A pipeline licensee on whom there has been served an instrument under subsection (1) may, within a period of 1 month after the date of service of the instrument on the licensee, by instrument in writing served on the Minister, request the Minister to grant the renewal of the pipeline licence to the licensee.

(6) Where a pipeline licensee on whom there has been served an instrument under subsection (1) has made a request under subsection (5) within the period referred to in subsection (5), the Minister shall grant to the licensee the renewal of the pipeline licence.

(7) Where a pipeline licensee on whom there has been served an instrument under subsection (1) has not made a request under subsection (5) within the period referred to in subsection (5), the application lapses upon the expiration of that period.

(8) Where—

(a) an application for the renewal of a pipeline licence is made under section 69, and

(b) the pipeline licence expires—

(i) before the Minister grants, or refuses to grant, the renewal of the pipeline licence, or

(ii) before the application lapses as provided by subsection (7),

the pipeline licence shall be deemed to continue in force in all respects—

(c) until the Minister grants, or refuses to grant, the renewal of the pipeline licence, or

(d) until the application so lapses,

whichever first happens.

s 70: Am 1991 No 6, Sch 1 (21); 1991 No 85, Sch 2 (20).

Conditions of pipeline licence

71 Conditions of pipeline licence

(1) A pipeline licence may be granted subject to such conditions as the Minister thinks fit and specifies in the pipeline licence.

(2) The conditions referred to in subsection (1) may include a condition that the pipeline licensee shall complete the construction of the pipeline within the period specified in the pipeline licence.

(3) This section extends to a pipeline licence granted by way of the renewal of a pipeline licence and, in the case of a pipeline licence so granted, the conditions may include conditions varying or adding to the conditions of the previous licence and conditions requiring reconstruction or modification of the pipeline or of associated works.

Variation of pipeline licence on application by pipeline licensee

72 Variation of pipeline licence on application by pipeline licensee

(1) A pipeline licensee may, at any time, make an application to the Minister for the variation of the pipeline licence.

(2) An application under this section—

(a) shall be in accordance with an approved form,

(b) shall be made in an approved manner,

(c) shall be accompanied by particulars of the proposed variation,

(d) shall specify the reasons for the proposed variation, and

(e) shall be accompanied by the prescribed fee.

(3) The Minister may, at any time, by instrument in writing served on a person who has made an application under this section, require the person to furnish, within the period specified in the instrument, further information in writing in connexion with the application.

(4) The Minister shall, in a notice published in the Gazette of an application under this section, specify a period within which a person may submit to the Minister, in writing, any matters that the person wishes the Minister to consider in connexion with the application.

(5) After considering any matters submitted to the Minister under subsection (4), the Minister may, by instrument in writing, vary the pipeline licence to such extent as the Minister thinks necessary or may refuse to vary the pipeline licence.

s 72: Am 1991 No 6, Sch 1 (22).

More sections below

Source text: opening excerpt

Sourced from legislation.nsw.gov.au, CC BY 4.0.

Part 1 Preliminary

1 Name of Act

This Act may be cited as the Petroleum (Offshore) Act 1982.

s 1: Am 2007 No 27, Sch 1.39 [1].

2 Commencement

(1) This section and section 1 shall commence on the date of assent to this Act.

(2) Except as provided by subsection (1), this Act shall commence on the first day on which all of the following Acts of the Parliament of the Commonwealth, with or without amendments, are in operation, namely, the Seas and Submerged Lands Amendment Act 1980, the Coastal Waters (State Powers) Act 1980, the Coastal Waters (State Title) Act 1980 and the Petroleum (Submerged Lands) Amendment Act 1980.

(3) The Minister shall as soon as is practicable after the commencement of this Act cause notice of the commencement to be published in the Gazette.

3 Repeals, amendments and transitional provisions

(1) The Petroleum (Submerged Lands) Act 1967 and the Petroleum (Submerged Lands) Taxation Act 1967 are repealed.

(2), (3) (Repealed)

(4) The scheme agreed on between the Commonwealth, the States and the Northern Territory, being the scheme set out in Schedule 3, so far as that scheme relates to the operation of this Act, has the force of law by virtue of this subsection.

(5) For the purposes of the scheme set out in Schedule 3, this Act is the State Act of New South Wales and the Minister is the Designated Authority under this Act.

(6) A reference to the Designated Authority in a new permit (within the meaning of the scheme set out in Schedule 3) or a new pipeline licence (within the meaning of that scheme) shall for the purposes of that permit or pipeline licence and this Act be read as a reference to the Minister.