NORTHERN TERRITORY OF AUSTRALIA
PETROLEUM ROYALTY ACT 2023
As in force at 2 July 2023
Table of provisions
Part 1 Preliminary matters
1 Short title ......................................................................................... 1
2 Commencement .............................................................................. 1
3 Purpose ........................................................................................... 1
Part 2 Interpretation
4 Definitions ........................................................................................ 1
5 Arm's length terms ........................................................................... 5
6 Leases under Petroleum (Mining and Prospecting) Act 1954 .......... 5
Part 3 Petroleum royalties
7 Commencement of royalty ............................................................... 5
8 Royalty on petroleum produced ....................................................... 6
9 Royalty rate ..................................................................................... 6
10 Royalty payments ............................................................................ 6
11 Amount of quarterly payments ......................................................... 7
Part 4 Calculation of gross value at the wellhead
12 Meaning of Australian Dollar Equivalent and exchange rate ........... 7
13 Meaning of gross value at the wellhead .......................................... 7
14 Meaning of sales value .................................................................... 8
15 Meaning of market value ................................................................. 9
16 Shipping costs ............................................................................... 10
17 Deductible costs ............................................................................ 10
18 Allowable costs .............................................................................. 11
19 Excluded costs .............................................................................. 12
20 Treatment of deductions, costs and expenses, revenue and
expenditure .................................................................................... 14
21 Swap arrangements ...................................................................... 14
Part 5 Application of Taxation Administration
Act 2007
22 Application of Taxation Administration Act 2007............................ 15
Petroleum Royalty Act 2023 ii
Part 6 Miscellaneous matters
23 Register of licensees and permittees............................................. 16
24 Lodgement of returns .................................................................... 16
25 Approved forms and manner ......................................................... 17
26 Regulations.................................................................................... 17
27 Review of Act................................................................................. 18
Part 7 Transitional matters for Petroleum Royalty
Act 2023
28 Royalty agreements under Petroleum Act 1984 ............................ 18
ENDNOTES
NORTHERN TERRITORY OF AUSTRALIA
As in force at 2 July 2023
PETROLEUM ROYALTY ACT 2023
An Act to impose a royalty on petroleum produced in the Northern Territory
and for related purposes
Part 1 Preliminary matters
1 Short title
This Act may be cited as the Petroleum Royalty Act 2023.
2 Commencement
This Act commences on 1 July 2023.
3 Purpose
The purpose of this Act is to provide for a royalty payable on
petroleum produced from a project area.
Part 2 Interpretation
4 Definitions
In this Act:
allowable costs, see section 18.
approved means approved under section 25.
Australian Dollar Equivalent, see section 12(1).
Commissioner of Territory Revenue means the person holding or
acting in the office of Commissioner of Territory Revenue under the
Taxation Administration Act 2007.
deductible costs, see section 17.
Part 2 Interpretation
Petroleum Royalty Act 2023 2
deduction cap, for petroleum produced from a project area, means
75% of the sales value of the petroleum.
entity means any of the following:
(a) a body corporate;
(b) a partnership;
(c) an unincorporated body;
(d) an individual;
(e) for a trust that has only one trustee – the trustee;
(f) for a trust that has more than one trustee – the trustees
together.
exchange rate, see section 12(2).
excluded costs, see section 19.
exploration permit, see section 5(1) of the Petroleum Act 1984.
exploration permit area, see section 5(1) of the Petroleum
Act 1984.
exploration project area means one or more exploration permit
areas operated by or on behalf of one or more permittees as a
single integrated project.
first saleable point, in relation to petroleum, means the earlier of:
(a) the point when the petroleum is first sold or disposed of in an
open commercial market after production at the wellhead; and
(b) the point when the petroleum is processed into a petroleum
product.
gross value at the wellhead, see section 13.
incurred means:
(a) in the case of a capital allowance deduction under
section 18(1)(e) – incurred only at the time the cost or
expense constitutes a deduction under the Income Tax
Assessment Act 1997 (Cth); or
(b) in the case of any other cost or expense – paid or payable.
licence, see section 5(1) of the Petroleum Act 1984.
Part 2 Interpretation
Petroleum Royalty Act 2023 3
licence area, see section 5(1) of the Petroleum Act 1984.
licensee, see section 5(1) of the Petroleum Act 1984.
market value, see section 15.
operator means:
(a) in the case of a licence – a person appointed by the licensee
to undertake petroleum production in a licence area on behalf
of the licensee; and
(b) in the case of an exploration permit – a person appointed by
the permittee to undertake petroleum exploration or production
in an exploration permit area on behalf of the permittee.
permittee, see section 5(1) of the Petroleum Act 1984.
petroleum, see section 5(1) of the Petroleum Act 1984.
petroleum facility means a facility that is:
(a) located in the Territory downstream from a wellhead; and
(b) used for the processing, refining, storage or transport of
petroleum.
Example for definition petroleum facility
A pipeline.
petroleum product means any product able to be sold or disposed
of that is processed, extracted, recovered or derived from
petroleum, including crude oil, condensate and processed natural
gas.
post-wellhead activity means an activity that occurs after
petroleum is produced at the wellhead in a project area and before
its first saleable point.
post-wellhead facility means a petroleum facility used for a
post-wellhead activity.
processed natural gas includes liquefied natural gas.
produce, in relation to petroleum, see section 5(1) of the Petroleum
Act 1984.
production licence, see section 5(1) of the Petroleum Act 1984.
Part 2 Interpretation
Petroleum Royalty Act 2023 4
production project area means:
(a) one or more licence areas operated by or on behalf of one or
more licensees as a single integrated project to produce
petroleum; or
(b) one or more licence areas operated, under one or more
licences together with one or more exploration permits, by or
on behalf of one or more licensees together with one or more
permittees as a single integrated project to produce
petroleum.
project area means:
(a) an exploration project area; or
(b) a production project area.
quarter means the 3-month period ending on the last day of March,
June, September or December in any year.
related body corporate, in relation to a body corporate, see
section 9 of the Corporations Act 2001 (Cth).
related entity, in relation to a body corporate, see section 9 of the
Corporations Act 2001 (Cth).
related party, of a person, means:
(a) a related body corporate of the person; or
(b) a related entity of the person; or
(c) a joint venture or other entity that is led by the person or a
related body corporate or related entity of the person.
retention licence, see section 5(1) of the Petroleum Act 1984.
royalty means the royalty payable under this Act on petroleum.
royalty year, in relation to a licensee or permittee, for a project
area, means the 12-month period for which the accounts of the
licensee or permittee are ordinarily made up.
sales value, see section 14.
shipping costs, see section 16.
third party, in relation to a person, means another person who is
not a related party of the person.
Part 3 Petroleum royalties
Petroleum Royalty Act 2023 5
well, see section 5(1) of the Petroleum Act 1984.
wellhead, see section 5(1) of the Petroleum Act 1984.
Note for section 4
The Interpretation Act 1978 contains definitions and other provisions that may be
relevant to this Act.
5 Arm's length terms
A transaction entered into by a party is on arm's length terms if the
terms of the transaction are no less favourable to the party than
those that would be agreed to by a third party in an arm's length
transaction under similar circumstances.
6 Leases under Petroleum (Mining and Prospecting) Act 1954
This Act also applies in relation to any lease granted or renewed
under the Petroleum (Mining and Prospecting) Act 1954, that is in
effect on 1 July 2023, and any holder of the lease, in the same
manner as it applies to a licence and a licensee respectively.
Part 3 Petroleum royalties
7 Commencement of royalty
(1) A royalty is payable under this Act on petroleum produced from a
project area as follows:
(a) in the case of petroleum to which a royalty agreement applied
immediately before 1 July 2023 – on and from the day the
royalty agreement is terminated;
(b) in the case of petroleum to which a determination, made by
the Minister under section 84(2) of the Petroleum Act 1984,
applied immediately before 1 July 2023 – on and from the day
the determination ends;
(c) in any other case – on and from 1 July 2023.
(2) In this section:
royalty agreement means an agreement that:
(a) was made between a licensee and the Minister under
section 84(2) of the Petroleum Act 1984; and
(b) was in force before 1 July 2023; and
Part 3 Petroleum royalties
Petroleum Royalty Act 2023 6
(c) is about the gross value of petroleum produced from a licence
area.
8 Royalty on petroleum produced
(1) All licensees and permittees with a licence or exploration permit in a
project area are liable to pay to the Territory a royalty on petroleum
produced from the project area in the royalty year at the rate
provided in section 9.
(2) For subsection (1), petroleum produced from a project area
includes petroleum, produced from a production project area, that is
used or lost through venting or flaring or other means.
(3) For subsection (1), petroleum produced from a project area does
not include any of the following:
(a) petroleum used by the licensee, permittee or operator for
incidental purposes;
(b) petroleum used in the project area for processing or
compression, or preparing petroleum for sale;
(c) petroleum returned or reinjected into a natural reservoir in the
project area from which it was extracted or recovered;
(d) petroleum produced from an exploration project area that is
used or lost through venting or flaring or other means.
Examples for subsection (3)(a)
Heating and lighting buildings to provide employee accommodation or social
amenities.
9 Royalty rate
The royalty rate for petroleum produced from a project area is 10%
of the gross value of the petroleum at the wellhead.
10 Royalty payments
All licensees and permittees for a project area must pay the royalty
for a royalty year:
(a) by quarterly payments within 30 days after the end of each
quarter; or
(b) in accordance with any other arrangement the Commissioner
of Territory Revenue approves.
Part 4 Calculation of gross value at the wellhead
Petroleum Royalty Act 2023 7
11 Amount of quarterly payments
(1) The quarterly payments, other than the final quarterly payment, of a
royalty for a royalty year is calculated on the gross value at the
wellhead of the petroleum produced in the quarter.
(2) The calculation of the gross value at the wellhead under
subsection (1) is determined in accordance with section 13 as if a
reference in that section to the royalty year were a reference to a
quarter.
(3) The amount of the final quarterly payment for the royalty year is the
balance of the royalty payable for the royalty year in accordance
with the royalty return.
Part 4 Calculation of gross value at the wellhead
12 Meaning of Australian Dollar Equivalent and exchange rate
(1) The Australian Dollar Equivalent, in relation to an amount of
money that is stated in a foreign currency, means the amount
determined by converting the foreign currency amount into
Australian dollars at the exchange rate applying at the time the
foreign currency amount was earned, receivable or incurred.
(2) The exchange rate, in relation to an amount of money that is
stated in a foreign currency, means one of the following rates
selected by the licensee, permittee or operator in good faith and on
a consistent basis:
(a) the closing daily representative rate for the relevant day, as
published by the Reserve Bank of Australia;
(b) the buy rate for the foreign currency, as quoted by a major
Australian trading bank;
(c) another rate agreed in writing between the licensee or
permittee and the Commissioner of Territory Revenue.
13 Meaning of gross value at the wellhead
(1) The gross value at the wellhead, of petroleum produced from a
project area in a royalty year, means the sales value of the
petroleum, minus the lesser of the following:
(a) the deductible costs of the petroleum in the royalty year;
(b) the deduction cap for the petroleum for the royalty year.
Part 4 Calculation of gross value at the wellhead
Petroleum Royalty Act 2023 8
(2) Subject to subsection (3), any amount or value that affects the
calculation of the gross value at the wellhead is calculated
exclusive of GST.
(3) The amount or value of an acquisition that relates to a supply that is
input taxed is calculated inclusive of GST.
(4) In this section:
acquisition, see section 11-10 of the A New Tax System (Goods
and Services Tax) Act 1999 (Cth).
GST, see section 195-1 of the A New Tax System (Goods and
Services Tax) Act 1999 (Cth).
input taxed, see section 9-30 of the A New Tax System (Goods
and Services Tax) Act 1999 (Cth).
supply, see section 9-10 of the A New Tax System (Goods and
Services Tax) Act 1999 (Cth).
14 Meaning of sales value
(1) The sales value, of petroleum produced from a project area in a
royalty year, is the revenue received or receivable for the
petroleum, minus the shipping costs of the petroleum.
(2) Despite subsection (1), the sales value of the petroleum is the
market value of the petroleum if:
(a) no revenue is received or receivable by the licensee,
permittee or operator for the sale of the petroleum; or
(b) the petroleum is, in the royalty year:
(i) not sold; or
(ii) sold as a petroleum product that was further refined or
processed after the first saleable point; or
(c) the sale of the petroleum is not on arm's length terms.
(3) In this section:
revenue, received or receivable for the petroleum, means:
(a) the gross proceeds received or receivable by the licensee,
permittee, operator or related party (or applied to their benefit)
in Australian dollars or Australian Dollar Equivalent for the
petroleum; or
Part 4 Calculation of gross value at the wellhead
Petroleum Royalty Act 2023 9
(b) the proceeds received from an insurer in the case of loss of, or
damage to, the petroleum, net of any excess or deductible
paid in relation to the loss.
15 Meaning of market value
(1) The market value, of petroleum produced from a project area, is
the price (in Australian dollars or Australian Dollar Equivalent) that
would be negotiated and agreed for the petroleum on the basis that
it was sold at the first saleable point in an open commercial market
between a knowledgeable, willing but not anxious buyer and a
knowledgeable, willing but not anxious seller, acting severally and
independently, having regard to the following:
(a) the price of other petroleum sold to a third party on arm's
length terms, that is substantially similar in time of delivery,
kind, quality and composition;
(b) a price agreed in an advance pricing arrangement with the
Commonwealth Commissioner of Taxation;
(c) a price audited and approved by the Commonwealth
Commissioner of Taxation;
(d) any applicable benchmark prices published by a recognised
commodities exchange or index that the Commissioner of
Territory Revenue may accept;
(e) any other matter the Commissioner of Territory Revenue
considers relevant.
(2) In this section:
advance pricing arrangement means an arrangement between
the Commonwealth Commissioner of Taxation and a licensee,
permittee or operator (to which there may also be other parties)
under which the parties agree on a transfer pricing methodology to
be used by the licensee, permittee or operator in accounting for the
licensee's, permittee's or operator's dealings with petroleum for the
purposes of the Income Tax Assessment Act 1997 (Cth).
Commonwealth Commissioner of Taxation, means the
Commissioner of Taxation appointed under section 4 of the
Taxation Administration Act 1953 (Cth).
Part 4 Calculation of gross value at the wellhead
Petroleum Royalty Act 2023 10
16 Shipping costs
(1) The shipping costs that are allowed in a royalty year for the purpose
of calculating the sales value of petroleum produced from a project
area (the shipping costs), are the following:
(a) in the case of petroleum that is exported from Australia – all
freight charges, dead freight costs and marine insurance
costs;
(b) in the case of petroleum that is not exported from Australia –
the freight and insurance costs incurred in delivering the
petroleum to the purchaser or transferee.
(2) For subsection (1), shipping costs do not include:
(a) any charges mentioned in subsection (1) for which the
licensee, permittee or operator, or a related party of the
licensee, permittee or operator, received reimbursement or
compensation or charged to another person; or
(b) any excluded costs.
(3) For subsection (1), shipping costs must be incurred by:
(a) the licensee, permittee or operator of the project area from a
third party directly in relation to the sale of the petroleum; or
(b) a related party of the licensee, permittee or operator, of the
project area from a third party directly in relation to the sale of
the petroleum on arm's length terms with no mark up.
17 Deductible costs
(1) The amount that may be deducted in a royalty year for the purpose
of calculating the gross value at the wellhead in relation to
petroleum produced from a project area (the deductible costs), is
the amount calculated in accordance with the formula in
subsection (2) and as provided by subsection (3).
(2) The formula is:
DC = AC + CFD – R
where:
DC is the amount of the deductible costs.
AC is the amount of the allowable costs.
Part 4 Calculation of gross value at the wellhead
Petroleum Royalty Act 2023 11
CFD is the amount of the balance of any deductions allowed to be
carried forward under subsection (3).
R is the amount of any allowable costs the licensee, permittee or
operator has received as reimbursement or compensation.
(3) If the amount of the deductible costs of petroleum produced in a
project area in a royalty year exceeds the deduction cap, the
amount of the excess may be:
(a) carried forward; and
(b) applied as a deductible cost in a later royalty year.
18 Allowable costs
(1) Subject to subsection (2), the costs that are allowed in a royalty
year for the purpose of calculating deductible costs under this Act in
relation to petroleum produced from a project area (the allowable
costs) are the following:
(a) a pipeline tariff for transporting the petroleum through a
pipeline to its first saleable point;
(b) a processing plant toll or other charge for processing the
petroleum before its first saleable point;
(c) field gathering costs to transport the petroleum from the
wellhead to processing or storage facilities;
(d) the operating costs of a post-wellhead activity that is directly
related to:
(i) the treatment, processing, refining or storage of the
petroleum; or
(ii) transporting the petroleum;
(e) a capital allowance deduction incurred by the licensee,
permittee or operator on a post-wellhead facility calculated in
accordance with:
(i) if Australian income tax treatment applies to the
petroleum – the applicable Australian income tax
treatment of the facility; or
(ii) if no Australian income tax treatment applies to the
petroleum – a method approved in writing by the
Commissioner of Territory Revenue;
Part 4 Calculation of gross value at the wellhead
Petroleum Royalty Act 2023 12
(f) a cost or expense directly related to a post-wellhead activity in
relation to any of the following:
(i) operating or maintaining an office in the Territory;
(ii) centralised services that control, influence or direct
strategic management of the operation of a licence area,
if the services were performed wholly in the Territory;
(iii) labour, employee and personnel costs, including travel
and ancillary costs, in relation to an employee or
contractor working solely in the Territory:
(A) in the period to which the cost or expense relates;
and
(B) for the period the employee or contractor was
remunerated.
(2) For subsection (1), allowable costs must:
(a) be incurred by a licensee, permittee or operator, or a related
party to the licensee, permittee or operator, in relation to the
petroleum in the royalty year; and
(b) not be shipping costs or excluded costs; and
(c) be directly related to a post-wellhead activity; and
(d) be incurred on arm's length terms.
19 Excluded costs
(1) The costs that are excluded for the purposes of calculating shipping
costs or deductible costs under this Act in relation to petroleum
produced from a project area (the excluded costs) are the
following:
(a) costs and expenses incurred in relation to any of the following:
(i) exploring for the petroleum or discovering the petroleum;
(ii) marketing or selling the petroleum, including fees,
commission, brokerage or an amount paid to a
distributor or agent;
(iii) maintaining a petroleum facility during an extended or
permanent shutdown of the facility;
(iv) decommissioning, rehabilitation or abandonment of the
project area or a petroleum facility;
Part 4 Calculation of gross value at the wellhead
Petroleum Royalty Act 2023 13
(v) complying with a law of the Territory, the
Commonwealth, a State or another Territory, including
costs and expenses related to guarantees, securities or
insurance imposed or required under the law;
(vi) salaries, allowances, termination payments, other similar
payments or benefits, employer contributions to
superannuation schemes and wages in respect of an
employee or contractor for a pay period during which the
employee or contractor:
(A) did not work solely in the Territory; or
(B) was not engaged primarily in work that was directly
attributable to the production of petroleum in the
Territory;
(b) office expenses that:
(i) do not relate to an office in the Territory; or
(ii) are not for work services performed solely in the
Territory;
(c) fees for management services that:
(i) are not performed solely in the Territory; or
(ii) are not directly attributable to the production of
petroleum in the Territory;
(d) travel and ancillary costs in relation to an employee, contractor
or other worker whose principal place of residence is outside
the Territory;
(e) interest and financing costs;
(f) foreign exchange gains or losses;
(g) hedging costs;
(h) costs associated with bad debts;
(i) asset revaluation gains or losses;
(j) royalties or similar payments;
(k) taxes, levies or fees imposed or payable under a law of the
Territory, the Commonwealth, a State or another Territory;
Part 4 Calculation of gross value at the wellhead
Petroleum Royalty Act 2023 14
(l) costs of negotiating with land holders or with persons related
to the Native Title Act 1993 (Cth), including payments or
compensation paid under an access agreement or native title
agreement;
(m) amounts payable in relation to a breach of a legal or statutory
obligation, including a penalty or damages for breach of
contract.
Examples for subsection (1)(k)
1 Monitoring and compliance levy.
2 Orphan well levy.
(2) For subsection (1), if the sales value of petroleum is the market
value of the petroleum under section 14(2), a deductible cost
incurred in relation to an activity after the first saleable point of the
petroleum is taken to be an excluded cost.
20 Treatment of deductions, costs and expenses, revenue and
expenditure
(1) An amount must not be deducted or claimed as a cost or expense
more than once under this Act, whether for the same royalty year or
a different royalty year, despite the amount:
(a) falling under more than one head of deduction or cost or
expense under this Act; or
(b) being reflected or capable of being reflected in the accounts
relating to petroleum production in more than one form.
(2) When ascertaining the gross value at the wellhead, or sales value,
of petroleum, an item of revenue or expenditure must be classified
under the most appropriate provision of this Act, even if it might
also be classified under another provision as revenue or as
expenditure.
21 Swap arrangements
(1) If a licensee, permittee or operator procures petroleum under a
swap arrangement, the price received by the licensee, permittee or
operator for the sale of the procured petroleum may be used to
determine the value of the petroleum produced from a project area
for the licence or exploration permit if:
(a) the parties to the swap arrangement are not related parties;
and
(b) the swap arrangement is on arm's length terms; and
Part 5 Application of Taxation Administration Act 2007
Petroleum Royalty Act 2023 15
(c) the swap arrangement provides for the swap or exchange of
rights or obligations in relation to petroleum produced by the
parties; and
(d) a comparable quantity and quality of petroleum is swapped or
exchanged under the swap arrangement; and
(e) the swap or exchange is made within 6 months after the
petroleum is delivered or the rights vested.
(2) The petroleum produced from the project area for the licence or
exploration permit must be valued at market value under a swap
arrangement if:
(a) the swap arrangement is between related parties; or
(b) the procured petroleum is sold to a related party; or
(c) the procured petroleum is not sold to a second buyer within
6 months after the petroleum is delivered to the licensee,
permittee or operator; or
(d) subsection (1) does not otherwise apply to the petroleum.
(3) In this section:
procured petroleum means petroleum procured by a licensee,
permittee or operator under a swap arrangement.
swap arrangement means an arrangement that:
(a) is entered into between two petroleum producers or resellers;
and
(b) provides for them to swap or exchange rights or obligations in
relation to petroleum produced by them.
Part 5 Application of Taxation Administration
Act 2007
22 Application of Taxation Administration Act 2007
The Taxation Administration Act 2007 applies to a royalty as if:
(a) a reference in that Act to tax were a reference to royalty; and
(b) a reference in that Act to taxpayer were a reference to
licensee or permittee; and
Part 6 Miscellaneous matters
Petroleum Royalty Act 2023 16
(c) a reference in that Act to a taxation law included a reference
to this Act; and
(d) a reference in that Act to a corresponding law in Parts 9
and 10 included a reference to a law of the Commonwealth, a
State or another Territory corresponding to this Act.
Part 6 Miscellaneous matters
23 Register of licensees and permittees
(1) A licensee or permittee must register with the Commissioner of
Territory Revenue within 30 days after the licensee or permittee
starts petroleum production under the licence or exploration permit.
(2) A licensee or permittee must notify the Commissioner of Territory
Revenue within 30 days after the day:
(a) the licensee or permittee ends petroleum production during an
extended or permanent shutdown of its operations in a project
area; or
(b) the licensee or permittee restarts petroleum production after
an extended or permanent shutdown of its operations in a
project area; or
(c) there is a change in ownership of the licence or exploration
permit.
(3) Registration and notification under this section must be in the
approved form and the approved manner.
(4) The Commissioner of Territory Revenue may cancel the registration
of the licensee or permittee if:
(a) petroleum production ends following a permanent shutdown of
its operations under the licence or exploration permit in a
project area; or
(b) the licence or exploration permit is transferred to another
person; or
(c) the registration is not required for any other reason.
24 Lodgement of returns
(1) A licensee or permittee must lodge a royalty return with the
Commissioner of Territory Revenue within 30 days after the end of
a royalty year for the licensee or permittee.
Part 6 Miscellaneous matters
Petroleum Royalty Act 2023 17
(2) A licensee or permittee must also lodge a royalty return with the
Commissioner of Territory Revenue 30 days after the day:
(a) the licensee or permittee ends petroleum production during an
extended or permanent shutdown of its operations in a project
area; or
(b) there is a change in ownership of the licence or exploration
permit.
(3) On application, the Commissioner of Territory Revenue may waive
the requirement to lodge a royalty return under subsection (2) if:
(a) the requirement is triggered by a change in ownership of the
licence or exploration permit; and
(b) the change does not interrupt the operation of the project area
or the accounts relating to petroleum production.
(4) A royalty return must be in the approved form.
(5) If there is more than one licensee or permittee for a project area:
(a) a single royalty return must be lodged for the project area; and
(b) the licensees or permittees may authorise a person to lodge
the royalty return.
(6) The lodgement of a single royalty return for a project area does not
affect the joint and several liability of each licensee or permittee for
the project area to pay royalty for the petroleum production from the
project area.
25 Approved forms and manner
The Commissioner of Territory Revenue may approve:
(a) forms for this Act; and
(b) the manner of registration under section 23.
26 Regulations
(1) The Administrator may make regulations under this Act.
Note for subsection (1)
See section 65 of the Interpretation Act 1978.
(2) A regulation may:
(a) prescribe fees payable under this Act; and
Part 7 Transitional matters for Petroleum Royalty Act 2023
Petroleum Royalty Act 2023 18
(b) apply, adopt or incorporate, with or without changes, the
whole or part of a document as in force or existing at a
particular time or from time to time.
27 Review of Act
(1) The Commissioner of Territory Revenue must review the operation
of this Act as soon as practicable before 1 July 2028.
(2) The review must consider the effectiveness and efficiency of the
calculation of royalties under this Act.
(3) The Commissioner of Territory Revenue must prepare a written
report of the review for the Minister.
Part 7 Transitional matters for Petroleum Royalty
Act 2023
28 Royalty agreements under Petroleum Act 1984
Part III, Division 5 of the Petroleum Act 1984, as in force
immediately before 1 July 2023 continues to apply to a royalty
agreement that:
(a) was in force immediately before 1 July 2023; and
(b) is not terminated.
ENDNOTES
Petroleum Royalty Act 2023 19
ENDNOTES
1 KEY
Key to abbreviations
amd = amended od = order
app = appendix om = omitted
bl = by-law pt = Part
ch = Chapter r = regulation/rule
cl = clause rem = remainder
div = Division renum = renumbered
exp = expires/expired rep = repealed
f = forms s = section
Gaz = Gazette sch = Schedule
hdg = heading sdiv = Subdivision
ins = inserted SL = Subordinate Legislation
lt = long title sub = substituted
nc = not commenced
2 LIST OF LEGISLATION
Petroleum Royalty Act 2023 (Act No. 6, 2023)
Assent date 6 April 2023
Commenced 1 July 2023 (s 2)
3 LIST OF AMENDMENTS
pt 8 hdg rep No. 6, 2023, s 36
ss 29 – 36 rep No. 6, 2023, s 36