59Unit development

#### 59 Unit development (1) In this section, the expression unit development: (a) applies in relation to a petroleum pool (other than either of the Greater Sunrise unit reservoirs) 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 an adjacent area but in which a person other than the first‑mentioned 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 subsection 81(2). (3) The Joint Authority, of its own motion or on application made to the Joint Authority 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, direct any licensee whose licence area includes part of the petroleum pool, by instrument in writing served on the licensee, 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 Designated Authority or, if an application is so lodged, the dealing is not approved under section 81; the Joint Authority may, by instrument in writing served on the licensee, direct the licensee to submit to the Joint Authority, 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 Joint Authority may, by instrument in writing served on the licensee, give to the licensee such directions as the Joint Authority 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 Joint Authority may, by instrument in writing served on the licensee, give to the licensee such directions as the Joint Authority 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 Joint Authority has given directions under subsection (5) or (6), the Joint Authority 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 the Joint Authority thinks necessary for the purpose of securing the more effective recovery of petroleum from the petroleum pool. (8) The Joint Authority shall not give a direction under subsection (6) or (7) unless the Designated Authority has given to the licensee or licensees concerned an opportunity to confer with the Designated Authority 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) If a petroleum pool extends, or is reasonably believed by the Designated Authority to extend, from the adjacent area in respect of a State or Territory into: (a) lands to which the laws of that State or Territory or of another State or Territory relating to the exploitation of petroleum resources apply; or (b) the adjacent area of an adjoining State or Territory; each Designated Authority concerned shall consult concerning the exploitation of the petroleum pool with any other Designated Authority concerned and with the appropriate authority of a State or Territory referred to in paragraph (a). (12) Where subsection (11) applies in relation to a petroleum pool, a Joint Authority 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 Joint Authority concerned and any State or Territory authority concerned.