Petroleum (Submerged Lands) Act 1981

1 Short title (1) This Act may be cited as the Petroleum (Submerged Lands) Act 1981. (2) This Act shall come into operation on the first day on which the following Acts 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.

4 Interpretation (1) In this Act: access authority means an access authority under Part II.

Petroleum (Submerged Lands) Act 1981 3 adjacent area means, subject to subsection (2), so much of the area the boundary of which is described in Schedule 3 as is part of the territorial sea of Australia, including the territorial sea adjacent to any island forming part of the Territory, and includes, subject to subsection (3), an area which: (a) is within the area the boundary of which is described in Schedule 3; (b) is seaward of the coastline of the Territory at mean low water and landward of the inner limit of the territorial sea of Australia; and (c) was, immediately before the commencement of this Act, the subject of an exploration permit for petroleum subsisting under the Commonwealth Act. application for a primary licence means an application under section 40(1) or (2) or 40A(2) or (3). application for a secondary licence means an application under section 40(3) or 40A(3). approved means approved by the Minister. block means a block constituted as provided by section 17. Commonwealth Act means: (a) the Petroleum (Submerged Lands) Act 1967 of the Commonwealth, as amended from time to time; or as amended from time to time. Commonwealth Minister means the Minister of the Crown in right of the Commonwealth for the time being administering the Commonwealth Act. construct includes place and construction has a corresponding meaning. continental shelf means the continental shelf, within the meaning of the Seas and Submerged Lands Act 1973 of the Commonwealth, adjacent to the coast of Australia (including the coast of any island forming part of a State or Territory) or of a Territory to which the Commonwealth Act applies or extends.

Petroleum (Submerged Lands) Act 1981 4 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 Governments of the Commonwealth, the States and the Northern Territory referred to in the preamble to this Act. datum means a reference frame for defining geographic co-ordinates. Note: If the position on the surface of the Earth of a particular point is identified by a co-ordinate that is determined by reference to a particular datum, the use of a different datum will result in the same point being identified by a different co-ordinate. document includes any map, book, record or writing. geographic co-ordinate includes: (a) a meridian of longitude by itself; and (b) a parallel of latitude by itself. good oilfield 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 17. inspector means a person appointed as an inspector under section 125. interstate Minister means the Minister of the Crown in right of a State administering the corresponding law of that State. Joint Authority means the Commonwealth-Northern Territory Offshore Petroleum Joint Authority (also known as the Commonwealth-Northern Territory Off-shore Petroleum Joint Authority) established by the Commonwealth Act. lease means a retention lease under Division 2A of Part II. 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 granted under

Petroleum (Submerged Lands) Act 1981 5 licence area means the area constituted by the blocks that are the subject of a licence. licensee means the registered holder of a licence. listed OHS laws has the meaning in section 153. location means a block or blocks in respect of which a declaration under section 37 is in force. Ministerial Council means a body (however described) that consists of the Minister of the Commonwealth, and the Minister of each State and Territory, who is responsible, or principally responsible, for matters relating to energy or resources. native title and native title rights and interests have the meaning given in section 223 of the Native Title Act. Native Title Act means the Native Title Act 1993 of the Commonwealth. native title holder has the meaning given in section 224 of the Native Title Act. natural resources has the same meaning as in paragraph 4 of Article 77 of the United Nations Convention on the Law of the Sea done at Montego Bay on 10 December 1982. offshore place has the meaning given in section 253 of the Native Title Act. OHS inspector means an OHS inspector appointed under the Commonwealth Act. partly cancelled means: (a) in relation to a permit or licence – cancelled as to one 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 one or more but not all of the blocks the subject of the permit or lease. permit means an exploration permit for petroleum granted under

Petroleum (Submerged Lands) Act 1981 6 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 one or more hydrocarbons, whether in a gaseous, liquid or solid state, and one or more of the following: namely, 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 an adjacent area. petroleum pool means a naturally occurring discrete accumulation of petroleum. pipeline means a pipe or system of pipes in an 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 (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 granted under Part II to construct and operate a pipeline. pipeline licensee means the registered holder of a pipeline

Petroleum (Submerged Lands) Act 1981 7 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 40(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 40A(2). primary licence means a licence granted on an application made under section 40(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 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. registered native title claimant has the meaning given in section 253 of the Native Title Act or, if the claimant is replaced under section 66B of that Act, means the person who replaced the claimant. registered native title rights and interests means: (a) in relation to a registered native title claimant – the native title rights and interests of the claimant described in the relevant entry on the Register of Native Title Claims established and maintained in accordance with Part 7 of the Native Title Act; and (b) in relation to a registered native title body corporate – the native title rights and interests of the body corporate described in the relevant entry on the National Native Title Register established and maintained under Part 8 of the Native Title Act. 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;

Petroleum (Submerged Lands) Act 1981 8 (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, cancelled or has expired – the area constituted by the blocks in respect of which that authority was in force. 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. Safety Authority means the National Offshore Petroleum Safety Authority established under the Commonwealth Act. secondary licence means a licence granted on an application made under section 40(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 special prospecting authority means a special prospecting authority granted under Part II. 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.

Petroleum (Submerged Lands) Act 1981 9 terminal station means a pumping station, a tank station or a valve station declared to be a terminal station under section 63 or under the Commonwealth Act or a corresponding law. 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 connection 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 connection 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 wholly determined, in relation to a permit or lease, means determined as to all the blocks the subject of the permit or lease. (2) If, at any time, the breadth of the territorial sea of Australia is determined or declared to be greater than 3 nautical miles, the definition of adjacent area in subsection (1) continues to have effect as if the breadth of the territorial sea of Australia had continued to be 3 nautical miles. (3) Where an exploration permit for petroleum subsisting under the Commonwealth Act immediately before the commencement of this Act, or a permit granted by way of the first or any subsequent renewal of such a permit, is cancelled or determined, or expires and is not renewed, as to an area described in paragraphs (a), (b) and (c) of the definition of adjacent area, that area ceases to be part of an adjacent area. (4) In this Act, a reference to the term of a permit, lease, licence, special prospecting authority or access authority is a reference to the period during which the permit, lease, licence, special prospecting authority or access authority remains in force and a reference to the date of expiration of a permit, lease, licence, special prospecting authority or access authority is a reference to the day on which the permit, lease, licence, special prospecting authority or access authority ceases to be in force.

Petroleum (Submerged Lands) Act 1981 10 (4A) In this Act, a reference to the term of a pipeline licence is a reference to the period during which the pipeline licence is in force. (5) 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 one 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. (6) 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 first-mentioned permit to mentioned permit or on the day after the date of expiration of the permit granted upon a previous renewal of the first-mentioned permit. (6A) 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 first-mentioned lease was in force to mentioned lease or on the day after the date of expiration of the lease granted upon a previous renewal of the first-mentioned lease. (7) In this Act, a reference to the renewal, or 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 mentioned licence or on the day after the date of expiration of the licence granted upon a previous renewal of the first-mentioned (9) In this Act, a reference to a pipeline includes a reference to a part of a pipeline. (10) 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. (11) 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. (12) 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

Petroleum (Submerged Lands) Act 1981 11 (b) the space above or below an area that is part of the adjacent area shall be deemed to be in that part.

5 Construction of Act (1) This Act shall be read and construed as intended to operate, and as operating, to the full extent of the legislative powers of the Territory (any presumption to the contrary notwithstanding) but subject to, and so as not to exceed, the limits of those powers to the intent that where any provision of this Act would, but for this subsection, be construed as being in excess of those powers, it shall nevertheless be a valid enactment to the extent to which it is not in excess of those powers. (2) No other provision of this Act shall be read or construed so as to limit, or as limiting, the operation of subsection (1).

6 Application of Act This Act applies to all natural persons, whether Australian citizens or not and whether resident in the Territory or not, and to all corporations, whether incorporated or carrying on business in the Territory or not.

6A Disapplication of Territory occupational health and safety laws (1) The prescribed occupational health and safety laws do not apply in relation to: (a) a facility; (b) a person at a facility; (c) a person near a facility, to the extent to which the person is affected by: (i) a facility; or (ii) activities that take place at a facility; or (d) activities that take place at a facility. (2) For subsection (1), a reference to the prescribed occupational health and safety laws is a reference to the provisions of those laws that, if subsection (1) did not apply, would apply in the adjacent area because of the Off-Shore Waters (Application of Territory Laws) Act 1985 or the cooperative scheme within the meaning of the Crimes at Sea Act 2000.

Petroleum (Submerged Lands) Act 1981 12 (3) This section applies despite the Off-Shore Waters (Application of Territory Laws) Act 1985 or Crimes at Sea Act 2000. (4) In this section: facility has the meaning in Schedule 4. prescribed occupational health and safety laws means any laws of the Territory relating to occupational health and safety (whether or not they also relate to other matters) prescribed by the Regulations.

7 Petroleum pool extending into 2 licence areas (1) The provisions of this section have effect for the purposes of this Act and of licences (whether granted before or after the commencement of this Act). (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 one 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 one 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

Petroleum (Submerged Lands) Act 1981 13 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, (b) petroleum is recovered from that pool; and (c) the Supreme Court of another State has made 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.

Division 2 Administration of Principal Northern Territory PSL Area Petroleum (Submerged Lands) Act 1981 14 (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 59 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. Division 2 Administration of Principal Northern Territory PSL Area

10 Definitions In this Division, unless the contrary intention appears: Commonwealth Act means, as the context requires: (a) the Petroleum (Submerged Lands) Act 1967 of the Commonwealth, as amended from time to time; as amended from time to time; (c) the Petroleum (Submerged Lands) Registration Fees Act 1967 of the Commonwealth, as amended from time to time; (d) if the Petroleum (Submerged Lands) Registration Fees Act 1967 of the Commonwealth is repealed and re-enacted (with or without modification) – the Act of the Commonwealth that re-enacts it, as amended from time to time; (e) the Petroleum (Submerged Lands) Fees Act 1994 of the Commonwealth, as amended from time to time; or

Division 2 Administration of Principal Northern Territory PSL Area Petroleum (Submerged Lands) Act 1981 15 (f) if the Petroleum (Submerged Lands) Fees Act 1994 of the as amended from time to time. Commonwealth adjacent area means: (a) if the Petroleum (Submerged Lands) Act 1967 of the Commonwealth is in force – the adjacent area in respect of the Territory determined in accordance with section 5A of that Act; or modification) – the area that, under the Act of the Commonwealth that re-enacts the Petroleum (Submerged Lands) Act 1967 of the Commonwealth, corresponds to the area which, immediately before the repeal of the Petroleum (Submerged Lands) Act 1967 of the Commonwealth, was the adjacent area in respect of the Territory determined in accordance with section 5A of that Act. Eastern Greater Sunrise area means the part of the Commonwealth adjacent area that is described in Schedule 8 to the Commonwealth Act under the heading that refers to the Eastern Greater Sunrise area. Principal Northern Territory PSL area means the part of the Commonwealth adjacent area that is comprised of all of that adjacent area apart from the Eastern Greater Sunrise area.

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

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

13 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 Principal Northern Territory PSL area to perform or exercise.

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14 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 Principal Northern Territory PSL area, the Minister delegates a power to a person who is an employee of the Public Service or who holds any office in the service of the Territory, the person may exercise the power so delegated in an instrument of delegation.

15 Public servants performing functions under Commonwealth Act An employee of the Public Service shall perform any function which the Minister, as the Designated Authority in respect of the Principal Northern Territory PSL area, or as a member of the Joint Authority, requires him to perform in relation to the Commonwealth Act.

15A Application This Division applies in relation to acts done under this Act that are future acts to which Subdivision N of Division 3 of Part 2 of the Native Title Act applies.

15B Procedural rights Where an act to which this Division applies affects native title rights and interests: (a) the native title holders; and (b) the registered native title claimants (if any) in relation to land or waters in the area concerned, have the same procedural rights as they would have in relation to the act on the assumption that they instead held any corresponding rights and interests in relation to the offshore place that are not native title rights and interests.

15C Compensation Compensation for the effect on native title of an act to which this Division applies: (a) is payable by the holder of the permit, lease, licence, pipeline licence, consent under section 60 or 123, special prospecting authority or access authority to which the act relates (in this section called the petroleum interest);

Petroleum (Submerged Lands) Act 1981 17 (b) includes compensation for the effect on native title of activities done under the petroleum interest as a result of the act; and (c) is to be determined in accordance with Division 5 of Part 2 of the Native Title Act.

16 Delegation (1) The Minister may, either generally or as otherwise provided by an instrument of delegation, by writing signed by him, delegate to a person any of his powers or functions under this Act or the Regulations other than this power of delegation. (2) A power or function delegated under subsection (1), when exercised by the delegate shall, for the purposes of this Act or the Regulations, be deemed to have been exercised 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 (5) A delegation of a power or function under this section does not prevent the exercise of the power or function by the Minister. (6) A copy of each instrument making, varying or revoking a delegation shall be published in the Gazette.

17 Graticulation of Earth's surface (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

Petroleum (Submerged Lands) Act 1981 18 (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 an 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 an 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, the block.

18 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.

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18A Environmental consideration relating to certain parks and reserves (1) In this section: land, sea-bed and subsoil have the same meaning as in the Territory Parks and Wildlife Conservation Act 1976. park or reserve means a park or reserve within the meaning of the Territory Parks and Wildlife Conservation Act 1976 or land declared under section 9(4) of that Act to be a park or reserve for the purposes of this section. (2) In respect of land comprising the whole or a part of a park or reserve, the Minister shall not grant: (a) subject to subsection (3), an access authority, special prospecting authority, permit or lease, unless the Minister has considered the opinions of the minister administering the Territory Parks and Wildlife Conservation Act 1976 in relation to the proposed grant; or (b) a licence, except in accordance with the conditions, if any, specified by the minister administering the Territory Parks and Wildlife Conservation Act 1976. (3) The holder of an access authority or special prospecting authority or a permittee or lessee shall not carry out exploration, or any other activity, which may cause substantial disturbance to the land, sea-bed or subsoil comprising the whole or a part of a park or reserve unless he has advised the Minister, in writing, of his intention to carry out the exploration or activity and he carries it out in accordance with such directions, if any, as the Minister thinks fit, or which are required under subsection (4) to be given, to protect the environment in or in the vicinity of the park or reserve. (4) The minister administering the Territory Parks and Wildlife Conservation Act 1976 may require the Minister to give as directions under subsection (3) such directions in relation to the protection of the environment in the park or reserve as the minister thinks fit, and the Minister shall give those directions accordingly.

19 Exploration for petroleum (1) A person shall not explore for petroleum in an adjacent area except: (a) under and in accordance with a permit; or

Petroleum (Submerged Lands) Act 1981 20 (b) as otherwise permitted by this Part. (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.

20 Advertisement of blocks (1) The Minister may, by notice 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, in a notice published under subsection (1), direct that section 21(2) or (3) does not apply, or that both of those subsections do not apply, to or in relation to the applications.

21 Application for permits (1) An application made under section 20: (a) shall be in accordance with the approved form; (b) shall be made in the approved manner; (c) shall be in respect of not more than 400 blocks; (d) shall be accompanied by particulars of: in respect of the blocks specified in the application; (ii) the technical qualifications of the applicant and of his employees; (iii) the technical advice available to the applicant; and (iv) the financial resources available to the applicant; (e) may set out other matters that the applicant wishes the

Petroleum (Submerged Lands) Act 1981 21 (f) shall be accompanied by the prescribed fee. (2) The number of blocks specified in an application: (a) if 16 blocks or more are available – shall be not less than 16; or (b) if less than 16 blocks are available – shall be the number available. (3) The blocks specified in an 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 one other graticular section in that area. (4) The Minister may, at any time, by notice in writing served on an applicant, require him to furnish, within the time specified in the notice, further information in writing in connection with his

22 Grant or refusal of permit (1) Where an application has been made under section 20, the Minister may: (a) by notice in writing served on the applicant, inform the applicant that he is prepared to grant to the applicant a permit in respect of the block or blocks specified in the notice; or (b) refuse to grant a permit. (2) A notice under subsection (1) shall contain: (a) a summary of the conditions subject to which the permit is to applicant does not make a request under subsection (3) in respect of the grant of the permit. (3) An applicant who has been served with a notice under service of the notice on him, or within such further period, not exceeding one month, as the Minister, on application in writing served on him before the expiration of the first-mentioned period of one month, allows, by notice in writing served on the Minister, request the Minister to grant to him the permit referred to in the first-

Petroleum (Submerged Lands) Act 1981 22 mentioned notice. (4) Where an applicant who has been served with a notice under subsection (1) has made a request under subsection (3) within the period applicable under subsection (3), the Minister shall grant to him a permit in respect of the block or blocks specified in the notice. (5) Where an applicant who has been served with a notice under subsection (1) has not made a request under subsection (3) within the period applicable under subsection (3), the application lapses

23 Application for permit in respect of surrendered blocks, &c. (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 the blocks were, included in, a location, the Minister may, at any subsequent time by notice in the Gazette, invite applications for the grant of a permit in respect of that block or such of those blocks as is or are specified in the notice and specify a period within which applications may be made. (4) An application under this section: (c) shall be accompanied by the particulars referred to in section 21(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 24(1)(a), in respect of the grant of a permit to him on the application; and (e) may set out any other matters that the applicant wishes the

Petroleum (Submerged Lands) Act 1981 23 (5) The Minister may, at any time, by notice in writing served on an applicant, require him to furnish, within the time specified in the notice, further information in writing in connection with his

24 Application fee, &c. (1) An application made under section 23 shall be accompanied by: (a) the prescribed fee; and (b) a deposit of 10% of the amount specified in the application under section 23(4)(d). (2) Where a permit is not granted on the application, the amount of the deposit shall, subject to subsection (3), be refunded to the (3) Where an applicant who has been served with a notice under section 25 does not request the Minister in accordance with section 26 to grant to him the permit referred to in the notice, the deposit shall not, unless the Minister otherwise determines, be refunded to the applicant.

25 Consideration of applications (1) Where, at the expiration of the period specified in a notice under section 23(1), only one application has been made under that subsection in respect of the block or blocks specified in the notice, the Minister may reject or grant the application. (2) Where, at the expiration of the period specified in a notice under section 23(1), 2 or more applications have been made under that subsection in respect of the block or blocks specified in the notice, the Minister may reject any or all of the applications and, if he does not reject all of the applications, may: (a) if only one application remains unrejected – by notice in writing served on the applicant; or (b) if 2 or more applications remain unrejected – by notice in writing served on the applicant, or on one of the applicants, whose application has not been rejected and who has specified as the amount that he is prepared to pay in respect of the grant of a permit to him an amount that is not less than the amount specified by any other applicant whose application has not been rejected, inform him that he is prepared to grant to him a permit in respect of that block or those blocks.

Petroleum (Submerged Lands) Act 1981 24 (3) Where an application is made under section 23(2), the Minister may reject or grant the application. (5) A notice under this section shall contain: (a) a summary of the conditions subject to which the permit is to applicant does not: (i) make a request under section 26(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 109 in respect of that balance.

26 Request by applicant for grant of permit in respect of advertised blocks (1) An applicant who has been served with a notice under section 25 may, within a period of 3 months after the date of service of the notice on him, or within such further period, not exceeding 3 months, as the Minister, on application in writing served on him before the expiration of the first-mentioned period of 3 months, allows: (a) by notice in writing served on the Minister, request the Minister to grant to him the permit referred to in the first-mentioned notice; and (b) pay the balance of the amount to be paid in respect of the grant of the permit to him or enter into an agreement under section 109 in respect of that balance. (2) Where an applicant who has been served with a notice under section 25: (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 him or entered into an agreement under section 109 in respect of that balance, within the period applicable under subsection (1), the application

Petroleum (Submerged Lands) Act 1981 25 (3) Where the application lapses, as provided by subsection (1), of an applicant who has been served with a notice under section 25(2), subsection (2) applies in respect of the application or applications, if any, then remaining unrejected.

27 Grant of permit on request Where a person who has been served with a notice under section 25: (a) has made a request under section 26(1); and (b) has paid the balance of the amount to be paid in respect of the grant of a permit to him or has entered into an agreement under section 109 in respect of that balance, within the period applicable under section 25(1), the Minister shall grant to that person a permit in respect of the block or blocks specified in the notice.

28 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.

29 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.

30 Application for renewal of permit (1) Subject to section 31, 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

Petroleum (Submerged Lands) Act 1981 26 (2) An application for the renewal of a permit: 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 receive an application for the renewal of a permit less than 3 months before, but not in any case after, the date of expiration of the permit.

31 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 one less or one more than a number that is divisible by 4 without remainder – one-half of that last- mentioned number. (2) A block that is, or is included in, a location and in respect of which a 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 one other graticular section in that area.

Petroleum (Submerged Lands) Act 1981 27 (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 notice 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 notice; and (b) give such directions as he thinks fit concerning the blocks in respect of which the application may be made. (7) The Minister may: (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 concerning the blocks in respect of which that application may be made.

32 Grant or refusal of renewal of permit (1) Where an application has been made under section 30 for the renewal of a permit, the Minister: (a) shall, if the conditions to which the permit is, or has from time (b) may, if: (i) any of the conditions to which the permit is, or has from Part and the Regulations have not been complied with; and circumstances exist that justify the granting of the renewal of the permit, by notice in writing served on the person who is then the permittee, inform the person that he is prepared to grant to the person the renewal of the permit.

Petroleum (Submerged Lands) Act 1981 28 (2) If any of the conditions to which the permit is, or has from time to Regulations have 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 notice 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 a permit (a) he has, by notice in writing served on the permittee, given not less than one month's notice of his intention to refuse to grant the renewal of the permit; (ii) specified a date on or before which the permittee or a (d) he has taken into account any matters so submitted to him on or before the specified date by the permittee or by a person on whom a copy of the first-mentioned notice has been served. (4) A notice referred to in subsection (1) shall contain: (a) a summary of the conditions to which the permit, on the grant permittee does not make a request under subsection (5). (5) A permittee who has been served with a notice under service of the notice on him, by notice in writing served on the Minister, request the Minister to grant to the permittee the renewal of the permit. (6) Where a permittee who has been served with a notice under subsection (1) has made a request under subsection (5) within the period referred to in subsection (5), the Minister shall grant to him the renewal of the permit.

Petroleum (Submerged Lands) Act 1981 29 (7) Where a permittee who has been served with a notice 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 date. (8) Where: (a) an application for the renewal of a permit has been made; and (b) the permit expires: renewal of the permit; or subsection (7), the permit shall be deemed to continue in force in all respects: permit; or whichever first occurs.

33 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; and (b) amounts to be expended by the permittee in carrying out such work, and the conditions may require 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.

Petroleum (Submerged Lands) Act 1981 30

34 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 notice in writing served on the permittee, direct the permittee to furnish to him, within the period specified in the notice, particulars in writing of any one or more of the following: (a) the chemical composition and physical properties of the (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 notice. (3) A person on whom a notice is served under subsection (2) shall

35 Directions by designated authority on discovery of petroleum (1) Where petroleum is discovered in a permit area, the Minister may, by notice in writing served on the permittee, direct the permittee to do, within the period specified in the notice, such things as the Minister thinks necessary and specifies in the notice 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 permit area, in such part of that petroleum pool as is within the permit area.

Petroleum (Submerged Lands) Act 1981 31 (2) A person on whom a notice is served under subsection (1) shall

36 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 shall be in writing and served on the (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. (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) shall be by written notice served on the permittee.

Petroleum (Submerged Lands) Act 1981 32 (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.

37 Declaration of location (a) a permittee has made a nomination under section 36; 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 shall, by notice 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 subsection 36(9), the Minister shall, by notice 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) 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; (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.

Petroleum (Submerged Lands) Act 1981 33 (6) Subsection (5) does not apply where a variation is made at the request of the permittee.

38 Immediately adjoining blocks For the purposes of section 36, 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 one point only.

38A 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 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): 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

Petroleum (Submerged Lands) Act 1981 34 (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, being 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 first-mentioned period of 2 years, allows.

38B Grant or refusal of lease in relation to application (a) an application has been made under section 38A; (b) the applicant has furnished any further information as and when required by the Minister under section 38A(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 15 years after that time, the Minister shall, by instrument in writing served on the applicant, inform him: (d) that he is prepared to grant to him a lease in respect of the block or blocks specified in the application. (2) Where an application has been made under section 38A and: (a) the applicant has not furnished any further information as and when required by the Minister under section 38A(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,

Petroleum (Submerged Lands) Act 1981 35 the Minister shall, by instrument in writing served on the applicant, refuse to grant a lease to him. (3) An instrument under subsection (1) shall contain: (a) a summary of the conditions subject to which the lease is to 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 service of the instrument, or within such further period, not exceeding one month, as the Minister, on application in writing served on him before the end of the first-mentioned 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 him 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 (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. 38BA Application of sections 38A and 38B where permit transferred (a) after an application has been made under section 38A(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 38B(1) or (2) in relation to the application, a transfer of the permit is registered under section 78, sections 38A and 38B have effect, after the time of the transfer, as if a reference in those sections to the applicant were a reference to the transferee.

Petroleum (Submerged Lands) Act 1981 36

38C 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.

38D 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 it 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.

38E Notice of intention to cancel lease (a) a lessee has been given a notice of the kind referred to in section 38H(3)(b) 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 he thinks appropriate an instrument in writing: (d) informing the lessee or the other person that the Minister has formed that opinion and that he 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 first-mentioned instrument, not being a period ending earlier than one month after the date of service of the first- mentioned instrument, setting out any matters that the lessee or the other person, as the case may be, wishes to be considered.

Petroleum (Submerged Lands) Act 1981 37 (a) an instrument under subsection (1) is served on a lessee; and (b) he does not, within the period referred to in subsection (1)(e), serve on the Minister an instrument setting out matters that he wishes to be considered, or the Minister after consideration of matters set out in such 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 occurs. (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).

38F Application for renewal of lease (1) A lessee may, from time to time, make an application to the Minister for the renewal of a lease. (2) An application for the renewal of a lease: manner not less than 6 months or more than 12 months before the day on which the lease ceases to be in force; in respect of the lease area; and

Petroleum (Submerged Lands) Act 1981 38 (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 (3) The Minister may, for reasons that he thinks sufficient, receive an application for the renewal of a 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

38G Grant or refusal of renewal of lease (a) an application for the renewal of a lease has been made under section 38F; (b) any further information required by the Minister under section 38F(4) has been furnished in accordance with that section; 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 15 years after that time, the Minister: (d) shall, if the conditions to which the lease is, or has from time (e) may, if: (i) any of the conditions to which the lease is, or has from Part and the Regulations have not been complied with; and

Petroleum (Submerged Lands) Act 1981 39 circumstances exist that justify the granting of the renewal of the lease, lessee, inform the person that he 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 38F and: (a) any further information required by the Minister under section 38F(4) has not been furnished in accordance with that section; (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 lease is, or has from time to Regulations have 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 a lease unless: (a) he has, by instrument in writing served on the lessee, given not less than one month's notice of his intention to refuse to grant the renewal of the lease; (b) he has served a copy of the instrument on such other persons, if any, as he thinks fit; (c) he has, in the instrument: (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) he 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 first-mentioned instrument has been served.

Petroleum (Submerged Lands) Act 1981 40 (4) An instrument referred to in subsection (1) shall contain: (a) a summary of the conditions to which the lease, on the grant 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 he 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 the period of one month after the date of service of the instrument on him, 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 (9) Where: (a) an application for the renewal of a lease has been made; and (b) the lease expires: renewal of the lease; or subsection (8), the lease shall be deemed to continue in force in all respects: lease; or

Petroleum (Submerged Lands) Act 1981 41 whichever first occurs. (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 it grants, or refuses to grant, the licence or until the application lapses, whichever first occurs.

38H 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 him in the carrying out of such work, or conditions with respect to both of those matters, including conditions requiring him 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: (a) will comply with the provisions of this Act relating to the payment of royalty as in force from time to time; and (b) will, within the period of 3 months after the receipt of a written notice from the Minister requesting him to do so or within such further period as the Minister, on application in writing served on the Minister before the end of the first-mentioned 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 results of the re-evaluation. (4) Where a lessee has complied with 2 notices of the kind referred to in subsection (3)(b) during the term of the lease, the Minister shall not give to the lessee a further notice of that kind until such time, if ever, as that term is extended.

Petroleum (Submerged Lands) Act 1981 42

38J Discovery of petroleum to be notified (1) Where petroleum is discovered in a lease area, the lessee: (a) shall inform the Minister of the discovery forthwith; 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 (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.

38K Directions by designated authority 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.

Petroleum (Submerged Lands) Act 1981 43

39 Recovery of petroleum in adjacent area A person shall not carry on operations for the recovery of petroleum in an adjacent area except: (a) under and in accordance with a licence; or (b) as otherwise permitted by this Part.

40 Application by permittee for licence (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 one of those blocks; or

Petroleum (Submerged Lands) Act 1981 44 (f) where one 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 his 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 his 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 a 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 his 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 variation of that licence. (a) a permittee makes an application under subsection (1) in respect of his primary entitlement; or (b) a permittee who is the holder of a licence in respect of a number of blocks that is less than his primary entitlement makes an application under subsection (2) for a variation of that licence, and the number of blocks in respect of which the 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 his 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

Petroleum (Submerged Lands) Act 1981 45 (b) such other period, being 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 first-mentioned period of 2 years, allows. (a) a permittee applies for the grant by the Joint Authority of a licence in respect of a block or blocks in respect of which the permittee has applied for a lease under section 38A; and (b) an instrument refusing to grant the lease is served on the permittee pursuant to section 38B(2), the application period shall be: (c) the period that is applicable under subsection (4); or (d) the period of 12 months after the day of service of the instrument, whichever period last expires.

40A 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 of a licence where the lease is: (a) in respect of 9 blocks – in respect of 5 of those blocks; (b) in respect of 8 or 7 blocks – in respect of 4 of those blocks; (c) in respect of 6 or 5 blocks – in respect of 3 of those blocks; (d) in respect of 4 or 3 blocks – in respect of 2 of those blocks; (e) in respect of 2 blocks – in respect of one of those blocks; or (f) 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 his primary entitlement, make an application to the Minister for the grant of a licence in respect of a number of blocks that is less than his primary entitlement. (3) Where an application has been made under subsection (1) in respect of his primary entitlement, the person who is then the lessee may, at any time while the lease concerned is in force, make an application to the Minister for the grant of a licence in respect of any of the other blocks forming part of the lease.

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41 Application for licence (1) An application made under section 40 or 40A: (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 (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 notice in writing served on the applicant, require him to furnish, within the period specified in the notice, further information in writing in connection with the

42 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% or more than 12½% of the value of that petroleum at the well-head. (2) The Minister shall not, under subsection (1), determine the rate at which royalty is to be payable unless he has given to the applicant an opportunity to confer with him concerning that rate.

43 Notification as to grant of licence (1) Where an application for the grant of a licence has been made under section 40 or 40A and the applicant has furnished further information as and when required by the Minister under section 41(2), the Minister, by notice in writing served on the applicant, shall inform the applicant that he is prepared to grant to the applicant a licence in respect of the blocks specified in the

Petroleum (Submerged Lands) Act 1981 47 (2) A notice served under subsection (1) shall: (a) contain a summary of the conditions subject to which the licence is to be granted; (b) if the notice relates to an application for a secondary licence – specify the rate of royalty determined by the Minister in pursuance of section 42(1); and (c) contain a statement to the effect that the application will lapse if the applicant does not make a request under section 44(1) in respect of the grant of the licence.

44 Grant of licence (1) An applicant who has been served with a notice under section 43(1) may, within a period of 3 months after the date of service of the notice on him, or within such further period not exceeding 3 months, as the Minister, on application in writing served on him before the expiration of the first-mentioned period of 3 months, allows, by notice in writing served on the Minister, request the Minister to grant to the applicant the licence referred to in the first-mentioned instrument. (2) Where an applicant who has been served with a notice under section 43(1) has made a request under subsection (1) within the period applicable under that subsection, the Minister shall grant to the applicant a licence in respect of the blocks specified in the (3) A secondary licence shall not be granted to a permittee or lessee in respect of any one or more of the blocks that constitute a location (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 45, is the permittee's or lessee's primary entitlement. (4) Where an applicant who has been served with a notice under section 43(1) has not made a request under subsection (1) within the period applicable under that subsection, the application lapses

Petroleum (Submerged Lands) Act 1981 48 (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.

44A Application of sections 41 to 44 where permit, &c., transferred (a) after an application has been made: (i) under section 40 for the grant of a licence in respect of a block in respect of which a permit is in force; or (ii) under section 40A 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 43(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 41 to 44 (inclusive) have effect in relation to the application as if a reference in those sections to the applicant were a reference to the transferee.

45 Variation of licence area (1) Where an application is made under section 40(2) for a variation of a licence, the Minister shall, by notice 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.

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46 Determination of permit or lease as to block not taken up (1) Subject to subsection (2), where: (a) a permittee who may make an application under section 40 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 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 40A in respect of a block have lapsed, the lease is determined as to that block and the determination has effect on 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 (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 in the Gazette: (a) in a case where that block or those blocks constitutes or constitute that location – revoke the declaration made under section 37 in respect of that location; or

Petroleum (Submerged Lands) Act 1981 50 (b) in a case where that block or those blocks forms or form part of that location – revoke the declaration made under section 37 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 notice in the Gazette, revoke the declaration made under section 37 to the extent that it relates to the block that is or blocks that are not within the lease area. (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 38B(1)(c)(ii), the Minister shall, by notice in the Gazette, revoke the declaration made under section 37 in respect of that location.

47 Application for licence in respect of surrendered blocks, &c. (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,

Petroleum (Submerged Lands) Act 1981 51 the Minister may, at any subsequent time, by notice 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 a notice under subsection (1), state: (a) that an applicant is required to specify an amount that he would be prepared to pay in respect of the grant of a licence to him on his application; or (b) that an applicant is required to specify a rate of royalty that he would be prepared to pay, if the licence were granted to him on his application, in respect of petroleum recovered under the licence, being a rate that exceeds 10% of the value of that petroleum at the well-head. (3) Where the Minister, in a notice 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 notice, state than an applicant on whose application he is prepared to grant a licence will also be required to pay to him, in respect of the grant of the licence, the amount specified in that behalf in that notice. (6) An application made under this section: (c) shall be accompanied by the particulars referred to in section 41(1)(c); (d) in the case of an application under subsection (1), shall specify, in accordance with the requirement in the notice by which applications were invited, the amount or the rate of royalty, that the applicant would be prepared to pay; and (f) may set out any other matters that the applicant wishes the (7) The Minister may, at any time, by notice in writing served on the applicant, require him to furnish, within the period specified in the notice, further information in connection with his application.

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48 Application fee, &c. (1) An application made under section 47 shall be accompanied by: (a) the prescribed fee; and (b) a deposit: (i) if the applicant has specified an amount that he would be prepared to pay in respect of the grant of a licence to him on the application – of 10% of that amount; or (ii) if the Minister has, in the notice by which the applications were invited, stated an amount that the applicant will be required to pay in respect of the grant of a licence – of 10% of that amount. (2) Where a licence is not granted on the application, the amount of the deposit shall, subject to subsection (3), be refunded to the (3) Where an applicant who has been served with a notice under section 49(1) does not request the Minister, under section 49(6), to grant to him the licence referred to in the notice, the deposit shall not, unless the Minister otherwise determines, be refunded to the

49 Request by applicant for grant of licence (1) Where, at the expiration of the period specified in a notice under section 47(1), only one application has been made under that subsection in respect of the block specified in the notice, the Minister may reject or grant the application. (2) Where, at the expiration of the period specified in a notice under section 47(1), 2 or more applications have been made under that subsection in respect of the block specified in the notice, the Minister may reject any or all of the applications and, if he does not reject all of the applications, may: (a) if only one application remains unrejected – by notice in writing served on the applicant; or (b) if 2 or more applications remain unrejected – by notice in writing served on the applicant, or on one of the applicants, whose application has not been rejected and who has specified in his application an amount, or a rate of royalty, that he 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,

Petroleum (Submerged Lands) Act 1981 53 inform the applicant: (c) that he is prepared to grant to him a licence; 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 notice under section 47(1), as the case may be. (5) A notice 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 him; 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 notice 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 109 in respect of that balance. (6) An applicant who has been served with a notice under any of the preceding provisions of this section may, within a period of 3 months after the date of service of the notice on him, or within such further period, not exceeding 3 months, as the Minister, on application in writing served on him before the expiration of the first- mentioned period of 3 months, allows: (a) by notice in writing served on the Minister, request the Minister to grant to him the licence; and

Petroleum (Submerged Lands) Act 1981 54 (b) if the first-mentioned notice 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 him – pay that balance or enter into an agreement under section 109 in respect of that balance. (7) Where an applicant who has been served with a notice under subsection (1) or (2): (a) has not made a request under subsection (6); or (b) if the notice 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 him – has not paid that balance or entered into an agreement under section 109 in respect of that balance, within the period applicable under subsection (6), the application (8) Where the application lapses, as provided by subsection (7), of an applicant who has been served with a notice under subsection (2), subsection (2) applies in respect of the application or applications, if any, then remaining unrejected.

50 Grant of licence on request Where an applicant who has been served with a notice under section 49: (a) has made a request under section 49(6); and (b) if the notice 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 him – has paid that balance or entered into an agreement under section 109 in respect of that balance, within the period applicable under section 49(6), the Minister shall grant to him a licence in respect of the block specified in the notice.

51 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 him of 2 or more licences in respect of the blocks the subject of the original licence in exchange for the original licence.

Petroleum (Submerged Lands) Act 1981 55 (2) An application under subsection (1): (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 (4) Where a licensee has made an application under this section, the Minister shall grant to the licensee licences in accordance with the (5) A licence granted on an application under this section: (a) remains in force, subject to this Part, but notwithstanding section 53, 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 the original licence is determined and the determination has effect on and from the day on which those licences come into force.

52 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 he 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.

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53 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 a 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 a 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 a 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.

54 Application for renewal of licence (1) A licensee may, from time to time, make an application to the Minister for the renewal of a licence. (2) An application for the renewal of a licence: 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 (3) The Minister may receive an application for the renewal of a licence less than 6 months before, but not in any case after, the day on which the licence ceases to be in force.

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55 Grant or refusal of licence (a) an application for the renewal of a licence has been made under section 54; and (b) the conditions to which the licence is, or has from time to time been, subject and the provisions of this Part and 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, licensee, inform the person that he is prepared to grant to the person the renewal of the licence. (a) an application for the renewal of a licence has been made under section 54; 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 or the Regulations have 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 he 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 Regulations have 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 notice in writing served on the person who is then the licensee, refuse to grant the renewal of the licence.

Petroleum (Submerged Lands) Act 1981 58 (4) The Minister shall not, under subsection (3), refuse to grant the renewal of a licence unless: (a) he has, by notice in writing served on the licensee, given not less than one month's notice of his intention to refuse to grant the renewal of the licence; (ii) specified a date on or before which the licensee or a (d) he has taken into account any matters so submitted to him on or before the specified date by the licensee or by a person on whom a copy of the first-mentioned notice has been served. (5) Where an application has been made under section 54 in respect of a renewal other than the first renewal of a licence, the Minister may, by notice in writing served on the person who is then the licensee, refuse to grant the renewal of the licence. (7) A notice under subsection (1) or (2) shall contain: (a) a summary of the conditions to which the licence, on the grant applicant does not make a request under subsection (8). (8) A licensee who has been served with a notice under subsection (1) or (2) may, within a period of one month after the date of service of the notice on him, by notice in writing served on the Minister, request the Minister to grant the renewal of the licence to the licensee. (9) Where a licensee who has been served with a notice 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 him the renewal of the licence.

Petroleum (Submerged Lands) Act 1981 59 (10) Where a licensee who has been served with a notice under subsection (1) or (2) has not made a request under subsection (8) within the period referred to in subsection (8), the application lapses (11) Where: (a) an application for the renewal of a licence is made under section 54; and (b) a licence expires: renewal of the licence; or subsection (10), the licence shall be deemed to continue in force in all respects: licence; or whichever first happens.

56 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 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, he may, by notice 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 notice 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.

Petroleum (Submerged Lands) Act 1981 60 (3) Where petroleum is being recovered in a licence area, the Minister may, for reasons that he thinks sufficient, by notice 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 notice. (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 notice 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. (5) Without limiting the matters that may be taken into account by the Minister in determining whether to give a direction under subsection (3) or (4), the Minister may take into account matters relating to the effects on the revenue of the Territory of the proposed direction, but the Minister shall not give a direction under subsection (3) or (4) if the direction would require action to be taken that is contrary to good oil-field practice.

59 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 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 derogrates from the operation of section 81(2). (3) The Minister of his own motion or on application made to him in writing by: (a) a licensee in whose licence area there is a part of a particular petroleum pool; or

Petroleum (Submerged Lands) Act 1981 61 (b) a person who is lawfully entitled to carry on operations for the recovery of petroleum in an area outside an 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 notice, 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. (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 notice in writing served on the licensee, direct the licensee to submit to him, within the period specified in the notice, 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 notice 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 notice 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,

Petroleum (Submerged Lands) Act 1981 62 by notice 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 him concerning the proposed direction. (9) Directions given 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 him to extend, from an 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 him to extend, from an adjacent area into the adjacent area in respect of a State, 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 paragraphs (a) and (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. (13) For the purposes of subsection (11)(b), the adjacent area in respect of a State is one of the following areas: (a) if the Petroleum (Submerged Lands) Act 1967 of the Commonwealth is in force – the adjacent area in respect of the State within the meaning of that Act; modification) – the area that, under the Act of the Commonwealth that re-enacts the Petroleum (Submerged

Petroleum (Submerged Lands) Act 1981 63 Lands) Act 1967 of the Commonwealth, corresponds to the area which, immediately before the repeal of the Petroleum (Submerged Lands) Act 1967 of the Commonwealth, was the adjacent area in respect of the State determined in accordance with section 5A of that Act.

60 Construction etc. of pipelines etc. (1) A person shall not, in the adjacent area: 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: 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 (3) A person shall not, in the adjacent area: reconstruction, of a pumping station, tank station or valve station; or (b) operate a pumping station, tank station or valve station,

Petroleum (Submerged Lands) Act 1981 64 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 the 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 he 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 refuse to give a consent or certificate for the purposes of this section and, where he gives a consent, may attach conditions to it.

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61 Acts done in emergency, &c. It is not an offence against section 60: (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 him by the Minister; or (b) if a person does an act in compliance with a direction under this Act or the Regulations.

62 Removal of pipeline, &c., constructed in contravention of Act (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 notice in writing served on the appropriate person, direct him: (c) to make such alterations to the pipeline, water line, pumping station, tank station, valve station or secondary line as are specified in the notice; 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 notice.

Petroleum (Submerged Lands) Act 1981 66 (2) For the purposes of subsection (1), the appropriate person is: (a) if the construction of a 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 a 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 who has been served with a notice under subsection (1) does not, within the period specified in the notice or within such further period, if any, as the Minister, on application in writing served on him before the expiration of the first-mentioned 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 Territory and are recoverable in a court of competent jurisdiction.

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

64 Application for pipeline licence (1) An application for a pipeline licence: (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 his employees;

Petroleum (Submerged Lands) Act 1981 67 (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 routes to be followed by the pipeline; (ii) the sites of pumping stations, tank stations and valve stations to be used in connection 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 63 to be a terminal station in connection with the pipeline; (e) may set out any other matters that the applicant wishes the (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 of a production licence 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 him before the expiration of the first- mentioned 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.

Petroleum (Submerged Lands) Act 1981 68 (a) a notice referred to in subsection (2) is published in the Gazette; and (b) a pipeline licence is granted to a licensee or to a pipeline operator under the Commonwealth Act or a corresponding law on an application under subsection (2), the Minister shall, by notice in writing served on the applicant, reject the application referred to in the notice. (4) The Minister may, at any time, by notice in writing served on a person who has made an application under this section, require him to furnish, within the time specified in the notice, further information in writing in connection with his application. (5) In this section, pipeline operator under the Commonwealth Act or a corresponding law has the same meaning as in section 65.

65 Grant or refusal of grant of pipeline licence (1) Where a person makes an application in accordance with section 64, the Minister may, if that person is not the licensee and the application has not been rejected under section 64(3), inform the applicant, by notice in writing served on the applicant, that the Minister is prepared to grant a pipeline licence to the applicant. (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 64 by the licensee, the Minister: (a) shall, if the conditions to which the licence is, or has from time (b) may, if: (i) any of the conditions to which the licence is, or has from Part or the Regulations have not been complied with; and circumstances exist that justify the granting of a pipeline licence,

Petroleum (Submerged Lands) Act 1981 69 licensee, inform the person that the Minister is prepared to grant to the person a pipeline licence. (2A) If a person makes an application in accordance with section 64 for a pipeline licence in respect of the construction in an adjacent area of a pipeline for the conveyance of petroleum recovered from a place beyond the outer limits of any adjacent area, the Minister may inform the person, by instrument in writing served on the person, that he or she is prepared to grant 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 64 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 or the Regulations have not been complied with; and (b) the Minister is not satisfied that special circumstances exist that justify the granting of a pipeline licence, 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) he or she has, by notice in writing served on the licensee, given not less than one month's notice of his or her intention to refuse to grant the pipeline licence; (b) he or she has served a copy of the notice on such other persons, if any, as he or she thinks fit; (c) he or she has, in the notice: (ii) specified a date on or before which the licensee or a matters that he or she wishes the Minister to consider; and (d) he or she has taken into account any matters so submitted to him or her on or before the specified date by the licensee or by a person on whom a copy of the first-mentioned notice has been served.

Petroleum (Submerged Lands) Act 1981 70 (5) Where a person other than a licensee or a pipeline operator under the Commonwealth Act or a corresponding law makes an application in accordance with section 64 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 of a production licence 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. (7) A notice under subsection (1) or an instrument under subsection (2) or (2A): (a) shall specify the route to be followed by the pipeline; (b) shall contain a summary of the conditions subject to which a 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 a notice under subsection (1) or an instrument under subsection (2) or (2A) 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 who has been served with a notice under subsection (1) or an instrument under subsection (2) or (2A) may, within a period of 3 months after the date of service of the notice on the person, or within such further period, not exceeding 3 months, as the Minister, on application in writing served on the person before the expiration of the first-mentioned period of 3 months, allows, by notice in writing served on the Minister, request the Minister to grant to the person the pipeline licence. (10) Where a person who has been served with a notice under subsection (1) or an instrument under subsection (2) or (2A) 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 notice or instrument. (11) Where a person who has been served with a notice under subsection (1) or an instrument under subsection (2) or (2A) has not made a request under subsection (9) within the period applicable under subsection (9), the application lapses upon the

Petroleum (Submerged Lands) Act 1981 71 expiration of that period. (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 first-mentioned area to the boundary of the adjacent area.

66 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 an 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.

67 Term of pipeline licence (1) Subject to this Part, a pipeline licence remains in force indefinitely. (2) A pipeline licence comes into force on the day on which it is granted or, if a later day is specified in the pipeline licence as being the day on which it is to come into force, on that later day.

70 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.

Petroleum (Submerged Lands) Act 1981 72 (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.

71 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. (c) shall be accompanied by particulars of the proposed variation; (d) shall specify the reasons for the proposed variation; and (3) The Minister may, at any time, by notice in writing served on a person who has made an application under this section, require him to furnish, within the period specified in the notice, further information in writing in connection with his application. (4) The Minister shall, by notice 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 he wishes the Minister to consider in connection with the application. (5) After considering any matters submitted to him under subsection (4) the Minister may, by notice in writing, vary the pipeline licence to such extent as he thinks necessary or may refuse to vary the pipeline licence.

72 Variation of pipeline licence by designated authority (1) The Minister may: (a) at the request of: (i) a Minister or a Minister of State of the Commonwealth; or (ii) a body established by a law of the Commonwealth or a Territory or of a State; and (b) if, in his opinion, it is in the public interest so to do,

Petroleum (Submerged Lands) Act 1981 73 by notice in writing served on a person who is a pipeline licensee or the holder of a notice of consent under section 60, direct that person to make such changes in the design, construction, route or position of the pipeline, or of a water line, pumping station, tank station, valve station or secondary line to which the pipeline licence or notice of consent relates, as are specified in the first-mentioned notice, within the period specified in the first-mentioned notice and, if the person so directed is a pipeline licensee, shall vary the pipeline licence accordingly. (3) Where the Minister gives a direction under subsection (1), and the person to whom the direction was given has complied with the direction, that person may bring an action in the Supreme Court against the Minister or Minister of State of the Commonwealth or body making the request. (4) The Supreme Court shall hear the action, without a jury, and shall determine whether it is just that the whole or a portion of the reasonable cost of complying with the direction ought to be paid to the plaintiff by the defendant. (5) If the Supreme Court determines that it is just that such a payment ought to be made, the Supreme Court shall determine the amount of the payment and give judgment accordingly.

73 Common carrier (1) The Minister may, by notice in writing served on a pipeline licensee, direct the pipeline licensee to be a common carrier of petroleum in respect of the pipeline and thereupon the pipeline licensee is a common carrier of petroleum in respect of the pipeline. (2) Subsection (1) does not apply in relation to a pipeline, or a part of a pipeline, that is a covered pipeline within the meaning of the National Gas (NT) Law as defined in the National Gas (Northern Territory) Act 2008.

Petroleum (Submerged Lands) Act 1981 74

74 Ceasing to operate pipeline (1) Except with the consent in writing of the Minister and subject to compliance with such conditions, if any, as are specified in the notice of consent, a pipeline licensee shall not cease to operate the (2) It is not an offence against subsection (1) if the failure of the pipeline licensee to operate the pipeline: (a) was in the ordinary course of operating the pipeline; (b) was for the purpose of repairing or maintaining the pipeline; or (c) was in an emergency in which there was a likelihood of loss or injury. 74AA Termination of pipeline licence if no operations for 5 years (1) If a pipeline licensee: (a) has not carried out any construction work under the pipeline licensee's pipeline licence for a continuous period of at least 5 years; and (b) has not used the pipeline or a part of the pipeline the subject of the pipeline licensee's pipeline licence for a continuous period of at least 5 years, the Minister may, by written notice served on the pipeline licensee, inform the pipeline licensee that the Minister proposes to terminate the pipeline licence, or to terminate the pipeline licence in respect of a part of the pipeline, (as the case requires) after the end of one month after the notice is served. (2) At any time after the end of one month after the notice referred to in subsection (1) is served on the pipeline licensee, the Minister may, by written notice served on the pipeline licensee, terminate the pipeline licence or terminate the pipeline licence in respect of a part of the pipeline (as the case requires). (3) In working out, for the purposes of subsection (1), the duration of the period in which a pipeline licensee did not carry out any

Petroleum (Submerged Lands) Act 1981 75 construction work under the pipeline licence or did not use the pipeline or a part of the pipeline, any period in which construction work was not carried out, or the pipeline or part of the pipeline was not used, because of circumstances beyond the pipeline licensee's control is to be disregarded.

74A Interpretation In this Division, title means a permit, lease, licence, pipeline licence

75 Register of certain instruments to be kept For the purposes of this Part, the Minister shall keep a register of titles and special prospecting authority granted by him.

75A Application of Law of Property Act 2000 On the commencement of the Law of Property Act 2000: (a) that Act applies to estates, interests and any other rights in or in respect of land, granted, created or taking effect under this Act, but if there is an inconsistency between the provisions of that Act and a specific provision of this Act, this Act prevails; (b) Part 7 of that Act applies to or in respect of an interest granted, created or taking effect under this Act, subject that a reference to the Registrar-General is to be construed as a reference to the Minister; and (c) in registering the creation or transfer of an interest under this Act, the Minister is to record co-owners (if any) of the interest as tenants in common unless satisfied that the intention was for the interest to be held as joint tenants.

76 Particulars to be entered in register (1) The Minister shall enter in the register a memorial in respect of each title or special prospecting authority: (a) specifying the name of the holder of the title or special prospecting authority; (b) in the case of a permit, lease or licence, setting out an accurate description (including, where convenient, a map) of the permit area, lease area or licence area;

Petroleum (Submerged Lands) Act 1981 76 (c) in the case of a special prospecting authority or an access authority, setting out an accurate description (including, where convenient, a map) of the area in respect of which the special prospecting authority or access authority is in force; (d) in the case of a pipeline licence, setting out a description of the route of the pipeline; (e) specifying the term of the title and special prospecting authority; (f) setting out such other matters and things as are required by this Part to be entered in the register; and (g) setting out such further matters relating to the registered holder or to the terms and conditions of the title or special prospecting authority as the Minister deems proper and expedient in the public interest. (2) The Minister shall enter in the register a memorial of: (a) any notice varying, cancelling, surrendering or otherwise affecting a title or special prospecting authority; (b) any notice under section 59(5), (6) or (7); (c) any agreement under section 109; and (d) any notice or instrument varying or revoking a notice or instrument referred to in paragraph (a) or (b). (3) It is sufficient compliance with the requirements of subsection (1) or (2) if the Minister enters a copy of the title, special prospecting authority or instrument in the register. (5) The Minister shall endorse on the memorial or copy of the title, special prospecting authority or instrument a memorandum of the date upon which the memorial or copy was entered in the register.

77 Memorials to be entered of permits, &c., determined, &c. (a) a permit or lease ceases to be in force in respect of a block in respect of which a licence is granted; (b) a permit or lease has been wholly determined or partly determined; or

Petroleum (Submerged Lands) Act 1981 77 (c) a permit, licence, pipeline licence or access authority has expired, the Minister shall enter in the register a memorial of the fact.

78 Approval and registration of transfers (1) A transfer of a title is of no force or effect until it has been approved by the Minister and an instrument of transfer is registered as provided by this section. (2) Where it is desired that a title be transferred, one of the parties to the proposed transfer may make an application in writing to the Minister for approval of the transfer. (3) An application for approval of a transfer of a title shall be accompanied by: (a) an instrument of transfer in the prescribed form executed by the registered holder or, if there are 2 or more registered holders, by each registered holder and by the transferee or, if there are 2 or more transferees, by each transferee; (b) in a case where the transferee or one or more of the transferees is not a registered holder or are not registered holders of the title, an instrument setting out: (i) the technical qualifications of that transferee or those transferees; (ii) details of the technical advice that is or will be available to that transferee or those tranferees; and (iii) details of the financial resources that are or will be available to that transferee or those transferees; and (c) a copy of the application and of the instruments referred to in paragraphs (a) and (b). (4) The Minister shall not approve the transfer of a title unless the application was lodged with the Minister within 3 months after the day on which the party who last executed the instrument of transfer so executed the instrument of transfer or within such longer period as the Minister, in special circumstances, allows. (5) Where an application for approval of a transfer is made in accordance with this section, the Minister shall enter a memorandum in the register of the date on which the application was lodged and may make such other notation in the register as he considers appropriate.

Petroleum (Submerged Lands) Act 1981 78 (6) The Minister shall consider each application for approval of the transfer of a title and determine whether to approve the transfer. (7) Where an application for approval of the transfer of a title is made in accordance with this section, the Minister shall, by notice in writing served on the person who made the application, inform the person of the decision of the Minister. (9) Where the Minister approves the transfer of a title, he shall forthwith endorse on the instrument of transfer and on one copy of the instrument a memorandum of approval and shall, on payment of the fee provided by this Act, enter in the register a memorandum of the transfer and the name of the transferee or of each transferee. (10) Upon the entry in the register of a memorandum of the transfer of a title and of the name of the transferee in accordance with subsection (9): (a) the transfer shall be deemed to be registered; and (b) the transferee becomes the registered holder, or the transferees become the registered holders, of the title. (11) Where the Minister refuses to approve the transfer of a title, he shall make a notation of the refusal in the register. (12) Where a transfer is registered: (a) the copy of the instrument of transfer endorsed with the memorandum of approval shall be retained by the Minister and made available for inspection in accordance with this Division; and (b) the instrument of transfer endorsed with the memorandum of approval shall be returned to the person who lodged the application for approval of the transfer. (13) The mere execution of an instrument of transfer of a title creates no interest in the title.

79 Entries in register on devolution of title, &c. (1) A person upon whom the rights of a registered holder of a particular title have devolved by operation of law may apply in writing to the Minister to have his name entered in the register as the holder of the title. (2) The Minister shall, if he is satisfied that the rights of a holder have devolved upon an applicant by operation of law and on payment of the prescribed fee enter the name of the applicant in the register as

Petroleum (Submerged Lands) Act 1981 79 the holder of the title and, upon that entry being so made, the applicant becomes the registered holder of the title. (3) Where a company that is the registered holder of a particular title has changed its name, it may apply in writing to the Minister to have its new name substituted for its previous name in the register in relation to that title and, if: (a) the Minister is satisfied that the company has so changed its name; and (b) the company has paid the prescribed fee, the Minister shall make the necessary alterations in the Register.

81 Approval of dealings relating to existing titles (1) This section applies to a dealing that would, but for subsection (2), have one or more of the following effects: (a) the creation or assignment of an interest in an existing title; (b) the creation or assignment of a right (conditional or otherwise) to the assignment of an interest in an existing title; (c) the determining of the manner in which persons may exercise the rights conferred by, or comply with the obligations imposed by, or the conditions of, an existing title (including the exercise of those rights or the compliance with those obligations or conditions under co-operative arrangements for the recovery of petroleum); (d) the creation or assignment of: (i) an interest in or in relation to an existing permit, lease or licence, being an interest known as an overriding royalty interest, a production payment, a net profits interest or a carried interest; or (ii) any other interest that is similar to an interest referred to in subparagraph (i), being an interest relating to petroleum produced from operations authorized by an existing permit, lease or licence or relating to revenue derived as a result of the carrying out of operations of that kind; (e) the creation or assignment of an option (conditional or otherwise) to enter into a dealing, being a dealing that has one or more of the effects referred to in paragraphs (a), (b), (c) and (d);

Petroleum (Submerged Lands) Act 1981 80 (f) the creation or assignment of a right (conditional or otherwise) to enter into a dealing, being a dealing that has one or more of the effects referred to in paragraphs (a), (b), (c) and (d); and (g) the alteration or termination of a dealing, being a dealing that has one or more of the effects referred to in paragraphs (a), (b), (c), (d), (e) and (f), but this section does not apply to a transfer to which section 78 applies. (2) A dealing to which this section applies is of no force or effect in so far as the dealing would, but for this subsection, have an effect of a kind referred to in subsection (1) in relation to a particular title until: (a) the dealing, in so far as it relates to that title, has been approved by the Minister; and (b) an entry has been made in the register in relation to the dealing by the Minister in accordance with subsection (12). (3) A party to a dealing to which this section applies may lodge with the Minister: (a) in a case where the dealing relates to only one title, an application in writing for approval by the Minister of the dealing; or (b) in any other case, a separate application in writing for approval by the Minister of the dealing in relation to each title to which the dealing relates. (4) An application under subsection (3) for approval of a dealing: (a) shall be accompanied by the instrument evidencing the dealing or, if that instrument has already been lodged with the Minister for the purposes of another application, a copy of that instrument; and (b) may be accompanied by an instrument setting out such particulars (if any) as are prescribed for the purposes of an application for approval of a dealing of that kind. (4A) An application under subsection (3) for approval of a dealing shall be accompanied by 2 copies of: (a) the application; (b) the instrument referred to in subsection (4)(a); and

Petroleum (Submerged Lands) Act 1981 81 (c) any instrument lodged for the purposes of subsection (4)(b). (5) Subject to subsection (6), the Minister shall not approve a dealing unless the application for approval of the dealing is lodged with the Minister within the period of 3 months after the day on which the party who last executed the instrument evidencing the dealing so executed the instrument or such longer period as the Minister in special circumstances, allows. (6) Where a dealing relating to a title was, immediately before the title came into existence, a dealing referred to in section 81A(1), the Minister shall not approve the dealing unless: (a) a provisional application for approval of the dealing was lodged in accordance with section 81A(1); or (b) an application for approval of the dealing is lodged with the Minister in accordance with this section within 3 months after the day on which the title came into existence or such longer period as the Minister, in special circumstances, allows. (7) Where a dealing to which this section applies forms a part of the issue of a series of debentures, all of the dealings constituting the issue of that series of debentures shall, for the purposes of this section, be taken to be one dealing. (8) Where a dealing to which this section applies (including a dealing referred to in subsection (7)) creates a charge over some or all of the assets of a body corporate, the person lodging the application for approval of the dealing shall be deemed to have complied with subsection (4)(a), and with subsection (4A) in so far as that subsection requires 2 copies of the document referred to in subsection (4)(a) to accompany the application, if the person lodges with the application 3 copies of each document relating to the creation of that charge required to be lodged under section 262 of the Corporations Act 2001 or with ASIC under section 263 of the Corporations Act 2001, or under the corresponding provision of a law of a State or another Territory of the Commonwealth. (9) On receipt of an application made under this section, the Minister shall enter a memorandum in the register on the date on which the application was lodged and may make such other notation in the register as the Minister considers appropriate. (10) The Minister may approve or refuse to approve a dealing to which this section applies in so far as the dealing relates to a particular title.

Petroleum (Submerged Lands) Act 1981 82 (11) The Minister shall, by notice in writing served on the person who made an application for approval of a dealing, inform the person of the decision of the Minister. (12) If the Minister approves a dealing, he shall endorse on the original instrument evidencing the dealing and on one copy of that instrument or, if the original instrument was not lodged with the application, on 2 of the copies of that instrument a memorandum of approval and, on payment of the fee provided by this Act make an entry of the approval of the dealing in the register on the memorial relating to, or on the copy of, the title in respect of which the approval is sought. (13) Where an entry is made in the Register in relation to a dealing in accordance with subsection (12): (a) if the dealing was approved before the commencement of section 11 of the Petroleum (Submerged Lands) Amendment Act 1989 or the application for approval of the dealing was not accompanied by an instrument for the purpose of subsection (4)(b), one copy of the instrument evidencing the dealing endorsed with a memorandum of approval shall be retained by the Minister and made available for inspection in accordance with this Division; (b) if the application for approval of the dealing was accompanied by an instrument for the purpose of subsection (4)(b), a copy of that instrument endorsed with a copy of the memorandum of approval of the dealing shall be retained by the Minister and made available for inspection in accordance with this Division but a copy of the instrument evidencing the dealing shall not be so made available; and (c) the original instrument evidencing the dealing, or a copy of the original instrument, as the case requires, endorsed with a memorandum of approval and the instrument (if any) lodged for the purpose of subsection (4)(b) shall be returned to the person who made the application for approval. (13A) The approval of a dealing or the making of an entry in the Register in relation to a dealing is not rendered ineffective by a failure to comply, in relation to the application for approval of the dealing, with the requirements of this section. (14) Where the Minister refuses to approve a dealing, he shall make a notation of the refusal in the register.

Petroleum (Submerged Lands) Act 1981 83 (15) In this section, charge and debenture have the same respective meanings as they have for section 263 of the Corporations Act 2001.

81A Approval of dealings in future interests, &c. (1) Where 2 or more persons enter into a dealing relating to a title that may come into existence in the future and that dealing would, if the title came into existence, become a dealing to which section 81 applies, a person who is a party to the dealing may, during the prescribed period in relation to the title, lodge with the Minister: (a) in a case where the dealing relates to only one title that may come into existence in the future, a provisional application in writing for approval by the Minister of the dealing; or (b) in any other case, a separate provisional application in writing for approval by the Minister of the dealing in relation to each title that may come into existence in the future and to which the dealing relates. (2) Section 81(4), (7) and (8) applies to a provisional application lodged under subsection (1) of this section as if that provisional application were an application lodged under section 81(3). (a) the title to which a dealing referred to in subsection (1) relates comes into existence; and (b) upon that title coming into existence, the dealing becomes a dealing to which section 81 applies, the provisional application lodged under subsection (1) in relation to the dealing shall be treated as if it were an application lodged under section 81(3) on the day on which that title came into existence. (4) A reference in subsection (1) to the prescribed period, in relation to a title, is a reference to the period: (a) commencing: (i) in the case of a permit, lease, licence or pipeline licence – on the day of service of an instrument informing the applicant for the permit, lease, licence or pipeline licence that the Minister is prepared to grant the permit, lease, licence or pipeline licence; or

Petroleum (Submerged Lands) Act 1981 84 (ii) in the case of an access authority – on the day on which the application for the grant of the access authority is made; and (b) ending on the day on which the title comes into existence.

82 True consideration to be shown (1) A person who is a party to a transfer referred to in section 78, a dealing to which section 81 applies or a dealing referred to in section 81A(1) shall not lodge with the Minister: (a) an instrument of transfer; (b) an instrument evidencing the dealing; or (c) an instrument of the kind referred to in section 81(4)(b), that contains a statement relating to the consideration for the transfer or dealing, or to any other fact or circumstance affecting the amount of the fee payable in respect of the transfer or dealing under this Act, being a statement that is, to the knowledge of the person, false or misleading in a material particular. (2) Where a person is found guilty of an offence against subsection (1), the Minister may make a fresh determination of the amount of the fee payable under section 92 in respect of the memorandum relating to the transfer or dealing. (3) Section 91(2) and (3) applies in relation to a determination under subsection (2) as it applies in relation to a determination under section 91(1).

83 Minister not concerned with certain matters Neither the Minister nor a person acting under his direction or authority is concerned with the effect in law of any instrument lodged with him in pursuance of this Division nor does the approval of a transfer or dealing give to the transfer or dealing any force, effect or validity that the transfer or dealing would not have had if this Division had not been enacted.

Petroleum (Submerged Lands) Act 1981 85

84 Power of Minister to acquire information as to dealings (1) The Minister may require the person lodging an application for approval of a transfer or dealing or a provisional application for approval of a dealing under this Division to furnish to him in writing such information concerning the transfer or dealing as the Minister considers necessary or advisable. (1A) The Minister may require a person who is a party to a dealing approved under section 81 to furnish to the Minister a statement in writing setting out such information concerning alterations in the interests or rights existing in relation to the title to which the approved dealing relates as the Minister considers necessary or advisable. (1B) The Minister may require a person making an application under section 79(1) or (3) or 87A(2) to furnish to the Minister in writing such information concerning the matter to which the application relates as the Minister considers necessary or advisable. (1C) A person shall not fail or refuse to comply with a requirement given under subsection (1), (1A) or (1B). (2) A person who is required to furnish information shall not knowingly furnish information that is false or misleading in a material particular.