5Royalty

5 Royalty

(1) A permittee, lessee or licensee shall, subject to this Act, pay to the Designated Authority a royalty at the prescribed rate in respect of all petroleum recovered by the permittee, lessee or licensee in the permit area, lease area or licence area in a royalty period commencing on or after the commencement of this subsection. (1A) A permittee or licensee under a permit or licence granted before the commencement of this subsection is, subject to this Act, liable to pay to the Designated Authority royalty in accordance with the conditions of the permit or licence in respect of all petroleum recovered by the permittee or licensee in the permit area or licence area in a royalty period that commenced before the commencement of this subsection, to the extent that that royalty was not paid before that commencement. (1B) Moneys paid to the Designated Authority, after the commencement of this subsection, by way of royalty in respect of a permit, lease or licence granted after the commencement of this subsection, or granted before the commencement of this subsection and continued in force under the law of the Commonwealth, shall be received by the Designated Authority on behalf of the Commonwealth. (2) Subject to the succeeding provisions of this section, the prescribed rate in respect of petroleum recovered under a permit, lease or licence is ten per centum of the value at the well‑head of the petroleum. (3) The prescribed rate in respect of petroleum recovered under a secondary licence is the percentage determined in pursuance of subsection (1) of section 42 of the Petroleum (Submerged Lands) Act 1967 in respect of petroleum so recovered. (4) Where a secondary licence is granted to the holder of a primary licence, the prescribed rate in respect of petroleum recovered under the primary licence is, as from the commencement of the next royalty period after the day from which the secondary licence has effect, the same percentage as is applicable in respect of petroleum recovered under the secondary licence. (5) Where: (a) a licence is granted on an application under section 47 of the Petroleum (Submerged Lands) Act 1967; and (b) the instrument served on the applicant under section 49 of that Act contains a statement that the applicant will be required to pay, in respect of petroleum recovered under that licence, royalty at the rate specified in that statement; the prescribed rate in respect of petroleum recovered under that licence is the percentage specified in that statement. (6) Where a licence is granted on an application under subsection (1) of section 51 of the Petroleum (Submerged Lands) Act 1967, the prescribed rate in respect of petroleum recovered under that licence is the same percentage as was applicable in respect of petroleum recovered under the original licence as defined by subsection (1) of that section. (7) The prescribed rate in respect of petroleum recovered in the licence area referred to in a licence granted by way of renewal of a licence is the percentage that would be the prescribed rate if the licence so granted were the continuation in force of the previous licence. (8) A reference in this section, or in a permit, lease or licence (whether granted before or after the commencement of this subsection) to royalty at the prescribed rate or royalty at the rate that is for the time being the prescribed rate shall be read as a reference to royalty at the rate that is or was the prescribed rate applicable in accordance with the provisions of this Act, as in force from time to time.