Div 7Fees and royalties

Division 7—Fees and royalties 138—Fees A person who is a permittee, lessee, licensee or pipeline licensee must pay to the Minister in respect of each year of the term of the permit, lease, licence or pipeline licence the fee prescribed in relation to the permit, lease, licence or pipeline licence. 141—Time for payment of fees A fee under section 138 is payable within one month after— (a) in the case of the first year of the term of the permit, lease, licence or pipeline licence—the day on which that term commenced; and (b) in the case of a year of the term of the permit, lease, licence or pipeline licence other than the first—the anniversary of that day. 142—Royalty (1) A permittee, lessee or licensee shall, subject to this Division, pay to the Minister 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. (2) Subject to the succeeding provisions of this section and the provisions of section 143 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 by the Minister in pursuance of section 41(1) 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. (a) a licence is granted on an application under section 46; and (b) the instrument served on the applicant under section 48 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 section 50(1), 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 that subsection. (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 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. 143—Reduction of royalty in certain cases (1) Where the Minister is satisfied that the rate of recovery of petroleum from a well has become so reduced that, having regard to the rate or rates of royalty applicable under section 142, further recovery of petroleum from that well would be uneconomic, the Minister may, by instrument in writing, determine that the royalty in respect of all or any of the petroleum recovered from that well on or after a date specified in the determination shall be at such rate (being a rate lower than the rate that would be applicable under section 142) as the Minister specifies. (2) The prescribed rate in respect of petroleum to which a determination under subsection (1) is applicable is the rate specified in the determination. (3) The Minister may, by instrument in writing, revoke or vary a determination under subsection (1) and the revocation or variation applies to petroleum recovered on or after such date as is specified in the instrument. 144—Royalty not payable in certain cases (1) Royalty under this Act— (a) is not payable in respect of petroleum that the Minister is satisfied was unavoidably lost before the quantity of that petroleum was ascertained; and (b) is not payable in respect of petroleum that is used by the permittee, lessee or licensee, as approved by the Minister, for the purposes of petroleum exploration operations or operations for the recovery of petroleum; and (c) is not payable in respect of petroleum that, with the approval of the Minister, is flared or vented in connection with operations for the recovery of petroleum. (2) Where petroleum that has been recovered by a permittee, lessee or licensee is, with the approval of the Minister, returned to a natural reservoir, royalty under this Act is not payable in respect of that petroleum by reason of that recovery but this subsection does not affect the liability of that or any other permittee, lessee or licensee to pay royalty in respect of petroleum that is recovered from that natural reservoir. 145—Ascertainment of well-head For the purposes of this Act, the well-head, in relation to any petroleum, is such valve station as is agreed between the permittee, lessee or licensee and the Minister or, in default of agreement within such period as the Minister allows, is such valve station as is determined by the Minister as being that well-head. 146—Ascertainment of value For the purposes of this Act, the value at the well-head of any petroleum is such amount as is agreed between the permittee, lessee or licensee and the Minister or, in default of agreement within such period as the Minister allows, is such amount as is determined by the Minister as being that value. 147—Ascertainment of quantity of petroleum recovered For the purposes of this Act, the quantity of petroleum recovered by a permittee, lessee or licensee from a well during a period shall be taken to be— (a) the quantity measured during that period by a measuring device approved by the Minister and installed at the well-head or at such other place as the Minister approves; or (b) where no such measuring device is so installed, or the Minister is not satisfied that the quantity of petroleum recovered by the permittee, lessee or licensee from that well has been properly or accurately measured by such a measuring device—the quantity determined by the Minister as being the quantity recovered by the permittee, lessee or licensee from that well during that period. 148—Payment of royalty Royalty under this Act in respect of petroleum recovered during a royalty period is payable not later than the last day of the next succeeding royalty period. 148A—Provisional payment of royalty (1) Where, in relation to petroleum recovered during a royalty period, the value of the petroleum has not been agreed or determined under section 146, the Minister may determine a provisional value. (a) a provisional value of any petroleum has been determined under subsection (1); and (b) the value of that petroleum has not yet been agreed or determined under section 146, this Act operates in relation to that petroleum as if— (c) the provisional value of the petroleum were its value; and (d) the determination of the provisional value were an agreement or determination under section 146. 148B—Adjustment of payments of royalty (1) This section applies— (a) where section 148A(2) has operated in relation to petroleum recovered during a royalty period and a value of the petroleum different to the provisional value is subsequently agreed or determined under section 146; or (b) where an error has been made in the calculation of royalty due or in the application of a procedure by the application of which the value of the petroleum has been ascertained. (2) Where this section applies— (a) if the determined royalty is greater than the provisional royalty, the difference is payable within 28 days; and (b) if the determined royalty is less than the provisional royalty, the difference is deducted from any amount subsequently payable by the lessee, permittee or licensee concerned. (3) In this section— determined royalty means— (a) where subsection (1)(a) applies, the amount of royalty payable in relation to the petroleum on the basis of the value ascertained under section 146; and (b) where subsection (1)(b) applies, the amount of royalty payable in relation to the petroleum; provisional royalty means— (a) where subsection (1)(a) applies, the amount of royalty payable in relation to the petroleum on the basis of the provisional value; and (b) where subsection (1)(b) applies, the amount of royalty demanded in relation to the petroleum as a result of the erroneous calculation. 149—Penalty for late payment (1) Where a fee or an amount of royalty under this Act is not paid under this Division at or before the time when the fee or the amount of royalty is payable there is payable to the Minister by the permittee, lessee, licensee or pipeline licensee an additional amount calculated at the rate of one-third of one per centum per day upon the amount of the fee or royalty from time to time remaining unpaid to be computed from the time when the amount became payable until it is paid. (2) An additional amount in respect of royalty is not payable under subsection (1) in respect of any period before the expiration of seven days after the value of the petroleum was agreed or determined under section 146. 150—Fees and penalties debts due to State A fee royalty or other amount payable under this Division is a debt due by the permittee, lessee, licensee or pipeline licensee to the State and is recoverable in a court of competent jurisdiction.