Part 3Mining for petroleum

Part 3—Mining for petroleum Division 1—Preliminary 15—Delegation (1) The Minister may, either generally or as otherwise provided by the instrument of delegation, by writing signed by him delegate to a person any of his powers or functions under this Act other than this power of delegation. (2) A power or function so delegated, when exercised or performed by the delegate, shall, for the purposes of this Act, be deemed to have been exercised or performed 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 Minister. (5) A delegation under this section of a power or function does not prevent the exercise of the power or performance of the function by the Minister. (6) A copy of each instrument making, varying or revoking a delegation shall be published in the Gazette. 16—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 five minutes, or a multiple of five minutes, of longitude; and (b) by the equator and by parallels of latitude that are at a distance from the equator of five minutes, or a multiple of five minutes, of latitude, into sections, each of which is bounded— (c) by portions of two of those meridians that are at a distance from each other of five minutes of longitude; and (d) by portions of two of those parallels of latitude that are at a distance from each other of five minutes of latitude. (2) For the purposes of this Act— (a) a graticular section that is wholly within the 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 the 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, a block. 17—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. Division 2—Exploration permits for petroleum 18—Exploration for petroleum (1) A person shall not explore for petroleum in the adjacent area except— (a) under and in accordance with a permit; or (b) as otherwise permitted by this Part. Maximum penalty: $50 000 or imprisonment for five years, or both. (2) For the purposes of subsection (1), a person who does anything preparatory to, or knowingly connected with, exploration for petroleum will be taken to be exploring for petroleum. 19—Advertisement of blocks (1) The Minister may, by instrument published 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, for reasons that he thinks sufficient, in an instrument under subsection (1), direct that section 20(2) or (3) does not apply, or that both of those subsections do not apply, to or in relation to the applications. 20—Application for permits (1) An application under section 19— (c) shall be in respect of not more than 400 blocks; and (d) shall be accompanied by particulars of— (i) the proposals of the applicant for work and expenditure in respect of the blocks specified in the application; and (ii) the technical qualifications of the applicant and of his employees; and (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 Minister to consider; and (f) shall be accompanied by the prescribed fee. (2) The number of blocks specified in the application— (a) if sixteen blocks or more are available—shall not be less than sixteen; or (b) if less than sixteen blocks are available—shall be the number available. (3) The blocks specified in the 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 instrument in writing served on the applicant, require him to furnish, within the time specified in the instrument, further information in writing in connection with his application. 21—Grant or refusal of permit in relation to application (1) Where an application has been made under section 19, the Minister may— (a) by instrument in writing served on the applicant, inform the applicant that the Minister is prepared to grant to the applicant a permit in respect of the block or blocks specified in the instrument; or (b) refuse to grant a permit to the applicant. (2) An instrument under subsection (1) shall contain— (a) a summary of the conditions subject to which the permit is to be granted; and (b) a statement to the effect that the application will lapse if the applicant does not make a request under subsection (3) in respect of the grant of the permit. (3) An applicant on whom there has been served an instrument under subsection (1) may, within a period of one month after the date of service of the instrument 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 firstmentioned period of one month, allows, by instrument in writing served on the Minister, request the Minister to grant to the applicant the permit referred to in the firstmentioned instrument. (4) Where an applicant on whom there has been served an instrument under subsection (1) has made a request under subsection (3) within the period applicable under subsection (3), the Minister must grant to the applicant an exploration permit for petroleum in respect of the block or blocks specified in the instrument. (5) Where an applicant on whom there has been served an instrument under subsection (1) has not made a request under subsection (3) within the period applicable under subsection (3), the application lapses upon the expiration of that period. 22—Application for permit in respect of surrendered etc blocks (a) a lease is surrendered, cancelled or determined as to a block or blocks; or (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 was included in, or the blocks were, or were included in, a location, the Minister may, at any subsequent time, by instrument published in the Gazette, invite applications for the grant of a permit in respect of that block or such of those blocks as are specified in the instrument 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 20(1)(d); and (d) shall specify an amount that the applicant is prepared to pay to the Minister, in addition to the fee referred to in section 23(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 Minister to consider. (5) The Minister may, at any time, by instrument in writing served on the applicant, require him to furnish, within the time specified in the instrument, further information in writing in connection with his application. 23—Application fee etc (1) An application under section 22 shall be accompanied by— (a) the prescribed fee; and (b) a deposit of 10 per centum of the amount specified in the application under section 22(4)(d). (2) Where a permit is not granted on the application, the amount of the deposit must, subject to subsection (3), be refunded to the applicant. (3) Where an applicant on whom there has been served an instrument under section 24 does not request the Minister in accordance with section 25 to grant to him the permit referred to in the instrument, the deposit shall not, unless the Minister otherwise determines, be refunded to the applicant. 24—Consideration of applications (1) Where, at the expiration of the period specified in an instrument under section 22(1), only one application has been made under that subsection in respect of the block or blocks specified in the instrument, the Minister may reject the application or may, by instrument in writing served on the applicant, inform the applicant that he is prepared to grant to him a permit in respect of that block or those blocks. (2) Where, at the expiration of the period specified in an instrument under section 22(1), two or more applications have been made under that subsection in respect of the block or blocks specified in the instrument, 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 instrument in writing served on the applicant; or (b) if two or more applications remain unrejected—by instrument 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. (5) An instrument under this section shall contain— (a) a summary of the conditions subject to which the permit is to be granted; and (b) a statement to the effect that the application will lapse if the applicant does not— (i) make a request under section 25(1); and (ii) 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 108 in respect of that balance. 25—Request by applicant for grant of permit in respect of advertised blocks (1) An applicant on whom there has been served an instrument under section 24 may, within a period of three months after the date of service of the instrument on him, or within such further period, not exceeding three months, as the Minister, on application in writing served on him before the expiration of the firstmentioned period of three months, allows— (a) by instrument in writing served on the Minister, request the Minister to grant to him the permit referred to in the firstmentioned instrument; 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 108 in respect of that balance. (2) Where an applicant on whom there has been served an instrument under section 24— (a) has not made a request under subsection (1); or (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 108 in respect of that balance, within the period applicable under subsection (1), the application lapses upon the expiration of that period. (3) Where the application of an applicant on whom there has been served an instrument under section 24(2) lapses as provided by subsection (2), section 24(2) applies in respect of the application or applications, if any, then remaining unrejected. 26—Grant of permit on request Where a person on whom there has been served an instrument under section 24— (a) has made a request under section 25(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 108 in respect of that balance, within the period applicable under section 24(1), the Minister shall grant to that person an exploration permit for petroleum in respect of the block or blocks specified in the instrument. 27—Rights conferred by permit A permit, while it remains in force, authorises the permittee subject to this Act 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. 28—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 six 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 five 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. 29—Application for renewal of permit (1) Subject to sections 30 and 30A, 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 application. (2) An application for the renewal of the permit— (b) subject to subsection (3) shall be made in an approved manner not less than three months before the date of expiration of the permit; and (c) shall be accompanied by the prescribed fee. (3) The Minister may, for reasons that he thinks sufficient, receive an application for the renewal of the permit less than three months before, but not in any case after, the date of expiration of the permit. 30—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 two 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 four without remainder—one-half of that lastmentioned number. (2) A block that is, or is included in, a location and in respect of which the 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 two 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. (5) Where the number of blocks in respect of which an application for the renewal of a permit may be made is sixteen or more, each area constituted by blocks in respect of which the application is made shall be constituted by not less than sixteen 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 sixteen, the Minister may, by instrument 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 sixteen, as is specified in the instrument; 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, for reasons that he thinks sufficient— (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 as he thinks fit concerning the blocks in respect of which that application may be made. 30A—Certain permits cannot be renewed more than twice (1) This section applies to an application for the renewal of a permit where— (a) the original permit was granted under section 21— (i) on or after 1 January 2005; and (ii) as a result of an application made in response to an invitation in an instrument that was published under section 19(1) on or after 1 January 2005; or (b) the original permit was granted under section 26 on or after 1 January 2005. (2) A permittee must not make the application if it could result in the original permit being renewed more than twice. 31—Grant or refusal of renewal of permit (1) Where an application has been made under section 29 for the renewal of a permit, the Minister— (a) must, if the conditions to which the permit is, or has from time to time been, subject and the provisions of this Part and of the regulations have been complied with; or (i) any of the conditions to which the permit is, or has from time to time been, subject or any of the provisions of this Part or of the regulations has not been complied with; and (ii) the Minister is, nevertheless, satisfied that special circumstances exist that justify the granting of the renewal of the permit, by instrument in writing served on the person who is then the permittee, inform the person that the Minister is prepared to grant to the person the renewal of the permit. (2) If any of the conditions to which the permit is, or has from time to time been, subject or any of the provisions of this Part or of the regulations has 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 must, subject to subsection (3), by instrument 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 the permit unless— (a) he has, by instrument 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; and (ii) specified a date on or before which the permittee 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 he wishes the Minister to consider; and (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 firstmentioned instrument has been served. (4) An instrument referred to in subsection (1) shall contain— (a) a summary of the conditions to which the permit, on the grant of the renewal, is to be subject; and (b) a statement to the effect that the application will lapse if the permittee does not make a request under subsection (5). (5) A permittee on whom there has been served an instrument under subsection (1) may, within a period of one month after the date of service of the instrument on the permittee, by instrument in writing served on the Minister, request the Minister to grant to the permittee the renewal of the permit. (6) Where a permittee on whom there has been served an instrument under subsection (1) has made a request under subsection (5) within the period referred to in subsection (5), the Minister must grant to the permittee the renewal of the permit. (7) Where a permittee on whom there has been served an instrument 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 period. (a) an application for the renewal of a permit has been made; and (b) the permit expires— (i) before the Minister grants, or refuses to grant, the renewal of the permit; or (ii) before the application lapses as provided by subsection (7), the permit shall be deemed to continue in force in all respects— (c) until the Minister grants, or refuses to grant, the renewal of the permit; or 32—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; or (b) amounts to be expended by the permittee in the carrying out of such work; or (c) both those matters, 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). 33—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 three 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 instrument in writing served on the permittee, direct the permittee to furnish to him, 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 petroleum; and (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. 34—Directions by Minister on discovery of petroleum (1) Where petroleum is discovered in a permit area, the Minister may, by instrument in writing served on the permittee, direct the permittee 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 permit area, in such part of that petroleum pool as is within the permit area. 35—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 two 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 two 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 must be in writing and served on the Minister. (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 three months after the date of the making of the requirement. (7) A requirement by the Minister under subsection (6) must be by written notice served on the permittee. (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 three 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. 36—Declaration of location (a) a permittee has made a nomination under section 35; 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 must, by notice published 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 section 35(9), the Minister must, by notice published 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) by 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; and (b) a 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. (6) Subsection (5) does not apply where a variation is made at the request of the permittee. 37—Immediately adjoining blocks For the purposes of section 35, 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.