Barrow Island Royalty Variation Agreement Act 1985 (WA)

Western Australia Barrow Island Royalty Variation Agreement Act 1985 Western Australia Barrow Island Royalty Variation Agreement Act 1985 Contents Part I — Preliminary 1. Short title 1 2. Commencement 1 Part II — Ratification and effect of Agreement 3. Interpretation 1 4. Ratification of agreement 1 5. Legal character of Barrow Island lease preserved 1 Schedule — Barrow Island Royalty Variation Agreement Notes Compilation table 1 Uncommenced provisions table 1 Other notes 1 Defined terms Western Australia Barrow Island Royalty Variation Agreement Act 1985 An Act to ratify an agreement between the State of Western Australia and West Australian Petroleum Pty. Limited relating to Petroleum Lease 1H granted under the Petroleum Act 1936, to amend the Petroleum and Geothermal Energy Resources Act 1967 and for related purposes. [Long title amended: No. 35 of 2007 s. 91(2).] Part I — Preliminary 1. Short title This Act may be cited as the Barrow Island Royalty Variation Agreement Act 1985. 2. Commencement This Act shall come into operation on the day on which it is assented to by the Governor 1. Part II — Ratification and effect of Agreement 3. Interpretation In this Part — the Agreement means the agreement a copy of which is set forth in the Schedule to this Act and includes that agreement as varied from time to time in accordance with its provisions. 4. Ratification of agreement (1) The Agreement is hereby ratified. (2) The implementation of the Agreement is authorised. (3) Without limiting or otherwise affecting the application of the Government Agreements Act 1979 but subject to section 5, the Agreement shall operate and take effect according to its terms notwithstanding any other Act or law. 5. Legal character of Barrow Island lease preserved (1) In this section — the Barrow Island lease means the petroleum lease dated 27 February 1967 granted under the Petroleum Act 1936 1 and registered as Number 1H and named "Barrow Island" pursuant to that Act. (2) Nothing in this Act or the Government Agreements Act 1979 shall give the force, effect or character of a written law to — (a) the provisions inserted into the Barrow Island lease by the Agreement; or (b) the provisions of the Agreement incorporated by reference into the Barrow Island lease by the Agreement. (3) The Barrow Island lease as varied and affected by the Agreement shall remain, and shall retain the character and incidents of, a petroleum lease under the provisions of the Petroleum Act 1936 2 as they are deemed to subsist and enure, with modifications, under sections 134 and 134A of the Petroleum and Geothermal Energy Resources Act 1967. [Section 5 amended: No. 35 of 2007 s. 91(3)] [Part III omitted under the Reprints Act 1984 s. 7(4)(e).] Schedule — Barrow Island Royalty Variation Agreement [s. 3] [Heading amended: No. 19 of 2010 s. 4.] THIS AGREEMENT is made the 8th day of November 1985, BETWEEN THE HONOURABLE BRIAN THOMAS BURKE, M.L.A., Premier of the State of Western Australia, acting for and on behalf of the said State and its instrumentalities from time to time (hereinafter called "the State") of the first part AND WEST AUSTRALIAN PETROLEUM PTY. LIMITED a company incorporated in the State of Western Australia and having its principal place of business in the State of Western Australia at 233 Adelaide Terrace, Perth (hereinafter called "the Lessee") of the other part WHEREAS: (a) The Lessee is the holder of a petroleum lease granted under the former provisions of the Petroleum Act 1936 registered as Petroleum Lease Number 1H (hereinafter called "the Barrow Island Lease"). (b) The State and the Lessee have agreed to new arrangements to replace for the term of the Barrow Island Lease the royalty payable under the Barrow Island Lease (and Commonwealth excise on the production of petroleum from the Barrow Island Lease) and desire to vary Barrow Island Lease in the manner hereinafter set out. NOW THIS AGREEMENT WITNESSETH: — Definitions 2 1. In this Agreement (and in the Barrow Island Lease) subject to the context: — "advise", "apply", "approve", "approval", "consent", "certify", "direct", "notify", "request" or "require" means advise, apply, approve, approval, consent, certify, direct, notify, request, or require in writing as the case may be and any inflexion or derivation of any of those words has a corresponding meaning; "accumulated nett value of a petroleum commodity" in relation to the production unit, in respect of a royalty year is an amount calculated in accordance with the formula — Where — NV = the nett value of a petroleum commodity in the royalty year in respect of which the assessment is being made, R = the accumulation rate, A = the accumulated nett value at the end of the preceding royalty year, For the 12 month period ending 30th June 1985 the accumulated nett value is deemed to be zero for the purpose of calculating the accumulated nett value in respect of all subsequent royalty years. If the accumulated nett value in respect of the production unit at the end of a royalty year is positive, it shall be deemed to be zero for purposes of calculating the accumulated nett value in respect of subsequent royalty years; "accumulation rate" in relation to the production unit in respect of a royalty year is a percentum per annum equal to the threshold rate defined in the Commonwealth legislation relating to the resource rent tax applying to offshore petroleum projects, or in the absence of such legislation is the maximum threshold rate determined in accordance with the "threshold rate" as defined in Schedule 1 to the Petroleum Revenue Act 1985 of the Commonwealth but, if and at such time or times as it becomes necessary to calculate the accumulation rate for the purpose of calculating accumulated nett value of a petroleum commodity in respect of a royalty year, either party to this Agreement considers the rate as mentioned above to be inappropriate, then the accumulation rate shall be the percentum per annum as agreed between the Minister and the Lessee and failing agreement within such period as the Minister allows it shall be such percentum per annum determined by arbitration in accordance with paragraph (g) of clause 21 of the Barrow Island Lease as represents a reasonable and appropriate return on the investment to which the accumulation rate is to be applied taking into account: — (a) the cost of equity funds commonly applicable to investments for the exploration for and recovery of petroleum in Australia; (b) the cost of loan funds commonly applicable to loans for the purpose of financing investment in the exploration for and recovery of petroleum in Australia; (c) rates of discount commonly used to evaluate investments for the exploration for and recovery of petroleum in Australia; (d) the nature and size of anticipated investments for the exploration for and recovery of petroleum from the Barrow Island Lease, and the extent to which the risk associated with such investments differs from other investments for the exploration for and recovery of petroleum in Australia; and "active operation", in relation to the production unit means the operation of that unit for the production of a petroleum commodity from petroleum from the Barrow Island Lease; "approved" means approved by the Minister; "authorised person" means a person appointed by the Minister to be an authorised person; "Barrow Island Lease" means the petroleum lease dated 27th February, 1967 granted under the former provisions and registered as Number 1H and includes any renewal, substitution or variation thereto and according to the requirements of the context shall describe the area of land demised as well as the instrument by which it is demised; "clause" means a Clause of the Agreement; "commencement date" means the date on which the provisions of this Agreement other than clauses 1, 2 and 3 come into operation pursuant to clause 4; "Commonwealth" means the Commonwealth of Australia and includes the Government for the time being thereof; "eligible administration expenditures" in relation to the production unit in respect of a royalty year, means — (a) expenditure paid in that royalty year which the Lessee demonstrates to the satisfaction of the Minister was reasonably and properly paid by the Lessee for administration in the State of the production unit in respect of — (i) accounting and auditing fees directly and solely related to the active operation of the production unit, other than those directly attributable to or necessitated by the resolution of any dispute between the parties arising under the Barrow Island Lease; (ii) legal fees directly and solely associated with the active operation of the production unit, other than those directly attributable to royalty matters; (iii) salaries, allowances, employer contributions to superannuation schemes allowed as deductions from time to time under the Income Tax Assessment Act 1936, or any other Act of the Parliament of the Commonwealth replacing that Act, payroll tax and wages of employees attributable to administration of the production unit but limited to the proportion of their hours of duty during which they were engaged directly and solely in the administration of the production unit; and (iv) office expenses directly and solely associated with the active operation of the production unit; (b) other expenditures paid in that royalty year (including overhead and indirect costs of rendering services to the Lessee) which the Lessee demonstrates to the satisfaction of the Minister were reasonably and properly paid in that royalty year for the proper administration of the production unit; Provided That the provisions of paragraphs (g) and (gb) of Clause 21 of the Barrow Island Lease shall not apply to any dispute arising out of the exercise of any discretion, whether express or implied, conferred upon the Minister pursuant to this definition, but this provision shall not limit the other rights and remedies of the parties; "eligible capital expenditures" in relation to the production unit in respect of a royalty year, means expenditures paid in that royalty year which were reasonably and properly paid by the Lessee directly and solely for the production of a petroleum commodity solely from petroleum from the Barrow Island Lease in respect of — (a) feasibility studies; (b) studies and investigations required by or under a law in force in Western Australia to be carried out; (c) drilling and equipment of production, injection, disposal, water source and observation wells; (d) design, acquisition, installation and construction of — (i) plant for stabilisation of crude oil and separation of gas liquids; (ii) storage facilities; (iii) water storage and supply; (iv) electricity generation and reticulation; (v) communication facilities; (vi) transport and pipeline facilities; (vii) accommodation and welfare facilities at the production unit; (viii) enhanced recovery facilities; and (ix) other facilities which the Lessee demonstrates to the satisfaction of the Minister are reasonably and properly required for the operation of the production unit; together with the value of any capital assets, including plant and equipment, purchased by the Lessee after 30th June 1985 and transferred to the production unit and used directly and solely in relation to the production unit (where the value is the amount as agreed between the Minister and the Lessee to be the value of the capital assets, or in the absence of such an agreement is such an amount determined by the Minister taking account of those criteria numbered 1 to 8 inclusive set out in paragraph (i) of the definition of "eligible deduction" which may be relevant) less the amount of any other deductions allowed by the State in respect thereof, whether under this Agreement or in assessing any other royalty paid to the State; "eligible deduction" in relation to the production unit in respect of a royalty year, means an amount equal to the sum of the following eligible expenditures in that royalty year, where an amount claimed may not include expenditure deducted in a previous royalty year — (a) eligible enhanced recovery research expenditure; (b) eligible exploration expenditure; (c) eligible operating expenditure; (d) eligible capital expenditure; (e) eligible administration expenditure; (f) eligible rehabilitation and well abandonment expenditure; (g) such other expenditure as the Minister may allow as an eligible deduction pursuant to paragraphs (c) and (d) of subclause 2(6) of the Barrow Island Lease or which the lessee demonstrates to the satisfaction of the Minister was reasonably and properly paid directly and solely in respect of the production of a petroleum commodity solely from petroleum from the Barrow Island Lease, Provided That the provisions of paragraphs (g) and (gb) of clause 21 of the Barrow Island Lease shall not apply to any dispute arising out of the exercise of any discretion, whether express or implied, conferred upon the Minister pursuant to paragraph (g) of this definition, but this provision shall not limit the other rights or remedies of the parties; less the sum of — (i) value of capital assets, including plant and equipment, sold or removed without sale from the production unit in that royalty year (other than capital assets included in and as part of a bona fide sale or transfer of the Barrow Island Lease or a direct or indirect interest in that Lease) for a purpose other than repair and maintenance, where the value is the amount as agreed between the Minister and the Lessee to be the market value of the asset, or in the absence of such an agreement is such an amount as determined by the Minister to be the market value, taking account of, where relevant — 1. the gross proceeds from the sale or disposal of the capital asset; 2. the age and condition of the capital asset; 3. the characteristics of the market in which it was sold or disposed of; 4. the terms of relevant contracts or sales agreements; 5. prices received elsewhere in comparable arms length transactions; 6. the point of sale; 7. the cost of transporting the capital asset to the point of sale; and 8. such other relevant matters as the Minister thinks fit; but excludes the value of those capital assets which were in place on the production unit as at 30th June 1985 and were so sold or removed without sale from the production unit at a later date except to the extent that such value has resulted from expenditure on extensions, improvements and refurbishment of such assets after 30th June 1985 and except to the extent that expenditures on such assets have been deducted under the former clause 2 of the Barrow Island Lease, with such value limited as determined above calculated as agreed between the Lessee and the Minister or, in the absence of agreement within such period as the Minister allows, as determined by the Minister; (ii) value of services provided by the production unit in that royalty year not directly connected with the active operation of the production unit for the production of petroleum from the Barrow Island Lease, including the lease or hire of plant and equipment and other capital assets and the provision of accommodation and catering, transportation and petroleum storage services, where the value is the amount as agreed between the Minister and the Lessee to be the value of the services provided, or in the absence of agreement, is such amount as determined by the Minister; (iii) any amount received by the Lessee in that royalty year by way of compensation, insurance or indemnity for or in respect of any loss or destruction of capital assets used in the operation of the production unit, including plant and equipment other than an amount by way of compensation, insurance or indemnity taken into account elsewhere in the calculation of nett value of a petroleum commodity; (iv) the value of any information sold by the Lessee relating to the production unit, (other than information included in and as part of a bona fide sale or transfer of the Barrow Island Lease or a direct or indirect interest in that Lease) where the value is the amount as agreed between the Minister and the Lessee to be the value of the information, or in the absence of agreement is such amount as determined by the Minister; (v) any amount received by the Lessee as a refund of any category of eligible expenditures mentioned in paragraphs (a) to (g) inclusive of this definition; (vi) any other like charge or payment received by the Lessee in respect of the production unit; Provided That expenditures on capital assets, services or other items referred to in paragraphs (i) to (vi) inclusive of this definition are allowable, have been allowed or would have been allowed if expended after this Agreement came into effect, under one of the categories of eligible expenditures mentioned in paragraphs (a) to (g) of this definition, but eligible deduction does not include A interest or an amount in lieu of interest, and loan service fees paid on funds borrowed to finance the operation of the production unit and repayments of principal of such borrowings, B dividends, bonus share issues or equity capital payments or repayments, C depreciation and amortisation allowances, D petroleum royalty paid under the Barrow Island Lease, E taxes on profit or income, F Commonwealth duties of customs and excise or other like levies on the production or export of petroleum from the Barrow Island Lease, and G payments in the nature of a royalty, override royalty or any other payment considered by the Minister to be a levy on petroleum output or value, other than those levied by or payable to the Commonwealth or the State; "eligible enhanced recovery research expenditure" in relation to the production unit in respect of a royalty year means expenditure paid in that royalty year directly and solely in relation to the production unit which in the opinion of the Minister was reasonably and properly paid by the Lessee for research into methods designed directly to improve the rate and amount of recovery of petroleum from the Barrow Island Lease, Provided That the provisions of paragraphs (g) and (gb) of clause 21 of the Barrow Island Lease shall not apply to any dispute arising out of the exercise of any discretion, whether express or implied, conferred upon the Minister pursuant to this definition, but this provision shall not limit the other rights and remedies of the parties; "eligible exploration expenditure" in relation to the production unit in respect of a royalty year means expenditure paid in that royalty year which was reasonably and properly paid by the Lessee directly and solely in respect of the exploration for or the determining of the existence, location, extent, quality or occurrence of petroleum in the Barrow Island Lease, and includes geological and geophysical surveys and exploration, development and appraisal drilling, and for the 1985‑86 royalty year only, includes expenditure paid in the financial year ended 30th June 1985 in respect of exploration, development and appraisal drilling programmes for "new" oil and "substantial new development" oil and for the equipment of production wells drilled in accordance with those programmes; "eligible operating expenditure" in relation to the production unit in respect of a royalty year means expenditure paid in that royalty year which was reasonably and properly paid by the Lessee and is directly and solely attributed to the production or the maintenance of production of a petroleum commodity from the production unit; "eligible rehabilitation and well abandonment expenditure" in relation to the production unit in respect of a royalty year means expenditure paid in that royalty year which was reasonably and properly paid by the Lessee directly for rehabilitation of the land, water or environment comprised in or contiguous to the production unit, or in closing and making safe or removing for the purposes of rehabilitation, facilities reasonably and properly required for the production of a saleable petroleum commodity solely from petroleum from the Barrow Island Lease and, in the case only of final abandonment of active operations on the Barrow Island Lease in accordance with programmes approved in advance by the Minister, Provided That the provisions of paragraphs (g) and (gb) of clause 21 of the Barrow Island Lease shall not apply to any dispute arising out of the exercise of any discretion, whether express or implied, conferred upon the Minister pursuant to this definition, but this provision shall not limit the other rights and remedies of the parties; "former provisions" means the provisions of the Petroleum Act 1936 which, by force of section 134 of the Petroleum Act are deemed to subsist and enure in their application to or in relation to the Barrow Island Lease; "f.o.b. valuation and measurement point" for any petroleum commodity sold or removed without sale from the production unit means such valve station or other point as is agreed between the Lessee and the Minister, or in the absence of agreement within such period as the Minister allows, such a valve station or other point as is determined by the Minister as being that f.o.b. valuation and measurement point; "Lessee" includes the Lessee and its successors and permitted assigns and appointees. Where there is more than one Lessee their liability shall be several; "Minister" means the Minister for the time being charged with the administration of the Petroleum Act, acting for and on behalf of the State; "month" means calendar month; "nett value of a petroleum commodity" in relation to the production unit in respect of a royalty year means the amount (which may be a negative amount) in that royalty year that is the sum of — (a) the value of all petroleum commodities produced solely from petroleum from the Barrow Island Lease and sold or removed without sale from the production unit in that royalty year, but excluding the value of any petroleum commodity which is flared or vented with the approval of the Minister or which is used by the Lessee for the purposes of active operations of the production unit or which is otherwise lost, (b) the value of that proportion of all petroleum commodities produced partly from petroleum from the Barrow Island Lease and partly from other petroleum which is agreed between the Lessee and the Minister to be attributable to petroleum from the Barrow Island Lease or, in the absence of agreement within such period as the Minister allows, the value reasonably attributed to petroleum from the Barrow Island Lease by the Minister, taking account of the quantity of petroleum entering the production unit, as measured at a measurement point or points approved by the Minister, and (c) any amount received by way of insurance or indemnity for or in respect of any loss of a petroleum commodity produced from the production unit from petroleum from the Barrow Island Lease, which, if the loss had not occurred, would have been taken into account in calculating the value of that production commodity, as reduced by the sum of "eligible deductions"; "notice" means notice in writing; "person" or "persons" includes bodies corporate; "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, that is to say, hydrogen sulphide, nitrogen, helium and carbon dioxide, and includes any petroleum as defined by paragraphs (a), (b) or (c) of this definition that has been returned to a natural reservoir but excludes oil shale; "Petroleum Act" means the Petroleum Act 1967; "petroleum commodity" means petroleum or a substance derived from petroleum at any stage of treatment of that petroleum up to the time that it has first become a saleable petroleum commodity, and includes a saleable petroleum commodity; "production unit" means the Barrow Island Lease together with those facilities reasonably and properly required for the production of a saleable petroleum commodity from petroleum from the Barrow Island Lease, including without limitation the tanker‑loading pipeline from the Barrow Island Lease and the associated mooring facilities; "quantity of a petroleum commodity sold or removed without sale" from the production unit, in respect of a royalty year means — (a) the quantity measured during that royalty year by a measuring procedure approved by the Minister and performed at the f.o.b. valuation and measurement point or such other places as the Minister approves; or (b) where no such measuring procedure is so performed, or the Minister is not satisfied that the quantity of a petroleum commodity removed by the Lessee as been properly and accurately measured, the quantity determined by the Minister; "records" include — (a) production statistics, accounts, account books or accounting records; (b) contracts; (c) sales and exchange agreements; and (d) petroleum reserve estimates and production projections; however compiled, recorded or stored; "royalty year" means initially, the six‑month period from 1st July 1985 to 31st December 1985, and thereafter the twelve month period from 1st January in one calendar year to 31st December of the same calendar year, unless otherwise agreed; "saleable petroleum commodity" means petroleum treated to an extent that is, in the opinion of the Minister, the minimum treatment necessary to enable that petroleum to be sold commercially, having regard to the nature and location of the petroleum, the production unit and the market; "sold" means that title to the subject matter of the sale has passed from the seller to the buyer and payment has been received; "State" means the State of Western Australia; "the Agreement", "this Agreement", "hereof" and "hereunder" refer to this Agreement whether in its original form or as from time to time added to, varied or amended; "value of a petroleum commodity" means — (a) the gross proceeds realised upon sale of that petroleum commodity, less any coats paid for the transportation of that commodity from the f.o.b. valuation and measurement point to the point of sale if, in the opinion of the Minister, the resulting amount represents the fair and reasonable market value of the petroleum commodity when sold on an arm's length basis; or (b) in any case not covered by paragraph (a) of this definition, the market value agreed between the Lessee and the Minister for that petroleum commodity at the f.o.b. valuation and measurement point or, in the absence of agreement within such period as the Minister allows, the market value as determined by the Minister at the f.o.b. valuation and measurement point, taking account of — (i) the gross proceeds from the sale or disposal of the petroleum commodity; (ii) the quality and quantity of the petroleum commodity; (iii) the characteristics of the market; (iv) the terms of similar relevant contracts or sales agreements and the quantities specified therein; (v) the state of the petroleum market at the time the prices in the contract or sales agreement were set; (vi) the provisions of the contract or sales agreement relating to variation or renegotiations of prices; (vii) prices received by producers elsewhere in arm's length transactions; (viii) the point of sale; (ix) the cost of transporting the petroleum commodity from the f.o.b. valuation and measurement point to the point of sale; (x) petroleum transportation costs incurred in other similar arms length transactions (xi) any prevailing petroleum commodity pricing policy or law of the Commonwealth or the State (including the policy of the Commonwealth on import parity pricing of crude oil recovered in Australia); and (xii) such other relevant matters as the Minister thinks fit; Provided That the provisions of paragraphs (g) and (gb) of clause 21 of the Barrow Island Lease shall not apply to any dispute arising out of the exercise of any discretion, whether express or implied, conferred upon the Minister pursuant to this definition, but this provision shall not limit the other rights and remedies of the parties. Interpretation 3 2. In this Agreement: — (a) monetary references are references to Australian currency unless otherwise specifically expressed; (b) marginal notes do not affect the interpretation or construction 3; (c) reference to an Act unless otherwise specifically expressed includes the amendments to that Act for the time being in force and also any Act passed in substitution therefor or in lieu thereof and the regulations for the time in force thereunder; and (d) where any provision of the Barrow Island Lease is inconsistent with any provision of this Agreement, this Agreement shall prevail and the Barrow Island Lease shall to the extent of the inconsistency be invalid. State to Sponsor Bill 3 3. The State shall introduce and sponsor a Bill in the Parliament of Western Australia to ratify this Agreement and endeavour to secure its passage and coming into operation as an Act prior to 31st December 1985. Operation of Agreement 3 4. The provisions of this Agreement other than Clauses 1, 2 and 3 shall not come into operation unless and until — (a) the Bill mentioned in Clause 3 comes into operation as an Act; (b) the Lessee certifies to the State not later than 30th June 1986 that: (i) Commonwealth legislation which is satisfactory to the Lessee has come into operation and all of the necessary acts, matters, and things have been done under that legislation to exempt petroleum commodities produced from the production unit from petroleum from the Barrow Island Lease from duties of excise of the Commonwealth with effect from 1st July 1985; (ii) the Lessee has made arrangements satisfactory to it with the Commonwealth for a refund of any duties of excise paid on petroleum produced from the production unit from petroleum from the Barrow Island Lease on or after 1st July 1985; and (iii) The agreement, arrangement or understanding between the State and the Commonwealth mentioned in Clause 9, so far as it affects the Lessee, is satisfactory to it; and (c) the State certifies to the Lessee not later than 30th June 1986 that: (i) it has entered into an agreement with the Commonwealth for the sharing with the Commonwealth of the royalty payable under the Barrow Island Lease; and (ii) Commonwealth legislation which is satisfactory to the State has come into operation for the exemption of petroleum commodities produced from the production unit from petroleum from the Barrow Island Lease from duties of excise of the Commonwealth with effect from 1st July 1985. Transitional Arrangements 3 5. (a) All petroleum commodities produced from the production unit from petroleum from the Barrow Island Lease and held in stock on the production unit as at midnight on 30th June 1985 shall be subject to the provisions of the former Clause 2 of the Barrow Island Lease as though that Clause was still in force. For the purpose of paragraph (b) of this clause 5 the interim royalty payable with respect to that petroleum in stock shall be the royalty paid by the Lessee to the State with respect to that petroleum upon its sale or removal without sale from the Barrow Island Lease, as agreed between the Minister and the Lessee or, in default of agreement within such period as the Minister allows, as determined by the Minister. Within 3 months after the commencement date the Lessee shall file with the Minister an audited royalty return for the period from 1st January 1985 to 30th June 1985 in accordance with the provisions of the former Clause 2 of the Barrow Island Lease and the Minister shall within 3 months after the receipt of that return determine the amount of the royalty actually payable with respect to that petroleum in stock. Any amount of royalty found to be overpaid or owing shall be refunded or paid, as the case may be within one month of that determination. Any determination by the Minister of the royalty payable on gross value of all petroleum commodities held in stock on the production unit as at midnight on 30th June 1985 shall be deemed to be a decision made under the Barrow Island Lease and shall be subject to the provisions of paragraphs (g), (ga) and (gb) of clause 21; (b) Within 14 days of the commencement date, the State shall refund to the Lessee an amount equivalent to the sum of all those payments made by the Lessee prior to the commencement date which were made on account of royalty in respect of petroleum recovered from the Barro