New South Wales: Offshore Minerals Act 1999 (NSW)

Offshore Minerals Act 1999 No 42 An Act relating to exploration for, and the recovery of, minerals (other than petroleum) in the first 3 nautical miles of the territorial sea in respect of New South Wales; to amend other Acts consequentially; and for related purposes. Chapter 1 Introduction Part 1.1 Legislative formalities and background 1 Name of Act This Act is the Offshore Minerals Act 1999. 2 Commencement This Act commences on a day or days to be appointed by proclamation. 3 Commonwealth–State agreement (the Offshore Constitutional Settlement) (1) The Commonwealth and the States have agreed that: (a) Commonwealth offshore mining legislation should be limited to the area that is outside State coastal waters, and (b) the States should share, in the manner provided by the Offshore Minerals Act 1994 of the Commonwealth, in the administration of the Commonwealth offshore mining legislation, and (c) State offshore mining legislation should apply to State coastal waters beyond the baseline for the territorial sea (that is, the first 3 nautical miles of the territorial sea), and (d) the Commonwealth and the States should try to maintain, as far as practicable, common principles, rules and practices in regulating and controlling offshore mining beyond the baseline of Australia's territorial sea. Note 1— So far as the agreement relates to petroleum, it is reflected in this State's legislation by the Petroleum (Offshore) Act 1982. Note 2— Some sections of the Commonwealth Act contain provisions that are not relevant to the operation of this Act. To keep uniformity between this Act and the Commonwealth Act the numbers of the sections that are not relevant have not been used in the numbering of this Act. (2) Other Acts that provide background in this State to the agreement (commonly referred to as the "Offshore Constitutional Settlement") are: (a) the Seas and Submerged Lands Act 1973, the Coastal Waters (State Powers) Act 1980, the Coastal Waters (State Title) Act 1980 and the Offshore Petroleum Act 2006 of the Commonwealth, and (b) the Petroleum (Offshore) Act 1982 of this State. Note 1— The Seas and Submerged Lands Act 1973: • declares and enacts that the sovereignty in respect of the territorial sea and the associated airspace, seabed and subsoil is vested in and exercisable by the Crown in right of the Commonwealth, gives the Governor-General power to declare, by Proclamation, the limits of the territorial sea, declares and enacts that the sovereignty in respect of waters of the sea that are on the landward side of the baseline of the territorial sea (but not within the limits of a State) and in respect of the associated airspace, seabed and subsoil is vested in and exercisable by the Crown in right of the Commonwealth, declares and enacts that the sovereign rights of Australia as a coastal State in respect of the Continental Shelf of Australia (for the purpose of exploring it and exploiting its natural resources) are vested in and exercisable by the Crown in right of the Commonwealth, • gives the Governor-General power to declare, by Proclamation, the limits of the Continental Shelf of Australia. Note 2— The Coastal Waters (State Powers) Act 1980 was enacted following a request from the Parliaments of all the States under section 51 (xxxviii) of the Commonwealth Constitution and provides that the legislative powers exercisable under the Constitution of each State extend to the making of certain laws that would operate offshore. Note 3— The Coastal Waters (State Title) Act 1980 vests in each State certain property rights in the seabed beneath the coastal waters of the State. Note 4— The Offshore Petroleum and Greenhouse Gas Storage Act 2006 of the Commonwealth and the Petroleum (Offshore) Act 1982 of this State make provision, based on the agreement referred to in subsection (1), for the licensing regime that applies to the exploration for and recovery of petroleum in coastal waters and offshore areas of this State. Part 1.2 Interpretation Division 1 General 4 Notes in the text Notes in this Act are provided to assist understanding and do not form part of the Act. 5 Interpretation In this Act: appropriate application fee means the application fee determined from time to time by the Minister, with the concurrence of the Treasurer, for the purposes of the provision in which that term appears. approved means approved by the Minister under section 41. associate has the meaning given by section 26 (1). associated agent of a holder has the meaning given by section 26 (3). associated agent of an associated contractor has the meaning given by section 26 (4). associated contractor of a holder has the meaning given by section 26 (2). associated employee of a holder has the meaning given by section 26 (5). associated employee of an associated contractor has the meaning given by section 26 (6). block means a portion of the coastal waters constituted according to section 17. caveat on a licence means a caveat against: (a) the registration of dealings in relation to the licence, or (b) the registration of a person as a holder of the licence under section 340. Chief Commissioner means the Chief Commissioner of State Revenue. coastal waters has the meaning given by section 16 (1) and (2). Commonwealth Act means the Offshore Minerals Act 1994 of the Commonwealth. Commonwealth Minister means a Minister of State for the Commonwealth. compliance inspection has the meaning given by section 377. confidential information has the meaning given by section 27. confidential sample has the meaning given by section 28. consent area means the block or blocks specified in a special purpose consent. dealing in a licence means a transaction that creates, transfers, affects or otherwise deals with an interest in the licence and includes: (a) a transfer of the licence, and (b) a transfer of a share in the licence, but does not include a document that comes within section 337 (1) other than a document by which a block or a licence is surrendered. discrete area has the meaning given by section 21. document file means a document file kept for the purposes of Part 3.1. exploration has the meaning given by section 23. holder of a licence has the meaning given by section 25 (1). hydrocarbon means a hydrocarbon whether in a gaseous, liquid or solid state. inspector means an inspector appointed under section 421. interest, in relation to a licence, includes: (a) an equitable interest in the licence, and (b) a security interest in the licence. licence means: (a) an exploration licence, or (b) a retention licence, or (c) a mining licence, or (d) a works licence. licence area means the block or blocks covered by a licence. licence holder has the meaning given by section 25 (1). mineral has the meaning given by section 22. offshore exploration or mining activities means: (a) the exploration for minerals in coastal waters, or (b) the recovery of minerals from coastal waters, or (c) activities carried out in coastal waters under a works licence. offshore mining register means the register kept for the purposes of Part 3.1. petroleum means: (a) a hydrocarbon or a mixture of hydrocarbons, or (b) a mixture of one or more hydrocarbons and one or more of the following: (i) hydrogen sulphide, (ii) nitrogen, (iii) helium, (iv) carbon dioxide. primary payment period for the provisional grant or provisional renewal of a licence means the period of 30 days after the day on which the applicant is given a written notice: (a) in the case of the grant of an exploration licence, under section 66, and (b) in the case of the renewal of an exploration licence, under section 110, and (c) in the case of the grant of a retention licence, under section 147, and (d) in the case of the renewal of a retention licence, under section 169, and (e) in the case of the grant of a mining licence, under section 210, and (f) in the case of the renewal of a mining licence, under section 246, and (g) in the case of the grant of a works licence, under section 279, and (h) in the case of the renewal of a works licence, under section 296. provisional holder means a person who has been provisionally granted a licence. recovery has the meaning given by section 24. registered means registered in the offshore mining register. reserved block means a block that is declared to be reserved under section 18. responsible Commonwealth Minister means the Commonwealth Minister who is responsible for the administration of the Commonwealth Act. sample of the seabed or subsoil includes a core or cutting from the seabed or subsoil. secondary payment period for the provisional grant or provisional renewal of a licence means the period of 30 days after the day on which an extension of the primary payment period for the grant or renewal concerned ends. share in a licence has the meaning given by section 6 (1), (2) and (3). special purpose consent means a consent granted under Part 2.6. standard block has the meaning given by section 19. State Minister means: (a) a Minister of State for a State, or (b) a Minister of State for the Northern Territory. successor licence to a licence has the meaning given by section 8. surrender day for an exploration licence means: (a) the day on which the initial term of the licence ends, or (b) a day on which the term of a renewal of the licence ends. tender block has the meaning given by section 20. transfer: (a) when used in relation to a licence, has the meaning given by section 7 (1), and (b) when used in relation to a share in a licence, has the meaning given by section 7 (2) and (3). vary a licence condition includes revoke or suspend. 6 Shares in a licence (1) A person has a share in a licence if the person is the holder, or one of the holders, of the licence. (2) If a holder is entitled to a particular percentage of the value of the rights conferred by a licence, that percentage is the holder's share in the licence. Note— A sole holder has a 100% share in the licence. (3) If: (a) a person is a registered holder of a licence, and (b) the person is shown in the offshore mining register as being entitled to a specified percentage of the value of the rights conferred by the licence, the person's share in the licence is taken to be the percentage specified in the register. 7 Transfer of a licence (1) For the purposes of this Act, a licence is transferred if: (a) the licence has only one holder and the holder transfers the whole of his or her interest in the licence to another person or other persons, or (b) the licence has 2 or more holders and the holders all transfer the whole of their interests in the licence to another person or other persons. (2) For the purposes of this Act, a share in a licence is transferred if: (a) the licence has only one holder and the holder transfers a part of the holder's share in the licence to another person or other persons, or (b) the licence has 2 or more holders and: (i) some, but not all, of the holders transfer the whole of their shares in the licence to another person, or (ii) some or all of the holders transfer a part of their shares in the licence to another person. (3) The other person referred to in subsection (2) (b) may be an existing licence holder. 8 Successor licences (1) If: (a) a mining licence takes effect immediately after an exploration licence expires, and (b) the holder of the mining licence immediately after it takes effect was the holder of the exploration licence immediately before it expired, the mining licence is a successor licence to the exploration licence. (2) If: (a) a retention licence takes effect immediately after an exploration licence expires, and (b) the holder of the retention licence immediately after it takes effect was the holder of the exploration licence immediately before it expired, the retention licence is a successor licence to the exploration licence. (3) If: (a) a mining licence takes effect immediately after a retention licence expires, and (b) the retention licence took effect immediately after an exploration licence expired, and (c) the holder of the mining licence immediately after it takes effect was the holder of the retention licence immediately before it expired, and (d) the holder of the retention licence immediately after it took effect was the holder of the exploration licence immediately before it expired, the mining licence is a successor licence to the exploration licence and the retention licence. 9 Section number not used See note 2 to section 3 (1). 10 Position on the Earth's surface (1) The position of a point, line or area on the Earth's surface is to be worked out for the purposes of this Act and subordinate instruments by reference to the Geocentric Datum of Australia within the meaning of the Surveying and Spatial Information Act 2002. (2) In subsection (1): subordinate instrument means: (a) the regulations, and (b) an instrument made under this Act or the regulations. 11 Section number not used See note 2 to section 3 (1). 12 Power to revoke and amend instruments (1) A provision of this Act that confers a power to do something in writing is also taken to confer the power to revoke or amend the written document by which that thing is done. (2) The power to revoke or amend: (a) must also be exercised in writing, and (b) is subject to the same procedural requirements as the original power, and (c) is subject to the same conditions as those that governed the exercise of the original power. Division 2 Basic concepts 13–15 Section numbers not used See note 2 to section 3 (1). 16 Coastal waters, and effect of change in baseline (1) Subject to this section, the coastal waters of the State are so much of the area described in Schedule 1 as is constituted by the first 3 nautical miles of the territorial sea from the baseline. (2) The coastal waters do not include any waters that are inside the baseline. (3) If: (a) a licence has been granted on the basis that an area is within coastal waters, and (b) there is a change to the baseline or, because new data is obtained or existing data is reconsidered, the location of the baseline is reassessed, and (c) as a result of the change to, or reassessment of the location of, the baseline, the area ceases to be within coastal waters, this Act applies as if the area were still within coastal waters. (4) Subsection (3) continues to apply to the area only while the licence (and any successor licence) remains in force. (5) If: (a) a licence under the Commonwealth Act has been granted on the basis that an area is within the offshore area under the Commonwealth Act, and (b) there is a change to the baseline or, because new data is obtained or existing data is reconsidered, the location of the baseline is reassessed, and (c) as a result of the change to, or reassessment of the location of, the baseline, the area: (i) ceases to be within the offshore area under the Commonwealth Act, and (ii) falls within coastal waters, this Act does not apply to the area. (6) Subsection (5) continues to apply to the area only while the licence under the Commonwealth Act (and any successor licence within the meaning of that Act) remains in force. (7) This section has effect subject to section 172A of the Mining Act 1992. (8) In this section: baseline means the baseline adjacent to the coast of the State (including the coast of any island forming part of the State) as for the time being determined under section 7 (2) (b) of the Seas and Submerged Lands Act 1973 of the Commonwealth. Note— Generally the baseline is the lowest astronomical tide along the coast but it also includes lines enclosing bays and indentations that are not bays and straight baselines that depart from the coast. See Australia's territorial sea baseline published 1988 by the Australian Government Printing Service. 17 Blocks This is how a block is constituted in coastal waters: (a) assume that there is laid over the coastal waters a grid constituted by: (i) lines running along meridians drawn through each degree of longitude and the minutes between those degrees, and (ii) lines running along parallels drawn through each degree of latitude and the minutes between those degrees, (b) take a bounded space defined by the grid, (c) the seabed and subsoil within the coastal waters that is under that space is a block. 18 Reserved block (1) Subject to subsection (2), the Minister may declare that a block in coastal waters is a reserved block. Note 1— A reserved block may be put up for tender by the Minister publishing in the Gazette a tender block licence notice (see sections 74 and 218). Note 2— Section 8 (c) of the Interpretation Act 1987 allows a single declaration under this subsection to be made in respect of 2 or more blocks. (2) A declaration under subsection (1) must not be made in relation to a block if: (a) a licence over that block is in force, or (b) an application for a licence over that block has been made and has not been determined. (3) A declaration under subsection (1) must be made by notice published in the Gazette. 19 Standard block A standard block is a block that is not the subject of a declaration under section 18 (1). 20 Tender block A tender block is a block that is the subject of a tender block licence notice published by the Minister under section 74 or 218. 21 Discrete area (1) A group of blocks forms a discrete area if the area formed by the blocks is continuous. (2) Two blocks that are joined at one point only do not form a continuous area. 22 Minerals (1) A mineral is a naturally occurring substance or a naturally occurring mixture of substances. Note— This Act does not apply to petroleum (see section 35). (2) Without limiting subsection (1), a mineral may be in the form of sand, gravel, clay, limestone, rock, evaporites, shale, oil-shale or coal. 23 Exploration (1) For the purposes of this Act, exploration for minerals includes any activity that is directly related to the exploration for minerals. (2) For the purposes of this Act, exploration does not include the exploration for minerals of the subsoil of coastal waters that is carried out by means of underground mining from land in the State if that exploration is carried out in accordance with the Mining Act 1992. 24 Recovery (1) For the purposes of this Act, recovery of minerals includes any activity that is directly related to the recovery of minerals. (2) For the purposes of this Act, recovery does not include the recovery of minerals from the subsoil of coastal waters that is carried out by means of underground mining from land in the State if that recovery is carried out in accordance with the Mining Act 1992. 25 Licence holder (1) References in this Act to the holder of a licence or the licence holder are references to the person whose name is entered in the offshore mining register as the person who holds the licence. Note 1— This Act is based upon the grant and registration of licences. Note 2— If a licence is granted to a person, that person's name is entered in the register (see section 333). Note 3— The entry in the register in relation to a licence will be varied if there is a change in the holder of the licence (see section 338 (4)). (2) A licence may be held by more than one person. 26 Associates (1) For the purposes of this Act, the following are the associates of a licence holder: (a) associated contractors of the holder, (b) associated agents of the holder, (c) associated agents of associated contractors, (d) associated employees of the holder, (e) associated employees of associated contractors. (2) A person is an associated contractor of the holder if: (a) the person enters into an agreement with the holder for carrying out activities under the licence, or (b) the person enters into an agreement with a person who is an associated contractor under paragraph (a) or this paragraph for carrying out activities under the licence. (3) A person is an associated agent of the holder if the person is the agent of, or acts on behalf of, the holder in relation to carrying out activities under the licence. (4) A person is an associated agent of an associated contractor if the person is the agent of, or acts on behalf of, the associated contractor in relation to carrying out activities under the licence. (5) A person is an associated employee of the holder if the person is employed by the holder and, in the course of that employment, carries out activities under the licence. (6) A person is an associated employee of an associated contractor if the person is employed by the associated contractor and, in the course of that employment, carries out activities under the licence. 27 Confidential information (1) For the purposes of this Act, information is confidential information if: (a) a licence holder has given it to the Minister, and (b) it is in a record, return, report or document, and (c) it relates to activities authorised by the licence, and (d) it relates to an area of the seabed or subsoil that is covered by the licence or a successor licence to the licence. (2) However, if: (a) a person is required to give the Minister a report in relation to particular blocks, and (b) the person gives the Minister a report that relates not only to those blocks but also to other blocks, and (c) the Minister is required to make the report available under section 376, the information that relates to those other blocks is not confidential information. (3) A reference in this section to information given to the Minister by a licence holder includes a reference to a return or other information relating to royalty under this Act that is obtained by the Minister, or a delegate of the Minister, from a tax officer (within the meaning of the Taxation Administration Act 1996). 28 Confidential sample For the purposes of this Act, a sample is a confidential sample if: (a) a licence holder has given it to the Minister, and (b) it was recovered in the course of activities authorised by the licence, and (c) it was recovered from an area of the seabed or subsoil that is covered by the licence or a successor licence to the licence. Part 1.3 Administration of the Commonwealth–State offshore area 29 Definitions In this Part: associated revenue Act has the same meaning as in the Commonwealth Act. Commonwealth–State offshore area means the Commonwealth–State offshore area in respect of the State within the meaning of section 13 of the Commonwealth Act. 30 Minister as member of Joint Authority, or as Designated Authority (1) The Minister may perform any function that the Minister has under the Commonwealth Act or an associated revenue Act: (a) as a member of the Joint Authority for the Commonwealth–State offshore area provided for by section 32 (2) of the Commonwealth Act, or (b) as the Designated Authority for that area provided for by section 29 (2) of that Act. (2) The Minister must perform any such function that the Minister is required to perform by the Commonwealth Act or an associated revenue Act. 31 State officer acting under delegation An officer or temporary employee within the meaning of the Public Sector Management Act 1988 to whom a delegation is made under section 419 of the Commonwealth Act may perform any function that the officer or employee has under that delegation and must perform any such function that the officer or employee is required to perform under the Commonwealth Act. 32–34 Section numbers not used See note 2 to section 3 (1). Part 1.4 Application of this Act 35 Act does not apply to exploration for or recovery of petroleum This Act does not apply to the exploration for or recovery of petroleum. Note 1— For "petroleum" see section 5. Note 2— Offshore petroleum exploration and mining are regulated by the Offshore Petroleum and Greenhouse Gas Storage Act 2006 of the Commonwealth and the Petroleum (Offshore) Act 1982 of this State. 36 Section number not used See note 2 to section 3 (1). 37 Act applies to all individuals and corporations (1) This Act applies to all individuals, including: (a) individuals who are not Australian citizens, and (b) individuals who are not resident in New South Wales. (2) This Act applies to all corporations, including: (a) corporations that are not incorporated in New South Wales, and (b) corporations that do not carry on business in New South Wales. Chapter 2 Regulation of offshore exploration and mining Part 2.1 General 38 General prohibition on exploring and mining without appropriate authorisation A person must not: (a) explore for minerals in coastal waters, or (b) recover minerals from coastal waters, unless the exploration or recovery is authorised by a licence or special purpose consent granted under this Act. Maximum penalty: $30 000. Note— A works licence may be necessary because "exploration" includes activities that are directly related to exploration (see section 23 (1)) and "recovery" includes activities that are directly related to recovery (see section 24 (1)). 38A Exploration and mining in waters subject to fishing closures Despite: (a) the grant of a licence or special purpose consent, or (b) any provision of this Act, offshore exploration or mining activities may be carried out under the licence or consent in waters the subject of a fishing closure under the Fisheries Management Act 1994 only with the written consent of the Minister administering that Act, who may: (c) refuse consent, or (d) give consent subject to such terms and conditions as he or she specifies in the consent. 38B Protecting the environment to be taken into account (1) In deciding whether or not to grant or renew a licence, or to extend the term of a licence, the Minister is to take into account the need to conserve and protect: (a) the flora, fauna, fish, fisheries and scenic attractions in the area concerned, and (b) the features of Aboriginal, archaeological, historical or geological interest of the area. (2) The Minister may cause such studies (including environmental impact studies) to be carried out as the Minister considers necessary to enable such a decision to be made. 38C Inclusion of conditions for protecting the environment The conditions subject to which a licence is granted or renewed must, if the Minister considers it appropriate, include conditions relating to the conservation and protection of: (a) the flora, fauna, fish, fisheries and scenic attractions in the area concerned, and (b) the features of Aboriginal, archaeological, historical or geological interest of the area. 39 Licences and consents available under this Act This Act provides for the grant of: (a) exploration licences (see Part 2.2), and (b) retention licences (see Part 2.3), and (c) mining licences (see Part 2.4), and (d) works licences (see Part 2.5), and (e) special purpose consents (see Part 2.6). Note 1— An exploration licence is designed to cover the exploration phase of a project and authorises: • exploration, and • the recovery of mineral samples. Note 2— A retention licence is designed to ensure the retention of rights pending the transition of a project from the exploration phase to the commercial mining phase and authorises: • exploration, and • the recovery of minerals but not as part of a commercial mining operation. Note 3— A mining licence is designed to cover the commercial mining phase of a project and authorises: • exploration, and • full commercial recovery. Note 4— A project might make use of any of the following 3 licence arrangements: • an exploration licence leading to a mining licence, • an exploration licence leading to a retention licence and then a mining licence, • a mining licence (without progressing through an exploration/retention licence stage). Note 5— A licence is granted over a particular area (constituted by blocks). The licence holder may need to carry out engineering or other activities outside the licence area. If so, the licence holder or someone else must obtain a works licence to carry out those activities. Note 6— If a person wants to carry out: • a scientific investigation, or • a reconnaissance survey, or • the collection of only small amounts of minerals, in coastal waters, the person must obtain a special purpose consent under Part 2.6 to carry out the activity. Note 7— Even though a person has a licence or special purpose consent, the person must not interfere unnecessarily with navigation, native title, fishing, resource conservation or other activities in the area (see section 44). 40 Steps involved in the grant of a fully effective licence (1) The following 3 steps must occur before a licence comes into force: (a) provisional grant of the licence, (b) proper acceptance of the grant, (c) registration of the grant. Note— See sections 88, 154, 232 and 286. (2) If a licence is provisionally granted to a person, the person must do the following to properly accept the grant: (a) give the Minister a written acceptance, (b) lodge any security that the Minister has required, (c) pay the fee that is payable under section 425. Note— See sections 70, 84, 151, 214, 228 and 283. (3) The following 3 steps must occur before a renewal of a licence comes into force: (a) provisional renewal of the licence, (b) proper acceptance of the renewal, (c) registration of the renewal. Note— See sections 89, 155, 233 and 287. (4) If a licence is provisionally renewed, the holder must do the following to properly accept the renewal: (a) give the Minister a written acceptance of the renewal, (b) lodge any security that the Minister has required, (c) pay the fee that is payable under section 425. Note— See sections 114, 173, 250 and 300. 41 Approval of form and manner of applications etc (1) The Minister may approve the form and the manner in which the following are to be made: (a) applications for licences over blocks in coastal waters, (b) applications for the renewal of licences over blocks in coastal waters. (2) An approval under subsection (1) is to be made in writing. 42 Rights to minerals recovered (1) Any minerals recovered by a licence holder or special purpose consent holder from a block covered by the licence or consent become the property of the holder when they are recovered. (2) If the licence or consent authorises the exploration for and the recovery of minerals only of a particular kind, subsection (1) only applies to the recovery of minerals of that kind. (3) Subsection (1) does not apply to the recovery of minerals by a works licence holder. (4) The minerals recovered are not subject to the rights of any other person. (5) Subsection (4) does not apply to rights that the licence or consent holder transfers to the other person. 43 Effect of grant of licence or special purpose consent on native title (1) This section applies to the following acts: (a) the grant, renewal, variation or extension of a licence or special purpose consent, (b) the amendment or variation of a condition of a licence or special purpose consent. (2) An act to which this section applies does not extinguish native title in the licence or consent area. (3) While a licence or special purpose consent is in force over an area, native title in the area is subject to the rights conferred by the licence or consent. (4) If compensation is payable under section 24MD or 24NA of the Native Title Act 1993 of the Commonwealth in respect of an act to which this section applies that is attributable to the State, the person who applied for the grant, renewal, amendment or variation is declared, in accordance with section 24MD (4) (b) (i) or 24NA (7) (b) (i) of that Act (as the case requires), to be liable to pay the compensation. 44 Licence etc does not authorise unnecessary interference with other activities in the licence area A person who carries out activities in coastal waters under a licence or special purpose consent granted under this Act must not do so in a way that interferes with: (a) navigation, or (b) the exercise of native title rights and interests, or (c) fishing, or (d) the conservation of the resources of the sea or the seabed, or (e) any activities that someone else is lawfully carrying out, to a greater extent than is necessary for: (f) the reasonable exercise of the person's rights under the licence or consent, or (g) the performance of the person's duties under the licence or consent. Maximum penalty: $10 000. Note— The person referred to here might be the licence or consent holder or might be an associated person. Part 2.2 Exploration licences Division 1 General 45 Exploration licences (1) This Part provides for the grant of exploration licences over blocks in coastal waters. (2) An exploration licence may be granted over a standard block (see Division 2) or over a tender block (see Division 3). Note— A tender block is a block that has been declared available for tender. A standard block is any block that is not a reserved block (see sections 19 and 20). 46 Activities authorised by an exploration licence (1) Subject to subsection (2), an exploration licence holder may: (a) explore for minerals in the licence area, and (b) take samples of minerals in the licence area. Note— Under section 23 (1) the concept of "exploration" extends to activities that are directly related to exploration. (2) If the licence is expressed to restrict the kind of minerals covered by the licence, the holder is not permitted to explore for, or to take samples of, minerals not covered by the licence. (3) A restriction on the kind of minerals covered by the licence may be inclusive (for example, only minerals A, B and C) or exclusive (for example, all minerals except A, B and C). (4) For the purposes of subsection (2), the holder does not take samples of an excluded mineral if, in the course of exploring for, or taking samples of, another mineral, the holder recovers some excluded mineral. 47 Minister may cancel or not renew exploration licence without compensation No compensation is payable because of the cancellation or non-renewal of an exploration licence by the Minister. Note 1— The Minister may cancel the licence under section 130. Note 2— The Minister may refuse under section 108 to renew the licence. 48 Licence rights may be suspended (1) The Minister must suspend particular rights conferred by an exploration licence if the Minister is satisfied that it is necessary in the public interest to do so. (2) The Minister may suspend rights under subsection (1) for a specified period or for an indefinite period. (3) The Minister may end a suspension at any time. (4) A suspension or the ending of a suspension must be in writing. (5) If the Minister: (a) suspends rights conferred by an exploration licence, or (b) ends a suspension, the Minister must give the licence holder a written notice that informs the holder of the suspension or the ending of the suspension. Note— See section 122 for the effect of the suspension on the obligations associated with the licence. (6) A suspension takes effect when: (a) the holder has been given notice of the suspension under subsection (5), and (b) the suspension has been registered under section 337. 49 Compensation for acquisition of property due to suspension of rights (1) If: (a) the Minister suspends licence rights under section 48, and (b) the suspension results in the acquisition of property from a person, and (c) the State and the person agree on an amount of compensation for the acquisition, the State must pay the person the agreed amount of compensation. (2) If: (a) the Minister suspends licence rights under section 48, and (b) the suspension results in the acquisition of property from a person, and (c) the State and the person do not agree on an amount of compensation for the acquisition, and (d) the person brings an action for compensation against the State in the Supreme Court, the State must pay the person the amount of compensation (if any) that is determined by that Court. (3) In this section: acquisition of property has the same meaning as it has in section 51 (xxxi) of the Commonwealth Constitution. Division 2 Application for and grant of exploration licence over standard blocks 50 Application for exploration licence over standard block (1) A person may apply to the Minister for an exploration licence over a standard block if: (a) the block is vacant, and (b) the block is not excluded. Note— For "excluded blocks" see section 51. (2) A standard block is vacant if no exploration, retention or mining licence is in force over the block. (3) A person may apply for an exploration licence over a group of standard blocks if: (a) the group forms a discrete area, and (b) there are not more than 500 blocks in the group. Note— The Minister may, in certain circumstances, allow an application to be made for an exploration licence covering up to 3 discrete areas (see section 53). 51 Excluded blocks (1) A block is excluded if: (a) an exploration licence over the block has been surrendered or cancelled, and (b) a period of 30 days after the day on which the licence was surrendered or cancelled has not ended. (2) A block is excluded for a particular applicant if: (a) the applicant previously applied for an exploration licence over the block, and (b) the application was refused, and (c) a period of 6 months after the day on which the previous application was refused has not ended. (3) A block is excluded for a particular applicant if: (a) the applicant was previously the holder of an exploration, retention or mining licence over the block, and (b) that previous licence was surrendered or cancelled, and (c) a period of 6 months after the day on which the previous licence was surrendered or cancelled has not ended. (4) A block is excluded for a particular applicant if: (a) the applicant was previously the holder of an exploration, retention or mining licence over the block, and (b) the holder was: (i) required by the licence conditions, or (ii) given a direction under section 387 or 392, to provide the Minister with information, and (c) the holder provided the information, and (d) the holder surrendered the licence, and (e) a period of 6 months from the day on which the holder provided the information has not ended. 52 Minister may determine that excluded block is available (1) A person who wants to apply for an exploration licence over a block that is excluded may apply to the Minister for a determination under subsection (2). (2) The Minister may determine that the person may apply for the licence over the block despite section 51. (3) The determination is to be made in writing. 53 Minister may allow application for more than one discrete area (1) If: (a) a person (the first applicant) applies for an exploration licence, and (b) another person (the second applicant) subsequently applies for an exploration licence for a group of blocks that includes a block covered by the application made by the first applicant, and (c) an exploration licence is then granted to the first applicant, and (d) as a result of the grant, the blocks for which the second applicant can be granted an exploration licence no longer form a discrete area, the second applicant may apply to the Minister for approval for the application to proceed even though the blocks it covers no longer form a discrete area. Note— See also section 59. (2) Subject to subsection (3), the Minister may approve the application proceeding even though the blocks that the application covers do not form a discrete area. (3) The Minister may give an approval under subsection (2) only if the blocks covered by the application form not more than 3 discrete areas. 54 How to apply (1) The application must: (a) be made in accordance with the approved form, and (b) be made in the approved manner, and (c) specify the blocks for which the application is made, and (d) include details of: (i) the activities that the applicant intends to carry out on the block or blocks covered by the application, and (ii) the amount of money that the applicant intends to spend on those activities, and (iii) the technical qualifications of the applicant and of the applicant's employees who are likely to be involved in activities authorised by the licence, and (iv) the technical advice available to the applicant, and (v) the financial resources available to the applicant, and (vi) if the licence is to be held by more than one person, the share in the licence that each prospective holder will hold, and (e) be accompanied by maps that: (i) relate to the blocks, and (ii) comply with the regulations, and (f) specify an address for service of notices under this Act and the regulations. Note 1— For paragraphs (a) and (b) see section 41. Note 2— Paragraph (c): the Minister may, after consulting the applicant, vary the blocks applied for (see section 59). (2) The applicant may include in the application any other information that the applicant thinks is relevant. 55 Effect of inclusion of unavailable block in application If: (a) a person applies for a licence over a group of standard blocks, and (b) because of section 18, 50 or 51 an exploration licence cannot be granted over one or more of the blocks in the group, the Minister may still deal with the application to the extent to which the application covers blocks for which an exploration licence can be granted. Note— An exploration licence cannot be granted over a block that is not vacant or is excluded (see sections 50 and 51) or over a reserved block (see section 18). 56 Payment of fee (1) The applicant must pay the appropriate application fee. (2) The fee must be paid when the application is made. (3) The Minister may refund any fee paid under subsection (1) but only if the Minister is satisfied that special circumstances exist that justify the refund of the fee. 57 Application must be advertised (1) The applicant must advertise the application in a newspaper circulating throughout the State. (2) The advertisement must contain: (a) the applicant's name and address, and (b) a map and description of the blocks applied for that are sufficient for the blocks to be identified, and (c) the address of the Minister, and (d) a statement: (i) that the applicant has applied for an exploration licence over the blocks described in the notice, and (ii) that invites comment from the public on the application, and (iii) that requests that comments be sent to the applicant and the Minister within 30 days after the day on which the advertisement is published. (3) The advertisement must be published: (a) as soon as possible after the applicant makes the application, and (b) in any case, subject to subsection (4), within 14 days after the day on which the applicant makes the application. (4) If: (a) the applicant applies to the Minister within the 14 day period referred to in subsection (3) for an extension of the period, and (b) the Minister extends the period, the advertisement must be published within the period as extended by the Minister. 58 How multiple applications are dealt with (1) Subject to subsection (2), if a block is covered by 2 or more applications for an exploration or mining licence, the Minister must deal with the applications in the order in which they are made. Note— See also section 203. (2) If: (a) the applications are lodged within a particular time of each other, and (b) the time is less than the time prescribed by the regulations, the Minister must determine the order in which the applications are to be dealt with by drawing lots in the way prescribed by the regulations. 59 Discussions about blocks applied for (1) The Minister may ask the applicant to discuss with the Minister the blocks covered by the application. (2) The request under subsection (1) must be: (a) made in writing, and (b) given to the applicant. (3) If, after discussions, the Minister and the applicant agree on the blocks to be covered by the application, the applicant is taken to have applied for an exploration licence over the blocks agreed on. (4) The Minister must give the applicant written confirmation of the agreement as soon as possible after the agreement is reached. (5) The Minister may include in the written confirmation a direction that the applicant must advertise the revised application under section 60. (6) If the Minister and the applicant do not agree on the blocks to be covered by the application: (a) the Minister may make a written determination specifying the blocks to be covered by the application, and (b) the applicant is taken to have applied for an exploration licence over the blocks specified in the determination. (7) The Minister may include in the written determination a direction that the applicant must advertise the revised application under section 60. (8) If the Minister makes a determination under subsection (6), the Minister must give a copy of the determination to the applicant as soon as possible after the determination is made. 60 Advertising revised application (1) If: (a) the application has been revised under section 59, and (b) the applicant has been given a direction under section 59 (5) or (7), the applicant must advertise the revised application in a newspaper circulating throughout the State. (2) The advertisement must contain: (a) the applicant's name and address, and (b) a map and description of the blocks covered by the revised application that are sufficient for the blocks to be identified, and (c) the address of the Minister, and (d) a statement: (i) that the applicant has applied for an exploration licence over the blocks described in the notice, and (ii) that invites comment from the public on the application, and (iii) that requests that comments be sent to the applicant and the Minister within 30 days after the day on which the advertisement is published. (3) The advertisement must be published: (a) if the Minister and the applicant agree on the blocks applied for under section 59 (3), as soon as possible after the applicant is given written confirmation of the agreement under section 59 (4), or (b) if the Minister makes a determination of the blocks applied for under section 59 (6), as soon as possible after the applicant is given a copy of the determination under section 59 (8), but in any case, subject to subsection (4), within 14 days after the applicant is given the confirmation or copy. (4) If: (a) the applicant applies to the Minister within the 14 day period referred to in subsection (3) for an extension of the period, and (b) the Minister extends the period, the advertisement must be published within the period as extended by the Minister. 61 Request for further information (1) The Minister may ask the applicant for further information about the application. (2) The request must: (a) be in writing, and (b) be given to the applicant, and (c) specify the time within which the information must be provided. (3) Information requested under subsection (1) must be provided: (a) in writing, and (b) within the time specified in the request. 62 Section number not used See note 2 to section 3 (1). 63 Minister may provisionally grant licence If the applicant does what is required by sections 54 to 61, the Minister may: (a) provisionally grant an exploration licence to the applicant, or (b) refuse the application. Note— Under section 88, the grant of the licence cannot be effective before it is registered (see section 333 for registration). The grant will not be registered until it has been properly accepted (see section 70 for "proper acceptance"). 64 Section number not used See note 2 to section 3 (1). 65 Matters to be specified in the licence The licence must specify: (a) the blocks covered by the licence, and (b) the term of the licence, and (c) the licence conditions. Note— For the term of a licence see section 88. 66 Applicant must be notified (1) The Minister must give the applicant written notice of a decision under section 63. (2) If the Minister provisionally grants an exploration licence: (a) the Minister must give the licence to the provisional holder, and (b) the notice under subsection (1) must contain the following information: (i) notification of any determination under section 399 that the provisional holder must lodge a security, (ii) notification that the provisional grant will lapse unless the provisional holder, before the end of the primary payment period: (A) gives the Minister a written acceptance of the grant, and (B) lodges any security required under section 399, and (C) pays the fee that must be paid for the licence under section 425. 67 Amendment of conditions (1) If the provisional holder is dissatisfied with a licence condition, the provisional holder may ask the Minister to amend the condition. (2) The request must be made within 30 days after the day on which the provisional holder is given the licence under section 66. (3) If a request is made under subsection (1), the Minister may amend the licence conditions and, with the consent of the provisional holder, any other licence condition. (4) The Minister must give the provisional holder written notice of a decision under this section. 68 Amendment of security requirements (1) If the provisional holder: (a) is notified of a security requirement, and (b) is dissatisfied with the amount of the security required, the provisional holder may ask the Minister to make a new determination under section 399. (2) The request must be made within 30 days after the day on which the provisional holder is given notice under section 66. (3) If a request is made under subsection (1), the Minister may make a new determination under section 399. (4) The Minister must give the provisional holder written notice of the new determination. 69 Extension of primary payment period (1) If the provisional holder makes a request under section 67 or 68, the provisional holder may ask the Minister to extend the primary payment period. (2) The request must be made within 30 days after the day on which the provisional holder is given notice under section 66. (3) If the Minister agrees to the request, the Minister must: (a) determine the period of the extension, and (b) give the provisional holder a written notice of the period of the extension. 70 Acceptance of grant of exploration licence for standard block (1) The provisional grant of the exploration licence is properly accepted by the provisional holder if, before the required time, the provisional holder: (a) gives the Minister a written acceptance of the grant, and (b) lodges any security required under section 399, and (c) pays the fee that must be paid for the licence under section 425. (2) The required time under subsection (1) is the end of the primary payment period or, if the provisional holder has been granted an extension of the primary payment period under section 69, the end of the secondary payment period. Note— Under section 88, the grant of the licence cannot be effective before it is registered (see section 333 for registration). 71 Conditions applicable to licence on grant If the provisional grant of the licence is properly accepted under section 70, it is subject to: (a) the conditions specified in the licence given to the applicant under section 66, or (b) if the Minister amended those conditions under section 67, those conditions as amended. 72 Lapse of provisional grant of exploration licence If the provisional grant of the licence is not properly accepted under section 70, the provisional grant lapses. Division 3 Application for and grant of exploration licence over tender block 73 Matters to be determined before applications for exploration licence over tender blocks invited If the Minister proposes to invite applications for the grant of an exploration licence over reserved blocks, the Minister must, before inviting the applications, determine: (a) the procedure and criteria that the Minister will adopt to allocate the licence, and (b) the amount of security that will be required for the licence under section 399, and (c) the licence conditions. 74 Minister may invite applications for exploration licence over tender blocks (1) Subject to subsection (2), the Minister may invite applications for the grant of an exploration licence over reserved blocks. (2) Applications may be invited for a licence covering a group of reserved blocks only if the group forms a discrete area. (3) The Minister is to invite applications by publishing a tender block licence notice for the licence in the Gazette. 75 Tender block licence notice—exploration licence (1) A tender block licence notice for an exploration licence must: (a) specify the blocks to be covered by the licence, and (b) specify the period within which applications may be made, and (c) specify the procedure and criteria that the Minister will adopt to allocate the licence, and (d) specify the amount of security that the successful applicant will be required to lodge, and (e) include a statement to the effect that information about: (i) the security that the successful applicant will be required to lodge, and (ii) the licence conditions, may be obtained from the Minister. (2) Without limiting subsection (1) (c), the Minister may for the purposes of that paragraph specify that the tender will be determined on the basis of either or both of the following: (a) the nature and extent of the exploration activity proposed to be carried out, (b) the amount of money offered for the licence. (3) The tender block licence notice may specify not more than 500 blocks for the exploration licence. 76 Application for exploration licence over tender blocks If a tender block licence notice has been published inviting applications for an exploration licence, a person may apply to the Minister for the licence. 77 How to apply (1) The application must: (a) be made in accordance with the approved form, and (b) be made in the approved manner, and (c) be made before the end of the period specified in the tender block licence notice, and (d) address the criteria specified under section 75 (1) (c), and (e) include details of: (i) the technical qualifications of the applicant and of the applicant's employees who are likely to be involved in activities authorised by the licence, and (ii) the technical advice available to the applicant, and (iii) the financial resources available to the applicant, and (iv) if the licence is to be held by more than one person, the share in the licence that each prospective holder will hold, and (f) specify an address for service of notices under this Act and the regulations. Note— For paragraphs (a) and (b) see section 41. (2) The applicant may include in the application any other information that the applicant thinks is relevant. 78 Payment of fee (1) The applicant must pay the appropriate application fee. (2) The fee must be paid when the application is made. (3) The Minister may refund any fee paid under subsection (1) but only if the Minister is satisfied that special circumstances exist that justify the refund of the fee. 79 Request for further information (1) The Minister may ask the applicant for further information about the application. (2) The request must: (a) be in writing, and (b) be given to the applicant, and (c) specify the time within which the information must be provided. (3) Information requested under subsection (1) must be provided: (a) in writing, and (b) within the time specified in the request. 80 Section number not used See note 2 to section 3 (1). 81 Minister may provisionally grant licence (1) The Minister may provisionally grant an exploration licence to an applicant who has done what is required by sections 77 to 79. (2) When provisionally granting a licence under subsection (1), the Minister must follow the procedure and apply the criteria specified in the tender block licence notice published for the licence under section 74. (3) If the Minister refuses to grant a licence under subsection (1), the Minister must give the applicant written notice of the refusal. 82 Section number not used See note 2 to section 3 (1). 83 Successful applicant must be notified (1) If the Minister provisionally grants an exploration licence under section 81 or 87, the Minister must give the provisional holder: (a) the licence, and (b) written notice that the provisional grant will lapse unless the provisional holder, within 30 days after the day on which the notice is given: (i) gives the Minister a written acceptance of the grant, and (ii) lodges any security required under section 399, and (iii) pays the fee that must be paid for the licence under section 425, and (iv) if the tender is determined on the basis of the amounts of money offered for the licence, pays to the Minister the amount that the provisional holder offered for the licence under section 77 (1) (d). (2) The licence must specify: (a) the blocks covered by the licence, and (b) the term of the licence, and (c) the licence conditions. Note— For the term of a licence see section 88. 84 Acceptance of grant of exploration licence over tender blocks The provisional grant of an exploration licence is properly accepted by the provisional holder if, within 30 days after the day on which the provisional holder is given notice under section 83, the provisional holder: (a) gives the Minister a written acceptance of the grant, and (b) lodges any security required under section 399, and (c) pays the fee that must be paid for the licence under section 425, and (d) if the tender is determined on the basis of the amount of money offered for the licence, pays to the Minister the amount that the provisional holder offered for the licence under section 77 (1) (d). Note— Under section 88, the grant of the licence cannot be effective before it is registered (see section 333 for registration). 85 Conditions applicable to licence on grant If the provisional grant of the licence is properly accepted, the licence is subject to the conditions determined under section 73. 86 Lapse of provisional grant of exploration licence If the provisional grant of the licence is not properly accepted under section 84, the provisional grant lapses. 87 Provisional grant to next applicant if grant lapses (1) If the provisional grant of the licence lapses under section 86, the Minister may provisionally grant the licence to another of the applicants for the licence. (2) When provisionally granting a licence under subsection (1), the Minister must follow the procedure and apply the criteria specified in the tender block licence notice published for the licence under section 74. Division 4 Duration of exploration licence 88 Initial term of exploration licence (1) An exploration licence comes into force on: (a) the day on which the grant of the licence is registered, or (b) if a day later than the day on which the grant of the licence is registered is specified in the licence as its commencement day, that specified day. (2) The initial term of an exploration licence ends: (a) 4 years after the day on which the licence is provisionally granted, or