New South Wales: Petroleum (Offshore) Act 1982 (NSW)

Petroleum (Offshore) Act 1982 No 23 An Act relating to the exploration for, and the exploitation of, the petroleum resources, and certain other resources, of certain submerged lands adjacent to the coasts of New South Wales; to repeal the Petroleum (Submerged Lands) Act 1967 and the Petroleum (Submerged Lands) Taxation Act 1967; to amend the Petroleum Act 1955 and the Pipelines Act 1967; and for other purposes. Preamble WHEREAS in accordance with international law Australia as a coastal state has sovereign rights over the continental shelf beyond the limits of Australian territorial waters for the purpose of exploring it and exploiting its natural resources: AND WHEREAS Australia is a party to the Convention on the Continental Shelf signed at Geneva on 29 April 1958 in which those rights are defined: AND WHEREAS by the Seas and Submerged Lands Act 1973 of the Parliament of the Commonwealth, it is declared and enacted that the sovereignty in respect of the territorial sea of Australia and in respect of the airspace over it and in respect of its sea-bed and subsoil, and the sovereignty in respect of certain internal waters of Australia and in respect of the airspace over those waters and in respect of the sea-bed and subsoil beneath those waters is vested in and exercisable by the Crown in right of the Commonwealth: AND WHEREAS the Parliaments of the States and the Legislative Assembly of the Northern Territory have certain legislative powers in respect of the sea-bed and subsoil referred to in the last preceding recital and the Parliament of the Commonwealth has vested in the Crown in right of each of the States and the Crown in right of the Northern Territory certain proprietary rights in respect of that sea-bed and subsoil: AND WHEREAS it has been agreed between the Commonwealth, the States and the Northern Territory that, in place of the scheme provided for by an Agreement between the Commonwealth and the States dated 16 October 1967: (a) legislation of the Parliament of the Commonwealth in respect of the exploration for and the exploitation of the petroleum resources of submerged lands should be limited to the resources of lands beneath waters that are beyond the outer limits of the territorial sea adjacent to the States and the Northern Territory (being outer limits based, unless and until otherwise agreed, on the breadth of that sea being 3 nautical miles), and the States and the Northern Territory should share in the administration of that legislation, (b) legislation of the Parliament of each State should apply in respect of the exploration for and the exploitation of the petroleum resources of such part of the submerged lands in an area adjacent to the State as is on the landward side of the waters referred to in paragraph (a), (c) legislation of the Legislative Assembly of the Northern Territory should apply in respect of the exploration for and the exploitation of the petroleum resources of such part of the submerged lands in an area adjacent to the Northern Territory as is on the landward side of the waters referred to in paragraph (a), and (d) the Commonwealth, the States and the Northern Territory should endeavour to maintain, as far as practicable, common principles, rules and practices in the regulation and control of the exploration for and the exploitation of the petroleum resources of all the submerged lands referred to above that are on the seaward side of the inner limits of the territorial sea of Australia: BE it therefore enacted by the Queen's Most Excellent Majesty, by and with the advice and consent of the Legislative Council and Legislative Assembly of New South Wales in Parliament assembled, and by the authority of the same, as follows: Part 1 Preliminary 1 Name of Act This Act may be cited as the Petroleum (Offshore) Act 1982. 2 Commencement (1) This section and section 1 shall commence on the date of assent to this Act. (2) Except as provided by subsection (1), this Act shall commence on the first day on which all of the following Acts of the Parliament of the Commonwealth, with or without amendments, are in operation, namely, the Seas and Submerged Lands Amendment Act 1980, the Coastal Waters (State Powers) Act 1980, the Coastal Waters (State Title) Act 1980 and the Petroleum (Submerged Lands) Amendment Act 1980. (3) The Minister shall as soon as is practicable after the commencement of this Act cause notice of the commencement to be published in the Gazette. 3 Repeals, amendments and transitional provisions (1) The Petroleum (Submerged Lands) Act 1967 and the Petroleum (Submerged Lands) Taxation Act 1967 are repealed. (2), (3) (Repealed) (4) The scheme agreed on between the Commonwealth, the States and the Northern Territory, being the scheme set out in Schedule 3, so far as that scheme relates to the operation of this Act, has the force of law by virtue of this subsection. (5) For the purposes of the scheme set out in Schedule 3, this Act is the State Act of New South Wales and the Minister is the Designated Authority under this Act. (6) A reference to the Designated Authority in a new permit (within the meaning of the scheme set out in Schedule 3) or a new pipeline licence (within the meaning of that scheme) shall for the purposes of that permit or pipeline licence and this Act be read as a reference to the Minister. (7) A reference in any other Act, or in any regulation, by-law or other statutory instrument or in any other document, whether of the same or of a different kind, to the "Petroleum (Submerged Lands) Act 1967" shall be read and construed as a reference to the "Petroleum (Submerged Lands) Act 1982". (8) Schedule 4 (Savings, transitional and other provisions) has effect. (9) During the period commencing on the date of commencement of this subsection and ending at the time the Petroleum (Submerged Lands) (Cash Bidding) Amendment Act 1985 of the Commonwealth ceases to be in force this Act shall be read as if the amendments set forth in Schedule 5 (Applications for exploration permits by way of cash bidding) were in force. 4 (Repealed) 5 Definitions (1) In this Act, except in so far as the context or subject-matter otherwise indicates or requires: access authority means an access authority under Part 4. application for a primary licence means an application under section 41 (1) or (2) or 41A (1) or (2). application for a secondary licence means an application under section 41 (3) or 41A (3). approved means approved by the Minister. block means a block constituted as provided by section 18. Chief Commissioner means the Chief Commissioner of State Revenue. construct includes place. corresponding law means an Act of another State or a law in force in a Territory of the Commonwealth giving effect to the agreement between the Commonwealth, the States and the Northern Territory referred to in the preamble to this Act. document includes any map, book, record or writing. good oil-field practice means all those things that are generally accepted as good and safe in the carrying on of exploration for petroleum, or in operations for the recovery of petroleum, as the case may be. graticular section means a section referred to in section 18. inspector means a person appointed under section 126. lease means a retention lease under Part 4. lease area means the area constituted by the blocks that are the subject of a lease. lessee means the registered holder of a lease. licence means a production licence for petroleum under Part 4. licence area means the area constituted by the blocks that are the subject of a licence. licensee means the registered holder of a licence. location means a block or blocks in respect of which a declaration under section 38 is in force. natural resources has the same meaning as in the Convention. partly cancelled means: (a) in relation to a permit or licence—cancelled as to 1 or more but not all of the blocks the subject of the permit or licence, and (b) in relation to a pipeline licence—cancelled as to a part of the pipeline the subject of the licence. partly determined, in relation to a permit or lease, means determined as to 1 or more but not all of the blocks the subject of the permit or lease. permit means an exploration permit for petroleum under Part 4. permit area means the area constituted by the blocks that are the subject of a permit. permittee means the registered holder of a permit. 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 1 or more hydrocarbons, whether in a gaseous, liquid or solid state, and 1 or more of the following, that is to say, hydrogen sulphide, nitrogen, helium and carbon dioxide, and includes any petroleum as defined by paragraph (a), (b) or (c) that has been returned to a natural reservoir in the adjacent area. petroleum pool means a naturally occurring discrete accumulation of petroleum. pipeline means a pipe or system of pipes in the adjacent area for conveying petroleum but does not include a pipe or system of pipes: (a) for returning petroleum to a natural reservoir, (b) for conveying petroleum for use for the purposes of petroleum exploration operations or operations for the recovery of petroleum, (c) for conveying petroleum that is to be flared or vented, or (d) for conveying petroleum from a well to a terminal station without passing through another terminal station, whether the terminal station to which the petroleum is conveyed is in the adjacent area or not. pipeline licence means a licence under Part 4 to construct and operate a pipeline. pipeline licensee means the registered holder of a pipeline licence. primary entitlement means: (a) in relation to a permittee—the number of blocks forming part of a location in the permit area in respect of which that permittee may make an application under section 41 (1), and (b) in relation to a lessee—the number of blocks in the lease area in respect of which that lessee may make an application under section 41A (1). primary licence means a licence granted on an application under section 41 (1) or (2). pumping station means equipment for pumping petroleum or water and includes any structure associated with that equipment. Register means the Register kept in pursuance of Division 5 of Part 4. registered holder, in relation to a permit, lease, licence, pipeline licence, special prospecting authority or access authority, means the person whose name is for the time being shown in the Register as being the holder of the permit, lease, licence, pipeline licence, special prospecting authority or access authority. regulations means regulations made under this Act. royalty period, in relation to a permit, lease or licence, means: (a) the period from and including the date from which the permit, lease or licence comes into force to the end of the month of the year during which that date occurs, and (b) each month thereafter. secondary licence means a licence granted on an application under section 41 (3). secondary line means a pipe or system of pipes for any purpose referred to in paragraphs (a), (b), (c) and (d) of the definition of pipeline in this subsection. special prospecting authority means a special prospecting authority under Part 4. tank station means a tank or system of tanks for holding or storing petroleum and includes any structure associated with that tank or system of tanks. terminal station means a pumping station, a tank station or a valve station declared to be a terminal station under section 64 or under the Commonwealth Act or a corresponding law. the adjacent area means the area specified in Schedule 2 as being the adjacent area of New South Wales. the applied provisions means the provisions applied in accordance with section 15. the Commonwealth Act means the Offshore Petroleum and Greenhouse Gas Storage Act 2006 of the Parliament of the Commonwealth as amended from time to time and any Act of Parliament of the Commonwealth with which that Act is incorporated. the Convention means the Convention entitled "Convention on the Continental Shelf" signed at Geneva on 29 April 1958, being the Convention a copy of which in the English language is set out in Schedule 1. the Joint Authority means the Commonwealth–New South Wales Offshore Petroleum Joint Authority established by the Commonwealth Act. the relinquished area means: (a) in relation to a permit, lease or licence that has expired—the area constituted by the blocks in respect of which the permit, lease or licence was in force but has not been renewed, (b) in relation to a permit or lease that has been wholly determined or partly determined—the area constituted by the blocks as to which the permit or lease was so determined, (c) in relation to a permit or licence that has been wholly cancelled or partly cancelled—the area constituted by the blocks as to which the permit or licence was so cancelled, (ca) in relation to a lease that has been wholly cancelled—the area constituted by the blocks in respect of which the lease was in force, (d) in relation to a pipeline licence that is no longer in force—the part of the adjacent area in which the pipeline was constructed, (e) in relation to a pipeline licence that has been wholly cancelled or partly cancelled—the part of the adjacent area in which the pipeline or the part of the pipeline, as the case may be, was constructed, and (f) in relation to a special prospecting authority or access authority that has been surrendered or cancelled or has expired—the area constituted by the blocks in respect of which that authority was in force. valve station means equipment for regulating the flow of petroleum and includes any structure associated with that equipment. vessel means a vessel used in navigation, other than air navigation, and includes a barge, lighter or other floating vessel. water line means a pipe or system of pipes for conveying water in connexion with petroleum exploration operations or operations for the recovery of petroleum. well means a hole in the sea-bed or subsoil made by drilling, boring or any other means in connexion with exploration for petroleum or operations for the recovery of petroleum, but does not include a seismic shot hole. wholly cancelled, in relation to a permit, lease, licence or pipeline licence, means cancelled as to all the blocks, or as to the whole of the pipeline, the subject of the permit, lease, licence or pipeline licence. wholly determined, in relation to a permit or lease, means determined as to all the blocks the subject of the permit or lease. (2) In this Act, a reference to the term of a permit, lease, licence, pipeline licence, special prospecting authority or access authority is a reference to the period during which the permit, lease, licence, pipeline licence, special prospecting authority or access authority remains in force and a reference to the date of expiration of a permit, lease, licence, pipeline licence, special prospecting authority or access authority is a reference to the day on which the permit, lease, licence, pipeline licence, special prospecting authority or access authority ceases to be in force. (3) In this Act, a reference to a year of the term of a permit, lease, licence or pipeline licence is a reference to a period of 1 year commencing on the day on which the permit, lease, licence or pipeline licence, as the case may be, comes into force or on any anniversary of that day. (4) In this Act, a reference to the renewal, or to the grant of a renewal, of a permit is a reference to the grant of a permit in respect of all or some of the blocks specified in the firstmentioned permit to commence on the day after the date of expiration of the firstmentioned permit or on the day after the date of expiration of the permit granted upon a previous renewal of the firstmentioned permit. (4A) In this Act, a reference to the renewal, or the grant of a renewal, of a lease is a reference to the grant of a lease in respect of the blocks in respect of which the firstmentioned lease was in force to commence on the day after the date of expiration of the firstmentioned lease or on the day after the date of expiration of the lease granted upon a previous renewal of the firstmentioned lease. (5) In this Act, a reference to the renewal, or to the grant of a renewal, of a licence in respect of the blocks specified in the licence is a reference to the grant of a licence in respect of those blocks to commence on the day after the date of expiration of the firstmentioned licence or on the day after the date of expiration of the licence granted upon a previous renewal of the firstmentioned licence. (6) In this Act, a reference to the renewal, or to the grant of a renewal, of a pipeline licence in respect of a pipeline is a reference to the grant of a pipeline licence in respect of that pipeline to commence on the day after the date of expiration of the firstmentioned pipeline licence or on the day after the date of expiration of the pipeline licence granted upon a previous renewal of the firstmentioned pipeline licence. (7) In this Act, a reference to a pipeline includes a reference to a part of a pipeline. (8) In this Act, a reference to a permit, lease, licence, pipeline licence or access authority is a reference to the permit, lease, licence, pipeline licence or access authority as varied for the time being under this Act. (9) The power conferred by this Act to make, grant or issue any instrument shall, unless the contrary intention appears, be construed as including a power exercisable in the like manner and subject to the like conditions, if any, to repeal, rescind, revoke, amend or vary any such instrument. 6 Spaces above and below adjacent areas For the purposes of this Act and the regulations: (a) the space above or below the adjacent area shall be deemed to be in that area, and (b) the space above or below an area that is part of the adjacent area shall be deemed to be in that part. 7 Ascertaining points and other matters (1) The position on the surface of the Earth of a point, line or area that is necessary to be determined for the purposes of this Act (other than Schedule 2), or of any order, instrument or notification under this Act, is to be determined by reference to the Geocentric Datum of Australia within the meaning of the Surveying and Spatial Information Act 2002. (2) The points of latitude and longitude referred to in Schedule 2 are to be determined by reference to a spheroid having its centre at the centre of the Earth and a major (equatorial) radius of 6,378,160 metres and a flattening of 100/29825 and by reference to the position of the Johnston Geodetic Station in the Northern Territory of Australia, which is taken to be situated at 133 degrees, 12 minutes and 30.0771 seconds of East Longitude and at 25 degrees, 56 minutes and 54.5515 seconds of South Latitude and to have a ground level of 571.2 metres above that spheroid. 8 Petroleum pool extending into 2 licence, permit or lease areas (1) The provisions of this section have effect for the purposes of this Act and of licences. (2) Where a well-head is situated in a licence area and the well from that well-head is inclined so as to enter a petroleum pool, being a pool that does not extend to that licence area, at a place within an adjoining licence area of the same licensee, any petroleum recovered through that well shall be deemed to have been recovered in that adjoining licence area under the licence in respect of that area. (3) Where a petroleum pool is partly in 1 licence area and partly in an adjoining licence area of the same licensee and petroleum is recovered from that pool through a well or wells in 1 or both of the licence areas, there shall be deemed to have been recovered in each of the licence areas, under the licence in respect of that area, such proportion of all petroleum so recovered as may reasonably be treated as being derived from that area, having regard to the nature and probable extent of the pool, and the respective proportions shall be determined in accordance with subsection (4). (4) The proportions to be determined for the purposes of subsection (3) may be determined by agreement between the licensee and the Minister or, in the absence of agreement, may be determined by the Supreme Court on the application of the licensee or the Minister. (5) Where a petroleum pool is partly in a licence area and partly in an area (in this subsection referred to as the Commonwealth licence area) in which the licensee has authority under the Commonwealth Act to explore for, or recover, petroleum, and petroleum is recovered from that pool through a well or wells in the licence area, the Commonwealth licence area or both, there shall be deemed to have been recovered in the licence area such proportion of all petroleum so recovered as may reasonably be treated as being derived from that area, having regard to the nature and probable extent of the pool, and that proportion shall be determined in accordance with subsection (6). (6) The proportion to be determined for the purposes of subsection (5) may be determined by agreement between the licensee, the Joint Authority and the Minister or, in the absence of agreement, may be determined by the Supreme Court on the application of the licensee, the Joint Authority or the Minister. (7) Where a petroleum pool is partly in a licence area and partly in an area (in this section called the other State licence area) in which the licensee has authority, under a corresponding law, to explore for, or recover, petroleum, and petroleum is recovered from that pool through a well or wells in the licence area, the other State licence area or both, there shall be deemed to have been recovered in the licence area such proportion of all petroleum so recovered as may reasonably be treated as being derived from that area, having regard to the nature and probable extent of the pool, and that proportion shall be determined in accordance with subsection (8). (8) The proportion to be determined for the purposes of subsection (7) may be determined by agreement between the licensee, the Minister and the Minister of the other State administering the corresponding law or, in the absence of agreement, may be determined by the Supreme Court on the application of any of those persons. (9) Where: (a) a petroleum pool is partly in a licence area and partly in another area, being an area which is outside the adjacent area and in which the licensee has, under the Commonwealth Act or a corresponding law, authority to explore for, or recover, petroleum, (b) petroleum is recovered from that pool, and (c) the Supreme Court of another State makes a determination, under the Commonwealth Act or a corresponding law, of the proportion of the petroleum recovered from that pool that is, for the purposes of the Commonwealth Act or the corresponding law, to be deemed to have been recovered from the other area, the Supreme Court shall not make a determination under this section that is inconsistent with the determination of the Supreme Court of the other State. (10) Where: (a) a petroleum pool is partly in a licence area and partly in another area, whether in the adjacent area or not, in respect of which another person has authority, whether under this Act, the Commonwealth Act or a corresponding law, to explore for or recover petroleum, (b) a unit development agreement in accordance with section 60 is in force between the licensee and that other person, and (c) petroleum is recovered from that pool through a well or wells in the licence area, the other area or both, there shall be deemed to have been recovered in the licence area such proportion of all petroleum so recovered as is specified in, or determined in accordance with, the agreement. (11) In this section, a reference to a licence, a licensee or a licence area shall be read as including a reference to a permit and a lease, a permittee and a lessee or a permit area and a lease area. 9 Application of Act This Act applies to all natural persons, whether Australian citizens or not and whether resident in New South Wales or not, and to all corporations, whether incorporated or carrying on business in New South Wales or not. Part 2 Administration of the Commonwealth offshore area 10 Definition In this Part, the Commonwealth offshore area means the offshore area for New South Wales for the purposes of the Commonwealth Act. 11 Minister as member of Joint Authority (1) The Minister may exercise any power which the Commonwealth Act is expressed to authorize the Minister to exercise as a member of the Joint Authority. (2) The Minister shall perform any function which the Commonwealth Act is expressed to require the Minister to perform as a member of the Joint Authority. 12 Minister as Designated Authority The Minister is authorized to perform the functions and exercise the powers which the Commonwealth Act is expressed to require or empower the Designated Authority in respect of the Commonwealth offshore area to perform or exercise. 13 Delegations under Commonwealth Act Where, in the exercise of a power which the Commonwealth Act is expressed to confer upon the Designated Authority in respect of the Commonwealth offshore area the Minister delegates a power to a person who is a public servant or who holds any office in the service of New South Wales, the person may exercise the power. 14 Public servants performing functions under Commonwealth Act A public servant shall perform any function which the Minister, as the Designated Authority in respect of the Commonwealth offshore area, or as a member of the Joint Authority, requires the public servant to perform in relation to the Commonwealth Act. Part 3 Application of laws 15 Application of laws in the adjacent area (1) Subject to this Act and the regulations, the provisions of the laws, whether written or unwritten, in force in New South Wales for the time being (other than laws of the Commonwealth) and the provisions of any instrument having effect under any of those laws, apply, as provided by this section, in the adjacent area and so apply as if that area were part of New South Wales. (2) The laws referred to in subsection (1) do not include laws that for the time being apply in the adjacent area by virtue of the Crimes at Sea Act 1998 or the Application of Laws (Coastal Sea) Act 1980. (3) A law shall be taken to be a law in force in New South Wales notwithstanding that that law applies to part only of New South Wales. (4) The provisions referred to in subsection (1) apply to and in relation to all acts, omissions, matters, circumstances and things touching, concerning, arising out of or connected with the exploration of the sea-bed or subsoil of the adjacent area for petroleum and the exploitation of the natural resources, being petroleum, of that sea-bed or subsoil. (5) Without limiting the operation of subsection (4), the provisions referred to in subsection (1) apply: (a) to and in relation to: (i) an act or omission that takes place in, on, above, below or in the vicinity of, and (ii) a matter, circumstance or thing that exists or arises with respect to or in connection with, a vessel, aircraft, structure or installation, or equipment or other property, that is in the adjacent area for any reason touching, concerning, arising out of or connected with the exploration of the sea-bed or subsoil of the adjacent area for petroleum or the exploitation of the natural resources, being petroleum, of that sea-bed or subsoil, (b) to and in relation to a person who: (i) is in the adjacent area for a reason of the kind referred to in paragraph (a), or (ii) is in, on, above, below or in the vicinity of a vessel, aircraft, structure or installation, or equipment or other property, that is in the adjacent area for a reason of the kind referred to in paragraph (a), and (c) to and in relation to a person in respect of the person's carrying on any operation or doing any work in the adjacent area for a reason of the kind referred to in paragraph (a). (6) This section does not extend to the provisions of any law or instrument: (a) in so far as they apply to or in relation to exploration for, or operations for the recovery of, petroleum, (b) in so far as they apply to or in relation to the construction or operation of pipelines, (c) in so far as they are incapable of application in the adjacent area, or (d) in so far as they are expressed not to extend to or apply in the adjacent area. (7) This section does not limit the operation that any law or instrument has apart from this section. (8) The regulations may provide that such of the provisions referred to in subsection (1) as are specified in the regulations do not apply by reason of this section or so apply with such modifications as are specified in the regulations. (9) For the purposes of subsection (8), modification includes the omission or addition of a provision or the substitution of a provision for another provision. 16 Jurisdiction of State courts (1) Subject to this section, the several courts of New South Wales are invested with jurisdiction in all matters arising under the applied provisions, this Act or the regulations. (2) The jurisdiction with which the several courts are invested by subsection (1) is invested within the limits (other than limits having effect by reference to localities) of their several jurisdictions. (3) (Repealed) (4) This section does not limit the jurisdiction that any court has apart from this section. Part 4 Mining for petroleum Division 1 Preliminary 17 Delegation (1) The Minister may, either generally or as otherwise provided by the instrument of delegation, by writing signed by the Minister delegate to a person any of the Minister's powers or functions under this Act or the regulations, 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 or the regulations, 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 the 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. 18 Graticulation of Earth's surface and constitution of blocks (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 5 minutes, or a multiple of 5 minutes, of longitude, and (b) by the equator and by parallels of latitude that are at a distance from the equator of 5 minutes, or a multiple of 5 minutes, of latitude, into sections, each of which is bounded: (c) by portions of 2 of those meridians that are at a distance from each other of 5 minutes of longitude, and (d) by portions of 2 of those parallels of latitude that are at a distance from each other of 5 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. 19 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 20 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: 500 penalty units or imprisonment for 5 years, or both. (2) For the purposes of subsection (1), a person who does anything preparatory to, or knowingly connected with, exploration for petroleum is taken to explore for petroleum. 21 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 the Minister thinks sufficient, in an instrument under subsection (1), direct that section 22 (2) or (3) does not apply, or that both of those subsections do not apply, to or in relation to the applications. (3)–(5) (Repealed) 22 Application for permit (1) An application under section 21: (a) shall be in accordance with an approved form, (b) shall be made in an approved manner, (c) shall be in respect of not more than 400 blocks, (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, (ii) the technical qualifications of the applicant and of the applicant's employees, (iii) the technical advice available to the applicant, and (iv) the financial resources available to the applicant, (e) may set out any 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 16 blocks or more are available—shall not be less than 16, or (b) if less than 16 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 1 other graticular section in that area. (4) The Minister may, at any time, by instrument in writing served on the applicant, require the applicant to furnish, within the time specified in the instrument, further information in writing in connection with the application. (5) (Repealed) 23 Grant or refusal of permit in relation to application (1) Where an application has been made under section 21, 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 1 month after the date of service of the instrument on the applicant, or within such further period, not exceeding 1 month, as the Minister, on application in writing served on the Minister before the expiration of the firstmentioned period of 1 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 shall 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. 24 Application for permit in respect of surrendered etc blocks (1) Where: (a) a lease is surrendered, cancelled or determined as to a block or blocks, (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. (2), (3) (Repealed) (4) An application under this section: (a) shall be in accordance with an approved form, (b) shall be made in an approved manner, (c) shall be accompanied by the particulars referred to in section 22 (1) (d), (d) shall specify an amount that the applicant is prepared to pay to the Minister, in addition to the fee referred to in section 25 (1) (a), in respect of the grant of a permit 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 the applicant to furnish, within the time specified in the instrument, further information in writing in connexion with this application. 25 Application fee etc (1) An application under section 24 shall be accompanied by: (a) the prescribed fee, and (b) a deposit of 10 per cent of the amount specified in the application under section 24 (4) (d). (2) Where a permit is not granted on the application, the amount of the deposit is, subject to subsection (3), to be refunded to the applicant. (3) Where an applicant on whom there has been served an instrument under section 26 does not request the Minister, in accordance with section 27, to grant the permit referred to in the instrument, the deposit shall not, unless the Minister otherwise determines, be refunded to the applicant. 26 Consideration of application (1) Where, at the expiration of the period specified in an instrument under section 24 (1), only 1 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 the Minister is prepared to grant to the applicant a permit in respect of that block or those blocks. (2) Where, at the expiration of the period specified in an instrument under section 24 (1), 2 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 the Minister does not reject all of the applications, may: (a) if only 1 application remains unrejected—by instrument in writing served on the applicant, or (b) if 2 or more applications remain unrejected—by instrument in writing served on the applicant, or on 1 of the applicants, whose application has not been rejected and who has specified as the amount that the applicant is prepared to pay in respect of the grant of a permit to the applicant an amount that is not less than the amount specified by any other applicant whose application has not been rejected, inform the applicant that the Minister is prepared to grant to the applicant a permit in respect of that block or those blocks. (3), (4) (Repealed) (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 27 (1), and (ii) pay the balance of the amount to be paid in respect of the grant of the permit to the applicant or enter into an agreement under section 110 in respect of that balance. 27 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 26 may, within a period of 3 months after the date of service of the instrument on the applicant, or within such further period, not exceeding 3 months, as the Minister, on application in writing served on the Minister before the expiration of the firstmentioned period of 3 months, allows: (a) by instrument in writing served on the Minister, request the Minister to grant to the applicant 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 the applicant or enter into an agreement under section 110 in respect of that balance. (c) (Repealed) (2) Where an applicant on whom there has been served an instrument under section 26: (a) has not made a request under subsection (1), and (b) has not paid the balance of the amount to be paid in respect of the grant of the permit to the applicant or entered into an agreement under section 110 in respect of that balance, (c) (Repealed) 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 26 (2) lapses as provided by subsection (2), section 26 (2) applies in respect of the application or applications, if any, then remaining unrejected. 28 Grant of permit on request Where a person on whom there has been served an instrument under section 26: (a) has made a request under section 27 (1), and (b) has paid the balance of the amount to be paid in respect of the grant of a permit to the applicant or has entered into an agreement under section 110 in respect of that balance, (c) (Repealed) within the period applicable under section 27 (1), the Minister shall grant to that person an exploration permit for petroleum in respect of the block or blocks specified in the instrument. 29 Rights conferred by permit A permit, while it remains in force, authorizes the permittee, subject to this Act and the regulations 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. 30 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 6 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 5 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. 31 Application for renewal of permit (1) Subject to sections 32 and 32A, 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: (a) shall be in accordance with an approved form, (b) subject to subsection (3), shall be made in an approved manner not less than 3 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 the Minister thinks sufficient, receive an application for the renewal of the permit less than 3 months before, but not in any case after, the date of expiration of the permit. 32 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 2 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 1 less or 1 more than a number that is divisible by 4 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 2 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 1 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 16 or more, each area constituted by blocks in respect of which the application is made shall be constituted by not less than 16 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 16, 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 16, as is specified in the instrument, and (b) give such directions as the Minister thinks fit concerning the blocks in respect of which the application may be made. (7) The Minister may, for reasons that the Minister 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 the Minister thinks fit concerning the blocks in respect of which that application may be made. 32A Certain permits cannot be renewed more than twice (1) This section applies to an application for the renewal of a permit if: (a) the original permit was granted under section 23: (i) on or after 1 January 2006, and (ii) as a result of an application made in response to an invitation in an instrument that was published under section 21 (1) on or after 1 January 2006, or (b) the original permit was granted under section 28 on or after 1 January 2006. (2) A permittee must not make such an application if it could result in the original permit being renewed more than twice. 33 Grant or refusal of renewal of permit (1) Where an application has been made for the renewal of a permit, the Minister: (a) shall, 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 (b) may, if: (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 and 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 and 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 shall, 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) the Minister has, by instrument in writing served on the permittee, given not less than 1 month's notice of the Minister's intention to refuse to grant the renewal of the permit, (b) the Minister has served a copy of the instrument on such other persons, if any, as the Minister thinks fit, (c) the Minister has, in the instrument: (i) given particulars of the reasons for the intention, 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 or she wishes the Minister to consider, and (d) the Minister has taken into account any matters so submitted to the Minister 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 1 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 shall 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. (8) Where: (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 (d) until the application so lapses, whichever first happens. 34 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, (b) amounts to be expended by the permittee in the carrying out of such work, or (c) both those matters, and the conditions requiring the permittee to comply with directions given in accordance with the permit concerning the matters referred to in paragraphs (a) and (b). (3) A permit shall be deemed to contain a condition that the permittee will comply with the provisions of this Act relating to the payment of royalty, as in force from time to time. 35 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 3 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 1 or more of the following: (a) the chemical composition and physical properties of the petroleum, (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. (3) A person to whom a direction is given under subsection (2) shall comply with the direction. Maximum penalty: 100 penalty units. 36 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 the 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. (2) A person to whom a direction is given under subsection (1) shall comply with the direction. Maximum penalty: 100 penalty units. 37 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 2 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 2 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. (6) Where: (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 3 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 3 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. 38 Declaration of location (1) Where: (a) a permittee has made a nomination under section 37, 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 37 (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) the 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. 39 Immediately adjoining blocks For the purposes of section 37, 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 1 point only. Division 2A Retention leases for petroleum 39A Application by permittee for lease (1) A permittee whose permit is in force in respect of a block that constitutes, or the blocks that constitute, a location may, within the application period, make an application to the Minister for the grant by the Minister of a lease in respect of that block, or in respect of one or more of those blocks, as the case may be. (2) An application under subsection (1): (a) shall be in accordance with an approved form, (b) shall be made in an approved manner, (c) shall be accompanied by particulars of: (i) the proposals of the applicant for work and expenditure in respect of the area comprised in the blocks specified in the application, and (ii) the commercial viability of the recovery of petroleum from the area comprised in the blocks specified in the application at the time of the application, and particulars of the possible future commercial viability of the recovery of petroleum from that area, (d) may set out any other matters that the applicant wishes to be considered, and (e) shall be accompanied by the prescribed fee. (3) The Minister may, at any time, by instrument in writing served on the applicant, require the applicant to furnish, within the time specified in the instrument, further information in writing in connection with the application. (4) The application period in respect of an application under this section by a permittee is: (a) the period of 2 years after the date on which the block that constitutes the location concerned was, or the blocks that constitute the location concerned were, declared to be a location, or (b) such other period, not less than 2 years or more than 4 years after that date, as the Minister, on application in writing by the permittee, served on the Minister before the end of the firstmentioned period of 2 years, allows. 39B Grant or refusal of lease in relation to application (1) Where: (a) an application has been made under section 39A, (b) the applicant has furnished any further information as and when required by the Minister under section 39A (3), and (c) the Minister is satisfied that recovery of petroleum from the area comprised in the blocks specified in the application: (i) is not, at the time of the application, commercially viable, and (ii) is likely to become commercially viable within the period of 15 years after that time, the Minister shall, by instrument in writing served on the applicant, inform the applicant: (d) that the Minister is prepared to grant to the applicant a lease in respect of the block or blocks specified in the application. (e) (Repealed) (2) Where an application has been made under section 39A a