New South Wales: Petroleum (Onshore) Act 1991 (NSW)

Petroleum (Onshore) Act 1991 No 84 An Act to regulate the search for and mining of petroleum; to repeal the Petroleum Act 1955; and for other purposes. Part 1 Preliminary 1 Name of Act This Act may be cited as the Petroleum (Onshore) Act 1991. 2 Commencement This Act commences on a day or days to be appointed by proclamation. 2A Objects The objects of this Act are to encourage and facilitate the discovery and development of petroleum resources in New South Wales, having regard to the need to encourage ecologically sustainable development, and in particular— (a) to recognise and foster the significant social and economic benefits to New South Wales that result from the efficient development of petroleum resources, and (b) to provide an integrated framework for the effective regulation of titles for petroleum prospecting and mining, and (c) to provide a framework for compensation to landholders for loss or damage resulting from such operations, and (d) to ensure an appropriate return to the State from petroleum resources, and (e) to require the payment of security to provide for the rehabilitation of sites damaged or affected by such operations, and (f) to ensure effective rehabilitation of disturbed land and water, and (g) to ensure petroleum resources are identified and developed in ways that minimise impacts on the environment. 3 Definitions (1) In this Act— access arrangement means an access arrangement under Part 4A or 4B. activity approval—see sections 31A and 36A. administrative levy means an administrative levy payable under Part 7A. annual rental fee means an annual rental fee payable under Part 7A. assessable prospecting operation means any prospecting operation that is not exempt development within the meaning of the Environmental Planning and Assessment Act 1979. block means a graticular section referred to in section 4. Chief Commissioner means the Chief Commissioner of State Revenue. Commonwealth Native Title Act means the Native Title Act 1993 of the Commonwealth. Department means the Department of Planning and Environment. director of a body corporate or corporation includes any person involved in the management of the affairs of the body corporate or corporation. drilling means the perforation of the earth's surface crust by mechanical means, whether the hole caused by the perforation is vertical, inclined or horizontal, and includes all operations for preventing collapse of the sides of any such hole or for preventing it from being filled with extraneous materials including water. enforceable undertaking means an undertaking given under Division 6 of Part 13A. environment includes all aspects of the surroundings of humans, whether affecting any human as an individual or in his or her social grouping. environment protection legislation has the same meaning as in the Protection of the Environment Administration Act 1991. function includes a power, authority or duty, and exercise a function includes perform a duty. geological survey includes the examination of areas in the field, the collection of the necessary specimens of rocks and other materials, investigations in the laboratory, the preparation of geological maps and geological sections, and all other operations essential for the determination of the geological nature, formation and structure of any such area. geophysical survey means the examination of an area with the aid of instruments with the object of determining some or all of the physical constituents of geological formations on or below the surface of the earth in such area. inspector means an inspector within the meaning of the Mining Act 1992. land includes land covered by water. landholder means, in relation to any land— (a) the owner of an estate in fee simple in the land, or (b) a native title holder of the land, or (c) the holder of a lease or licence under the Crown Land Management Act 2016 over the land, or (d) the holder of a continued incomplete tenure purchase under Schedule 1 to the Crown Land Management Act 2016 in the land, or (e) the holder of a permissive occupancy granted over the land, or (f) (Repealed) (g) a person identified in any register or record kept by the Registrar-General as a person having an interest in the land, being— (i) a mortgagee in possession of the land, or (ii) a lessee of the land or other person entitled to an exclusive right of occupation of the land, or (iii) a Minister or public authority having the benefit of a covenant affecting the land that is imposed by a Minister on behalf of the Crown under the Crown Land Management Act 2016, or (iv) a Minister or public authority having an interest in the land under a conservation, natural heritage or biobanking agreement, or (v) a person prescribed by the regulations for the purposes of this paragraph, or (g1) a person identified in any register or record kept by the Registrar-General as a person having an interest in the land, other than a person to whom paragraph (g) applies, but only in a provision of this Act in which a reference to a landholder is expressed to include a secondary landholder, or (h) a person of a class prescribed by or determined in accordance with the regulations to be landholders for the purposes of this definition, but does not include a person of a class prescribed as outside the scope of this definition. onshore area means any area of land in New South Wales that is not included in the territorial sea within the meaning of the Petroleum (Offshore) Act 1982. petroleum means— (a) any naturally occurring hydrocarbon, whether in a gaseous, liquid or solid state, or (b) any naturally occurring mixture of hydrocarbons, whether in a gaseous, liquid or solid state, or (c) any naturally occurring mixture of one or more hydrocarbons, whether in a gaseous, liquid or solid state, and one or more of the following, that is to say, hydrogen sulphide, nitrogen, helium, carbon dioxide and water, and includes any substance referred to in paragraph (a), (b) or (c) that has been returned to a natural reservoir, but does not include coal or oil shale or any substance prescribed to be a mineral for the purposes of the Mining Act 1992. petroleum deposit means any naturally occurring accumulation of petroleum on or below the surface of the earth. petroleum title means an exploration licence, assessment lease, production lease or special prospecting authority in force under this Act. prospect means to carry out works on, or to remove samples from, land for the purpose of testing the quality and quantity of petroleum in the land and the potential to recover petroleum from the land, but does not include any activity declared by the regulations not to constitute prospecting. prospecting operations means operations carried out in the course of prospecting. public authority means a public authority constituted by or under an Act, and includes— (a) a Government Department, and (b) a statutory body representing the Crown, a State owned corporation within the meaning of the State Owned Corporations Act 1989 and a subsidiary (within the meaning of that Act), and (c) a council, and (d) a member of staff or other person who exercises functions on behalf of a public authority. related body corporate has the same meaning as in the Corporations Act 2001 of the Commonwealth. resources legislation means this Act, the Mining Act 1992 and the regulations and other instruments made under those Acts. secondary landholder—see paragraph (g1) of the definition of landholder. Secretary means the Secretary of the Department. well means a hole made by drilling in connection with exploration for petroleum or operations for the recovery of petroleum, but does not include a seismic shot hole. well-head, of petroleum, has the meaning specified by the regulations. work program means a work program referred to in section 14. Note— The Interpretation Act 1987 contains definitions and other provisions that affect the interpretation and application of this Act. (2) A reference in this Act to land comprised in a petroleum title or in any instrument includes, where the title or instrument is a lease, a reference to land demised by the lease. 3A Notes Notes in the text of this Act do not form part of this Act. 4 Graticulation of the Earth's surface For the purposes of this Act, the surface of the Earth is taken to be divided— (a) by the meridian of Greenwich and by meridians of longitude 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 graticular 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 that are at a distance from each other of 5 minutes of latitude. 5 Points to be ascertained by reference to Geocentric Datum of Australia 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, 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. Part 2 Rights of the Crown as to petroleum, helium and carbon dioxide 6 These substances are the property of the Crown (1) All petroleum, helium and carbon dioxide existing in a natural state on or below the surface of any land in the State is the property of the Crown, and is taken to have been so always. No compensation is payable by the Crown for any such petroleum, helium or carbon dioxide that was at any time vested in any person other than the Crown. (2) All Crown grants and leases and every licence and other instrument of title or tenure under any Act relating to lands of the Crown whether granted before or after the commencement of this section, are to be regarded as containing a reservation to the Crown of all petroleum, helium and carbon dioxide existing in a natural state on or below the surface of the land comprised in the instrument concerned. 7 Offence of prospecting or mining without authority (1) A person must not prospect for or mine petroleum except in accordance with a petroleum title. Maximum penalty for prospecting in contravention of this section— (a) in the case of a corporation—5,000 penalty units, and, in the case of a continuing offence, a further penalty of 500 penalty units for each day that the offence continues, or (b) in the case of a natural person—1,000 penalty units or imprisonment for 5 years, or both, and, in the case of a continuing offence, a further penalty of 100 penalty units for each day that the offence continues. Maximum penalty for mining in contravention of this section— (a) in the case of a corporation—10,000 penalty units, or (b) in the case of an individual—2,000 penalty units or imprisonment for 5 years, or both. (2) Nothing in this section prevents a person from prospecting for or mining petroleum if the person is entitled to do so by virtue of a legal instrument— (a) approved by the Minister under Part 8, or (b) approved under the Mining Act 1992 by the Minister administering that Act. Part 3 Petroleum titles Note— Schedule 1B contains further provisions about the following— (a) the consideration of applications for the grant, renewal or transfer of petroleum titles, (b) the grounds for refusal of such applications, (c) the imposition of conditions on, and the variation of conditions of, petroleum titles, (d) the variation and suspension of petroleum titles. Division 1 Provisions relating to titles generally 8 Application for petroleum title (1) Any person may apply for a petroleum title. (2) The following applications may not be made except pursuant to an invitation under Schedule 1A (Competitive selection process for petroleum prospecting titles)— (a) an application for an exploration licence or special prospecting authority, (b) an application for an assessment lease made by an applicant other than the holder of an exploration licence over the land in respect of which the assessment lease is sought. 9 Areas over which petroleum titles may not be granted (1) The Minister must not grant a petroleum title over any of the following land (the excluded areas)— (a) an area designated by the Minister, by notification published in the Gazette, as an area in respect of which a petroleum title is not to be granted, or (b) an area included in an existing petroleum title held by a person other than the applicant, or (c) an area included in another application for a petroleum title— (i) that was made before the applicant's application, and (ii) that has not been withdrawn or otherwise finally disposed of. (1A) Despite subsection (1) (c), the Minister may grant a petroleum title over an area included in another application for a petroleum title if that other application and the applicant's application are both made pursuant to an invitation under Schedule 1A (Competitive selection process for petroleum prospecting titles). (2) A notification under subsection (1) (a) may be varied or rescinded by a subsequent notification. (3)–(6) (Repealed) 10 (Repealed) 11 Making of applications for petroleum titles An application for a petroleum title must be made in a form approved by the Minister and may be delivered or forwarded by post, facsimile or electronically to the Secretary, or may be made electronically as approved by the Secretary. 12 Fee for processing applications An application for a petroleum title must be accompanied by the lodgment fee prescribed by the regulations. 13 Applications to be supported by plans An application for a petroleum title must be accompanied by a map or plan, drawn in accordance with the regulations, on which there is delineated the boundaries of the area to which the title is intended to apply. 14 Applications to be supported by proposed work program (1) An application for a petroleum title must be accompanied by a proposed work program that— (a) indicates the nature and extent of operations to be carried out under the authority conferred by the relevant petroleum title, and (b) sets out commitments relating to the conduct of those operations (such as the timing of the operations), and (c) provides for the carrying out of activities (such as community consultation and environmental management and rehabilitation) in connection with, or ancillary to, those operations, and (d) complies with the regulations. (2) In the case of an application for a production lease, the requirement in subsection (1) can be satisfied by providing a current development consent under the Environmental Planning and Assessment Act 1979 for the conduct of petroleum mining operations, or the construction and maintenance of works or structures, in respect of which the production lease is being applied for. 15 Applications to be supported by evidence of financial capability (1) An application for a petroleum title must be accompanied by evidence of— (a) the financial capability of the applicant, and (b) the technical qualifications of the applicant and of the applicant's technical advisers, and (c) the ability of the applicant to comply with the provisions of this Act and the regulations relating to the petroleum title for which application is made. (2), (3) (Repealed) 16 Grant or refusal of petroleum titles (1) After considering an application for a petroleum title, the Minister— (a) may grant the petroleum title over land of any title or tenure in any onshore area within the State other than an excluded area within the meaning of section 9, or (b) may refuse the application. (2) A petroleum title takes effect on the date on which it is signed by the Minister or on a later date specified in the title. (3) Notification of the grant of a petroleum title or of a refusal to grant an application is to be published in the Gazette. (4) The Minister is to notify the Minister administering the Threatened Species Conservation Act 1995 of the grant of any petroleum title in relation to land that is a biobank site (within the meaning of Part 7A of that Act). (5) The Minister may grant— (a) a single petroleum title of a kind for 2 or more applications for that kind of petroleum title made by the same applicant, or (b) 2 or more petroleum titles of the same kind to an applicant for a single application for a petroleum title of that kind. Note— Schedule 1B contains provisions about the consideration of applications for petroleum titles and the grounds for refusal of such applications. 16A, 17 (Repealed) 18 Title to nominee (1) A petroleum title may, at the request in writing of the applicant, be granted to a person nominated by the applicant. (2) When such a request is made, a reference in this Act to the applicant for a title includes a reference to the nominee. 19 Renewal of title (1) The holder of a petroleum title may apply for renewal of the title by application made within the time prescribed by subsection (2) or (2A). Note— Schedule 1B contains provisions about the consideration of applications for the renewal of petroleum titles and the grounds for refusal of such applications. (2) The prescribed time in relation to a special prospecting authority or an exploration licence is not earlier than 2 months and not later than 1 month before the authority or licence ceases to have effect. (2A) The prescribed time in relation to a petroleum title other than a special prospecting authority or an exploration licence is not earlier than 5 years and not later than 1 year (or, if the term of the title is for 1 year or less, not earlier than 2 months and not later than 1 month) before the title ceases to have effect. (2AA) An application for renewal of an exploration licence— (a) may be made in respect of one or more parts (but not more than such number of parts as may be prescribed by the regulations) of the land comprised in the exploration licence when the application for renewal is made, and (b) if it relates to renewal in respect of part only of the land comprised in the licence—must be accompanied by a description, prepared in the manner prescribed by the regulations, of the land over which renewal of the licence is sought, and (c) may include a description of any special circumstances that the applicant claims (for the purposes of section 19B) exist that justify the area of land over which the licence is renewed exceeding 75% of the size of— (i) the area over which the licence was originally granted (in the case of a first renewal of the licence), or (ii) the area over which its last previous renewal was granted (in any other case). (2AB) An application for renewal must be accompanied by— (a) the application fee prescribed by the regulations, and (b) any information that is prescribed by the regulations. (2B) After considering an application for renewal of a petroleum title, the Minister— (a) may renew the petroleum title, or (b) may refuse the application. (3), (3A) (Repealed) (4) A renewed title may, at the discretion of the Minister, be granted for a shorter term than that of the original title. (4A) The area of land over which a petroleum title is renewed may differ from the area of land over which the renewal of the title is sought, but not so as to include any land that was not subject to the title immediately before the renewal. (5) Any requirements, prohibitions and restrictions under this Act that relate to titles and applications for titles apply (except to the extent provided by this Act or the regulations) in the same way to renewals and applications for renewal. (6) If an exploration licence or assessment lease is renewed as to part only of the land to which the application for renewal relates, the licence or lease ceases to have effect in relation to the remainder of the land on the date on which the renewal takes effect. 19A Withdrawal of application for grant or renewal of petroleum title (1) An application for a petroleum title, or for the renewal of a petroleum title, may be withdrawn by means of a written notice of withdrawal signed by the applicant and lodged with the Secretary. (2) An application ceases to have effect when a notice of withdrawal is lodged under this section. (3) The withdrawal of an application under this section is irrevocable. 19B Land over which exploration licences may be renewed (1) The area of land over which an exploration licence may be renewed is not to exceed 75% of the size of— (a) the area over which the licence was originally granted, in the case of a first renewal of the licence, or (b) the area over which its last previous renewal was granted, in any other case. (2) However, the Minister may grant a renewal over more than 75% of the size of the area over which the licence was originally or last granted if— (a) the applicant for renewal claims that special circumstances exist that justify doing so, and (b) the Minister is satisfied that special circumstances exist that justify doing so. (3) Without limiting the considerations available to the Minister in determining whether special circumstances exist for the purposes of this section, the Minister may take into account any partial cancellation of the exploration licence on the request of the holder of the licence under section 22, and reduce the percentage of the area of land over which the renewal may not be granted. (4) The Minister may direct an applicant for renewal of an exploration licence, within the time specified in the direction, to nominate which part of the area of land is sought to be included in the renewed exploration licence, where the licence may not be renewed over the whole area of land. (5) The Minister may refuse to renew an exploration licence if such a direction is not complied with within the time specified in the direction (in addition to the other grounds for refusal in clause 5 of Schedule 1B). (6) The Minister is not bound to renew an exploration licence over the area nominated by the applicant in compliance with a direction under this section or otherwise. 20 Continuation of title pending renewal If an application for the renewal of a title has not been withdrawn or otherwise finally disposed of before the date on which the title would, but for this section, expire, the title continues in force until the date on which the application is withdrawn or otherwise finally disposed of. 20A (Repealed) 21 Amendment of application (1) The following applications and information or documents accompanying applications, may, with the consent of the Minister, be amended by the applicant at any time before the Minister decides the relevant application— (a) an application for a petroleum title, (b) an application for the renewal of a petroleum title, (c) an application for approval of the transfer of a petroleum title, (d) an application prescribed by the regulations, (e) information or a document accompanying an application referred to in paragraphs (a)–(d), including a proposed work program required to accompany an application. (2) An application under this section must be made in a way approved by the Secretary. (3) The Minister must give written notice to the applicant confirming the amendment of an application, information or document and the date on which it was amended. (4) The amendment of an application, information or document does not entitle the applicant to a refund or reduction of an application fee. 22 Grounds of cancellation of petroleum titles (1) The Minister may cancel a petroleum title as to the whole or any part of the land to which it relates— (a) if the holder of the petroleum title lodges with the Secretary a request that the Minister cancel the petroleum title as to the whole or part of the land, or (b) if the Minister is satisfied that the holder of the petroleum title has contravened a provision of this Act or the regulations (whether or not the holder is prosecuted or convicted of any offence arising from the contravention), or (c) if the Minister is satisfied that a person has contravened a condition of the petroleum title (whether or not the person is prosecuted or convicted of any offence arising from the contravention), or (d) if the Minister is satisfied that the holder of the petroleum title provided false or misleading information in or in connection with an application for or with respect to the petroleum title or any report provided under this Act, or (e) if the Minister is satisfied that the holder of the petroleum title has failed to comply with the requirements of any agreement or assessment under Part 11 in relation to the payment of compensation, or (f) if the holder of the petroleum title is convicted of any offence relating to prospecting, mining or petroleum, or (g) if the Minister is satisfied that the holder of the petroleum title has failed to use the land the subject of the petroleum title in good faith for the purposes for which the petroleum title has been granted, or has used the land for a purpose other than that for which the petroleum title has been granted, or (h) if the Minister is satisfied that there has been a contravention of a direction under section 75 or 77, or (i) if the Minister is satisfied that the land is required for a public purpose. (2) A request for the cancellation of the petroleum title as to part only of the land to which it relates must be accompanied by a description, prepared in the manner prescribed by the regulations, of the land in respect of which the petroleum title is to be cancelled. (3) Action may be taken under this section whether or not any other action has been taken in respect of the petroleum title under this Act. 22A Cancellations of petroleum titles (1) Before cancelling a petroleum title, otherwise than at the request of the holder of the title, the Minister is to cause a written notice to be served on the holder of the title that contains the following— (a) notice that the title is proposed to be cancelled, (b) details of the grounds for the proposed cancellation, (c) notice that the holder of the title has a specified period (of at least 28 days) in which to make representations with respect to the proposed cancellation. (2) The Minister must not cancel a petroleum title, otherwise than at the request of the holder of the title, unless— (a) the Minister has taken any such representations received from the holder of the title into consideration, or (b) the period specified in the notice has elapsed and no such representations have been received. (3) The Minister is to cause written notice of the cancellation of a petroleum title to be given to the holder of the petroleum title. (4) The cancellation takes effect on the date on which the written notice of the cancellation is given to the holder of the petroleum title, or on a later date specified in the notice. (5) The cancellation of a petroleum title does not affect any liability incurred by the holder of the petroleum title before the cancellation took effect. (6) No compensation is payable by the Crown for or in respect of the cancellation of a petroleum title. 22B Appeals against decisions concerning cancellations of petroleum titles (1) Any person who is aggrieved by the decision of the Minister to cancel a petroleum title held by the person may appeal to the Land and Environment Court against the decision. (2) Such an appeal is to be made— (a) within 14 days after written notice of the cancellation is served on the holder of the petroleum title, or (b) within such further period as the Land and Environment Court may allow. (3) In deciding whether or not to allow a further period for appeal, the Land and Environment Court is to have regard to— (a) the circumstances that have prevented the appellant from making the appeal within the 14 days referred to in subsection (2) (a), and (b) the consequences to the appellant, and to persons other than the appellant, of a decision allowing a further period for appeal, and (c) the consequences to the appellant, and to persons other than the appellant, of a decision refusing a further period for appeal, and (d) the public interest. (4) An appeal is to be heard by way of a new hearing, and fresh evidence, or evidence additional to the evidence available to the Minister when the decision was made, may be admitted in the hearing. (5) Subject to any order made by the Land and Environment Court, the lodging of an appeal does not operate to stay the decision appealed against. (6) The decision of the Land and Environment Court on an appeal is final and is to be given effect to as if it were the decision of the Minister. (7) This section does not apply to a cancellation that was requested by the holder of the petroleum title. 23, 24 (Repealed) 24A Fit and proper person consideration in making certain decisions about petroleum titles (1) Despite anything to the contrary in this Act, any of the following decisions under this Act may be made on the ground that, in the opinion of the Minister, a relevant person is not a fit and proper person (without limiting any other ground on which such a decision may be made)— (a) a decision to refuse to grant or renew a petroleum title (a relevant person in such a case being an applicant for the grant or renewal of the petroleum title), (b) a decision to refuse to transfer a petroleum title (a relevant person in such a case being the proposed transferee), (c) a decision to cancel a petroleum title or to suspend operations under a petroleum title (in whole or in part), a relevant person in such a case being a holder of the petroleum title, (d) a decision to restrict operations under a petroleum title by the imposition or variation of conditions of a petroleum title (a relevant person in such a case being a holder of the petroleum title). (2) For the purpose of determining whether a person is a fit and proper person, the Minister may take into consideration any or all of the following matters (but without limiting the matters that can be taken into consideration for that purpose)— (a) whether the person or (in the case of a body corporate) a director of the body corporate or of a related body corporate has compliance or criminal conduct issues (as defined in this section), (b) in the case of a body corporate, whether a director of the body corporate or of a related body corporate is or has been a director of another body corporate that has compliance or criminal conduct issues (as defined in this section) but only if the person was a director of that other body corporate at the time of the conduct that resulted in the compliance or criminal conduct issues, (c) the person's record of compliance with relevant legislation (established to the satisfaction of the Minister), (d) in the case of a body corporate, the record of compliance with relevant legislation (established to the satisfaction of the Minister) of any director of the body corporate or a related body corporate, (e) whether, in the opinion of the Minister, the management of the activities or works that are or are to be authorised, required or regulated under the petroleum title are not or will not be in the hands of a technically competent person, (f) whether, in the opinion of the Minister, the person is not of good repute, (g) in the case of a body corporate, whether, in the opinion of the Minister, a director of the body corporate or a related body corporate is not of good repute, (h) whether, in the opinion of the Minister, the person is not of good character, with particular regard to honesty and integrity, (i) in the case of a body corporate, whether, in the opinion of the Minister, a director of the body corporate or a related body corporate is not of good character, with particular regard to honesty and integrity, (j) whether the person, during the previous 3 years, was an undischarged bankrupt or applied to take the benefit of any law for the relief of bankrupt or insolvent debtors, compounded with his or her creditors or made an assignment of his or her remuneration for their benefit, (k) in the case of an individual, whether he or she is or was a director of a body corporate that is the subject of a winding up order or for which a controller or administrator has been appointed during the previous 3 years, (l) in the case of a body corporate, whether the body corporate or a related body corporate is the subject of a winding up order or has had a controller or administrator appointed during the previous 3 years, (m) whether the person has demonstrated to the Minister the financial capacity to comply with the person's obligations under the petroleum title, (n) whether the person is in partnership, in connection with activities that are subject to a petroleum title or proposed petroleum title, with a person whom the Minister considers is not a fit and proper person under this section, (o) whether the person has an arrangement (formal or informal) in connection with activities that are subject to a petroleum title or proposed petroleum title with another person whom the Minister considers is not a fit and proper person under this section, if the Minister is satisfied that the arrangement gives that other person the capacity to determine the outcome of decisions about financial and operating policies concerning those activities, (p) any other matters prescribed by the regulations. (3) A person or body corporate has compliance or criminal conduct issues if— (a) the Minister is satisfied that the person or body corporate has contravened any relevant legislation, whether or not the person or body corporate has been prosecuted for or convicted of an offence arising from the contravention, or (b) in the previous 10 years, the person or body corporate has been convicted in New South Wales or elsewhere of a serious offence or an offence involving fraud or dishonesty, or (c) the person or body corporate has held a petroleum title, or any other instrument issued or granted under relevant legislation, that has been suspended, cancelled or revoked. (4) The grant, renewal or transfer of a petroleum title can be refused on the ground that the Minister is of the opinion that the applicant is not a fit and proper person even if— (a) the petroleum title is necessary for the carrying out of State significant development that is authorised by a development consent, despite section 89K of the Environmental Planning and Assessment Act 1979 (the Planning Act), or (b) the petroleum title is necessary for the carrying out of approved State significant infrastructure under Part 5.1 of the Planning Act, despite section 115ZH of that Act, or (c) the petroleum title is necessary for the carrying out of a transitional Part 3A project under Schedule 6A to the Planning Act, despite section 75V of that Act, or (d) section 91A or 93 of the Planning Act would otherwise prevent that refusal. (5) To avoid doubt, section 22A (6) of this Act extends to the cancellation of a petroleum title under this section. (6) A relevant person who is aggrieved by a decision referred to in subsection (1) made on the ground that in the opinion of the Minister the person is not a fit and proper person may apply to the Land and Environment Court for a review of the Minister's opinion, and the following provisions apply to such a review— (a) the review is to be by way of redetermination of the question of whether the relevant person is a fit and proper person, and fresh material or material in addition to, or in substitution for, the material considered by the Minister in the determination of that question may be given on the review and taken into consideration by the Court, (b) on a review the Court is to decide whether or not the relevant person is a fit and proper person, (c) the decision of the Court on a review is final and is to be given effect to by the Minister, (d) the Minister is to take whatever action may be necessary to give effect to the Court's decision including action to revoke and remake any decision referred to in subsection (1). (7) In this section— director of a body corporate includes any person involved in the management of the affairs of the body corporate. related body corporate has the same meaning as in the Corporations Act 2001 of the Commonwealth. relevant legislation means the following legislation— (a) this Act, (b) the Mining Act 1992, (c) the environment protection legislation, (d) the Environmental Planning and Assessment Act 1979, (e) the work health and safety legislation within the meaning of the Mining Act 1992, (f) any other legislation prescribed by the regulations under this Act. serious offence means— (a) an offence committed in New South Wales that is punishable by imprisonment for life or for a term of 5 years or more or by a fine of $500,000 or more, or an offence committed elsewhere than in New South Wales that if committed in New South Wales would be an offence so punishable, or (b) an offence committed under a law of the Commonwealth that is punishable by imprisonment for life or for a term of 5 years or more or by a fine of $500,000 or more. 25 Limitation on challenges to validity of titles (1) The grant of a petroleum title cannot be challenged in any legal proceedings commenced later than 3 months after the date on which notification of the grant of the title is published in the Gazette. (2) This section has effect regardless of the provisions of any other Act, but does not apply so as to affect any appeal from proceedings commenced within the time limited by subsection (1). 26 Title taken to be personal property Every petroleum title and any interest in any such title is to be taken in law to be personal property and not to be of the nature of real estate. It may be disposed of during the lifetime of the holder and on the holder's death descends or devolves on intestacy or by will as personal property. 27 Discovery of petroleum to be notified If petroleum is discovered in land comprised in a petroleum title, the holder of the title— (a) must immediately inform the Minister of the discovery, and (b) must, within a period of 3 days after the date of the discovery, furnish to the Minister particulars in writing of the discovery. 28 Directions by Secretary on discovery of petroleum (1) If petroleum is discovered in land comprised in a petroleum title, the Secretary may, from time to time, by instrument in writing served on the holder of the title, direct the holder to furnish to the Secretary, within the period specified in the instrument, particulars in writing of any one or more of the following— (a) the chemical composition and the physical properties of the petroleum, and (b) the nature of the stratum in which the petroleum occurs, and (c) any other matters relating to the discovery that are specified by the Secretary in the instrument. (2) The Secretary may, by instrument in writing served on the holder of the title, direct the holder to do, within the period specified in the instrument, such things as the Secretary 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 deposit to which the discovery relates or, if part only of that petroleum deposit is within the land comprised in the title, in the part of the petroleum deposit that is within that land. 28A Right to explore for natural reservoirs (1) In addition to the other rights conferred by the title, every petroleum title confers on its holder the right to carry on such operations as are necessary to explore the land comprised in the title for the existence and availability of natural reservoirs. (2) The right conferred by operation of subsection (1) is subject to any order of the Minister served on the holder of the title and section 29. (3) By order under this section, the Minister may prohibit, or direct the holder of the title to desist from, carrying on operations of a kind specified in the order. (4) Contravention of an order under this section is taken to be a breach of the conditions of the title. 28B Right to beneficial use of gas yielded through prospecting (1) In addition to the other rights conferred by the title, an exploration licence or assessment lease confers on its holder— (a) the right to carry out such operations as may be described by the regulations to enable the beneficial use of gas recovered from the land comprised in the licence or lease, but only if that gas would otherwise have been flared or released into the atmosphere as part of activities under the licence or lease, and (b) the right to use that gas subject to, and in accordance with, the regulations. (2) The regulations may make provision for or with respect to royalty payable under Part 7 in respect of gas used in accordance with this section. Division 2 Exploration licences 28C Land over which exploration licence granted An exploration licence may be granted over all or part of the land over which a licence was sought. 29 Rights of holders of exploration licences The holder of an exploration licence has the exclusive right, in accordance with the conditions of the licence, to prospect for petroleum on the land comprised in the licence. 30 Area of exploration licence (1) The area comprised in an exploration licence must be— (a) not more than 140 blocks, and (b) not less than 1 block, except in cases where for special reasons the Minister considers that a smaller area is necessary or desirable. Note— Section 19B makes provision for the size of the area over which the renewal of an exploration licence may be granted. (2) (Repealed) 31 Term of exploration licence (1) The initial term of an exploration licence is to be a term (not exceeding 6 years) fixed by the Minister. (2) (Repealed) 31A Activity approval required for assessable prospecting operations (1) An exploration licence is subject to a statutory condition that the holder must not carry out an assessable prospecting operation on land over which the licence is granted unless an activity approval has been obtained for the carrying out of the assessable prospecting operation in relation to that land and is in force. (2) The holder of an exploration licence may apply in writing to the Minister for approval to carry out an assessable prospecting operation in relation to any part of the land over which the licence is granted (an activity approval). (3) The Minister may require the holder of an exploration licence to provide such information as is required by the Minister, within the time specified by the Minister, before considering the application or at any time during consideration of the application. (4) After considering the application for the activity approval, the Minister— (a) may grant the activity approval, or (b) may refuse the application. (5) Without limiting the grounds for refusal, the application may be refused if the applicant fails to provide the information required by the Minister within the time required. (6) An activity approval may be granted subject to terms. (7) For the purposes of this Act, it is a statutory condition of an exploration licence that the holder must comply with any activity approval granted to the holder and in force. (8) Clauses 6 (2)–(4), 7 (2), 9 and 11 of Schedule 1B apply to and in respect of the imposition of terms on, and variation of terms of, an activity approval in the same way as they apply to and in respect of the imposition of conditions on, and the variation of conditions of, a petroleum title. (9) The Minister may cancel an activity approval— (a) if the holder of the activity approval lodges with the Secretary a request that the Minister cancel the activity approval, or (b) if the Minister is satisfied that a person has contravened the activity approval (whether or not the person is prosecuted or convicted of any offence arising from the contravention). (10) Before cancelling an activity approval, otherwise than at the request of the holder of the activity approval, the Minister is to cause a written notice to be served on the holder of the activity approval that contains the following— (a) notice that the activity approval is proposed to be cancelled, (b) details of the grounds for the proposed cancellation, (c) notice that the holder of the activity approval has a specified period (of at least 28 days) in which to make representations with respect to the proposed cancellation. (11) The Minister must not cancel an activity approval, otherwise than at the request of the holder of the activity approval, unless— (a) the Minister has taken any such representations received from the holder of the activity approval into consideration, or (b) the period specified in the notice has elapsed and no such representations have been received. (12) The Minister is to cause written notice of the cancellation of an activity approval to be given to the holder of the activity approval. (13) The cancellation takes effect on the date on which the written notice of the cancellation is given to the holder of the activity approval, or on a later date specified in the notice. (14) Any person who is aggrieved by the decision of the Minister to cancel an activity approval held by the person may appeal to the Land and Environment Court against the decision. Section 22B applies to such an appeal as if it were an appeal against a decision to cancel a petroleum title. (15) The cancellation of an activity approval does not affect any liability incurred by the holder of the activity approval before the cancellation took effect. (16) Action may be taken under subsection (9) (b) whether or not any other action has been taken in respect of the activity approval under this Act. 32 Direction to holder of exploration licence to apply for lease (1) If petroleum is discovered in land comprised in an exploration licence the Minister may, by instrument in writing, direct the holder of the licence to apply, within such period as may be specified in the direction, for an assessment lease or a production lease in respect of so much of that land as is so specified. (2) If the holder of an exploration licence does not apply for an assessment lease or production lease in accordance with directions given under this section, the Minister may cancel the licence. Note— Section 22A (4) specifies the time at which cancellation of a petroleum title (which includes an exploration licence) takes effect. Division 3 Assessment leases 32A Land over which assessment lease granted An assessment lease may be granted over all or part of the land over which a lease was sought. 33 Rights of holders of assessment leases The holder of an assessment lease has the exclusive right to prospect for petroleum and to assess any petroleum deposit on the land comprised in the lease. Note— An assessment lease is designed to allow retention of rights over an area in which a significant petroleum deposit has been identified, if mining the deposit is not commercially viable in the short term but there is a reasonable prospect that it will be in the longer term. The holder is allowed to continue prospecting operations and to recover petroleum in the course of assessing the viability of commercial mining. 34 Area of assessment lease The area comprised in an assessment lease must be not more than 4 blocks. 35 Term of petroleum assessment lease The initial term of an assessment lease is to be a term (not exceeding 6 years) fixed by the Minister. 36 Notice to be given of application for assessment lease (1) An applicant, or a person intending to apply, for an assessment lease must either before, or within 21 days after, lodging the application, cause to be published both in a newspaper circulating in the vicinity of the area over which the lease is sought and in a newspaper circulating generally in the State a notice— (a) stating that an application for an assessment lease has been, or will be lodged (as the case requires), and (b) containing particulars sufficient to lead to the ready identification of the area of land over which the lease is sought, and consisting of a plan and a description of that area and a statement indicating the approximate direction and approximate distance of the town nearest to that area. (2) Within 21 days after receipt from an applicant, or a person intending to apply, for an assessment lease of a written request— (a) that is expressed to be made for the purposes of this section, and (b) that is accompanied by particulars of the kind referred to in subsection (1) (b) in relation to the proposed lease, the council for a local government area that includes the area over which the lease is sought may furnish the holder of the lease with the names and addresses of landholders whose lands lie wholly or partly within that area. (3) An assessment lease is not to be granted unless the Minister is satisfied that notice has been published as required by subsection (1) and that— (a) a copy of that notice, accompanied by the particulars mentioned in subsection (4), has been served on all landholders whose names and addresses have been furnished, in connection with the proposed lease, under subsection (2), or (b) 21 days have elapsed since a request under subsection (2) was made and the council concerned has not complied with the request. (4) The particulars referred to in subsection (3) (a) are the following— (a) the duration of the term of the proposed lease, and (b) contact details of the applicant or intended applicant, and (c) any other particulars prescribed by the regulations. 36A Activity approval required for assessable prospecting operations (1) An assessment lease is subject to a statutory condition that the holder must not carry out an assessable prospecting operation on land over which the lease is granted unless an activity approval has been obtained for the carrying out of the assessable prospecting operation in relation to that land and is in force. (2) The holder of an assessment lease may apply in writing to the Minister for approval to carry out an assessable prospecting operation in relation to any part of the land over which the lease is granted (an activity approval). (3) The Minister may require the holder of an assessment lease to provide such information as is required by the Minister, within the time specified by the Minister, before considering the application or at any time during consideration of the application. (4) After considering the application for the activity approval, the Minister— (a) may grant the activity approval, or (b) may refuse the application. (5) Without limiting the grounds for refusal, the application may be refused if the applicant fails to provide the information required by the Minister within the time required. (6) An activity approval may be granted subject to terms. (7) For the purposes of this Act, it is a statutory condition of an assessment lease that the holder must comply with any activity approval granted to the holder and in force. (8) Clauses 6 (2)–(4), 7 (2), 9 and 11 of Schedule 1B apply to and in respect of the imposition of terms on, and variation of terms of, an activity approval in the same way as they apply to and in respect of the imposition of conditions on, and the variation of conditions of, a petroleum title. (9) The Minister may cancel an activity approval— (a) if the holder of the activity approval lodges with the Secretary a request that the Minister cancel the activity approval, or (b) if the Minister is satisfied that a person has contravened the activity approval (whether or not the person is prosecuted or convicted of any offence arising from the contravention). (10) Before cancelling an activity approval, otherwise than at the request of the holder of the activity approval, the Minister is to cause a written notice to be served on the holder of the activity approval that contains the following— (a) notice that the activity approval is proposed to be cancelled, (b) details of the grounds for the proposed cancellation, (c) notice that the holder of the activity approval has a specified period (of at least 28 days) in which to make representations with respect to the proposed cancellation. (11) The Minister must not cancel an activity approval, otherwise than at the request of the holder of the activity approval, unless— (a) the Minister has taken any such representations received from the holder of the activity approval into consideration, or (b) the period specified in the notice has elapsed and no such representations have been received. (12) The Minister is to cause written notice of the cancellation of an activity approval to be given to the holder of the activity approval. (13) The cancellation takes effect on the date on which the written notice of the cancellation is given to the holder of the activity approval, or on a later date specified in the notice. (14) Any person who is aggrieved by the decision of the Minister to cancel an activity approval held by the person may appeal to the Land and Environment Court against the decision. Section 22B applies to such an appeal as if it were an appeal against a decision to cancel a petroleum title. (15) The cancellation of an activity approval does not affect any liability incurred by the holder of the activity approval before the cancellation took effect. (16) Action may be taken under subsection (9) (b) whether or not any other action has been taken in respect of the activity approval under this Act. 37 Direction to holder of assessment lease to apply for production lease (1) The Minister may, by instrument in writing, direct the holder of an assessment lease to apply, within such period as may be specified in the direction, for a production lease in respect of so much of the land comprised in the assessment lease as is so specified. (2) If the holder of an assessment lease does not apply for a production lease in accordance with directions given under this section, the Minister may cancel the assessment lease. Note— Section 22 (4) specifies the time at which cancellation of a petroleum title (which includes an assessment lease) takes effect. Division 4 Special prospecting authorities 38 Rights of holders of special prospecting authorities The holder of a special prospecting authority has the exclusive right to conduct speculative geological, geophysical or geochemical surveys or scientific investigations on and in respect of the land comprised in the authority. 39 Area of special prospecting authority The area comprised in a special prospecting authority is an area considered feasible by the Minister, having regard to the surveys and other operations sought to be carried out by the holder. 40 Term of special prospecting authority The initial term of a special prospecting authority is to be a term (not exceeding 12 months) fixed by the Minister. Division 5 Production leases 41 Rights of holders of production leases (1) The holder of a production lease may, in accordance with the conditions of the lease— (a) prospect in and on the land comprised in the lease for petroleum, and (b) conduct petroleum mining operations in and on the land comprised in the lease, and (c) construct and maintain on the land such works, buildings, plant, waterways, roads, pipelines, dams, reservoirs, tanks, pumping stations, tramways, railways, telephone lines, electric powerlines and other structures and equipment as are necessary for the full enjoyment of the lease or to fulfil the lessee's obligations under it. (2) While a production lease is in force, the holder of the lease and any person acting as agent or employee of the holder, or delivering goods or providing services to the holder, for the purpose of a requirement of or an activity authorised by the lease may— (a) for that purpose enter and be on the land included in the lease, and (b) do anything so authorised or required. (3) Despite subsections (1) and (2), a holder of a production lease may carry out activities on the land comprised in the lease only in accordance with an access arrangement applying to that land. 42 Grant of production lease (1) A production lease may be granted only to an applicant who has held the land concerned under an exploration licence or an assessment lease, unless the Minister, by notice published in the Gazette, has invited applications for a production lease in respect of the area concerned. (2) A person who has held the land concerned under an exploration licence or assessment lease is entitled to be granted a production lease in respect of the land if— (a) the person has complied with the terms and conditions of the licence or lease, and (b) to grant the production lease would not contravene the Environmental Planning and Assessment Act 1979 or any other Act, and (c) the person accepts the conditions of the lease. 43 Notice of application for production lease to be published An applicant, or a person intending to apply, for a production lease must either before, or within 21 days after, lodging the application, cause to be published in a newspaper circulating generally in the State a notice— (a) stating that an application for a production lease has been or will be lodged (as the case requires), and (b) containing particulars sufficient to lead to the ready identification of the area of land over which the lease is sought, and consisting of a plan and a description of that area and a statement indicating the approximate direction and approximate distance of the town nearest to that area. 44 Area of production lease (1) The area comprised in a production lease must be not more than 4 blocks. (2) The land over which a production lease is granted may differ in size or shape from, but may not include land other than, the land over which the production lease was sought. (3) Subsection (2)— (a) extends to the grant of a single production lease for 2 or more applications made by the same applicant, and (b) as extended, applies as if the land over which the production lease was sought was the land over which the 2 or more production leases were sought. 45 Term of production lease The initial term of a production lease is to be a term (not exceeding 21 years) fixed by the Minister. Division 6 Low-impact prospecting titles—special provisions 45A Object of Division The object of this Division is to provide for the grant of a class of low-impact exploration licence, or low-impact special prospecting authority, that may be approved under section 26A of the Commonwealth Native Title Act. Note— See clause 14 (3) of Part 5 of Schedule 5 to the Native Title Amendment Act 1998 of the Commonwealth for preservation of approvals previously granted by the Commonwealth. 45B Special low-impact class of prospecting title (1) There is to be— (a) a special class of exploration licence called a low-impact exploration licence, and (b) a special class of special prospecting authority called a low-impact special prospecting authority. Exploration licences and special prospecting authorities are referred to in this Division as prospecting titles. (2) A prospecting title may be granted as a low-impact prospecting title if this Division is complied with. (3) The relevant provisions of this Act relating to prospecting titles apply to low-impact prospecting titles, except as otherwise provided by this Division. 45C Authority conferred by low-impact prospecting title (1) The Minister may, by order published in the Gazette, determine the kind of prospecting operations that may be authorised by a low-impact prospecting title, being operations that the Minister is satisfied are unlikely to have a significant impact on the land over which the title may be granted. Different kinds of operations may be determined for exploration licences and for special prospecting authorities. (2) The conditions to which a low-impact prospecting title is subject are to limit the prospecting operations authorised by the title to all or some of the prospecting operations of the kind determined by the Minister under this section. (3) A change in the prospecting operations determined by the Minister under this section does not affect a low-impact prospecting title that is in force at the time the change is made. 45D Provisions relating to applications for low-impact prospecting titles (1) A low-impact prospecting title may not be granted unless notice of the application for the title has been served on all— (a) registered native title bodies corporate, and (b) registered native title claimants, and (c) representative Aboriginal/Torres Strait Islander bodies, in relation to any of the land that will be affected by the proposed prospecting operations to be authorised by the prospecting title. (2) The notice must contain a map or other description of the land over which the prospecting title is sought and a description