Queensland: Geothermal Energy Act 2010 (Qld)

Geothermal Energy Act 2010 An Act to enable and facilitate the production of geothermal energy Chapter 1 Preliminary Part 1 Introduction 1 Short title This Act may be cited as the Geothermal Energy Act 2010. 2 Commencement (1) Subject to subsections (2) and (3), this Act commences on a day to be fixed by proclamation. (2) The following provisions commence on the date of assent— (a) chapter 9, part 2; (b) chapter 10, part 1; (c) schedule 2, part 1. (3) Schedule 2, part 3 commences immediately after all of chapter 10 and all of the other provisions of schedule 2 have commenced. Part 2 Purposes and application of Act 3 Purposes of Act and their achievement (1) The main purpose of this Act is to encourage and facilitate the safe production of geothermal energy for the benefit of all Queenslanders. (2) The main purpose is achieved principally by— (a) providing for the granting of authorities (called 'geothermal tenures') to explore for or produce geothermal energy; and Note— Under section 327, there are several exemptions from the requirement to hold a geothermal tenure. They include exemptions for— • exempt heat pump production • other geothermal production that is not of a large-scale. (b) creating a regulatory system for the carrying out of activities relating to geothermal tenures. (3) Other purposes of this Act are to— (a) ensure the following for the carrying out of the activities— (i) minimisation of conflict with other land uses; (ii) constructive consultation with people affected by the activities; (iii) appropriate compensation for owners or occupiers of land adversely affected by the activities; (iv) responsible land and resource management; and (b) encourage the use of renewable energy in the State. 4 Facilitation of Act by Petroleum and Gas (Production and Safety) Act 2004 The Petroleum and Gas (Production and Safety) Act 2004 (the P&G Act) also facilitates the operation of this Act by— (a) applying chapter 9 of that Act (the P&G Act safety provisions) to particular authorised activities for a geothermal tenure; and (b) applying its provisions about investigations and some of its provisions about enforcement to authorised activities for geothermal tenures. 5 Act binds all persons (1) This Act binds all persons, including the State and, to the extent the legislative power of the Parliament permits, the Commonwealth and the other States. (2) However, the Commonwealth or a State can not be prosecuted for an offence against this Act. 6 Application of Act to coastal waters of the State (1) This Act applies to the coastal waters of the State as if the coastal waters of the State were part of the State. (2) However, this Act does not apply to the adjacent area under the Petroleum (Submerged Lands) Act 1982. 7 Relationship with Nature Conservation Act 1992 This Act is subject to the Nature Conservation Act 1992, sections 27 and 70QA. Editor's note— Nature Conservation Act 1992, sections 27 (Prohibition on mining, geothermal activities and GHG storage activities) and 70QA (Prohibition on mining, geothermal activities and GHG storage activities in forest reserves) 8 Relationship with GHG storage Act and principal mining and petroleum Acts The relationship between this Act and the following Acts and the tenures and other authorities under them is provided for under chapter 5, parts 2 to 8 and— (a) for the Greenhouse Gas Storage Act 2009 (the GHG storage Act)—chapter 4, parts 2 to 8 of that Act; (b) for the Mineral Resources Act 1989 (the Mineral Resources Act)—chapter 9 of that Act; (c) for the Petroleum Act 1923 (the 1923 Act)—section 40(1A) and part 6FA of that Act; (d) for the P&G Act—chapter 3A of that Act. 8AA Relationship with Common Provisions Act The relationship between this Act and the Common Provisions Act is provided for under the Common Provisions Act, section 6. 8A Declaration for Commonwealth Act A geothermal tenure is declared not to be personal property under the Personal Property Securities Act 2009 (Cwlth). 9 Act does not affect other rights or remedies (1) Subject to sections 202, 360 and 381 this Act does not affect or limit a civil right or remedy that exists apart from this Act, whether at common law or otherwise. Editor's note— sections 202 (Responsibility for geothermal well after decommissioning), 360 (Limitation of owner's or occupier's tortious liability for authorised activities) and 381 (Protection from liability for particular persons) (2) Without limiting subsection (1), compliance with this Act does not necessarily show that a civil obligation that exists apart from this Act has been satisfied or has not been breached. (3) In addition, a breach of an obligation under this Act does not of itself give rise to an action for breach of statutory duty or another civil right or remedy. (4) This Act does not limit a court's powers under the Penalties and Sentences Act 1992 or another law. Part 3 Interpretation Division 1 Dictionary 10 Definitions The dictionary in schedule 2 defines particular words used in this Act. Division 2 Key definitions Subdivision 1 Key concepts 11 What is geothermal energy Geothermal energy is heat energy derived from the earth's natural (subsurface) heat. 12 What are geothermal resources Geothermal resources are geological strata and associated material in which elevated levels of geothermal energy exist. Examples of associated material— groundwater, other fluids and gases that may fill fractures or voids in geological strata 13 What is geothermal exploration Geothermal exploration is— (a) exploring for and quantifying geothermal resources; and (b) carrying out investigations and other activities associated with exploring for, or quantifying, geothermal resources. Note— Some geothermal exploration and production is not regulated under this Act, but may be under other legislation. See section 327(b) and (d) to (f) and note and also sections 16, 35 and 77. 14 What is geothermal production (1) Geothermal production is the recovery of geothermal energy— (a) on or from beneath the surface of the land in which it is contained, other than production testing; or (b) from a place at which geothermal energy naturally appears at the surface of the land. Example for paragraph (b)— hot springs (2) However, for this Act, geothermal energy is only produced when it is used for any purpose. 15 What is exempt heat pump production Exempt heat pump production is geothermal production using a geothermal heat pump if— (a) the purpose of the production is to cool or heat buildings; and (b) the production is not of a large-scale. 16 References to large-scale geothermal production (1) This section applies to a reference in this Act to large-scale geothermal production. (2) In deciding whether geothermal production is or will not be of a large-scale, regard must be had to any criteria prescribed under a regulation. (3) In making a regulation under subsection (2), the following may be considered— (a) the temperature of fluid or gases extracted in the geothermal production; (b) the flow rate of fluid or gases extracted in the geothermal production; (c) the amount of geothermal energy produced. (4) In this section— geothermal production includes proposed geothermal production. 17 What is production testing Production testing is testing from a geothermal well to evaluate the feasibility of geothermal production. 18 What is a geothermal activity A geothermal activity is any activity that may be an authorised activity for any geothermal tenure, whether or not a geothermal tenure has been granted for the activity. Subdivision 2 Definitions relating to authorities under Act 19 Types of authority under Act (1) The types of authority under this Act are— (a) a geothermal exploration permit (also called a geothermal permit)— (i) granted under section 40; or (ii) continued in force under section 79 or 293; or (iii) renewed under section 294; and Note— See also section 399 (Conversion of 2004 Act permits on 2010 Act start day). (b) a geothermal production lease (also called a geothermal lease)— (i) granted under section 82; or (ii) continued in force under section 79 or 293; or (iii) renewed under section 294. (2) A geothermal tenure is a geothermal permit or a geothermal lease. 20 What are the conditions of a geothermal tenure (1) The conditions of a geothermal tenure are— (a) the conditions stated in it from time to time; and (b) the geothermal tenure holder's obligations under chapters 2 to 6; and (c) any condition of the geothermal tenure imposed under chapters 2 to 6 or prescribed under section 385; and (d) a condition that the holder must ensure each person who, under section 359, may carry out an authorised activity for the geothermal tenure complies with its conditions to the extent the conditions apply to the carrying out of the activity. (2) A condition mentioned in subsection (1)(b) or (c) is a mandatory condition of the geothermal tenure. 21 References to geothermal tenure or provisions of geothermal tenure (1) A reference in this Act to a geothermal tenure includes a reference to its provisions. (2) A reference in this Act to the provisions of a geothermal tenure is a reference to its mandatory or other conditions and anything written in it. 22 What is an authorised activity for a geothermal tenure An authorised activity, for a geothermal tenure, is an activity that its holder is, under this Act or the tenure, entitled to carry out in relation to the tenure. Notes— 1 The provisions of the geothermal tenure may restrict the carrying out of authorised activities. See sections 40, 82, 295, 296, 297 and 320(2). 2 The carrying out of authorised activities is subject to the restrictions under chapters 2 to 6 and section 357 and holder's rights and obligations under those chapters. 3 The carrying out of particular activities on particular land in the geothermal tenure's area may not be authorised following the taking of the land under a resumption law. See section 350B. Subdivision 3 Other key definitions 23 Who is an eligible person An eligible person is— (a) an adult; or (b) a company or registered body under the Corporations Act; or (c) a government owned corporation. 24 What is a work program for a geothermal permit (1) The work program, for a geothermal permit, is its current initial or later work program approved under chapter 2, part 3 as amended from time to time under that part. (2) For subsection (1), the work program is current if the period to which the program applies has started and not ended. 25 What is a development plan for a geothermal lease (1) The development plan, for a geothermal lease, is its current initial or later development plan approved under chapter 3, part 3 as amended from time to time under that part. (2) For subsection (1), the development plan is current if the period to which the plan applies has started and has not ended. 26 [Repealed] 27 What is a resource Act A resource Act is any of the following— • this Act • the GHG storage Act • the Mineral Resources Act • the 1923 Act • the P&G Act. Part 4 State ownership of geothermal energy 28 State ownership of geothermal energy (1) All geothermal energy on or below the surface of any land in the State is, and is taken always to have been, the property of the State. (2) To remove any doubt, it is declared that— (a) a person does not acquire any property in geothermal energy merely because the person discovers it or discovers geothermal resources from which geothermal energy may be extracted; and (b) subsection (1) applies whether or not the land is freehold or other land. (3) This section applies despite any other Act, grant, title or other document. 29 Reservation in land grants (1) This section applies to each grant under another Act of a right relating to land. (2) This section applies whether the grant was made before or after the commencement of this section. (3) The grant is taken to contain a reservation to the State of— (a) all geothermal energy on or below the surface of the land; and (b) the exclusive right to do the following in relation to the land— (i) to enter and carry out any geothermal activity; (ii) to authorise, under this Act, persons to carry out any geothermal activity; (iii) to regulate, under this Act, geothermal activities carried out by others. Note— See, however, section 375 (Provision for entry by State to carry out geothermal activity). (4) In this section— grant, of a right, includes an authority, lease, licence, permit or other instrument of tenure, however called. Chapter 2 Geothermal exploration permits Notes— 1 For the general requirement to have a geothermal tenure and the exceptions to the requirement, see section 327. 2 In particular, section 327 does not require the holding of a geothermal permit for geothermal exploration that is only for exempt heat pump production. 3 Chapter 5 (Coordination with particular authorities under other resource Acts) imposes requirements for and restrictions on the granting of, and restrictions on authorised activities that may be carried out under, particular geothermal tenures. See section 134. Part 1 Key authorised activities 30 Operation of pt 1 This part provides for the key authorised activities for a geothermal permit. Notes— 1 For other authorised activities, see the Common Provisions Act, chapter 3, part 2, division 4 (Access to private land outside authorised area) and chapter 8, part 1, division 2 (General provisions about authorised activities). 2 For general restrictions on authorised activities, their relationship with owners' and occupiers' rights and who may carry out authorised activities for a geothermal tenure holder, see chapter 4 and chapter 8, part 1, division 2. 3 The carrying out of particular activities on particular land in the geothermal permit's area may not be authorised following the taking of the land under a resumption law. See section 350B. 31 Principal authorised activities The geothermal permit holder may carry out the following activities in the permit's area— (a) geothermal exploration; (b) evaluating the feasibility of geothermal production, including, for example, by production testing; (c) plugging and abandoning, or otherwise remediating, a bore or well the holder reasonably believes is a legacy borehole, and rehabilitating the surrounding area in compliance with the requirements prescribed under a regulation. 32 Incidental activities (1) The geothermal permit holder may carry out any other activity (an incidental activity) in the permit's area if carrying out the activity is reasonably necessary for or is incidental to geothermal exploration. Examples of incidental activities— • constructing or operating facilities, plant or works, including, for example, communication systems, compressors, pipelines, pumping stations, reservoirs, roads, evaporation or storage ponds and tanks • constructing or using temporary structures or structures of a technical nature (2) However, constructing or using a structure, other than a temporary structure, for office or residential accommodation is not an incidental activity. Part 2 Obtaining geothermal permit Division 1 Restricted areas 33 Minister's power to decide restricted areas for geothermal tenures (1) The Minister may declare that land in an area (a restricted area) is land for which a geothermal tenure application can not be made. (2) However, a declaration can not be made under subsection (1) for excluded land or land in an existing geothermal tenure's area. (3) The declaration must be made by gazette notice or by publishing a notice about the declaration. 34 Amendment or cancellation of restricted area (1) The power under section 33 to declare a restricted area includes the power to amend or cancel a restricted area. (2) If land ceases to be in a restricted area, the relevant declaration may state a period within which geothermal permit applications for the land will not be considered, to allow them to be considered competitively after the period ends. (3) Land mentioned in subsection (2) is a released area. (4) The period stated under subsection (2) for a released area is the application period for the area. Division 2 Applying for geothermal permit 35 Who may apply (1) Any eligible person may apply for a geothermal permit for land other than— (a) land in a restricted area; or (b) excluded land; or (c) land in an existing geothermal tenure's area; or (d) land that has been in a geothermal tenure's area and less than 2 months has passed since the end of the month in which the land ceased to be in— (i) the geothermal tenure; or (ii) if the geothermal tenure has ended—the former geothermal tenure's area; or (e) land that has been the subject of an earlier geothermal tenure application that has been refused or withdrawn and less than 2 months has passed since the end of the month in which the earlier geothermal tenure application was refused or withdrawn. (2) Also, a geothermal permit application (the relevant application) may be made for land the subject of an existing application only if— (a) the land is in a released area and the relevant application is made during the application period for the area; or (b) the existing application was made on the same day as the relevant application. (3) Despite subsection (1), a geothermal permit application can not be made for geothermal exploration— (a) for exempt heat pump production; or (b) to evaluate the feasibility of exempt heat pump production. (4) In this section— existing application means another geothermal permit application made but not decided. 36 Requirements for making application The application must— (a) be made to the Minister in the approved form; and (b) include a proposed work program complying with the initial work program requirements; and (c) include a statement about the extent to which the applicant has— (i) the financial and technical resources to carry out authorised activities for the proposed geothermal permit; and (ii) the ability to manage geothermal exploration; and (d) state the name and address for service of 1 person on whom any notice to the applicant may be served; and (e) be accompanied by the fee prescribed under a regulation. Note— For other relevant provisions about applications, see chapter 8, part 2. 36A Rejection of application if applicant disqualified (1) The Minister must reject an application for a geothermal permit if the Minister decides the applicant is disqualified under the Common Provisions Act, chapter 7 from being granted the geothermal permit. (2) On rejection of the application, the Minister must give the applicant a notice about the decision. Division 3 Deciding application 37 Restriction on deciding during application period for released area If the application is for land in a released area and is made within the application period for the area, the application can not be decided before the end of that period. Note— See also section 43 (Priority for deciding competing applications). 38 Effect of identification of restricted area on application (1) If, before the deciding of the application, any land the subject of the application is declared to be in a restricted area, the application lapses to the extent it applies to the restricted area. (2) No amount, whether by way of compensation, reimbursement or otherwise, is payable by the State to any person for or in connection with the operation of subsection (1). 39 Deciding whether to grant geothermal permit (1) The Minister must decide whether or not to grant the applicant a geothermal permit. (2) However— (a) before deciding to grant the geothermal permit, the Minister must decide whether to approve the applicant's proposed initial work program for the permit; and (b) the Minister can not grant the geothermal permit unless the following apply— (i) the applicant continues to be an eligible person; (ii) the proposed work program has been approved; (iii) the relevant environmental authority has been issued; (iv) any relevant Water Act authorisation has been issued. Note— If the application relates to acquired land, see also section 350C. (3) The Minister can not grant a geothermal permit unless the applicant— (a) has paid the annual rent for the first year of the geothermal permit; and (b) if the Minister requires the applicant to give security under section 204—has given the security. 40 Provisions and granting of geothermal permit (1) If the Minister decides to grant the applicant a geothermal permit, the Minister must decide its provisions and grant the applicant the permit. (2) The permit must state its term and area. (3) The term must end no later than 5 years after the permit takes effect. (4) The area must comply with chapter 6, part 1. (5) The permit may also state— (a) conditions or other provisions of the permit, other than conditions or provisions that are— (i) inconsistent with the mandatory conditions for geothermal permits; or (ii) the same as, or substantially the same as, or inconsistent with, any relevant environmental condition for the permit; and (b) the day the permit takes effect. (6) However, the provisions of the permit may exclude or restrict the carrying out of an authorised activity for the permit. (7) The day the permit takes effect can not be before the day it is granted. (8) If no day of effect is stated, the permit takes effect on the day after it is granted. 41 Criteria for decisions In deciding whether or not to grant the applicant a geothermal permit, or in deciding its provisions, the Minister must consider— (a) the applicant's proposed initial work program; and (b) the extent to which the Minister is of the opinion that the applicant is capable (the capability criteria) of carrying out authorised activities for the geothermal permit, having regard to the applicant's— (i) financial and technical resources; and (ii) ability to manage geothermal exploration. 42 Notice of decision The Minister must, as soon as practicable after deciding whether or not to grant the applicant a geothermal permit, give the applicant notice of the decision. Division 4 Priority for deciding competing geothermal permit applications 43 Priority for deciding competing applications (1) This section applies if 2 or more geothermal permit applications are— (a) for land in a released area and made before the end of the application period for the area; or (b) for the same land and made on the same day. Note— Competing applications for land other than land in a released area can not be made on different days. See section 35. (2) The applications take the priority the Minister decides, after considering the relative merits of each application. Part 3 Work programs Division 1 Function and purpose 44 Function and purpose (1) The work program for a geothermal permit gives detailed information about the nature and extent of activities to be carried out under the permit. (2) The purposes of giving the information are to— (a) allow resource management decisions to be made; and (b) ensure appropriate development of the geothermal permit's area. Division 2 Requirements for proposed initial work programs 45 Operation of div 2 This division provides for requirements (the initial work program requirements) for a proposed work program for a proposed geothermal permit. 46 Program period (1) The proposed work program must state its period. (2) The period can not be longer than 5 years from when the proposed geothermal permit is to take effect. 47 General requirements (1) The proposed work program must provide for the following— (a) its period; (b) an overview of the activities proposed to be carried out under the proposed geothermal permit during all of its term (the proposed activities); (c) for each year of the program period— (i) the extent and nature of geothermal exploration proposed to be carried out during the year; and (ii) generally where the proposed activities will be carried out; and (iii) the estimated cost of the proposed activities; (d) maps showing where the proposed activities will be carried out; (e) reasons why the program is considered appropriate; (f) any other matter prescribed under a regulation. (2) The proposed program may include any other information relevant to the work program criteria. (3) A regulation may impose requirements about the form of the work program. (4) The proposed program can not be inconsistent with the mandatory conditions for geothermal permits. (5) In this section— program period start day means the day the program period starts. year, of the program period, means— (a) the period starting on the program period start day and ending on the first anniversary of that day; and (b) each subsequent period of 12 months or less during the program period, starting on an anniversary of the program period start day and ending on— (i) the next anniversary of that day; or (ii) if the program period ends before the next anniversary—the day the program period ends. 48 Water issues (1) The proposed work program must include an assessment of— (a) water needed for the proposed activities; and (b) the potential for obtaining any relevant Water Act authorisation; and (c) the potential structural and other impacts of the carrying out of the proposed activities on aquifers. (2) The proposed program must include a plan for the treatment and disposal of any water taken or that may be taken because of the proposed activities. (3) This section is subject to section 52(2). Division 3 Approval of proposed initial work programs Note— For the requirement for an initial work program, see section 39. 49 Criteria (1) In deciding whether to approve a proposed initial work program, the Minister must consider the following— (a) the potential of the proposed area of the geothermal permit for geothermal exploration; (b) the extent and nature of the proposed geothermal exploration and when and where it will be carried out; (c) any relevant environmental authority; (d) any relevant Water Act authorisation; (e) any potential structural and other impacts of the carrying out of the proposed activities on aquifers. (2) The matters mentioned in subsection (1) are the work program criteria. 50 Verification may be required (1) The Minister may by notice require the applicant to give the Minister, within a stated reasonable period, a document made by an appropriately qualified independent person verifying all or any of the following— (a) an assessment of data supplied in the proposed work program; (b) the source of the data; (c) the work done for the proposed work program; (d) that, in the person's opinion, the applicant has— (i) the financial and technical resources to carry out authorised activities for the proposed geothermal permit; and (ii) the ability to manage geothermal exploration. (2) If the applicant does not comply with the requirement, the Minister may refuse to approve the proposed program. (3) The applicant must bear any costs incurred in complying with the requirement. Note— For other relevant provisions about giving a document to the Minister, see section 363. Division 4 Requirements for proposed later work programs 51 Operation of div 4 This division provides for requirements (the later work program requirements) for a proposed later work program for a geothermal permit. Note— For the requirements to give a proposed later work program, see sections 118, 187(7) and 320. 52 General requirements (1) The proposed work program must— (a) other than for the program period, comply with the initial work program requirements; and (b) state the extent to which the current work program for the geothermal permit has been complied with; and (c) if there have been any amendments to the geothermal permit or its current work program, state— (i) whether the changes have been incorporated in the proposed program; and (ii) any effect the changes have on the proposed program; and (d) state the effect of the discovery of geothermal resources on the proposed program. (2) The proposed program can not be inconsistent with any relevant environmental condition for the geothermal permit. 53 Program period The program period for the work program can not be longer than the proposed term of the geothermal permit. 54 Implementation of evaluation program for potential geothermal commercial area If, under section 67, an evaluation program is taken to be an additional part of the existing work program for the geothermal permit, the proposed work program must include work necessary to implement the evaluation program for the period of that program. Division 5 Approval of proposed later work programs 55 Application of div 5 This division applies if, under this Act, the Minister is given a proposed later work program for a geothermal permit for approval. 56 Geothermal permit taken to have work program until decision on whether to approve proposed program (1) This section applies until— (a) if the approval is given—the geothermal permit holder is given notice of the approval; or (b) if the approval is refused—the refusal takes effect. (2) Despite the ending of the program period for the current work program for the geothermal permit— (a) the geothermal permit is taken to have a work program; and (b) the holder may carry out any authorised activity for the geothermal permit. 57 Deciding whether to approve proposed program (1) The Minister may approve or refuse to approve the proposed later work program. (2) In deciding whether to give the approval, the Minister must consider the following— (a) the capability criteria; (b) the work program criteria; (c) the extent to which the current work program for the geothermal permit has been complied with; (d) any amendments made to the geothermal permit or any of the following for the permit, and the reasons for the amendments— (i) the current work program; (ii) the relevant environmental authority; (iii) any relevant Water Act authorisation; (e) any geothermal viability report or independent viability assessment for the geothermal permit. (3) Section 50 applies for the proposed program as if it were an initial work program and an application for approval of the initial work program had been made. 58 Steps after, and taking effect of, decision (1) If the Minister decides to approve the proposed program, the Minister must give the geothermal permit holder notice of the decision. (2) The approval takes effect when the holder is given the notice or, if the notice states a later day of effect, on the later day. (3) If the Minister decides to refuse to approve the later work program, the Minister must give the holder an information notice about the decision. (4) The refusal does not take effect until the end of the appeal period for the decision to refuse. (5) Subsection (4) applies subject to section 338 and any decision of the Land Court under section 340 relating to the decision to refuse. Division 6 Amending work programs 59 Restrictions on amending work program (1) A geothermal permit holder may amend the work program for the permit. (2) However, the amendment is subject to approval under this division. (3) Also, a work program can not be amended if the program as amended would be inconsistent with— (a) the mandatory conditions for geothermal permits; or (b) any relevant environmental condition for the permit. 60 Applying for approval to amend (1) A geothermal permit holder may apply to the Minister for approval of an amendment of the work program for the permit. (2) The application must be in the approved form and accompanied by the fee prescribed under a regulation. 61 Verification Section 50 applies for the application as if— (a) the application were an application for a geothermal permit; and (b) a reference in the section to a proposed work program were a reference to the amendment. 62 Deciding application (1) The Minister must consider and decide whether or not to approve the amendment. (2) In making the decision the Minister must consider the following— (a) the capability criteria; (b) the work program criteria; (c) the extent to which the current work program for the geothermal permit has been complied with; (d) any amendments made to the geothermal permit or any of the following for the permit, and the reasons for the amendments— (i) the current work program; (ii) the relevant environmental authority; (iii) any relevant Water Act authorisation. 63 Steps after, and taking effect of, decision (1) If the Minister decides to approve the amendment, the Minister must give the geothermal permit holder notice of the decision. (2) The approval takes effect when the holder is given the notice or, if the notice states a later day of effect, on the later day. (3) If the Minister decides to refuse to approve the amendment, the Minister must give the holder an information notice about the decision. (4) The refusal takes effect when the holder is given the notice or, if the notice states a later day of effect, on the later day. (5) Subsection (4) applies subject to section 338 and any decision of the Land Court under section 340 relating to the decision to refuse. Part 4 Potential geothermal commercial areas 64 Purpose of potential geothermal commercial area (1) The purpose of the declaration of an area as a potential geothermal commercial area for a geothermal permit is to encourage longer-term development of the area for geothermal production. (2) The purpose is achieved by making special provisions about work programs and relinquishment for potential geothermal commercial areas. Note— For the provisions, see sections 67 and 115. 65 Applying for potential geothermal commercial area (1) A geothermal permit holder may apply for a declaration by the Minister that all or a stated part of the permit's area is a potential geothermal commercial area for the permit. (2) The application must be— (a) made to the Minister in the approved form; and (b) accompanied by the fee prescribed under a regulation. (3) The application may be made— (a) for more than 1 part of the geothermal permit's area; and (b) even if another part of the geothermal permit's area is already a potential geothermal commercial area. (4) The application must include— (a) a report for or that includes the proposed potential geothermal commercial area that— (i) complies with the requirements prescribed under a regulation for geothermal viability reports; and (ii) is still relevant to the circumstances of the proposed potential geothermal commercial area; and (b) an evaluation program for— (i) potential geothermal production in the proposed potential geothermal commercial area; and (ii) market opportunities for potential geothermal production. (5) However, subsection (4)(a) does not apply if— (a) a geothermal viability report or an independent viability assessment relates to or includes the proposed potential geothermal commercial area; and (b) the report or assessment is still relevant to the circumstances of the proposed potential geothermal commercial area. (6) The evaluation program may provide for a suspension of all or part of the work program for the area the subject of the application. 66 Deciding potential geothermal commercial area application (1) The Minister may declare an area the subject of the application to be a potential geothermal commercial area only if satisfied— (a) the area is no more than is needed to cover the maximum extent of geothermal resources identified in the report; and (b) geothermal production in the area is not, and will not soon be, commercially viable, but is likely to become viable within 5 years. (2) The area declared must form a single contiguous parcel of land. (3) In deciding the application, regard must be had to— (a) whether the relevant geothermal permit's conditions have been substantially complied with; and (b) any other matter prescribed under a regulation. (4) To remove any doubt, it is declared that the declaration may be made even if the geothermal permit is being continued in force under section 79 or 293. (5) If the Minister decides to refuse the application, the Minister must give the applicant an information notice about the decision. 67 Inclusion of evaluation program in work program (1) If the declaration is made, the evaluation program that accompanied the application is taken to be an additional part of the existing work program for the geothermal permit. (2) If there is an inconsistency between the evaluation program and the rest of the work program, the evaluation program prevails to the extent of the inconsistency. 68 Term of declaration (1) A declaration of a potential geothermal commercial area continues in force for the period stated in the declaration. (2) The period can not be more than 5 years. (3) In deciding a shorter period, the Minister must consider— (a) when any discovery of geothermal resources was made; and (b) any geothermal viability report or independent viability assessment for or that includes the proposed potential geothermal commercial area. (4) Despite subsection (1), the declaration ceases if the geothermal permit holder gives the chief executive a notice stating that the holder no longer wishes the area to be a potential geothermal commercial area. Note— For other relevant provisions about giving a document to the chief executive, see section 363. 69 Potential geothermal commercial area still part of geothermal permit A declaration of a potential geothermal commercial area does not change the land the subject of the declaration from being— (a) part of the area of the geothermal permit the subject of the application for the declaration; and (b) subject to the geothermal permit. 70 Effect of ending of declaration of potential geothermal commercial area (1) This section applies if— (a) all or part of the area of a geothermal permit is a potential geothermal commercial area; and (b) the declaration of the potential geothermal commercial area ends more than 5 years after the geothermal permit originally took effect. (2) If the declaration applied to a part of the geothermal permit's area, the part ceases to be included in the area. (3) If the declaration applies to all of the geothermal permit's area, the permit ends. Part 5 Provisions to facilitate transition to geothermal lease 71 Application of pt 5 This part applies if the Minister reasonably considers a geothermal permit holder should apply for a geothermal lease for all or part of the permit's area because the Minister considers geothermal production in the area— (a) is currently of a large-scale; or (b) is likely to become of a large-scale within 2 years. 72 Ministerial direction to apply for geothermal lease (1) The Minister may give the geothermal permit holder a notice stating the following— (a) that the Minister proposes to do either of the following, (the proposed action) unless the holder has made an appropriate lease application— (i) excise a stated area from the area of the geothermal permit; (ii) cancel the geothermal permit; (b) the grounds for the proposed action; (c) the facts and circumstances forming the basis for the grounds; (d) that the holder may, within a stated period, make submissions to the Minister about why the holder should not make a geothermal lease application under chapter 3, part 2 for the stated area. Note— For other relevant provisions about making a submission, see section 363. (2) The stated period must be reasonable but must not be more than 6 months. (3) In this section— appropriate lease application means a geothermal lease application for— (a) the stated area or an area that is substantially the same as the stated area; or (b) another area the Minister reasonably considers will effectively allow the holder to carry out authorised activities for a geothermal lease in relation to the stated area. 73 Taking proposed action (1) Proposed action under section 72 may be taken only if— (a) the stated period under that section has ended; and (b) either— (i) the holder has not made an appropriate lease application under that section; or (ii) any appropriate lease application under that section made by the holder has been refused; and (c) the Minister has considered any submissions made by the holder within the period. (2) If the Minister decides to take the proposed action, the Minister must give the holder an information notice about the decision. (3) A decision to take the proposed action does not take effect until the end of the appeal period for the decision. Chapter 3 Geothermal production leases Notes— 1 Under this chapter, a geothermal lease can only be obtained for large-scale geothermal production. See section 77. 2 For the general requirement to have a geothermal tenure and the exceptions to the requirement, see section 327. In particular, section 327 only requires the holding of a geothermal lease for large-scale geothermal production. 3 Chapter 5 (Coordination with particular authorities under other resource Acts) imposes requirements for and restrictions on the granting of, and restrictions on authorised activities that may be carried out under, particular geothermal tenures. See section 134. Part 1 Key authorised activities 74 Operation of pt 1 This part provides for the key authorised activities for a geothermal lease. Notes— 1 For other authorised activities, see the Common Provisions Act, chapter 3, part 2, division 4 (Access to private land outside authorised area) and chapter 8, part 1, division 2 (General provisions about authorised activities). 2 For general restrictions on authorised activities, their relationship with owners' and occupiers' rights and who may carry out authorised activities for a geothermal tenure holder, see chapter 4 and chapter 8, part 1, division 2. 3 The carrying out of particular activities on particular land in the geothermal lease's area may not be authorised following the taking of the land under a resumption law. See section 350B. 75 Principal authorised activities The geothermal lease holder may carry out the following activities in the lease's area— (a) geothermal exploration; (b) evaluating the feasibility of geothermal production, including, for example, by production testing; (c) geothermal production; (d) plugging and abandoning, or otherwise remediating, a bore or well the holder reasonably believes is a legacy borehole, and rehabilitating the surrounding area in compliance with the requirements prescribed under a regulation. 76 Incidental activities (1) The geothermal lease holder may carry out any other activity (an incidental activity) in the lease's area if carrying out the activity is reasonably necessary for or is incidental to geothermal production. Examples of incidental activities— • constructing or operating facilities, plant or works, including, for example, communication systems, compressors, pipelines, pumping stations, reservoirs, roads, evaporation or storage ponds and tanks • constructing or using temporary structures or structures of a technical nature (2) However, constructing or using a structure, other than a temporary structure, for office or residential accommodation is not an incidental activity. (3) To remove any doubt, it is declared that the use of infrastructure supporting the use of, or using, geothermal energy is not, of itself, an incidental activity. Example of infrastructure that uses geothermal energy— a power station Part 2 Transition from geothermal permit to geothermal lease Division 1 Applying for geothermal lease 77 Who may apply (1) A geothermal permit holder who continues to be an eligible person may apply for a geothermal lease over all or part of the permit's area. Notes— 1 For restrictions on what land may be included in a geothermal tenure, see sections 33, 35 and 184. 2 For inclusion of acquired land that was previously in the relevant geothermal permit's area, see section 350C(3). (2) However, the holder can only apply for a geothermal lease for the land for large-scale geothermal production. (3) Also, a person other than the holder may apply for the geothermal lease— (a) jointly with the holder; or (b) with the holder's consent. (4) To remove any doubt, it is declared that a geothermal lease can only be applied for or granted under this part. 78 Requirements for making application The application must— (a) be made to the Minister in the approved form; and (b) address the capability criteria; and (c) include a proposed development plan complying with the initial development plan requirements; and (d) include a statement about the extent to which the applicant has— (i) the financial and technical resources to carry out authorised activities for the proposed geothermal lease; and (ii) the ability to manage geothermal production; and (e) state the name and address for service of 1 person on whom any notice to the applicant may be served; and (f) be accompanied by the fee prescribed under a regulation. 78A Rejection of application if applicant disqualified (1) The Minister must reject an application for a geothermal lease if the Minister decides the applicant is disqualified under the Common Provisions Act, chapter 7 from being granted the geothermal lease. (2) On rejection of the application, the Minister must give the applicant a notice about the decision. 79 Continuing effect of geothermal permit for application (1) This section applies if, other than for subsection (2), the relevant geothermal permit would, other than by cancellation under this Act, end before the application is decided. (2) The geothermal permit continues in force for the area the subject of the application until the earliest of the following— (a) the term of the geothermal lease starts; (b) a refusal of the application takes effect; (c) the application is withdrawn. (3) Despite any ending of the program period for the current work program for the geothermal permit— (a) the geothermal permit is taken to have a work program; and (b) the holder may carry out any authorised activity for the geothermal permit. Division 2 Deciding application 80 Deciding whether to grant geothermal lease Subject to section 83, the Minister may grant the applicant a geothermal lease only if satisfied the requirements mentioned in section 81 have been complied with. Note— If the application relates to acquired land that was previously in the relevant geothermal permit's area, see also section 350C. 81 Requirements for grant For section 80, the requirements are the following— (a) the applicant continues to be an eligible person; (b) the proposed area of the proposed geothermal lease— (i) is appropriate for the authorised activities proposed to be carried out; and (ii) contains adequately identified geothermal resources that are adequate for the geothermal lease's proposed purpose; (c) the relevant geothermal permit's conditions have been substantially complied with; (d) the Minister has approved the applicant's proposed initial development plan for the geothermal lease; (e) the relevant environmental authority has been issued; (f) any relevant Water Act authorisation has been issued; (g) the applicant has established that geothermal production in the geothermal lease's area will or is likely to happen within 2 years after the lease is to take effect; (h) the applicant has paid the annual rent for the first year of the proposed geothermal lease; (i) the applicant has, under section 204, given security for the geothermal lease; (j) the Minister is of the opinion that the applicant is capable (the capability criteria) of carrying out authorised activities for the geothermal lease having regard to the applicant's— (i) financial and technical resources; and (ii) ability to manage geothermal production. 82 Provisions and granting of geothermal lease (1) If the Minister decides to grant the applicant a geothermal lease, the Minister must decide its provisions and grant the applicant the lease. (2) The lease must state its term and area. (3) The term must end no later than 30 years after the lease takes effect. (4) The area must comply with chapter 6, part 1. (5) The geothermal lease may also state— (a) conditions or other provisions of the lease, other than conditions or provisions that are— (i) inconsistent with the mandatory conditions for geothermal leases; or (ii) the same as, or substantially the same as, or inconsistent with, any relevant environmental condition for the lease; and (b) a day for the lease to take effect; and (c) a day by which geothermal production under the lease is to start (the production commencement day). (6) However, the provisions of the lease may exclude or restrict the carrying out of an authorised activity for the lease. (7) The day the lease takes effect can not be before the day it is granted. (8) If no day of effect is stated, the lease takes effect on the day after it is granted. (9) In deciding the provisions of the lease, the Minister must consider the development plan criteria and capability criteria. (10) This section applies subject to section 83. 83 Provisions about grant and conditions of geothermal lease for coordinated project (1) This section applies if a proposed geothermal lease is for a coordinated project. (2) The Minister must not grant the geothermal lease until the Minister has been given the Coordinator-General's report for the project. (3) Any Coordinator-General's conditions for the geothermal lease must be stated in the lease. (4) Any other condition of the geothermal lease stated under section 82 can not be inconsistent with the Coordinator-General's conditions. (5) If a mandatory condition for geothermal leases conflicts with any of the Coordinator-General's conditions, the mandatory condition prevails to the extent of the inconsistency. (6) In this section— Coordinator-General's conditions, for the proposed geothermal lease, means the conditions for the lease stated in the Coordinator-General's report for the coordinated project. Coordinator-General's report, for a coordinated project, means— (a) if an EIS was prepared for the project—the Coordinator-General's report for the EIS prepared under the State Development Act, section 34D; or (b) if an IAR was prepared for the project—the Coordinator-General's report for the IAR prepared under the State Development Act, section 34L. EIS means an EIS under the State Development Act. IAR means an IAR under the State Development Act. 84 Information notice about refusal If the Minister decides to refuse to grant the applicant a geothermal lease, the Minister must give the applicant an information notice about the decision. 85 When refusal takes effect (1) A decision to refuse to grant the applicant a geothermal lease takes effect at the end of the appeal period for the decision. (2) Subsection (1) applies subject to section 338 and any decision of the Land Court under section 340 relating to the decision to refuse. Part 3 Development plans Division 1 Function and purpose 86 Function and purpose (1) The development plan for a geothermal lease (the relevant lease) gives detailed information about the nature and extent of activities to be carried out under the relevant lease. (2) The development plan may— (a) also be about another geothermal lease or proposed geothermal lease if the other geothermal lease or proposed geothermal lease relates to the relevant lease; and (b) provide that when the plan is approved it will replace any development plan for the other lease. (3) The purposes of giving the information are to— (a) allow resource management decisions to be made; and (b) ensure appropriate development of the geothermal lease's area. Division 2 Requirements for proposed initial development plans 87 Operation of div 2 This division provides for requirements (the initial development plan requirements) for a proposed initial development plan for a proposed geothermal lease. 88 Plan period The plan period for the proposed development plan must be for the following period from when the proposed geothermal lease is to take effect— (a) generally—5 years; (b) if the applicant is seeking a term of less than 5 years for the proposed geothermal lease—the duration of the proposed term. 89 General requirements (1) The proposed development plan must provide for the following— (a) an overview of the activities proposed to be carried out under the proposed geothermal lease during all of its term (the proposed activities); (b) a description of the proposed activities for each year of the plan period; (c) reasons why the plan is considered appropriate; (d) the following— (i) after geothermal energy has been produced, the purpose for which it will be used and by whom; (ii) the characteristics of geothermal resources in the geothermal lease's area; (iii) the extent to which further drilling and artificial fracturing is proposed; (iv) the scale and scope of geothermal production, including information about the following— • the number of geothermal wells • the time of commissioning of the geothermal wells; • the expected life of geothermal resources • whether geothermal production is to be staged; (v) the part of the area required for full and staged production proposals; (vi) how many more geothermal wells need to be drilled; (vii) when the area is expected to be free of drilling rigs; (viii) the proposed level of investment, and whether the proposed holder has finance or how the proposed holder proposes to obtain finance; (ix) the skills, experience and qualifications of staff who comply with the proposed holder's requirements for carrying out the proposed activities; (x) a risk management plan for the proposed activities that deals with safety and seismicity issues; (xi) a plan for decommissioning exploration wells and any plant or facilities used for the proposed activities, including the expected costs of the decommissioning; (e) any other matter prescribed under a regulation. (2) The proposed plan may include any other information relevant to the development plan criteria. (3) A regulation may impose requirements about the form of the development plan. (4) The proposed plan can not be inconsistent with the mandatory conditions for geothermal leases. (5) In this section— plan period start day means the day the plan period starts. year, of the plan period, means— (a) the period starting on the plan period start day and ending on the first anniversary of that day; and (b) each subsequent period of 12 months or less during the plan period, starting on an anniversary of the plan period start day and ending on— (i) the next anniversary of that day; or (ii) if the plan period ends before the next anniversary—the day the plan period ends. 90 Water issues (1) The proposed development plan must include an assessment of— (a) water needed for the proposed activities; and (b) the potential for obtaining any relevant Water Act authorisation; and (c) the potential structural and other impacts of the carrying out of the proposed activities on aquifers. (2) The proposed plan must include a plan for the treatment and disposal of any water taken or that may be taken because of the carrying out of the proposed activities. (3) This section is subject to section 94(2). Division 3 Approval of proposed initial development plans Note— For the requirement for approval of an initial development plan, see section 81 (Requirements for grant). 91 Criteria (1) In deciding whether to approve a proposed development plan the Minister must consider the following— (a) the potential of the area of the proposed geothermal lease for geothermal production and related activities; (b) the nature and extent of the proposed activities and when and where they will be carried out; (c) whether geothermal production under the geothermal lease will be optimised in the best interests of the State; (d) the nature and extent of water disposal and treatment activities; (e) any relevant environmental authority; (f) any relevant Water Act authorisation; (g) any potential structural and other impacts of the carrying out of the proposed activities on aquifers. (2) The matters mentioned in subsection (1) are the development plan criteria. 92 Verification may be required (1) The Minister may by notice require the applicant to give the Minister, within a stated reasonable period, a document made by an appropriately qualified independent person verifying all or any of the following— (a) an assessment of data supplied in the proposed development plan; (b) the source of the data; (c) the work done for the proposed development plan; (d) that, in the person's opinion, the applicant has— (i) the financial and technical resources to carry out authorised activities for the proposed geothermal lease; and (ii) the ability to manage geothermal production. (2) If the applicant does not comply with the requirement, the Minister may refuse to approve the proposed plan. (3) The applicant must bear any costs incurred in complying with the requirement. Division 4 Requirements for proposed later development plans 93 Operation of div 4 This division provides for requirements (the later development plan requirements) for a proposed later development plan for a geothermal lease. Note— For the requirements to give a proposed later development plan, see sections 125, 187(7) and 320. 94 General requirements (1) The proposed development plan must— (a) comply with the initial development plan requirements as if a reference in the requirements to a proposed holder were a reference to the geothermal lease holder; and (b) highlight any significant changes from the geothermal lease's current development plan (the current plan); and (c) if the current plan has not been complied with—state the details of and reasons for each noncompliance. (2) The proposed plan can not be inconsistent with any relevant environmental condition for the lease. (3) If the effect of the proposed plan is to significantly change an activity provided for under the current plan, the proposed plan must also state the reasons for the change. (4) Also, for a significant change that is a reduction of geothermal production, the proposed plan must include an evaluation of the following in the geothermal lease's area— (a) the potential for geothermal production; (b) the market opportunities for geothermal energy produced. Division 5 Approval of proposed later development plans 95 Application of div 5 This division applies if— (a) under this Act, the Minister is given a proposed later development plan for a geothermal lease for approval; or (b) the Minister is considering an application under section 140 for approval of a proposed geothermal coordination arrangement. 96 Geothermal lease taken to have development plan until decision on whether to approve proposed plan (1) This section applies until— (a) if the approval is given—the geothermal lease holder is given notice of the approval; or (b) if the approval is refused—the refusal takes effect.