Queensland: Petroleum and Gas (Production and Safety) Act 2004 (Qld)

Petroleum and Gas (Production and Safety) Act 2004 An Act about exploring for, recovering and transporting by pipeline, petroleum and fuel gas and ensuring the safe and efficient carrying out of those activities, and for other purposes Chapter 1 Preliminary Part 1 Introduction 1 Short title This Act may be cited as the Petroleum and Gas (Production and Safety) Act 2004. 2 Commencement (1) Section 968, to the extent it inserts part 19, division 6, subdivisions 1 and 2 in the Mineral Resources Act commences on the date of assent. (2) Otherwise, this Act commences on a day to be fixed by proclamation. Part 2 Purpose and application of Act 3 Main purpose of Act (1) The main purpose of this Act is to facilitate and regulate the carrying out of responsible petroleum activities and the development of a safe, efficient and viable petroleum and fuel gas industry, in a way that— (a) manages the State's petroleum resources— (i) in a way that has regard to the need for ecologically sustainable development; and (ii) for the benefit of all Queenslanders; and (b) enhances knowledge of the State's petroleum resources; and (c) creates an effective and efficient regulatory system for the carrying out of petroleum activities and the use of petroleum and fuel gas; and (d) encourages and maintains an appropriate level of competition in the carrying out of petroleum activities; and (e) creates an effective and efficient regulatory system for the construction and operation of pipelines; and (f) ensures petroleum activities are carried on in a way that minimises conflict with other land uses; and (g) optimises coal seam gas production and coal or oil shale mining in a safe and efficient way; and (h) appropriately compensates owners or occupiers of land; and (i) encourages responsible land management in the carrying out of petroleum activities; and (j) facilitates constructive consultation with people affected by activities authorised under this Act; and (k) regulates and promotes the safety of persons in relation to operating plant. (2) In this section— petroleum activities means— (a) the exploration, distillation, production, processing, refining, storage and transport of petroleum; and (b) the distillation, production, processing, refining, storage and transport of fuel gas; and (c) authorised activities for petroleum authorities; and (d) other activities authorised under this Act for petroleum authorities. 3A Other purposes of Act (1) Other purposes of this Act are— (a) to facilitate the operation of the Geothermal Energy Act 2010 (the Geothermal Act) and the Greenhouse Gas Storage Act 2009 (the GHG storage Act); and (b) to facilitate and regulate, as a key authorised activity for pipeline licences, the construction and operation of pipelines for regulated hydrogen in a way that is safe, effective and efficient. (2) The Geothermal Act is facilitated by— (a) applying provisions of this Act about safety to particular authorised activities for geothermal tenures under that Act; and (b) applying provisions of this Act about investigations and some of its provisions about enforcement for that Act. (3) The GHG storage Act is facilitated by— (a) providing for survey licences to be able to be granted for potential pipelines for GHG streams; and (b) providing for pipeline licences to be able to granted for GHG streams; and (c) applying provisions of this Act about safety to particular authorised activities for authorities under that Act; and (d) applying provisions of this Act about investigations and some of its provisions about enforcement for that Act. 4 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. 5 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. 6 Relationship with Mineral Resources Act (1) This section does not apply to a coal or oil shale mining tenement. Note— See also the Mineral Resources Act, section 3A (Relationship with petroleum legislation). For the relationship between this Act and the Mineral Resources Act in relation to coal or oil shale mining tenements, see chapter 3 (Provisions for coal seam gas). (2) The Mineral Resources Act does not limit or otherwise affect— (a) the power to grant or renew a petroleum authority over land (the overlapping land) in the area of a mining tenement; or (b) a petroleum authority already granted over land (also the overlapping land) in the area of an existing mining tenement. (3) However— (a) if the petroleum authority is a pipeline licence or petroleum facility licence—it is subject to section 400 or 440; and (b) if the petroleum authority is another type of petroleum authority—it is subject to subsections (4) to (6). (4) If the mining tenement is a mining lease (other than a transportation mining lease), an authorised activity for the petroleum authority may be carried out on the overlapping land only if— (a) the mining lease holder has agreed in writing to the carrying out of the activity; and (b) a copy of the agreement has been lodged; and Note— For other relevant provisions about lodging documents, see section 851AA. (c) the agreement is still in force. (5) If the mining tenement is an exploration permit, mineral development licence or transportation mining lease and the petroleum authority is an authority to prospect, an authorised activity for the petroleum authority may be carried out on the overlapping land only if— (a) the mining tenement holder has agreed in writing to the carrying out of the activity, a copy of the agreement has been lodged and the agreement is still in force; or (b) carrying out the activity does not adversely affect the carrying out of an authorised activity for the tenement that has already started. (6) If the mining tenement is an exploration permit or a mineral development licence and the petroleum authority is a petroleum lease, an authorised activity for the mining tenement may be carried out on the overlapping land only if— (a) the petroleum lease holder has agreed in writing to the carrying out of the activity; and (b) a copy of the agreement has been lodged; and (c) the agreement is still in force. (7) In this section— transportation mining lease means a mining lease granted under the Mineral Resources Act, section 316. 6A Relationship with Nature Conservation Act 1992 This Act is subject to the Nature Conservation Act 1992, sections 27 and 70QA. 6B Relationship with Geothermal Act and GHG storage Act The relationship between this Act, the Geothermal Act and the GHG storage Act and authorities under them is provided for under— (a) chapter 3A; and (b) the Geothermal Act, chapter 5; and (c) the GHG storage Act, chapter 4. 6BA 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. 6C Declaration for Commonwealth Act A petroleum authority is declared not to be personal property under the Personal Property Securities Act 2009 (Cwlth). 7 Act does not affect other rights or remedies (1) Subject to sections 294, 563A and 856 and chapter 3, part 8, this Act does not affect or limit a civil right or remedy that exists apart from this Act, whether at common law or otherwise. (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. 8 Native title (1) This section applies for applying this Act to land where native title exists. (2) A native title holder within the meaning of the Commonwealth Native Title Act, section 224 has the procedural and other rights that the holder has under that Act. (3) Subsection (2) applies despite any other provision of this Act. Part 3 Interpretation Division 1 Dictionary 9 Definitions The dictionary in schedule 2 defines particular words used in this Act. Division 2 Key definitions 10 Meaning of petroleum (1) Petroleum is— (a) a substance consisting of hydrocarbons that occur naturally in the earth's crust; or (b) a substance necessarily extracted or produced as a by-product of extracting or producing a hydrocarbon mentioned in paragraph (a); or (c) a fluid that— (i) is extracted or produced from coal or oil shale by a chemical or thermal process or that is a by-product of that process; and (ii) consists of, or includes, hydrocarbons; or Example of a fluid that is petroleum under paragraph (c)— mineral (f) (d) another substance prescribed under a regulation, consisting of, or including, hydrocarbons; or (e) a gas, that occurs naturally in the earth's crust, as prescribed under a regulation. (2) A substance mentioned in subsection (1)(c) is a gasification or retorting product. (3) To remove any doubt, it is declared that petroleum does not include any of the following— (a) alginite; (b) coal; (c) lignite; (d) peat; (e) oil shale; (f) torbanite; (g) water. (4) A substance does not cease to be petroleum merely because it is injected or reinjected into a natural underground reservoir. (5) To remove any doubt, it is declared that, for this Act and petroleum authorities under it, this section preserves, for this Act, the effect of section 150(2) and (3) of the 1923 Act. (6) In this section— hydrocarbon means a hydrocarbon in a gaseous, liquid, or solid state. 11 Meaning of LPG , fuel gas and hydrogen gas blend (1) LPG, also called 'LP gas' and 'liquefied petroleum gas', is a substance that— (a) is in a gaseous state at standard temperature and pressure; and (b) is predominately propane, propylene or butane; and (c) has been processed to be suitable for use by consumers. (2) Fuel gas is— (a) LPG; or (b) processed natural gas; or (c) hydrogen, or a hydrogen gas blend, used or intended to be used as a fuel to produce heat, light or power; or (d) another substance prescribed by regulation that is similar to LPG or processed natural gas. (3) A hydrogen gas blend is processed natural gas and hydrogen that have been blended together. (4) In this section— processed natural gas means a substance that— (a) is in a gaseous state at standard temperature and pressure; and (b) consists of hydrocarbons that occur naturally and other substances; and (c) is more than half, by volume, methane; and (d) has been processed to be suitable for use by consumers of fuel gas. standard temperature and pressure means an absolute pressure of 101.325kPa at a temperature of 15ºC. 11A Meaning of regulated hydrogen Regulated hydrogen is— (a) hydrogen; or (b) a hydrogen gas blend; or (c) another substance prescribed by regulation that is involved in, or produced for, a process related to the storage or transport of hydrogen. 12 What is a prescribed storage gas A prescribed storage gas is any of the following— (a) a gas associated with, or that results from, petroleum production; Example— fuel gas produced at a processing plant (b) another gas prescribed under a regulation as being suitable for storage in a natural underground reservoir. Example of gases suitable for storage in a natural underground reservoir— gases produced from a waste disposal tip 13 What is a natural underground reservoir (1) A natural underground reservoir is a part of a geological formation or structure— (a) in which petroleum or another gas prescribed under a regulation has accumulated; or (b) that is suitable to store petroleum or a prescribed storage gas. (2) A geological formation or structure mentioned in subsection (1) does not cease to be a natural underground reservoir merely because it has been modified for petroleum production or storage or to store a prescribed storage gas. (3) In this section— geological formation includes a coal seam. 14 What is exploring for petroleum Exploring, for petroleum, is carrying out an activity for the purpose of finding petroleum or natural underground reservoirs. Examples— • conducting a geochemical, geological or geophysical survey • drilling a well • carrying out testing in relation to a well • taking a sample for chemical or other analysis 15 When petroleum is produced (1) Petroleum is produced when it is— (a) recovered to ground level from a natural underground reservoir in which it has been contained; or (b) released to ground level from a natural underground reservoir from which it is extracted. (2) If, under the Mineral Resources Act a coal or oil shale mining lease holder mines coal seam gas, for this Act, the lease holder produces it. 15A What is produced water (1) Produced water is— (a) CSG water; or (b) associated water for a petroleum tenure. (2) A reference to produced water includes— (a) treated and untreated CSG water; and (b) concentrated saline water produced during the treatment of CSG water. 16 What is a pipeline (1) A pipeline is a pipe, or system of pipes, for transporting— (a) generally—petroleum, fuel gas, produced water, prescribed storage gases or regulated hydrogen; and (b) GHG streams; and (c) substances prescribed under section 402. Note— There is no automatic right to use a pipeline for a substance mentioned in paragraph (b) or (c). A condition of a pipeline licence may extend the licence holder's rights to include those substances. See sections 401 and 402. (2) A reference to a pipeline includes— (a) a part of the pipeline, including the pipeline's end points; and (b) a thing connected to or associated with the pipeline that is necessary for its operation. Examples of things that may be included in a reference to a pipeline— • meter stations, scraper stations, valve stations, pumping stations or compressor stations • plant and equipment, machinery and tanks • corrosion protection apparatus • communications equipment and towers (3) A pipeline's end points are— (a) if the pipeline has not operated for the first time—the points at which a substance mentioned in subsection (1) will enter or exit the pipeline on the day the pipeline first operates; or (b) otherwise—the points at which the substance enters or exits the pipeline. 16A What is a distribution pipeline (1) A distribution pipeline is— (a) a pipeline that transports fuel gas as part of a reticulation system within a gas market; or (b) a single point-to-point pipeline that transports fuel gas to— (i) a place other than a major user facility; or (ii) another single point-to-point pipeline that transports fuel gas to a place other than a major user facility. (2) However, a pipeline is not a distribution pipeline if it transports fuel gas to a pipeline mentioned in subsection (1)(a) or (b)(ii). (3) In this section— major user facility means— (a) a facility within the area of a resource authority; or (b) a facility operated as a place of export for fuel gas, including, for example, a port; or (c) a facility operated for the liquefaction of fuel gas before it is transported to a facility mentioned in paragraph (b); or (d) a facility that produces non-organic fertiliser; or (e) a petroleum facility; or (f) a power station; or (g) a smelter. point-to-point pipeline means a pipeline from a particular point or points to another particular point or points. 17 What is a petroleum facility A petroleum facility is a facility for the distillation, processing, refining, storage or transport of petroleum, other than a distribution pipeline. Examples of things that may be a petroleum facility— • a storage depot • a meter station • a petroleum processing plant • an oil refinery • an LPG separation plant 18 Types of authority under Act (1) The following are the types of authority under this Act— (a) an authority to prospect— (i) granted under section 41; or (ii) continued in force under section 83 or 119; or (iii) renewed under section 84; (b) a petroleum lease— (i) granted under section 120, 132, 340 or 356 or chapter 15; or (ii) continued in force under section 163; or (iii) renewed under section 164; (c) a data acquisition authority, granted under section 178; (d) a water monitoring authority granted under section 192; (e) a survey licence granted under section 396; (f) a pipeline licence— (i) granted under section 410; or (ii) continued in force under section 481; or (iii) renewed under section 482; (g) a petroleum facility licence— (i) granted under section 446; or (ii) continued in force under section 481; or (iii) renewed under section 482; (h) a gas work licence granted under chapter 9, part 6, division 3, subdivision 1; (i) a gas work authorisation granted under chapter 9, part 6, division 3, subdivision 1; (j) a gas device approval authority granted under chapter 9, part 6A, division 2. (2) The authorities, other than a gas work licence, gas work authorisation or gas device approval authority, are collectively referred to as a petroleum authority. (3) Authorities to prospect and petroleum leases are collectively referred to as a petroleum tenure. (4) Survey licences, pipeline licences and petroleum facility licences are collectively referred to as a licence. 19 Who is an eligible person An eligible person is— (a) an adult; or (b) a company or a registered body under the Corporations Act; or (c) a government owned corporation. 20 What are the conditions of a petroleum authority (1) The conditions of a petroleum authority are— (a) the conditions stated in it from time to time; and (b) the authority holder's obligations under chapters 2 to 5; and (c) any condition of the authority under chapters 2 to 5; and (d) a condition that an authority holder must ensure each person acting for the holder who carries out an authorised activity for the authority complies with its conditions to the extent they apply to the carrying out of the activity. Note— For who may carry out an authorised activity for the holder, see section 563. (2) A condition mentioned in subsection (1)(b) or (c) is a mandatory condition of the authority. Note— If a Coordinator-General's condition applies to a petroleum lease, pipeline licence or petroleum facility licence, or proposed petroleum lease, pipeline licence or petroleum facility licence, for a coordinated project, and the condition conflicts with a mandatory condition for that type of petroleum authority, the Coordinator-General's condition prevails to the extent of the inconsistency. See sections 123A, 412A and 447A. 21 What are the provisions of a petroleum authority (1) A reference in this Act to an authority under this Act includes a reference to its provisions. (2) A reference in this Act to the provisions of the authority is a reference to its mandatory or other conditions and any thing written in it. 22 What is an authorised activity (1) An authorised activity, for a petroleum authority, is an activity that its holder is, under this Act or the authority, entitled to carry out in relation to the authority. Notes— 1 The provisions of the authority may restrict the carrying out of authorised activities. See sections 42, 85, 123, 165, 178, 396, 412, 447, 484 and 790(3). 2 The carrying out of authorised activities is subject to the restrictions and the authority holder's rights and obligations under chapters 2 to 5. See section 562. 3 The carrying out of particular activities on particular land in a petroleum authority's area may not be authorised following the taking of the land under a resumption law. See section 30AB. 4 For who may carry out an authorised activity for a petroleum authority holder, see section 563. (2) An authorised activity, for a coal or oil shale mining tenement, is an activity that its holder is, under the Mineral Resources Act or the tenement, entitled to carry out or exercise in relation to the tenement. (3) An authorised activity, for a GHG authority, is an activity that its holder is, under the GHG storage Act or the authority, entitled to carry out or exercise in relation to the authority. (4) An authorised activity, for a geothermal tenure, is an activity that its holder is, under the Geothermal Act or the tenure, entitled to carry out or exercise in relation to the tenure. 23 What is a work program for an authority to prospect (1) The work program for an authority to prospect is its current initial or later work program approved under chapter 2, part 1, division 3, as amended from time to time under chapter 2, part 1, division 3, subdivision 6. (2) For subsection (1), the work program is current if the period to which the program applies has started and not ended. 24 What is a development plan for a petroleum lease (1) The development plan for a petroleum lease is its current initial or later development plan approved under chapter 2, part 2, division 4. (2) For subsection (1), the development plan is current if the period to which the plan applies has started and has not ended. Division 3 [Repealed] 24A [Repealed] 25 [Repealed] Part 4 Property in petroleum 26 Petroleum the property of the State (1) This section is subject to section 28 and chapter 2, part 6, division 3. (2) All petroleum as follows is, and always has been, the property of the State— (a) petroleum on the surface of land, if it was produced in the State; (b) petroleum in a natural underground reservoir in the State, other than petroleum in the reservoir produced outside the State and injected or reinjected into the reservoir. (3) To remove any doubt, it is declared that— (a) a person does not acquire any property in petroleum merely because the person discovers petroleum in a natural underground reservoir; and (b) subsection (2)(a) applies whether or not the land is freehold or other land; and (c) subsection (2)(b) applies whether or not the natural underground reservoir is in or under freehold or other land. (4) This section applies despite any other Act, grant, title or other document in force from the commencement of this section. (5) In this section— the State does not include any of the adjacent area under the Petroleum (Submerged Lands) Act 1982. 27 Petroleum reservation in land grants (1) This section applies to each grant under another Act, other than the 1923 Act, of a right— (a) relating to land that, immediately before the grant, was unallocated State land as defined under the Land Act 1994; and (b) that is, or was, issued on or after the commencement of the 1923 Act. Note— The 1923 Act commenced on 12 November 1923. (2) The grant is taken to contain a reservation to the State of— (a) all petroleum 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 petroleum-related activity; (ii) to authorise, under the provisions of this Act or another Act, others to carry out any petroleum-related activity; (iii) to regulate, under the provisions of this Act or another Act, petroleum-related activities carried out by others. (3) In this section— grant, of a right, includes an authority, lease, licence, permit or other instrument of tenure, however called. petroleum-related activity means any activity that may be carried out under this Act by the holder of any petroleum authority. 28 Property in petroleum produced (1) If a person produces petroleum, it becomes the person's property— (a) if the petroleum is produced under this Act; or (b) for coal seam gas—if it is mined under the Mineral Resources Act, section 318CM or 747. (2) However, subsection (1) is subject to— (a) any coordination arrangement or storage agreement to which the person is a party; and (b) any order of the Land Court under section 116; and (c) chapter 2, part 6, division 3. (3) Subsection (1) does not cease to apply merely because the petroleum is injected or reinjected into a natural underground reservoir. Part 5 General provisions for petroleum authorities 29 [Repealed] 30 Petroleum authority does not create an interest in land The granting of a petroleum authority does not create an interest in any land. 30AA Extinguishing petroleum interests on the taking of land in a petroleum authority's area (other than by an easement) (1) This section applies to the taking of land, other than by taking or otherwise creating an easement, under a resumption law. (2) Despite any other Act, the taking of land does not extinguish petroleum interests other than to the extent, if any, provided for in the resumption notice for the taking of the land. (3) The resumption notice for the taking of land may provide for the extinguishment of a petroleum interest on the taking only to the extent the relevant Minister for the taking is satisfied the interest is incompatible with the purpose for which the land is taken. (4) Without limiting the application of subsection (3), the relevant Minister may be satisfied a petroleum interest is incompatible with the purpose for which the land is taken if, for that purpose, it is necessary to extinguish all interests in the land, including native title rights and interests. (5) A petroleum interest may be— (a) wholly extinguished; or (b) partially extinguished by— (i) excluding land from the land the subject of the interest; or (ii) prohibiting the carrying out of activities by the holder of the interest. (6) The resumption notice for the taking of land may provide for the extinguishment of petroleum interests by reference to either or both of the following— (a) stated land, which— (i) may be all or part of the land that is taken; and (ii) if the stated land is only part of the land that is taken—may be described in the resumption notice in any way, including, for example— (A) as a shape that does not constitute a block or sub-block; or (B) by using 3 dimensionally located points to identify the position, shape and dimensions of each boundary; (b) stated petroleum interests, which may be all petroleum interests or petroleum interests of a particular type. (7) For the taking of land for which petroleum interests are extinguished as provided by this section— (a) each person's interest in an extinguished petroleum interest is converted into a right to claim compensation under the resumption law; and (b) the resumption law applies with necessary and convenient changes and with the changes mentioned in subsections (8) and (9) and section 30AD. (8) The notice of intention to resume for the proposed taking of the land must state the extent to which the petroleum interests are proposed to be extinguished. (9) The entity taking the land must give the chief executive a notice that— (a) states the details of the extinguishment; and (b) asks for the extinguishment to be recorded in the register; and (c) is accompanied by a certified copy of the resumption notice. (10) In this section— certified copy, of the resumption notice, means a copy of the original of the notice that has been certified by a justice of the peace as being a correct copy of the original notice. relevant Minister, for the taking of land under a resumption law, means— (a) if the land is taken under the process stated in the ALA (whether the land is taken under the ALA or another resumption law)—the Minister to whom the application that the land be taken is made under section 9 of that Act; or (b) otherwise—the Minister administering the resumption law under which the land is, or is to be, taken. 30AB Effect of extinguishment of petroleum interests on the taking of land in a petroleum authority's area (other than by an easement) (1) This section applies if, under section 30AA, the resumption notice for the taking of land (other than by taking or otherwise creating an easement) under a resumption law provides for the extinguishment of petroleum interests for stated land. (2) If the resumption notice states that all petroleum interests relating to the stated land are extinguished and a petroleum interest relates only to the stated land, the interest is wholly extinguished. (3) If the resumption notice states that all petroleum interests relating to the stated land are extinguished and a petroleum interest relates to the stated land and other land— (a) the stated land is no longer the subject of the interest; and (b) without limiting paragraph (a)— (i) the stated land is excluded from the area of the petroleum authority comprising the interest, or under or in relation to which the interest exists; and (ii) this Act applies, in relation to the area of the petroleum authority, with necessary and convenient changes to allow for the exclusion of the stated land, including, for example— (A) to allow the area to include a part of a block or sub-block if the part is what is left after the stated land is excluded from the area; and (B) if the stated land, or a part of it, is within a potential commercial area for an authority to prospect—to exclude the stated land or part from the potential commercial area. (4) If the resumption notice states that the carrying out of stated activities on the stated land by holders of stated petroleum interests is prohibited, the holder of a stated petroleum interest is not, or is no longer, authorised to carry out the stated activities on the stated land. (5) However, subsections (3) and (4) do not apply in relation to a petroleum interest that comprises, or exists under or in relation to, a new or renewed petroleum authority granted after the land is taken. 30AC Applications relating to land taken under a resumption law for which petroleum interests were extinguished (1) The Minister may, under a grant provision, grant a petroleum authority for an area that includes acquired land only if the Minister, after consulting the entity that took the land, is satisfied the grant of the authority is compatible with the purpose for which the land is being or is to be used. (2) If there are 2 or more applications under this Act for the grant, under a grant provision, of a new petroleum authority for an area that includes the same acquired land, the applications are to be dealt with as follows— (a) the applications must be considered and decided according to the day on which they are lodged; (b) if the applications were lodged on the same day— (i) they take the priority the Minister decides, after considering the relative merits of each application; and (ii) the Minister must give each applicant a notice stating there is competition for priority between the applicant's application and another application, or other applications, lodged on the same day as the day on which the applicant's application was lodged. (3) If a grant provision provides for the grant of a new petroleum authority (the new authority) over land in the area of an existing petroleum authority or 1923 Act ATP (the existing authority)— (a) the application under this Act for the new authority may include acquired land that was, immediately before the taking of the land, in the existing authority's area; and (b) subject to subsections (1) and (2), the Minister may grant a new authority for an area that includes the acquired land as if the acquired land were in the existing authority's area. (4) To remove any doubt, it is declared that this section does not affect the operation of the provisions of this Act about the application for, and grant of, a new petroleum authority other than to the extent provided for in subsections (1) to (3). (5) In this section— grant provision means a provision of this Act providing for the grant of a new petroleum authority. new petroleum authority includes a renewed petroleum authority. 30AD Compensation for effect of taking of land in a petroleum authority's area on petroleum interests (1) This section applies if land in a petroleum authority's area is taken (including by taking or otherwise creating an easement) under a resumption law other than sections 456 to 458 of this Act. (2) In assessing any compensation to be paid to the holder of a petroleum interest in relation to the taking of the land, allowance can not be made for the value of petroleum known or supposed to be in, or produced from, the land. Note— See section 458(3) in relation to land in a petroleum authority's area taken under sections 456 to 458 of this Act. 30A Joint holders of a petroleum authority (1) A petroleum authority may be held by 2 or more persons as joint tenants or as tenants in common. (2) If— (a) an application is made for a petroleum authority, or for approval to register a transfer of a petroleum authority under the Common Provisions Act, for more than 1 proposed holder or transferee; and (b) the application does not show whether the proposed holders or transferees are to hold as joint tenants or as tenants in common; and (c) the application is granted; the chief executive must record in the register that the applicants hold the authority as tenants in common. (3) In this section— petroleum authority includes a share in a petroleum authority. Chapter 2 Petroleum tenures and related matters Notes— 1 For the requirement for a petroleum tenure, see section 800. 2 Chapters 3 and 3A impose requirements for and restrictions on the granting of and restrictions on authorised activities that may be carried out under particular petroleum tenures. See sections 297 and 392AA. Part 1 Authorities to prospect Division 1 Key authorised activities 31 Operation of div 1 (1) This division provides for the key authorised activities for an authority to prospect. Notes— 1 For other authorised activities, see chapter 2, part 4, chapter 5, part 8 and the Common Provisions Act, chapter 3, part 2. 2 The carrying out of particular activities on particular land in an authority to prospect's area may not be authorised following the taking of the land under a resumption law. See section 30AB. (2) The authorised activities may be carried out despite the rights of an owner or occupier of land on which they are exercised. (3) However, the carrying out of the authorised activities is subject to— (a) section 6; and (b) chapter 3, part 4, division 2; and (c) chapter 3, part 4A; and (d) chapter 3A, part 5; and (e) chapters 5 and 9; and (f) the mandatory and other conditions of the authority; and (g) any exclusion or restriction provided for in the authority on the carrying out of the activities; and (h) any other relevant Act or law. 32 Exploration and testing (1) The authority to prospect holder may carry out any of the following activities in the area of the authority— (a) exploring for petroleum; (b) testing for petroleum production; (c) evaluating the feasibility of petroleum production; (d) evaluating or testing natural underground reservoirs for the storage of petroleum or a prescribed storage gas; (e) 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. (2) However, the holder must not carry out any of the following— (a) extraction or production of a gasification or retorting product from coal or oil shale by a chemical or thermal process; (b) exploration for coal or oil shale to carry out extraction or production mentioned in paragraph (a); (c) GHG stream storage; (d) inject a GHG stream into the Great Artesian Basin for the purpose of enhanced petroleum recovery. (3) The carrying out of activities mentioned in subsection (1), other than exploring for petroleum, is subject to sections 71A and 71B. (4) The rights under subsection (1) may be exercised only by or for the holder. Note— For who may exercise the rights for the holder, see section 563. 33 Incidental activities (1) The authority to prospect holder may carry out an activity (an incidental activity) in the area of the authority if carrying out the activity is reasonably necessary for, or incidental to, an authorised activity under section 32(1) for the authority or another authority to prospect. Examples of incidental activities— 1 constructing or operating plant or works, including, for example, communication systems, pipelines associated with petroleum testing, powerlines, roads, separation plants, evaporation or storage ponds, tanks and water pipelines 2 constructing or using temporary structures or structures of an industrial or technical nature, including, for example, mobile and temporary camps 3 removing vegetation for, or for the safety of, exploration or testing under section 32(1) Note— See also part 10, section 239, chapter 5 and section 20. (2) However, neither of the following activities is an incidental activity— (a) constructing or using a structure, other than a temporary structure, for office or residential accommodation; Note— For development generally, see the Planning Act 2016, chapter 3. (b) the processing of gaseous petroleum, other than gaseous petroleum produced as an unavoidable result of ATP production testing. (3) In this section— gaseous petroleum means petroleum in a gaseous state. processing, of gaseous petroleum, means treating the petroleum to be suitable for transport. Division 2 Obtaining authority to prospect Subdivision 1 Preliminary 34 Operation of div 2 (1) This division provides for a process for the granting of authorities to prospect by competitive tender. (2) To remove any doubt, it is declared that an authority to prospect can only be granted under this division or division 8, subdivision 2. Subdivision 2 Competitive tenders 35 Call for tenders (1) The Minister may publish a gazette notice (a call for tenders) inviting tenders for an authority to prospect. (2) The call must state— (a) the proposed area of the authority; and (b) the proposed term of the authority; and (c) that, under section 99, particular land may be excluded land for the authority; and (d) that the tenders must be accompanied by a proposed initial work program for the period mentioned in paragraph (h)(ii); and (e) whether the proposed initial work program under paragraph (d) must be a proposed work program (activities-based) or a proposed work program (outcomes-based); and (f) the day and time by which tenders in response to it must be made (the closing time for the call); and (g) that the tenders must be lodged before the closing time for the call; and (h) that details about each of the following are available at a stated place— (i) any proposed conditions of the authority, other than mandatory conditions, that are likely to impact significantly on exploration in the proposed area; (ii) the required program period for the initial work program for the authority; (iii) any criteria (special criteria), other than the work program criteria and capability criteria, proposed to be used to decide whether to grant the authority, or to decide its provisions; (iv) whether a process for appointing a preferred tenderer involving a cash bid component is to be used for deciding the call; (v) if any part of the proposed area of the authority is to be subject to an Australian market supply condition—the part of the proposed area and the condition. (3) The call may state other relevant matters, including, for example, matters relevant to the special criteria, work program criteria and capability criteria. (4) The area of the authority must comply with section 98. (5) Subsection (2)(h)(i) does not limit the Minister's power to decide conditions of the authority if it is granted. 36 Right to tender (1) An eligible person may, by a tender made under section 37, tender for a proposed authority to prospect the subject of a call for tenders. (2) However, the tender can not be made— (a) after the closing time for the call; or (b) for only part of the area of the proposed authority. 37 Requirements for making tender A tender for an authority to prospect must— (a) be lodged in the approved form; and (b) address the capability criteria; and (c) include a proposed work program that complies with the initial work program requirements; and (d) be accompanied by the following— (i) the fee prescribed under a regulation; (ii) if a process for appointing a preferred tenderer involving a cash bid component is to be used for deciding the call—the tenderer's cash bid. 37A Rejection of tender if tenderer disqualified (1) The Minister must reject a tender for an authority to prospect if the Minister decides the tenderer is disqualified under the Common Provisions Act, chapter 7 from being granted the authority to prospect. (2) On rejection of the tender, the Minister must give the tenderer a notice about the decision. 38 Right to terminate call for tenders (1) The Minister may, by gazette notice, terminate a call for tenders at any time before deciding to grant an authority to prospect to a person who has made a tender in response to the call. (2) All tenders in response to the call lapse when the call is terminated. (3) No amount, whether by way of compensation, reimbursement or otherwise is payable by the State to any person for or in connection with the termination. (4) However, subject to sections 40(4) and 845(5), the Minister must refund any tender security given by the tenderer. Subdivision 3 Deciding tenders 39 Process for deciding tenders (1) Subject to section 43, any process the Minister considers appropriate may be used to decide a call for tenders, including, for example— (a) a process appointing a preferred tenderer on the tenders made in response to the call (whether or not involving a cash bid component); or (b) a process involving short-listing a group of possible preferred tenderers and inviting them to engage in another round of tendering before appointing a preferred tenderer from that group. (2) Without limiting subsection (1), the Minister may give a tenderer a notice requiring the tenderer to give the Minister, within the reasonable period stated in the notice, information the Minister reasonably requires to assess the tender. 40 Provisions for preferred tenderers (1) The Minister may require a preferred tenderer for the call for tenders to— (a) pay any amounts necessarily incurred, or to be incurred, to enable the authority to prospect to be granted; and Example— amounts required to comply with the Commonwealth Native Title Act, part 2, division 3, subdivision P (b) to do all or any of the following within a stated reasonable period— (i) pay the annual rent for the first year of the authority; (ii) give, under section 488, security for the authority. (2) If a preferred tenderer does not— (a) comply with a requirement under subsection (1); or (b) do all things reasonably necessary to allow an authority to prospect to be granted to the tenderer; the Minister may revoke the tenderer's appointment as the preferred tenderer. (3) However, before acting under subsection (2), the Minister must give the preferred tenderer a reasonable opportunity to provide reasons for, and rectify, the tenderer's failure to comply with a requirement under subsection (1) or (2)(b). (4) If the Minister revokes the appointment of the tenderer as the preferred tenderer under this section, the Minister may— (a) retain the whole or part of any tender security given by the tenderer, if the Minister considers it reasonable in the circumstances; and (b) appoint another tenderer to be the preferred tenderer. 41 Deciding whether to grant authority to prospect (1) The Minister may, after the closing time for the call for tenders— (a) grant an authority to prospect to 1 tenderer; or (b) refuse to grant any authority to prospect. (2) However— (a) before deciding to grant the authority, the Minister must decide whether to approve the applicant's proposed initial work program for the authority; and (b) the Minister can not grant the authority unless— (i) the tenderer is an eligible person; and (ii) the proposed program has been approved; and (iii) a relevant environmental authority for the authority to prospect has been issued. Note— If a tender relates to acquired land, see also section 30AC. (3) The Minister may impose on the authority the conditions the Minister considers appropriate. (4) Subsection (3) does not limit or otherwise affect section 42(3)(a) or (3A). 42 Provisions of authority to prospect (1) Each authority to prospect must state its term and area. (2) The term— (a) must be for at least the required program period for the initial work program for the authority under the call for tenders; but (b) must end no later than 12 years after the authority takes effect. (3) The authority may also state— (a) conditions or other provisions of the authority, other than conditions or provisions that are— (i) inconsistent with the mandatory conditions for authorities to prospect; or (ii) the same as, or substantially the same as, or inconsistent with, any relevant environmental condition for the authority; and (b) the day it takes effect. (3A) The conditions of the authority may include an Australian market supply condition applying to all or part of the area of the authority. (4) However, the provisions of the authority may exclude or restrict the carrying out of an authorised activity for the authority. (5) The day of effect must not be before the day the authority is granted. (6) If no day of effect is stated, the authority takes effect on the day it is granted. 42A Amendment of conditions by Minister if exceptional event (1) This section applies if the Minister considers the conditions of an authority to prospect must be amended because of an exceptional event affecting the authority. (2) The Minister may amend the authority by imposing a condition on, or varying or removing a condition of, the authority without application from the holder. (3) The amendment takes effect 10 business days after the holder is given the notice or, if the notice states a later day of effect, the later day. (4) This section does not limit section 41(3). 43 Criteria for decisions (1) The matters that must be considered in deciding whether to grant an authority to prospect or deciding its provisions include— (a) any special criteria; and (b) the extent to which the Minister is of the opinion that the tenderer is capable of carrying out authorised activities for the authority, having regard to the tenderer's— (i) financial and technical resources; and (ii) ability to manage petroleum exploration and production; and (c) the applicant's proposed initial work program. (2) The matters mentioned in subsection (1)(b) are the capability criteria. (3) A person satisfies the capability criteria if the Minister forms the opinion mentioned in subsection (1)(b). 44 Notice to unsuccessful tenderers (1) After a call for tenders has been decided, each tenderer not granted the authority to prospect must be given notice of the decision. Note— See also the Judicial Review Act 1991, section 32 (Request for statement of reasons). (2) Subject to sections 40(4) and 845(5), the Minister must refund any tender security given by the tenderer. Division 3 Work programs Subdivision 1 Types of work program 45 Types of work program for authority to prospect (1) A work program for an authority to prospect is— (a) a work program (activities-based); or (b) a work program (outcomes-based). (2) A work program (activities-based) for an authority to prospect is a document stating— (a) the activities proposed to be carried out during the period of the program; and (b) the estimated human, technical and financial resources proposed to be committed to exploration during the period of the program. (3) A work program (outcomes-based) for an authority to prospect is a document stating— (a) the outcomes proposed to be pursued during the period of the program; and (b) the strategy for pursuing the outcomes mentioned in paragraph (a); and (c) the information and data proposed to be collected about the existence of petroleum or gas during the period of the program; and (d) the estimated human, technical and financial resources proposed to be committed to exploration during the period of the program. Subdivision 2 Requirements for proposed initial work programs 46 Operation of subdivision This subdivision provides for requirements (the initial work program requirements) for a proposed initial work program for a proposed authority to prospect. 47 Program period (1) The proposed initial work program must state its period. (2) The period must be the same as the required period under the relevant call for tenders. 48 General requirements (1) The proposed initial work program must be of the type required under section 35(2)(e). (2) The proposed initial work program must include— (a) maps that show where the exploration under the proposed authority to prospect is proposed to be carried out; and (b) reasons why the holder of the proposed authority to prospect considers the program to be appropriate; and (c) any other information relevant to the work program criteria; and (d) any other information prescribed by regulation. Subdivision 3 Criteria for deciding whether to approve proposed initial work programs 49 Criteria (1) The matters that must be considered in deciding whether to approve a proposed initial work program include the appropriateness of the tenderer's proposed work program, having regard to each of the following— (a) the potential of the proposed area of the authority to prospect for petroleum discovery; (b) the extent and nature of the proposed petroleum exploration; Examples— • proposed geological, geophysical or geochemical surveying • the number of petroleum wells the tenderer proposes to drill, and their type (c) when and where the tenderer proposes to carry out the exploration. (2) The matters mentioned in subsection (1) are the work program criteria. Subdivision 4 Requirements for proposed later work programs 50 Operation of sdiv 4 This subdivision provides for requirements (the later work program requirements) for a proposed later work program for an authority to prospect. Note— For the requirements to lodge a proposed later work program, see sections 79 (Obligation to lodge proposed later work program), 100 (Minister may add excluded land), 104 (Requirements for making application) and 790 (Types of noncompliance action that may be taken). 51 General requirements (1) The proposed later work program for an authority to prospect may be a work program (activities-based) or work program (outcomes-based). (2) The proposed later work program must state— (a) the extent to which the current work program for the authority to prospect has been complied with; and (b) if there have been any amendments to the authority to prospect or the current work program— (i) whether the changes have been incorporated in the proposed later work program; and (ii) any effect the changes have on the proposed later work program; and (c) the effect of any petroleum discovery on the proposed later work program. (3) The proposed later work program must include— (a) maps that show where the exploration under the authority to prospect is proposed to be carried out; and (b) reasons why the holder of the authority to prospect considers the program to be appropriate; and (c) any other information prescribed by regulation. 52 Program period (1) The proposed later work program must state its period. (2) The period must not be longer than— (a) if the term of the rest, or the renewed term, of the authority is less than 6 years—the rest of its term or renewed term; or (b) if the term of the rest, or the renewed term, of the authority is 6 years or more, the following— (i) generally—6 years from the start of the period; (ii) if the Minister approves a longer period—the longer period. (3) However, the Minister can not approve a period longer than the rest of the term or renewed term of the authority. 53 Implementation of evaluation program for potential commercial area If, under section 91, an evaluation program is taken to be an additional part of the existing work program for the authority to prospect, the proposed later work program must include work necessary to implement the evaluation program for the period of that program. 54 Later work programs for proposed new authorities Proposed later work programs for an application under division 8, subdivision 2, to divide an authority to prospect must have a combined effect that is at least the effect of the work program for the original authority. Subdivision 5 Approval of proposed later work programs 55 Application of sdiv 5 This subdivision applies if, under this Act, a proposed later work program is lodged for approval. 55A Modified application of ch 14 , pt 1 Chapter 14, part 1 applies in relation to the lodgement by an authority to prospect holder of a proposed later work program as if— (a) the lodgement of the proposed program were the making of an application by the holder; and (b) the later work program requirements for the proposed program were the requirements under chapter 14, part 1 for making the application. 56 Authority taken to have work program until decision on whether to approve proposed later work program (1) This section applies until— (a) if the proposed later work program is approved—the holder is given notice of the approval; or (b) if approval of the proposed later work program is refused—when the refusal takes effect. (2) Despite the ending of the program period for the current work program for the authority to prospect— (a) the authority is taken to have a work program; and (b) the holder may carry out any authorised activity for the authority. 57 Deciding whether to approve proposed later work program (1) The Minister may approve or refuse to approve the proposed later work program. (2) The matters that must be considered in deciding whether to approve the proposed later work program include each of the following— (a) the work program criteria and capability criteria and any special criteria that applied for deciding the application for the authority to prospect; (b) the extent to which the current work program has been complied with; (c) any amendments made to the authority or its current work program, and the reasons for the changes; (d) any commercial viability report or independent viability assessment for the authority. (3) Also, if the authority was granted in response to a tender, any other work program proposed by other tenderers for the authority must be taken into account. (4) However, subsection (3) applies only to the extent the other program includes the period of the proposed plan. 58 Steps after, and taking effect of, decision (1) On approval of the proposed later work program, the holder must be given notice of the approval. (2) On refusal to approve the later work program, the holder must be given an information notice about the decision to refuse. (3) An approval takes effect when the holder is given the notice or, if the notice states a later day of effect, on that later day. (4) A refusal does not take effect until the end of the appeal period for the refusal. Subdivision 6 Amending work programs 59 Restrictions on amending work program (1) An authority to prospect holder may amend the work program for the authority only if— (a) an application for approval of the amendment has been made under this subdivision and the amendment has been approved under this subdivision; and Note— See also section 91 (Inclusion of evaluation program in work program). (b) if the amendment is to extend the period of the work program—the requirements under subsection (2) or (3) have been complied with. (2) For subsection (1)(b), the requirements for an amendment to extend the period of an approved initial work program for an authority to prospect are— (a) the period of the approved initial work program has not previously been extended; and (b) either— (i) the Minister is satisfied the amendment is needed for a reason beyond the holder's control; or (ii) within 3 months before the making of the application, the authority to prospect has been transferred within the meaning of subsection (4). (3) For subsection (1)(b), the requirements for an amendment to extend the period of an approved later work program for an authority to prospect are— (a) the period of the approved later work program, and any earlier approved work program for the authority, has not previously been extended; and (b) within 3 months before the making of the application, the authority to prospect has been transferred within the meaning of subsection (4). (4) For subsection (2) and (3), an authority to prospect is transferred only if— (a) a person (the designated person) became a holder of the authority as a result of— (i) an application having been made, under the Common Provisions Act, for approval of a transfer of a share in the authority; and (ii) approval to register the transfer having been given under that Act; and (b) the share, or proposed share, of the designated person in the authority is at least 50%; and (c) the designated person is not, under the Corporations Act, section 64B, an entity connected with another person who is a holder of the authority. (5) An amendment under this section to extend the period of a work program may be granted only if the extended period ends no later than— (a) 1 year after the current period of the work program; or (b) 12 years after the authority originally took effect. 60 Applying for approval to amend (1) An authority to prospect holder may apply for approval to amend the work program for the authority. Note— For other relevant provisions about applications, see chapter 14, part 1 and section 851AA. (2) However, the application can not be made less than 20 business days before the end of the period stated in the work program for carrying out work under the program. (3) Subsection (2) does not apply if the Minister is satisfied the work program needs to be amended for a reason beyond the holder's control. (4) The application must be accompanied by the fee prescribed under a regulation. 61 [Repealed] 62 Deciding application (1) If the proposed amendment— (a) does not relate to the initial work program for the authority to prospect; and (b) is to substitute the carrying out of an authorised activity (th