Queensland: Petroleum (Submerged Lands) Act 1982 (Qld)

Petroleum (Submerged Lands) Act 1982 An Act to make provision with respect to the exploration for and the exploitation of the petroleum resources, and certain other resources of, and to conveying petroleum resources (wherever recovered) across, certain submerged lands adjacent to the coasts of Queensland, and for other purposes Preamble Whereas in accordance with international law Australia as a coastal State has sovereign rights over the Continental Shelf beyond the limits of Australian territorial waters for the purpose of exploring it and exploiting its natural resources: And whereas Australia is a party to the Convention on the Continental Shelf signed at Geneva on 29 April 1958 in which those rights are defined: And whereas by the Seas and Submerged Lands Act 1973 (Cwlth) it is declared and enacted that the sovereignty in respect of the territorial sea of Australia and in respect of the airspace over it and in respect of its seabed and subsoil, and the sovereignty in respect of certain internal waters of Australia and in respect of the airspace over those waters and in respect of the seabed and subsoil beneath those waters, is vested in and exercisable by the Crown in right of the Commonwealth: And whereas the Parliaments of the States and the Legislative Assembly of the Northern Territory have certain legislative powers in respect of the seabed and subsoil referred to in the last preceding recital and the Parliament of the Commonwealth has vested in the Crown in right of each of the States and the Crown in right of the Northern Territory certain proprietary rights in respect of that seabed and subsoil: And whereas it has been agreed between the Commonwealth, the States and the Northern Territory that, in place of the scheme provided for by an agreement between the Commonwealth and the States dated 16 October 1967— legislation of the Parliament of the Commonwealth in respect of the exploration for and the exploitation of the petroleum resources of submerged lands should be limited to the resources of lands beneath waters that are beyond the outer limits of the territorial sea adjacent to the States and the Northern Territory (being outer limits based, unless and until otherwise agreed, on the breadth of that sea being 3n miles), and that the States and the Northern Territory should share in the administration of that legislation; and legislation of the Parliament of each State should apply in respect of the exploration for and the exploitation of the petroleum resources of such part of the submerged lands in an area adjacent to the State as is on the landward side of the waters referred to in paragraph (a); and legislation of the Legislative Assembly of the Northern Territory should apply in respect of the exploration for and the exploitation of the petroleum resources of such part of the submerged lands in an area adjacent to the Northern Territory as is on the landward side of the waters referred to in paragraph (a); and the Commonwealth, the States and the Northern Territory should endeavour to maintain, as far as practicable, common principles, rules and practices in the regulation and control of the exploration for and the exploitation of the petroleum resources of all the submerged lands referred to above that are on the seaward side of the inner limits of the territorial sea of Australia. Part 1 Preliminary Division 1 Interpretation, application and construction of Act 1 Short title This Act may be cited as the Petroleum (Submerged Lands) Act 1982. 2 [Repealed] 3 [Repealed] 4 Definitions (1) In this Act— access authority means an access authority under part 3. application for a primary licence means an application under section 40(1) or (2). application for a secondary licence means an application under section 40(3). approved means approved by the Minister. block means a block constituted as provided by section 17. Board, for part 3A, see section 151A. CEO, for part 3A, see section 151A. Commonwealth Act— (a) for part 1, division 2, see section 9; and (b) otherwise, means the Offshore Petroleum Act 2006 (Cwlth). Commonwealth Minister means the Minister of the Commonwealth for the time being administering the Commonwealth Act. Commonwealth offshore area, for a State other than Queensland, or for the Northern Territory, means the offshore area of the State or Territory for the purposes of the Offshore Petroleum Act 2006 (Cwlth). Commonwealth offshore area, for Queensland means the offshore area of Queensland under the Offshore Petroleum Act 2006 (Cwlth), section 7, including the Coral Sea area within the meaning of that section. construct includes place and construction has a corresponding meaning. corresponding law means an Act of another State or a law in force in a Territory giving effect to the agreement between the Governments of the Commonwealth, the States and the Northern Territory referred to in the preamble to this Act. facility, for part 3A, see section 151A. good oilfield practice means all those things that are generally accepted as good and safe in the carrying on of exploration for petroleum, or in operations for the recovery of petroleum, as the case may be. graticular section means a section referred to in section 17. inspector means a person appointed under section 125. interstate Minister, for part 3A, see section 151A. licence means a production licence for petroleum under part 3. licence area means the area constituted by the blocks that are the subject of a licence. licensee means the registered holder of a licence. listed OHS laws see section 151C. location means a block or blocks in respect of which a declaration under section 37 is in force. natural resources has the same meaning as in the Convention. offshore petroleum operations means operations, including diving operations, that— (a) relate to— (i) the exploration for petroleum; or (ii) the recovery, processing, storage, offloading or piped conveyance of petroleum; and (b) if the operations are diving operations—take place in the adjacent area; and (c) if the operations are not diving operations—take place at a facility. OHS inspector means a person appointed as an OHS inspector under the Commonwealth Act. operation means an activity to which part 3 applies. partly cancelled means— (a) in relation to a permit or licence—cancelled as to 1 or more but not all of the blocks the subject of the permit or licence; and (b) in relation to a pipeline licence—cancelled as to a part of the pipeline the subject of the licence. partly determined, in relation to a permit, means determined as to 1 or more but not all of the blocks the subject of the permit. permit means an exploration permit for petroleum under part 3. permit area means the area constituted by the blocks that are the subject of a permit. permittee means the registered holder of a permit. petroleum means— (a) any naturally occurring hydrocarbon, whether in a gaseous, liquid or solid state; or (b) any naturally occurring mixture of hydrocarbons, whether in a gaseous, liquid or solid state; or (c) any naturally occurring mixture of 1 or more hydrocarbons, whether in a gaseous, liquid or solid state, and 1 or more of the following, that is to say, hydrogen sulphide, nitrogen, helium and carbon dioxide; and includes any petroleum as defined by paragraph (a), (b) or (c) that has been returned to a natural reservoir. petroleum pool means a naturally occurring discrete accumulation of petroleum. pipeline means the whole or part of a pipe or a system of pipes in the adjacent area for conveying petroleum, whether the petroleum is petroleum recovered from the adjacent area or not, but does not include a pipe or system of pipes— (a) for returning petroleum to a natural reservoir; or (b) for conveying petroleum for use for the purposes of petroleum exploration operations or operations for the recovery of petroleum; or (c) for conveying petroleum that is to be flared or vented; or (d) for conveying petroleum from a well, wherever located, to a terminal station in the adjacent area without passing through another terminal station. pipeline licence means a licence under part 3 to construct and operate a pipeline. pipeline licensee means the registered holder of a pipeline licence. prescribed means prescribed by the regulations. primary entitlement, in relation to a permittee, means the number of blocks forming part of a location in the permit area in respect of which that permittee may make an application under section 40(1). primary licence means a licence granted on an application under section 40(1) or (2). pumping station means equipment for pumping petroleum or water and includes any structure associated with that equipment. register means the register kept in pursuance of part 3, division 5. registered holder, in relation to a permit, licence, pipeline licence or access authority, means the person whose name is for the time being shown in the register as being the holder of the permit, licence, pipeline licence or access authority. royalty period, in relation to a permit or licence, means— (a) the period from and including the date from which the permit or licence has effect to the end of the month of the year during which that date occurs; and (b) each month thereafter. Safety Authority means the National Offshore Petroleum Safety Authority established by the Commonwealth Act. secondary licence means a licence granted on an application under section 40(3). secondary line means a pipe or system of pipes for any purpose referred to in paragraphs (a), (b), (c) and (d) of the definition of pipeline. special prospecting authority means a special prospecting authority under part 3. tank station means a tank or system of tanks for holding or storing petroleum and includes any structure associated with that tank or system of tanks. terminal station means a pumping station, a tank station or a valve station declared to be a terminal station under section 63 or under the Commonwealth Act or a corresponding law. the adjacent area means, subject to subsection (2), so much of the area the boundary of which is described in schedule 2 as is within the territorial sea of Australia, and the territorial sea adjacent to any island forming part of Queensland. the applied provisions means the provisions of the laws in force in Queensland and of any instrument made under any of those laws which apply in the adjacent area pursuant to section 14. the Convention means the Convention entitled 'Convention on the Continental Shelf' signed at Geneva on 29 April 1958, being the Convention a copy of which in the English language is set out in schedule 1. the Joint Authority means the Commonwealth–Queensland Offshore Petroleum Joint Authority established by the Commonwealth Act. the relinquished area means— (a) in relation to a permit or licence that has expired—the area constituted by the blocks in respect of which the permit or licence was in force but has not been renewed; and (b) in relation to a permit that has been wholly determined or partly determined—the area constituted by the blocks as to which the permit was so determined; and (c) in relation to a permit or licence that has been wholly cancelled or partly cancelled—the area constituted by the blocks as to which the permit or licence was so cancelled; and (d) in relation to a pipeline licence that is no longer in force—the part of the adjacent area in which the pipeline was constructed; and (e) in relation to a pipeline licence that has been wholly cancelled or partly cancelled—the part of the adjacent area in which the pipeline or the part of the pipeline, as the case may be, was constructed; and (f) in relation to a special prospecting authority or access authority that has been surrendered or cancelled, or has expired—the area constituted by the blocks in respect of which that authority was in force. valve station means equipment for regulating the flow of petroleum and includes any structure associated with that equipment. vessel means a vessel used in navigation, other than air navigation, and includes a barge, lighter or other floating vessel. water line means a pipe or system of pipes for conveying water in connection with petroleum exploration operations or operations for the recovery of petroleum. well means a hole in the seabed or subsoil made by drilling, boring or any other means in connection with exploration for petroleum or operations for the recovery of petroleum but does not include a seismic shot hole. wholly cancelled, in relation to a permit, licence or pipeline licence, means cancelled as to all the blocks, or as to the whole of the pipeline, the subject of the permit, licence or pipeline licence. wholly determined, in relation to a permit, means determined as to all the blocks the subject of the permit. (2) If at any time the breadth of the territorial sea of Australia is determined or declared to be greater than 3n miles, the definition of the adjacent area in subsection (1) continues to have effect as if the breadth of the territorial sea of Australia had continued to be 3n miles. (4) In this Act, a reference to the term of a permit, licence, pipeline licence, special prospecting authority or access authority is a reference to the period during which the permit, licence, pipeline licence, special prospecting authority or access authority remains in force and a reference to the date of expiration of a permit, licence, pipeline licence, special prospecting authority or access authority is a reference to the date on which the permit, licence, pipeline licence, special prospecting authority or access authority ceases to have effect. (5) In this Act, a reference to a year of the term of a permit, licence or pipeline licence is a reference to a period of 1 year commencing on the date from and including which the permit, licence or pipeline licence, as the case may be, has effect or on any anniversary of that date. (6) In this Act, a reference to the renewal, or to the grant of a renewal, of a permit is a reference to the grant of a permit in respect of all or some of the blocks specified in the first mentioned permit to commence on the day after the date of expiration of the first mentioned permit or on the day after the date of expiration of the permit granted upon a previous renewal of the first mentioned permit. (7) In this Act, a reference to the renewal, or to the grant of a renewal, of a licence in respect of the blocks specified in the licence is a reference to the grant of a licence in respect of those blocks to commence on the day after the date of expiration of the first mentioned licence or on the day after the date of expiration of the licence granted upon a previous renewal of the first mentioned licence. (8) In this Act, a reference to the renewal, or to the grant of a renewal, of a pipeline licence in respect of a pipeline is a reference to the grant of a pipeline licence in respect of that pipeline to commence on the day after the date of expiration of the first mentioned pipeline licence or on the day after the date of expiration of the pipeline licence granted upon a previous renewal of the first mentioned pipeline licence. (9) In this Act, a reference to a pipeline includes a reference to a part of a pipeline. (10) In this Act, a reference to a permit, licence, pipeline licence or access authority is a reference to the permit, licence, pipeline licence or access authority as varied for the time being under this Act. (11) The power conferred by this Act to make, grant or issue any instrument shall, unless the contrary intention appears, be construed as including a power exercisable in the like manner and subject to the like conditions (if any) to repeal, rescind, revoke, amend or vary any such instrument. (12) For the purposes of this Act and the regulations— (a) the space above or below the adjacent area shall be deemed to be in that area; and (b) the space above or below an area that is part of the adjacent area shall be deemed to be in that part. 5 Effect of territorial sea baseline changes on pipeline licence (1) This section applies if— (a) a pipeline licence has been granted under this Act on the basis that an area is within the adjacent area; and (b) the territorial sea baseline is changed, or because new data is obtained or existing data is reconsidered, the location of the baseline is reassessed; and (c) because of the change or reassessment, the area— (i) is no longer within the adjacent area; and (ii) falls within the Commonwealth offshore area for a State or the Northern Territory. (2) While the pipeline licence is in force, this Act applies to the area so far as the pipeline licence is concerned as if the area were within the adjacent area. Editor's note— Under the provisions of the Commonwealth Act, that Act does not apply to the area after the change or reassessment. (3) In subsection (1)— territorial sea baseline has the meaning given under the Seas and Submerged Lands Act 1973 (Cwlth) by proclamation in gazette No. S29 (Cwlth) of 9 February 1983 at pages 2 to 14. 6 Application of Act This Act applies to all natural persons, whether Australian citizens or not and whether resident in Queensland or not, and to all corporations, whether incorporated or carrying on business in Queensland or not. 6A Relationship of Act to National Gas (Queensland) Law If there is an inconsistency between a provision of this Act and the National Gas (Queensland) Law, the Law prevails to the extent of the inconsistency. 6B Declaration for Commonwealth Act The following are declared not to be personal property under the Personal Property Securities Act 2009 (Cwlth)— (a) an access authority; (b) a licence; (c) a permit; (d) a pipeline licence. 7 Petroleum pool extending into 2 licence areas (1) The provisions of this section have effect for the purposes of this Act and of licences. (2) Where a wellhead is situated in a licence area and the well from that wellhead is inclined so as to enter a petroleum pool, being a pool that does not extend to that licence area, at a place within an adjoining licence area of the same licensee, any petroleum recovered through that well shall be deemed to have been recovered in that adjoining licence area under the licence in respect of that area. (3) Where a petroleum pool is partly in 1 licence area and partly in an adjoining licence area of the same licensee and petroleum is recovered from that pool through a well or wells in 1 or both of the licence areas, there shall be deemed to have been recovered in each of the licence areas, under the licence in respect of that area, such proportion of all petroleum so recovered as may reasonably be treated as being derived from that area, having regard to the nature and probable extent of the pool, and the respective proportions shall be determined in accordance with subsection (4). (4) The proportions to be determined for the purposes of subsection (3) may be determined by agreement between the licensee and the Minister or, in the absence of agreement, may be determined by the Supreme Court on the application of the licensee or the Minister. (5) Where a petroleum pool is partly in a licence area and partly in an area (the Commonwealth licence area) in which the licensee has authority under the Commonwealth Act to explore for, or recover, petroleum, and petroleum is recovered from that pool through a well or wells in the licence area, the Commonwealth licence area or both, there shall be deemed to have been recovered in the licence area such proportion of all petroleum so recovered as may reasonably be treated as being derived from that area, having regard to the nature and probable extent of the pool, and that proportion shall be determined in accordance with subsection (6). (6) The proportion to be determined for the purposes of subsection (5) may be determined by agreement between the licensee, the Joint Authority and the Minister or, in the absence of agreement, may be determined by the Supreme Court on the application of the licensee, the Joint Authority or the Minister. (7) Where a petroleum pool is partly in a licence area and partly in an area (the other licence area) in which the licensee has authority, under a corresponding law, to explore for or recover, petroleum, and petroleum is recovered from that pool through a well or wells in the licence area, the other licence area or both, there shall be deemed to have been recovered in the licence area such proportion of all petroleum so recovered as may reasonably be treated as being derived from that area, having regard to the nature and probable extent of the pool, and that proportion shall be determined in accordance with subsection (8). (8) The proportion to be determined for the purposes of subsection (7) may be determined by agreement between the licensee, the Minister and the Minister administering the corresponding law or, in the absence of agreement, may be determined by the Supreme Court on the application of any of those persons. (9) Where— (a) a petroleum pool is partly in a licence area and partly in another area, being an area which is outside the adjacent area and in which the licensee has, under the Commonwealth Act or a corresponding law, authority to explore for, or recover, petroleum; and (b) petroleum is recovered from that pool; and (c) the Supreme Court of another State or of the Northern Territory makes a determination, under the Commonwealth Act or a corresponding law, of the proportion of the petroleum recovered from that pool that is, for the purposes of the Commonwealth Act or the corresponding law, to be deemed to have been recovered from the other area; the Supreme Court shall not make a determination under this section that is inconsistent with the determination of the Supreme Court of the other State or of the Northern Territory. (10) Where— (a) a petroleum pool is partly in a licence area and partly in another area, whether in the adjacent area or not, in respect of which another person has authority, whether under this Act, the Commonwealth Act or a corresponding law, to explore for or recover petroleum; and (b) a unit development agreement in accordance with section 59 is in force between the licensee and that other person; and (c) petroleum is recovered from that pool through a well or wells in the licence area, the other area or both; there shall be deemed to have been recovered in the licence area such proportion of all petroleum so recovered as is specified in, or determined in accordance with, the agreement. (11) In this section a reference to a licence, a licensee or a licence area shall be read as including a reference to a permit, a permittee, or a permit area. 8 Points etc. to be ascertained by reference to Australian Geodetic Datum (1) Where, for the purposes of this Act or the regulations, or for the purposes of an instrument under this Act or the regulations, it is necessary to determine the position on the surface of the earth of a point, line or area, that position shall be determined by reference to a spheroid having its centre at the centre of the earth and a major (equatorial) radius of 6378160m and a flattening of 100/29825 and by reference to the position of the Johnston Geodetic Station in the Northern Territory of Australia. (2) That station shall be taken to be situated at 133º, and 30.07 of east longitude and at 25º, and 54.55 of south latitude and to have a ground level of 571.2m above the spheroid referred to in subsection (1). Division 2 Administration of the Commonwealth adjacent area for Queensland 9 Definition for div 2 In this division— Commonwealth Act means, as the context requires— (a) the Offshore Petroleum Act 2006 (Cwlth); or (b) the Offshore Petroleum (Registration Fees) Act 2006 (Cwlth); or (c) Offshore Petroleum (Safety Levies) Act 2006 (Cwlth); or (d) Offshore Petroleum (Royalty) Act 2006 (Cwlth). 10 Minister as member of Joint Authority (1) The Minister may exercise any power which a Commonwealth Act is expressed to authorise the Minister to exercise as a member of the Joint Authority. (2) The Minister shall perform any function which a Commonwealth Act is expressed to require the Minister to perform as a member of the Joint Authority. 11 Minister as Designated Authority The Minister is authorised to perform the functions and exercise the powers which a Commonwealth Act is expressed to require or empower the Designated Authority in respect of the Commonwealth offshore area for Queensland to perform or exercise. 12 Delegations under Commonwealth Act Where, in the exercise of a power which a Commonwealth Act is expressed to confer upon the Designated Authority in respect of the Commonwealth offshore area for Queensland, the Minister delegates a power to a person who is an officer in the public service or who holds any office in the service of the State of Queensland, the person may exercise the power. 13 Public servants performing functions under Commonwealth Act An officer in the public service of Queensland shall perform any function which the Minister, as the Designated Authority in respect of the Commonwealth offshore area for Queensland, or as a member of the Joint Authority, requires the officer to perform in relation to a Commonwealth Act. Part 2 Application of laws 14 Application of laws in area adjacent to State (1) Subject to this Act, the provisions of the laws in force in Queensland, whether written or unwritten, and as in force from time to time, and the provisions of any instrument made under any of those laws, apply in the adjacent area as if the adjacent area were part of the State. (2) The provisions referred to in subsection (1) apply to and in relation to all acts, omissions, matters, circumstances and things touching, concerning, arising out of or connected with— (a) exploring the sea-bed or subsoil of the adjacent area for petroleum, and exploiting the natural resources consisting of petroleum of the sea-bed or subsoil; or (b) conveying petroleum, wherever recovered, across the adjacent area. (3) This section does not— (a) extend to the provisions of any law or instrument— (i) in so far as they expressly provide for the exploration for or operations for the recovery of petroleum; or (ii) in so far as they expressly provide for the construction or operation of pipelines; or (iii) in so far as they are incapable of application in the adjacent area; or (iv) in so far as they are expressed not to extend to or apply in the adjacent area; or (b) operate so as to apply the provisions of any law of the Commonwealth in any part of the adjacent area in which that law applies. (4) The regulations may provide that any provisions referred to in subsection (1) that are specified in the regulations do not apply by reason of this section or apply with prescribed modifications only. (5) Regulations made for the purposes of subsection (4) may provide that prescribed provisions be added to or substituted for any of the provisions referred to in subsection (1). 14A Disapplication of State occupational health and safety laws (1) The prescribed occupational health and safety laws do not apply in relation to any of the following— (a) a facility; (b) a person at a facility; (c) a person near a facility, to the extent the person is affected by— (i) a facility; or (ii) activities taking place at a facility; (d) activities taking place at a facility. (2) For subsection (1), a reference to the prescribed occupational health and safety laws is a reference to the provisions of those laws that, if subsection (1) did not apply, would apply in the adjacent area because of section 14, the cooperative scheme under the Crimes at Sea Act 2001 or the Acts Interpretation Act 1954, section 9. (3) In this section— facility see schedule 3, section 2. prescribed occupational health and safety laws means any of the following to the extent they relate to occupational health and safety— (b) the Electrical Safety Act 2002; (c) the Explosives Act 1999; (d) the Petroleum Act 1923; (e) Work Health and Safety Act 2011; (f) another law of the State that— (i) relates to occupational health and safety, whether or not it also relates to other matters; and (ii) is prescribed for the purpose of this paragraph. (4) Unless it is repealed sooner, a regulation made for the purpose of subsection (3)(f) expires 1 year after it commences. (5) If a regulation is made for the purpose of subsection (3)(f), a later regulation having the same effect may not be made. (6) This section applies despite section 14(1) and (2). 15 Jurisdiction of State courts (1) Subject to this section, the several courts of Queensland are invested with jurisdiction in all matters arising under this Act or the regulations. (2) The jurisdiction with which courts are invested by subsection (1) is invested within the limits (other than limits having effect by reference to localities) of their several jurisdictions whether those limits are as to subject matter or otherwise. (3) The jurisdiction invested in a Magistrates Court or in 1 or more justices of the peace by this section shall not be judicially exercised except by a Magistrates Court constituted by a stipendiary magistrate sitting alone or by a justice who is a stipendiary magistrate. (4) This section does not limit the jurisdiction that a court has apart from this section. Part 3 Mining for petroleum Division 1 Preliminary 16 Delegation (1) The Minister may, either generally or as otherwise provided by the instrument of delegation, by writing signed by the Minister delegate to a person any of the Minister's powers or functions under this Act or the regulations other than this power of delegation. (2) A power or function so delegated, when exercised or performed by the delegate, shall, for the purposes of this Act or the regulations, be deemed to have been exercised or performed by the Minister. (3) A delegation under this section may be expressed as a delegation to the person for the time being holding, or performing the duties of, a specified office under the Commonwealth, a State or a Territory. (4) A delegation under this section made at any time by a person who is at that time the Minister continues in force notwithstanding that at some subsequent time a different person is the Minister or there is no person who is the Minister, but such a delegation may be revoked or varied by any person who is for the time being the Minister. (5) A delegation under this section of a power or function does not prevent the exercise of the power or performance of the function by the Minister. (6) A copy of each instrument making, varying or revoking a delegation shall be published in the gazette. 17 Graticulation of earth's surface (1) For the purposes of this Act, the surface of the earth shall be deemed to be divided— (a) by the meridian of Greenwich and by meridians that are at a distance from that meridian of five minutes, or a multiple of five minutes, of longitude; and (b) by the equator and by parallels of latitude that are at a distance from the equator of five minutes, or a multiple of five minutes, of latitude; into sections, each of which is bounded— (c) by portions of 2 of those meridians that are at a distance from each other of five minutes of longitude; and (d) by portions of 2 of those parallels of latitude that are at a distance from each other of five minutes of latitude. (2) For the purposes of this Act— (a) a graticular section that is wholly within the adjacent area constitutes a block; and (b) if a part only of a graticular section is, or parts only of a graticular section are, within the adjacent area—the area of that part, or of those parts, constitutes a block. (3) In this Act— (a) a reference to a block that is constituted by a graticular section includes a reference to a block that is constituted by the area of a part only, or by the areas of parts only, of a graticular section; and (b) a reference to a graticular section that constitutes a block includes a reference to a graticular section part only of which constitutes, or parts only of which constitute, a block. 18 Reservation of blocks (1) The Minister may, by instrument published in the gazette, declare that a block specified in the instrument (not being a block in respect of which a permit or licence is in force or over or in which there is a pipeline) shall not be the subject of a permit, licence, special prospecting authority or access authority and that a pipeline licence shall not be granted in respect of a pipeline over or in that block. (2) While a declaration under subsection (1) remains in force in respect of a block, a permit, licence, special prospecting authority or access authority shall not be granted in respect of that block and a pipeline licence shall not be granted in respect of a pipeline over or in that block. Division 2 Exploration permits for petroleum 19 Exploration for petroleum A person shall not explore for petroleum in the adjacent area except— (a) under and in accordance with a permit; or (b) as otherwise permitted by this part. Maximum penalty—670 penalty units or imprisonment for 5 years. 20 Advertisement of blocks (1) The Minister may, by instrument published in the gazette— (a) invite applications for the grant of a permit in respect of the block or blocks specified in the instrument; and (b) specify a period within which applications may be made. (2) The Minister may, for reasons that the Minister thinks sufficient, in an instrument under subsection (1), direct that section 21(2) or (3) does not apply, or that both of those subsections do not apply, to or in relation to the applications. (3) Where an instrument is published under subsection (1) and— (a) no application is made within the period specified in the instrument; or (b) after consideration of the applications, a permit— (i) is not granted on any of those applications; or (ii) is granted in respect of some but not all of the blocks specified in the instrument; the Minister may cause a notification accordingly to be published in the gazette and may at any subsequent time receive an application for the grant of a permit in respect of some or all of the blocks specified in the instrument, not being blocks in respect of which a permit was granted. (4) The Minister shall not receive an application under subsection (3) during any period during which an application may be made in pursuance of an invitation under subsection (1). (5) The Minister may, for reasons that the Minister thinks sufficient, upon request in writing served on the Minister, direct that section 21(2) or (3) does not apply, or that both of those subsections do not apply, to or in relation to an application made under subsection (3). 21 Application for permits (1) An application under section 20— (a) shall be in accordance with an approved form; and (b) shall be made in an approved manner; and (c) shall be in respect of not more than 400 blocks; and (d) shall be accompanied by particulars of— (i) the proposals of the applicant for work and expenditure in respect of the blocks specified in the application; and (ii) the technical qualifications of the applicant and of the applicant's employees; and (iii) the technical advice available to the applicant; and (iv) the financial resources available to the applicant; and (e) may set out other matters that the applicant wishes the Minister to consider; and (f) shall be accompanied by a fee of $3000. (2) The number of blocks specified in the application— (a) if 16 blocks or more are available—shall not be less than 16; or (b) if less than 16 blocks are available—shall be the number available. (3) The blocks specified in the application shall be blocks that are constituted by graticular sections that— (a) constitute a single area; and (b) are such that each graticular section in that area has a side in common with at least one other graticular section in that area. (4) The Minister may, at any time, by instrument in writing served on the applicant, require the applicant to furnish, within the time specified in the instrument, further information in writing in connection with the applicant's application. (5) Where a permit is not granted, an amount equal to 9/10 of the fee paid in accordance with subsection (1) shall be refunded to the applicant. 22 Grant or refusal of permit in relation to application (1) Where an application has been made under section 20, the Minister may— (a) by instrument in writing served on the applicant, inform the applicant— (i) that the Minister is prepared to grant to the applicant a permit in respect of the block or blocks specified in the instrument; and (ii) that the applicant will be required to lodge a security for compliance with the conditions to which the permit, if granted, will from time to time be subject and with the provisions of this part and of the regulations; or (b) refuse to grant a permit to the applicant. (2) An instrument under subsection (1) shall contain— (a) a summary of the conditions subject to which the permit is to be granted; and (b) a statement to the effect that the application will lapse if the applicant does not make a request under subsection (3) in respect of the grant of the permit and lodge with the Minister the security referred to in the instrument. (3) An applicant on whom there has been served an instrument under subsection (1) may, within a period of 1 month after the date of service of the instrument on the applicant, or within such further period, not exceeding 1 month, as the Minister, on application in writing served on him or her before the expiration of the first mentioned period of 1 month, allows— (a) by instrument in writing served on the Minister request the Minister to grant to the applicant the permit; and (b) lodge with the Minister the security; referred to in the first mentioned instrument. (4) Where an applicant on whom there has been served an instrument under subsection (1)— (a) has made a request under subsection (3); and (b) has lodged with the Minister the security referred to in the instrument; within the period applicable under subsection (3), the Minister shall grant to the applicant an exploration permit for petroleum in respect of the block or blocks specified in the instrument. (5) Where an applicant on whom there has been served an instrument under subsection (1)— (a) has not made a request under subsection (3); or (b) has not lodged with the Minister the security referred to in the instrument; within the period applicable under subsection (3), the application lapses upon the expiration of that period. 23 Application for permit in respect of surrendered etc. blocks (1) Where— (a) a licence is surrendered or cancelled as to a block or blocks; or (b) a permit is surrendered, cancelled or determined as to a block or blocks and, at the time of the surrender, cancellation or determination, the block was, or was included in, or the blocks were, or were included in, a location; the Minister may, at any subsequent time, by instrument published in the gazette, invite applications for the grant of a permit in respect of that block or such of those blocks as are specified in the instrument and specify a period within which applications may be made. (2) Where an instrument is published under subsection (1) and— (a) no application is made within the period specified in the instrument; or (b) after consideration of the applications, a permit is not granted; in respect of the block or blocks specified in the instrument, the Minister may cause a notification accordingly to be published in the gazette and may, at any subsequent time and without invitation under section 20(1), receive an application for the grant of a permit in respect of the block specified in the instrument or, if more than 1 block was specified in the instrument, in respect of 1 or more of the blocks so specified. (3) The Minister shall not receive an application under subsection (2) during any period during which an application may be made in pursuance of an invitation under subsection (1) or section 20(1). (4) An application under this section— (a) shall be in accordance with an approved form; and (b) shall be made in an approved manner; and (c) shall be accompanied by the particulars referred to in section 21(1)(d); and (d) shall specify an amount that the applicant is prepared to pay to the Minister, in addition to the fee referred to in section 24(1)(a), in respect of the grant of a permit to the applicant on the application; and (e) may set out any other matters that the applicant wishes the Minister to consider. (5) The Minister may, at any time, by instrument in writing served on the applicant, require the applicant to furnish, within the time specified in the instrument, further information in writing in connection with the applicant's application. 24 Application fee etc. (1) An application under section 23 shall be accompanied by— (a) a fee of $3000; and (b) a deposit of 10% of the amount specified in the application under section 23(4)(d). (2) Where a permit is not granted on the application— (a) an amount equal to 9/10 of the fee paid in accordance with subsection (1); and (b) subject to subsection (3), the amount of the deposit; shall be refunded to the applicant. (3) Where an applicant on whom there has been served an instrument under section 25 does not request the Minister in accordance with section 26 to grant to the applicant the permit referred to in the instrument, the deposit shall not, unless the Minister otherwise determines, be refunded to the applicant. 25 Consideration of applications (1) Where, at the expiration of the period specified in an instrument under section 23(1), only 1 application has been made under that subsection in respect of the block or blocks specified in the instrument, the Minister may reject the application or may, by instrument in writing served on the applicant, inform the applicant that the Minister is prepared to grant to the applicant a permit in respect of that block or those blocks. (2) Where, at the expiration of the period specified in an instrument under section 23(1), 2 or more applications have been made under that subsection in respect of the block or blocks specified in the instrument, the Minister may reject any or all of the applications and, if the Minister does not reject all of the applications, may— (a) if only 1 application remains unrejected—by instrument in writing served on the applicant; or (b) if 2 or more applications remain unrejected—by instrument in writing served on the applicant, or on 1 of the applicants, whose application has not been rejected and who has specified as the amount that the applicant is prepared to pay in respect of the grant of a permit to the applicant an amount that is not less than the amount specified by any other applicant whose application has not been rejected; inform the applicant that the Minister is prepared to grant to the applicant a permit in respect of that block or those blocks. (3) Where an application is made under section 23(2), the Minister may reject the application or may, by instrument in writing served on the applicant, inform the applicant that the Minister is prepared to grant to the applicant a permit in respect of the block or blocks specified in the application. (4) Where the Minister serves on an applicant an instrument under this section, the Minister shall, by the instrument, inform the applicant that the applicant will be required to lodge a security for compliance with the conditions to which the permit, if granted, will from time to time be subject and with the provisions of this part and of the regulations. (5) An instrument under this section shall contain— (a) a summary of the conditions subject to which the permit is to be granted; and (b) a statement to the effect that the application will lapse if the applicant does not— (i) make a request under section 26(1); and (ii) pay the balance of the amount to be paid in respect of the grant of the permit to the applicant or enter into an agreement under section 109 in respect of that balance; and (iii) lodge with the Minister the security referred to in the instrument. 26 Request by applicant for grant of permit in respect of advertised blocks (1) An applicant on whom there has been served an instrument under section 25 may, within a period of 3 months after the date of service of the instrument on the applicant, or within such further period, not exceeding 3 months, as the Minister, on application in writing served on him or her before the expiration of the first mentioned period of 3 months, allows— (a) by instrument in writing served on the Minister, request the Minister to grant to the applicant the permit referred to in the first mentioned instrument; and (b) pay the balance of the amount to be paid in respect of the grant of the permit to the applicant or enter into an agreement under section 109 in respect of that balance; and (c) lodge with the Minister the security referred to in the first mentioned instrument. (2) Where an applicant on whom there has been served an instrument under section 25— (a) has not made a request under subsection (1); or (b) has not paid the balance of the amount to be paid in respect of the grant of the permit to the applicant or entered into an agreement under section 109 in respect of that balance; or (c) has not lodged with the Minister the security referred to in the instrument; within the period applicable under subsection (1), the application lapses upon the expiration of that period. (3) Where the application of an applicant on whom there has been served an instrument under section 25(2) lapses as provided by subsection (2), section 25(2) applies in respect of the application or applications (if any) then remaining unrejected. 27 Grant of permit on request Where a person on whom there has been served an instrument under section 25— (a) has made a request under section 26(1); and (b) has paid the balance of the amount to be paid in respect of the grant of a permit to the applicant or has entered into an agreement under section 109 in respect of that balance; and (c) has lodged with the Minister the security referred to in the instrument; within the period applicable under section 25(1), the Minister shall grant to that person an exploration permit for petroleum in respect of the block or blocks specified in the instrument. 28 Rights conferred by permit A permit, while it remains in force, authorises the permittee, subject to this Act and the regulations and in accordance with the conditions to which the permit is subject, to explore for petroleum, and to carry on such operations and execute such works as are necessary for that purpose, in the permit area. 29 Term of permit Subject to this part, a permit remains in force— (a) in the case of a permit granted otherwise than by way of the renewal of a permit—for a period of 6 years commencing on the day on which the permit is granted; and (b) in the case of a permit granted by way of the renewal of a permit—for a period of 5 years commencing on the day on which the permit is granted. 30 Application for renewal of permit (1) Subject to section 31, a permittee may, from time to time, make an application to the Minister for the renewal of the permit in respect of such of the blocks the subject of the permit as are specified in the application. (2) An application for the renewal of the permit— (a) shall be in accordance with an approved form; and (b) subject to subsection (3) shall be made in an approved manner not less than 3 months before the date of expiration of the permit; and (c) shall be accompanied by a fee of $300. (3) The Minister may, for reasons that the Minister thinks sufficient, receive an application for the renewal of the permit less than 3 months before, but not in any case after, the date of expiration of the permit. 31 Application for renewal of permit to be in respect of reduced area (1) Subject to subsection (3), the number of blocks in respect of which an application for the renewal of a permit may be made shall not exceed the number calculated as follows— (a) where the number of blocks in respect of which the permit is in force is a number that is divisible by 2 without remainder—1/2 of that number; (b) where the number of blocks in respect of which the permit is in force is a number that is 1 less or 1 more than a number that is divisible by 4 without remainder—1/2 of that last mentioned number. (2) A block that is, or is included in, a location and in respect of which the permit is in force shall not be regarded as a block in respect of which the permit is in force for the purpose of making a calculation under subsection (1). (3) An application for the renewal of a permit may include, in addition to the blocks referred to subsection (1), a block that is, or is included in, a location and in respect of which the permit is in force, or 2 or more such blocks. (4) The blocks specified in an application for the renewal of a permit shall be blocks that are constituted by, or are within, graticular sections that— (a) constitute a single area or a number of discrete areas; and (b) are such that each graticular section in the area, or in each area, has a side in common with at least 1 other graticular section in that area. (5) Where the number of blocks in respect of which an application for the renewal of a permit may be made is 16 or more, each area constituted by blocks in respect of which the application is made shall be constituted by not less than 16 blocks. (6) Where a maximum number of blocks in respect of which an application for the renewal of a permit may be made in accordance with subsections (1) to (5) is less than 16, the Minister may, by instrument in writing served on the permittee— (a) inform the permittee that the number of blocks in respect of which the application may be made is such number, not exceeding 16, as is specified in the instrument; and (b) give such directions as the Minister thinks fit concerning the blocks in respect of which the application may be made. (7) The Minister may, for reasons that the Minister thinks sufficient— (a) direct that subsections (4) and (5) do not apply to or in relation to a proposed application for the renewal of a permit; and (b) give such directions as the Minister thinks fit concerning the blocks in respect of which that application may be made. 32 Grant or refusal of renewal of permit (1) Where a permittee makes an application for the renewal of a permit, the Minister— (a) shall, if the permittee has complied with the conditions to which the permit is subject and with the provisions of this part and of the regulations; or (b) may, if the permittee has not so complied and the Minister is satisfied that although the permittee has not so complied, special circumstances exist that justify the granting of the renewal of the permit; inform the permittee, by instrument in writing served on the permittee— (c) that the Minister is prepared to grant to the permittee the renewal of the permit; and (d) that the permittee will be required to lodge a security for compliance with the conditions to which the permit, if the renewal is granted, will from time to time be subject and with the provisions of this part and of the regulations. (2) If the permittee has not complied with the conditions to which the permit is subject and with the provisions of this part and of the regulations, and if the Minister is not satisfied that special circumstances exist that justify the granting of the renewal of the permit, the Minister shall, subject to subsection (3), by instrument in writing served on the permittee, refuse to grant the renewal of the permit. (3) The Minister shall not refuse to grant the renewal of the permit unless— (a) the Minister has, by instrument in writing served on the permittee, given not less than 1 month's notice of his intention to refuse to grant the renewal of the permit; and (b) the Minister has served a copy of the instrument on such other persons (if any) as the Minister thinks fit; and (c) the Minister has, in the instrument— (i) given particulars of the reasons for the intention; and (ii) specified a date on or before which the permittee or a person on whom a copy of the instrument is served may, by instrument in writing served on the Minister, submit any matters that he or she wishes the Minister to consider; and (d) the Minister has taken into account any matters so submitted to the Minister on or before the specified date by the permittee or by a person on whom a copy of the first mentioned instrument has been served. (4) An instrument referred to in subsection (1) shall contain— (a) a summary of the conditions to which the permit, on the grant of the renewal, is to be subject; and (b) a statement to the effect that the application will lapse if the permittee does not make a request under subsection (5) and lodge with the Minister the security referred to in the instrument. (5) A permittee on whom there has been served an instrument under subsection (1) may, within a period of 1 month after the date of service of the instrument on the permittee— (a) by instrument in writing served on the Minister request the Minister to grant to the permittee the renewal of the permit; and (b) lodge with the Minister the security referred to in the first mentioned instrument. (6) Where a permittee on whom there has been served an instrument under subsection (1)— (a) has made a request under subsection (5); and (b) has lodged with the Minister the security referred to in the instrument; within the period referred to in subsection (5), the Minister shall grant to the permittee the renewal of the permit. (7) Where a permittee on whom there has been served an instrument under subsection (1)— (a) has not made a request under subsection (5); or (b) has not lodged with the Minister the security referred to in the instrument; within the period referred to in subsection (5), the application lapses upon the expiration of that period. (8) Where— (a) an application for the renewal of a permit has been made; and (b) the permit expires— (i) before the Minister grants, or refuses to grant, the renewal of the permit; or (ii) before the application lapses as provided by subsection (7); the permit shall be deemed to continue in force in all respects— (c) until the Minister grants, or refuses to grant, the renewal of the permit; or (d) until the application so lapses; whichever first happens. 33 Conditions of permit (1) A permit may be granted subject to such conditions as the Minister thinks fit and specifies in the permit. (2) The conditions referred to in subsection (1) may include conditions with respect to— (a) work to be carried out by the permittee in or in relation to the permit area during the term of the permit; or (b) amounts to be expended by the permittee in the carrying out of such work; or (c) both those matters; and the conditions may require the permittee to comply with directions given in accordance with the permit concerning the matters referred to in paragraphs (a) and (b). 34 Discovery of petroleum to be notified (1) Where petroleum is discovered in a permit area, the permittee— (a) shall forthwith inform the Minister of the discovery; and (b) shall, within a period of 3 days after the date of the discovery, furnish to the Minister particulars in writing of the discovery. (2) Where petroleum is discovered in a permit area, the Minister may, from time to time, by instrument in writing served on the permittee, direct the permittee to furnish to the Minister, within the period specified in the instrument, particulars in writing of any 1 or more of the following— (a) the chemical composition and physical properties of the petroleum; (b) the nature of the subsoil in which the petroleum occurs; (c) any other matters relating to the discovery that are specified by the Minister in the instrument. (3) A person to whom a direction is given under subsection (2) shall comply with the direction. Maximum penalty—135 penalty units. 35 Directions by Minister on discovery of petroleum (1) Where petroleum is discovered in a permit area, the Minister may, by instrument in writing served on the permittee, direct the permittee to do, within the period specified in the instrument, such things as the Minister thinks necessary and specifies in the instrument to determine the chemical composition and physical properties of that petroleum and to determine the quantity of petroleum in the petroleum pool to which the discovery relates or, if part only of that petroleum pool is within the permit area, in such part of that petroleum pool as is within the permit area. (2) A person to whom a direction is given under subsection (1) shall comply with the direction. Maximum penalty—135 penalty units. 36 Nomination of block for purposes of declaring location (1) Where a permit is in force in respect of a discovery block (not being a block that is, or is included in, a location) the permittee— (a) may; or (b) shall, if required to do so by the Minister by instrument in writing served on the permittee; by instrument in writing served on the Minister nominate a block in respect of which the permit is in force for the purpose of the making of a declaration under section 37. (2) Where a permittee who has been required, by instrument in writing served on the permittee under subsection (1), to nominate a block does not, within a period of 3 months after the date of service of the instrument on the permittee, or within such further period as the Minister, on application in writing served on the Minister before the expiration of that period of 3 months, allows, nominate the block, the Minister may, by instrument in writing served on the permittee, nominate the block. (3) Where a permittee or the Minister nominates a block under this section, the permittee or the Minister shall specify in the instrument of nomination a discovery block to form part of the location to be declared under section 37, but this subsection does not prevent other discovery blocks in the permit area forming part of the location. (4) A block shall not be nominated under subsection (1) or (2)— (a) if it is, or is included in, a location; or (b) if it is such that, if the block were so nominated and the declaration under section 37 were made, the discovery block specified in the instrument of nomination would not form part of the location. (5) Where a discovery block in a permit area immediately adjoins another discovery block and that other discovery block— (a) is a block— (i) in respect of which the permit is in force; and (ii) that is, or is included in, a location; and (iii) that was specified under subsection (3) in relation to the declaration of that location; or (b) is a block— (i) that was specified under subsection (3) in relation to the declaration of a location; and (ii) in respect of which the permit has ceased to be in force by reason of the operation of section 44(5); the permittee shall not, without the consent of the Minister, specify the first mentioned discovery block under subsection (3). (6) The Minister may, for reasons that the Minister thinks sufficient, refuse to give consent under subsection (5). (7) In this section— discovery block means a block in which petroleum has been discovered. 37 Declaration of location (1) Where a permittee or the Minister has nominated a block under section 36, the Minister shall, by instrument published in the gazette, declare— (a) that block; and (b) such of the blocks that immediately adjoin that block as are blocks in respect of which the permit is in force and are not included in a location; to be a location for the purposes of this part. (2) Where the registered holder of a permit that is in force in respect of a block or blocks declared under subsection (1) to be a location, by instrument in writing served on the Minister, requests that, for the reasons specified in the instrument, the declaration be revoked, the Minister may, if the Minister is of the opinion that those reasons are sufficient to justify the Minister doing so, by instrument published in the gazette, revoke the declaration. 38 Immediately adjoining blocks For the purposes of sections 36 and 37, a block immediately ad