South Australia: Energy Resources Act 2000 (SA)

South Australia Energy Resources Act 2000 An Act to regulate exploration for, and the recovery, production, transmission, storage and management of, certain energy resources, and for other purposes. Contents Part 1—Preliminary Division 1—Formal 1 Short title Division 2—Objects of Act 3 Objects Division 3—Interpretation 4 Interpretation Division 4—Rights of the Crown 5 Rights of the Crown Part 2—Administration Division 1—The Minister 6 Administration 6A Interaction with other legislation 7 Delegation Division 2—Authorised officers 8 Authorised officers 9 Identity cards Division 3—Authorised investigation or survey 9A Authorised investigation or survey Part 3—Licensing regulated activities Division 1—Requirement for licence 10 Regulated activities 11 Requirement for licence Division 1A—Hydraulic Fracturing 11A Moratorium on hydraulic fracturing Division 2—Grant of licence 12 General authority to grant licence 13 Licence classes 13A Licence is not personal property for the purposes of Commonwealth Act Division 3—Preliminary survey licence 14 Preliminary survey licence 15 Term of preliminary survey licence Part 4—Exploration Division 1—Competitive tender regions 16 Minister may declare competitive tender region Division 2—Speculative survey 17 Speculative survey licence 18 Area of speculative survey licence 19 Term of speculative survey licence 20 Consultation preceding grant or renewal of speculative survey licence Division 3—Exploration licences 21 Exploration licences 22 Call for tenders 23 Criteria to be considered for granting exploration licence 24 Areas for which licence may be granted 25 Work program to be carried out by exploration licensee 26 Term and renewal of exploration licence 27 Production of regulated resource under exploration licence Part 5—Retention 28 Retention licences 30 Grant of retention licence 31 Area of retention licence 32 Term of retention licence 33 Work program to be carried out by retention licensee Part 6—Production 34 Production licences 35 Grant of production licence 36 Power to require holder of exploration licence or retention licence to apply for production licence 37 Area of production licence 38 Work program to be carried out by production licensee 39 Requirement to proceed with production 40 Term of production licence 41 Cancellation or conversion of production licence where commercial operations in abeyance 42 Unitisation of production Part 7—Royalty 43 Royalty on regulated resources 44 Penalty for late payment 45 Recovery of royalty Part 7A—Rental 45A Rental payable for utilising natural reservoir for storage 45B Rental return 45C Penalty for late payment 45D Recovery of rental Part 8—Transmission pipelines Division 1—Pipeline licence 46 Rights conferred by pipeline licence 47 Term and renewal of pipeline licence 48 Alteration of pipeline Division 2—Access to pipeline 49 Ministerial power to require access to pipeline Division 3—Special provisions about pipelines 50 Acquisition of land by holder of pipeline licence 51 Pipeline easements 52 Compulsory acquisition of land for pipeline 53 Pipeline to be chattel 54 Inseparability of dealings with pipeline and pipeline land 55 Resumption of pipeline 55A Liability to council rates Part 9—Associated activities 56 Associated activities licence 57 Area of associated activities licence 58 Term of associated activities licence 59 Relationship with other licences Part 9A—Special facilities 59B Special facilities licence 59D Term of special facilities licence 59E Relationship with other licences Part 10—Entry to and use of land 60 Right of entry to land 61 Notice of entry on land 62 Disputed entry 63 Right to compensation 64 Right to require acquisition of land Part 11—General provisions about licences Division 1—General provision about applications 65 Application for licence 66 Preconditions of grant or renewal of licence Division 2—Extent of licence exclusivity 67 Application of Division 68 Extent to which same area may be subject to different licences 69 Grant of compatible licence to area already under licence 70 Interrelationship between rights of licensees under compatible licences 71 Excision of licence areas Division 3—Licence conditions 72 Mandatory conditions 73 Mandatory condition as to use of information etc 73A Mandatory condition as to management system 74 Classification of activities to be conducted under licence 75 Mandatory condition about resources required for compliance with environmental obligations 76 Discretionary conditions 76A Suspension of conditions of licence by agreement 77 Non-compliance with licence conditions Division 4—Annual fees 78 Annual fees Division 5—Reservoir access 79 Access to natural reservoir Division 6—Grant, resumption etc of land 80 Grant, resumption etc of Crown and pastoral land Division 7—Multiple licensees 81 Multiple licensees Division 8—Consolidation and division of licence areas etc 82 Consolidation of licence areas 83 Division of licence areas Division 9—Record keeping and reporting requirements 84 Records to be kept by licensee 85 Reporting of certain incidents 86 Information to be provided by licensee Division 9A—Change in control of holder of licence 86AA Interpretation 86AAB Approval of change in control of holder of licence 86AAC Offences Division 10—General requirements for operations 86A Fitness for purpose assessment 87 Activities to be carried out with due care and in accordance with good industry practice Division 11—Minister's power to carry out work 88 Ministerial direction Division 12—Surrender, suspension or cancellation of licence 89 Surrender 90 Suspension of licence by agreement 91 Disciplinary power to suspend or cancel licence 91A Assignment of liability or obligation of licensee on surrender or cancellation of licence Division 12A—Extension of term or reinstatement of licence 91B Extension of term of licence 91C Reinstatement of licence Division 13—Notice of grant etc of licence 92 Notice to be published in Gazette Division 14—Interference with regulated activities 93 Obligation not to interfere with regulated activities Division 15—Safety net 94 Safety net Part 12—Environment protection Division 1—Objects 95 Objects Division 2—Environmental prerequisites 96 Pre-conditions of regulated activities Division 2A—Environmental impact assessment criteria 96A Environmental impact assessment criteria Division 3—Environmental impact report 97 Environmental impact report Division 4—Statements of environmental objectives 99 Statement of environmental objectives 100 Content of statement of environmental objectives 101 Approval of statement of environmental objectives 102 Review of statement of environmental objectives 103A Specially protected areas 104 Commencement of statement of environmental objectives 105 Licensee must comply with statement of environmental objectives Division 4A—Consultation by Minister 105A Consultation by Minister on environmental impact report and statement of environmental objectives Division 5—The environmental register 106 Environmental register 107 Environmental register to be available for inspection Division 6—General provisions for environmental protection 108 Environmental directions 109 Rehabilitation directions 110 Application for review of direction 111 Liability for damage caused by authorised activities Part 13—Registrable dealings Division 1—Registrable dealings 112 Registrable dealings 113 Requirement for approval and registration of registrable dealings 114 Application for approval Division 2—The public register 115 Public register 116 Public register to be available for inspection Division 3—The commercial register 117 Commercial register 118 Authority to search register Part 14—Investigation and enforcement 119 Authorised investigations 120 Powers of entry and inspection 121 Power to gather information 122 Production of records 123 Publication of results of investigation Part 15—Reconsideration and reviews Division 1—Application of this Part 124 Decisions etc subject to review Division 2—Reconsideration 125 Application for reconsideration 126 Constitution of advisory committee 127 Minister's decision on application for reconsideration Division 3—Reviews 128 Reviews Part 16—Miscellaneous 129 False or misleading information 130 Self‑incrimination 130A Avoidance of duplication of procedures etc 131 Saving of powers with respect to Crown land etc 132 Charge on property if debt due to Crown 133 Proof of administrative acts 134 Extension of time limits 135 Disclosure of information 136 Administrative penalties 137 Preservation of rights under Cooper Basin (Ratification) Act 1975 138 Regulations and fee notices Schedule—Transitional provisions 2 Continuation of licences 3 Preservation of operation of the repealed Act for certain purposes 4 Limitation on certain rights 5 Environmental assessments 6 Statements of environmental objectives 7 Presumptive classification of activities 8 Non-application of certain provisions to certain pipelines Legislative history The Parliament of South Australia enacts as follows: Part 1—Preliminary Division 1—Formal 1—Short title This Act may be cited as the Energy Resources Act 2000. Division 2—Objects of Act 3—Objects The objects of this Act are— (a) to establish an effective, efficient and flexible regulatory scheme to enable the exploration for, and the recovery, production, transmission, storage and management of, energy resources that encourages and maintains an appropriate level of competition; and (b) to ensure that energy rights and resources are managed for the benefit of the State; and (c) to ensure that the exploration for, and the recovery, production, transmission, storage and management of, energy resources is carried out safely and is ecologically sustainable; and (d) to ensure that regulated activities that may have adverse effects on the environment— (i) are properly managed to reduce environmental damage; and (ii) are carried out in a way that eliminates or limits the risk of significant long term environmental damage; and (e) to ensure as far as reasonably practicable, security of supply for users of natural gas; and (f) to ensure that land adversely affected by regulated activities is properly rehabilitated; and (g) to establish appropriate consultative processes with people directly affected by regulated activities including Aboriginal people and the public generally; and (h) to protect the public from risks inherent in regulated activities. Division 3—Interpretation 4—Interpretation (1) In this Act, unless the contrary intention appears— Adelaide Dolphin Sanctuary has the same meaning as in the Adelaide Dolphin Sanctuary Act 2005; administrative penalty—see section 136; approved form means a form approved by the Minister; associated facilities—see section 56(2); authorised activity means a regulated activity authorised by a licence; authorised officer means a person appointed as an authorised officer under section 8; competitive tender region means a part of the State designated as a competitive tender region under section 16; department means the department of the Public Service assigned to assist the Minister in the administration of this Act; discretionary condition of a licence means a condition that is imposed at the discretion of the Minister under this Act; easement includes the statutory easement under the Natural Gas Authority Act 1967; energy resource means— (a) a regulated substance; or (b) a regulated resource; or (c) a resource reasonably necessary for, or incidental to, undertaking a regulated activity; environment includes— (a) land, air, water (including both surface and underground water and sea water), organisms, ecosystems, flora and fauna; and (b) buildings, structures and other forms of infrastructure and cultural artefacts; and (c) existing and potential land use; and (d) public health, safety or amenity; and (e) the heritage, aesthetic or cultural values of an area; and (f) the economic or social impact on an area; ERD Court means the Environment, Resources and Development Court; facility means any of the following that are reasonably necessary for, or incidental to, undertaking a regulated activity: (a) a pipeline or flowline; (b) a road or access track; (c) a borrow pit for construction purposes; (d) any equipment to be used in undertaking a regulated activity (including production testing equipment); (e) a water disposal pond; (f) a well; (g) an airstrip; (h) a power line; (i) telecommunications infrastructure, other than mobile telecommunications equipment; (j) permanent fencing; (k) drilling and well intervention equipment; (l) a camp; (m) any other thing brought within the ambit of this definition by the regulations, but does not include any thing excluded from the ambit of this definition by the regulations; former licensee includes a person who held a licence under the repealed Act; geothermal energy means thermal energy contained in subsurface rock or other subterranean substances; GST means the tax payable under the GST law; GST component means a component attributable to a liability to GST; GST law means— (a) A New Tax System (Goods and Services Tax) Act 1999 (Cwth); and (b) the related legislation of the Commonwealth dealing with the imposition of a tax on the supply of goods and services; joint venture includes a partnership; land includes an estate or interest in land or right in respect of land; leading performance criteria means criteria used to give an early warning that a control or other strategy necessary for compliance with a statement of environmental objectives— (a) is absent; or (b) may fail or be failing; licence means— (a) a speculative survey licence; or (b) an exploration licence (in any of its 4 categories—see section 21); or (c) a retention licence (in any of its 4 categories—see section 28); or (d) a production licence (in any of its 4 categories—see section 34); or (e) a preliminary survey licence; or (f) a pipeline licence; or (g) an associated activities licence; or (h) a special facilities licence; mandatory condition of a licence means a condition that must be imposed under a provision of this Act; marine park has the same meaning as in the Marine Parks Act 2007; Murray-Darling Basin has the same meaning as in the Murray-Darling Basin Act 1993; natural gas means petroleum that is, or would be, gaseous, at Standard Temperature and Pressure; natural reservoir means a part of a geological structure (including one that has been artificially modified)— (a) in which a regulated substance has accumulated; or (b) which is suitable for the storage of a regulated substance; owner of land means each of the following (insofar as may be relevant in the circumstances of the particular case): (a) a person who holds an estate in fee simple in the land; (b) a person who holds a lease or licence over the land issued by the Crown; (c) a person who is in possession of the land under a lease registered in the Lands Titles Registration Office or deposited in the General Registry Office and noted against the land; (d) a person who has, by statute, the care, control or management of the land; (e) a person who holds a tenement over or in relation to the land (including in relation to a stratum of the land), other than a speculative survey licence or a preliminary survey licence; (ea) a person who holds a licence under the Hydrogen and Renewable Energy Act 2023; (f) without limiting a preceding paragraph, a person in actual possession of the land under a right of exclusive possession; (g) a person who— (i) holds native title in the land; or (ii) is the registered representative of claimants to native title within the meaning of the Native Title (South Australia) Act 1994, (with these subparagraphs being in the alternative); (h) a person of a class brought within the ambit of this definition by the regulations; petroleum means a naturally occurring substance consisting of a hydrocarbon or mixture of hydrocarbons in gaseous, liquid or solid state but does not include coal or shale unless occurring in circumstances in which the use of techniques for coal seam methane production or in situ gasification would be appropriate or unless constituting a product of coal gasification (whether produced below or above the ground) for the purposes of the production of synthetic petroleum; pipeline means a pipe or system of pipes for conveying a regulated substance from place to place and includes— (a) tanks, machinery and equipment necessary for, or associated with, its operation; and (b) a part of a pipeline; pipeline land means an interest in land (including an easement) acquired for the construction, maintenance or operation of a transmission pipeline; private land means land alienated from the Crown by the grant of an estate in fee simple or a possessory interest conferring a right to exclusive possession of the land; producing a regulated resource means— (a) in the case of geothermal energy—releasing geothermal energy for an industrial or commercial purpose; and (b) in the case of a natural reservoir—using the natural reservoir for the storage of a regulated substance; producing a regulated substance means recovering or releasing a regulated substance from a natural reservoir in which it has been contained in the course, or as a result, of operations carried out by a person (and production is taken to occur when it reaches ground level); prospectivity of an area means its potential for the discovery of regulated resources; public land means any land that is not private land; record includes the following: (a) a document; (b) geological samples; (c) samples of water or a regulated substance; regulated activity—see section 10; regulated resource means— (a) a naturally occurring underground accumulation of a regulated substance; or (b) a source of geothermal energy; or (c) a natural reservoir; or (d) any other thing brought within the ambit of this definition by the regulations; regulated substance means— (a) petroleum; or (b) hydrogen sulphide; or (ba) hydrogen, including a hydrogen compound or other substance that is a by‑product of the creation of hydrogen; or (c) nitrogen; or (d) helium; or (e) carbon dioxide; or (ea) any other substance that naturally occurs in association with petroleum; or (f) any substance declared by regulation to be a substance to which this Act applies; relevant Act means— (a) in relation to the Adelaide Dolphin Sanctuary—the Adelaide Dolphin Sanctuary Act 2005; or (b) in relation to a marine park—the Marine Parks Act 2007; or (c) in relation to a River Murray Protection Area or the Murray‑Darling Basin—the River Murray Act 2003; relevant court means— (a) where the amount or value of the claim to which the proceedings relate is $150 000 or less—the Warden's Court; or (b) in any other case—the Supreme Court; relevant Minister means— (a) in relation to the Adelaide Dolphin Sanctuary—the Minister to whom the administration of the Adelaide Dolphin Sanctuary Act 2005 is committed; or (b) in relation to a marine park—the Minister to whom the administration of the Marine Parks Act 2007 is committed; or (c) in relation to a River Murray Protection Area or the Murray‑Darling Basin—the Minister to whom the administration of the River Murray Act 2003 is committed; repealed Act means the Petroleum Act 1940; River Murray Protection Area means a River Murray Protection Area under the River Murray Act 2003; specially protected area means— (a) the Adelaide Dolphin Sanctuary; or (b) a marine park; or (c) a River Murray Protection Area; tenement means a lease, licence or other right relating to exploration for, or the production, recovery, management, conveyance, processing or delivery of, minerals or regulated resources (as the case requires) under any of the following: (a) this Act; (b) the Mining Act 1971 or the Opal Mining Act 1995; (c) the Cooper Basin (Ratification) Act 1975, the Roxby Downs (Indenture Ratification) Act 1982 or the Stony Point (Liquids Project) Ratification Act 1981; (d) any other Act brought within the ambit of this definition by the regulations; transmission pipeline means a pipeline for conveying a regulated substance from place to place, but does not include— (a) a pipeline located within the site of an industrial plant; or (b) a pipeline that forms part of a gas distribution system within a city, town or other centre of population or industry; or (c) if a pipeline extends beyond State boundaries—the parts of the pipeline located outside the State; or (d) a pipeline of a kind excluded from the ambit of this definition by the regulations. (2) A reference in this Act to a regulated substance extends to a mixture of substances of which the regulated substance is a constituent part. (3) For the purposes of this Act, the storage of a regulated substance may include circumstances where it is intended that the regulated substance be held indefinitely in a natural reservoir. Division 4—Rights of the Crown 5—Rights of the Crown (1) The property in regulated resources is vested (or continues to be vested) in the Crown. (2) On the production of a regulated substance by a person lawfully entitled to produce the regulated substance, it becomes the property of the person who produced it. (3) The property in a regulated substance placed in a natural reservoir for storage purposes (after being produced or acquired in some other way) is not affected by that placing or storage. Part 2—Administration Division 1—The Minister 6—Administration The Minister has the general administration of this Act. 6A—Interaction with other legislation The Minister must, in acting in the administration of this Act, take into account the following insofar as they may be relevant: (a) the objects and objectives of the Adelaide Dolphin Sanctuary Act 2005; (b) the objects of the Marine Parks Act 2007; (c) the objects of the Landscape South Australia Act 2019; (d) the objects of the River Murray Act 2003 and the Objectives for a Healthy River Murray under that Act. 7—Delegation (1) The Minister may— (a) delegate any of the Minister's powers or functions under this Act to a specified person, or a person holding or acting in a specified office or position; or (b) vary or revoke a delegation under this section. (1a) The Treasurer may— (a) delegate any of the Treasurer's powers or functions under this Act to a specified person, or a person holding or acting in a specified office or position; or (b) vary or revoke a delegation under this section. (2) If the terms of an instrument of delegation allow for subdelegation, the delegate may subdelegate the power or function in accordance with the instrument. (3) A delegation or subdelegation does not prevent the exercise of a delegated power or function by the delegator. (4) Notice of a delegation or subdelegation, or the variation or revocation of a delegation or subdelegation, under this section is to be published in the Gazette. Division 2—Authorised officers 8—Authorised officers (1) The Minister may, by instrument in writing, appoint a person to be an authorised officer under this Act. (2) An appointment under this section may be subject to conditions set out in the instrument of appointment. (3) Without limiting this section, a person appointed as an inspector under the Work Health and Safety Act 2012 will be taken to have been appointed as an authorised officer under this section. 9—Identity cards (1) Subject to subsection (3), the Minister must issue to each authorised officer an identity card— (a) stating the name of the authorised officer; and (b) containing a photograph of the authorised officer; and (c) stating that the person whose name and photograph appear on the card is an authorised officer for this Act. (2) If an authorised officer proposes to exercise powers under this Act against a person, the authorised officer must, if practicable, produce the identity card for inspection. (3) If an authorised officer is an inspector under the Work Health and Safety Act 2012— (a) the Minister is not required to issue an identity card to the inspector; and (b) for the purposes of subsection (2), a reference to an identity card will be taken to include an identity card issued to the inspector under section 157 of that Act. Division 3—Authorised investigation or survey 9A—Authorised investigation or survey (1) Subject to this section, an authorised person may, for the purpose of making any geological, geophysical or geochemical investigation or survey— (a) enter and remain on any land with such assistants, vehicles and equipment as may be necessary or expedient for the purposes of the investigation or survey; and (b) conduct such an investigation or survey on the land; and (c) take, and remove from the land, any geological specimens or samples. (2) An authorised person must not undertake an investigation or survey under this section unless the authorised person has, at least 14 days before entering the land, given written notice, in a manner and form determined by the Minister, to the owner of land and any licensee in respect of an area of land in which the investigation or survey will be undertaken— (a) describing the area of land in which the investigation or survey will be undertaken; and (b) setting a completion date in respect of the investigation or survey. (3) An authorised person— (a) must not recover from any land more material than is reasonably necessary for the purpose of making the relevant investigation or survey; and (b) must not unnecessarily impede or obstruct the lawful use or enjoyment of any land by an owner of the land; and (c) if the authorised person is not the Minister—must provide the Minister with the results of the investigation or survey conducted by the person in a manner, and within a period, specified by the Minister in the notice of authorisation. (4) The Minister must, at least 14 days before an authorised person undertakes an investigation or survey under this section, by notice in the Gazette— (a) describe the area of land in which the investigation or survey will be undertaken; and (b) set a completion date in respect of the investigation or survey. (5) The Minister may vary the completion date set under subsection (4)(b) by further notice in the Gazette, and must notify the owner of land and any licensee in respect of the area of land in which the investigation or survey is being undertaken of the varied completion date. (6) The Minister may refuse to receive and consider an application for a licence under this Act in respect of the land described in a notice under subsection (4) until the completion date set by the Minister. (7) The Minister may publish, in a manner the Minister thinks fit, the results of an investigation or survey made under this section. (8) A person must not, without reasonable excuse, hinder or obstruct a person exercising a power under this section. Maximum penalty: $20 000 or imprisonment for 6 months. (9) In this section— authorised person means a person authorised by the Minister by notice in the Gazette to undertake an investigation or survey under subsection (1). Part 3—Licensing regulated activities Division 1—Requirement for licence 10—Regulated activities (1) Subject to subsection (2), the following are regulated activities: (a) exploring for a regulated resource; (b) operations to establish the nature and extent of a discovery of a regulated resource, and to establish the commercial feasibility of production and the appropriate production techniques; (c) producing or processing a regulated substance; (d) utilising a natural reservoir to store a regulated substance (including in a case where a trace element naturally occurs with the regulated substance); (e) producing geothermal energy; (f) producing or generating energy from a source of geothermal energy; (g) constructing, operating, maintaining, modifying or decommissioning a transmission pipeline; (h) activities for the rehabilitation of land on account of the impact of activities under a preceding paragraph; (i) any other activity brought within the ambit of this definition by the regulations; (2) The following are not regulated activities: (a) an authorised investigation or survey under section 9A; (b) exploratory operations conducted at a height of 500m or more above the surface of the ground; (c) producing hydrogen— (i) by means of natural gas reformation; or (ii) by means of electrolysis of water; (d) processing petroleum into a refined petroleum product such as motor fuel, diesel or lubricating oils; (e) processing a regulated substance into urea, ammonia or a synthetic polymer. (3) A reference to a regulated activity includes all operations and activities reasonably necessary for, or incidental to, that activity such as (for example)— (a) physical and geophysical surveys of land (other than as authorised under section 9A); (c) the injection of water or some other substance into a natural reservoir in order to enhance production of a regulated substance; (d) forcing water or some other substance through a source of geothermal energy in order to absorb thermal energy and enable its recovery or utilisation at the surface; (e) the processing of substances recovered from a well; (f) constructing, operating, maintaining, modifying or decommissioning a facility; (i) water disposal. 11—Requirement for licence A person must not engage in a regulated activity unless the activity is authorised under this Act. Maximum penalty: $120 000. Division 1A—Hydraulic Fracturing 11A—Moratorium on hydraulic fracturing (1) Despite any other provision of this Act, the Minister must not, during the prescribed period, grant a licence under this Act that authorises the carrying out of hydraulic fracturing within the designated area. (2) A condition of a licence that purports to authorise the carrying out of hydraulic fracturing will be taken to be void and of no effect. (3) Subsection (2) applies to a licence granted before or after the commencement of this section. (4) No compensation is payable by or on behalf of the Crown, the Minister or any other person in connection with the operation of this section. (5) In this section— designated area means the area comprised of the following council areas: (a) the area of the City of Mount Gambier; (b) the area of the District Council of Grant; (c) the area of the Kingston District Council; (d) the area of the Naracoorte Lucindale Council; (e) the area of The District Council of Robe; (f) the area of The Tatiara District Council; (g) the area of the Wattle Range Council; hydraulic fracturing means the high‑pressure injection of a substance or a combination of substances into a wellbore so as to create, or that is likely to create, fractures in rocks or rock formations; prescribed period means the period beginning on the commencement of this section and ending on the tenth anniversary of that commencement; wellbore includes a reference to a hole, tunnel or well drilled into the ground to aid in the exploration and recovery of natural resources. Division 2—Grant of licence 12—General authority to grant licence (1) The Minister may, subject to this Act, grant a licence. (2) If an application for the grant or renewal of a licence relates to an area within or adjacent to a specially protected area, the Minister must, before making his or her decision on the application, refer the application to the relevant Minister and consult with the relevant Minister in relation to the matter. (3) If an application for the grant or renewal of a licence is referred to a relevant Minister and the Minister to whom the administration of this Act is committed and the relevant Minister cannot agree— (a) on whether a licence should be granted or renewed; or (b) if a licence is granted or renewed, on the conditions to which the licence should be subject, the Ministers must take steps to refer the matter to the Governor and the Governor will determine the matter (and any decision taken by the Governor will be taken to be a decision of the Minister under this Act). 13—Licence classes Licences are of the following classes: (a) preliminary survey licence; and (b) speculative survey licence; and (c) exploration licence (with 4 categories of licence under this Act); and (d) retention licence (with 4 categories of licence under this Act); and (e) production licence (with 4 categories of licence under this Act); and (f) pipeline licence; and (g) associated activities licence; and (h) special facilities licence. 13A—Licence is not personal property for the purposes of Commonwealth Act A licence is not personal property for the purposes of the Personal Property Securities Act 2009 of the Commonwealth. Division 3—Preliminary survey licence 14—Preliminary survey licence (1) A preliminary survey licence authorises the licensee to carry out a survey, environmental evaluation, or other form of assessment preparatory to the carrying out of regulated activities on land. (2) A preliminary survey licence may authorise incidental matters such as (for example) marking out the proposed route of a pipeline on land. (3) The rights conferred on the holder of a preliminary survey licence are not exclusive. (4) The Minister may, on application by a licensee holding a preliminary survey licence, approve the variation of the area to which the licence relates. 15—Term of preliminary survey licence (1) The term of a preliminary survey licence is 1 year. (2) A preliminary survey licence may be renewed from time to time for a further term. Part 4—Exploration Division 1—Competitive tender regions 16—Minister may declare competitive tender region (1) The Minister may, by notice in the Gazette, declare the whole or an area of the State specified in the notice as a competitive tender region in respect of exploration for energy resources. (2) A declaration under subsection (1)— (a) must specify the energy resource in relation to which the competitive tender region is to be declared; and (b) must specify whether the declaration is in respect of the whole State or a designated area specified in the notice; and (c) has effect from the day or for the period specified in the notice. (3) If a declaration of a competitive tender region under this section is in force— (a) an application for an exploration licence for an energy resource specified in the declaration in respect of the declared area must not be made except in response to a call for tenders under section 22; and (b) a right of exploration must not be granted for exploration for an energy resource not specified in the declaration in respect of the declared area. Division 2—Speculative survey 17—Speculative survey licence (1) A speculative survey licence authorises the licensee to carry out exploratory operations of the kind specified in the licence in the licence area. (2) A speculative survey licence cannot authorise drilling beyond a depth of 300 metres. (3) The right to carry out exploratory operations conferred by a speculative survey licence is not an exclusive right. 18—Area of speculative survey licence (1) A speculative survey licence may be granted for 1 or more separate areas. (2) However, the total area of a speculative survey licence cannot exceed 10 000 km2. 19—Term of speculative survey licence (1) The term of a speculative survey licence is 1 year. (2) A speculative survey licence may be renewed, from time to time, for a further term. 20—Consultation preceding grant or renewal of speculative survey licence Before a speculative survey licence is granted or renewed over the area, or part of the area, of an existing licence, the applicant for the speculative survey licence must— (a) consult with the existing licensee and seek to reach agreement on the activities to be carried out under the speculative survey licence on the area that is to be subject to both licences; and (b) inform the Minister of the result of the consultation. Division 3—Exploration licences 21—Exploration licences (1) There will be 4 categories of exploration licence: (a) a petroleum exploration licence; (b) a geothermal exploration licence; (c) a gas storage exploration licence; (d) a regulated substance exploration licence. (2) An exploration licence authorises subject to its terms the licensee to carry out in the licence area— (a) exploratory operations for energy resources of the kind specified in the licence; and (b) with respect to the energy resources so specified—operations— (i) to establish the nature and extent of a discovery of regulated resources; (ii) to establish the feasibility of production and appropriate production techniques. (3) A licensee who holds an exploration licence is entitled, subject to this Act, to the grant of a corresponding retention licence or a corresponding production licence for an energy resource discovered in the licence area. 22—Call for tenders (1) If an exploration licence is to be granted for an area within a competitive tender region, the Minister must call for tenders for an exploration licence of the relevant category (taking into account the regulated resources with respect to which the region has been declared). (2) The Minister has a discretion to call for tenders for an exploration licence in other cases. (3) A call for tenders is made by notice published in the Gazette inviting applications for the grant of an exploration licence of the relevant category for an area specified in the notice. (4) The notice— (a) must specify a period within which applications are to be made; and (b) must state the criteria by reference to which applications are to be evaluated; and (c) may include information about any special terms and conditions subject to which the exploration licence is to be granted; and (d) may include other information the Minister considers appropriate. (5) The selection of an applicant is not complete until the applicant executes the licence. (6) On the selection of a successful applicant from among those who apply in response to an advertisement under this section, the Minister must— (a) publish in the Gazette a statement of the basis for the selection of the successful applicant, including the successful applicant's proposed work program; and (b) give any unsuccessful applicant written notice of the reasons for the rejection of the application. 23—Criteria to be considered for granting exploration licence In considering an application for the grant of an exploration licence, the Minister must have regard to— (a) the suitability of applicant's proposed work program for evaluating the prospectivity of the licence area and discovering regulated resources; and (b) the adequacy of the applicant's technical and financial resources; and (c) if applications have been invited for the licence by public advertisement—the stated criteria for evaluation of the applications. 24—Areas for which licence may be granted (1) An exploration licence may be granted for 1 or more separate areas. (2) However, the total licence area cannot exceed— (a) in the case of a gas storage exploration licence—2 500 km2; (b) in the case of a geothermal exploration licence—3 000 km2; (c) in the case of a petroleum exploration licence or a regulated substance exploration licence—10 000 km2. 25—Work program to be carried out by exploration licensee (1) It is a mandatory condition of an exploration licence that the licensee must carry out work in the licence area in accordance with a work program approved by the Minister. (2) A proposed work program is to be submitted for the Minister's approval with an application for the grant or renewal of an exploration licence. (3) The Minister may approve the proposed work program with or without addition or variation. (4) The Minister may approve deferment, variation or reduction of the work to the carried out under an approved work program. (4a) However, Ministerial approval is not required for the acceleration of the work to be carried out under an approved work program. (5) If a licence was granted on the basis of competitive tender, the Minister— (a) must, before approving deferment, variation or reduction of the work to be carried out under an approved work program—have regard to work programs proposed by other applicants for the licence; and (b) must publish in the Gazette notice of the approval stating the effect of the approval. (6) The Minister may, as a condition of approving the reduction or deferment of work under subsection (4), require the licensee to relinquish a specified portion of the licence area. 26—Term and renewal of exploration licence (1) The term of an exploration licence is 5 years or such term of less than 5 years as specified by the Minister in a particular case. (2) An exploration licence may be granted on terms under which the licence is to be renewable for a further term or 2 further terms (as specified by the Minister at the time of the grant of the licence). (3) Subject to a succeeding subsection, a licence that is renewable for one further term must provide for the excision, on renewal, of an area equal to at least 50% of the original licence area and a licence that is renewable for 2 further terms must provide for the excision, on each renewal, of an area equal to at least 33⅓% of the original licence area. (4) The area to be excised is to be determined by the Minister— (a) if the licensee puts a proposal to the Minister in the application for renewal of the licence and the Minister accepts the proposal—on the basis of that proposal; or (b) in any other case—after the Minister has put a proposal to the licensee and has considered any representations made by the licensee within 14 days after notice of the proposal is given to the licensee. (5) The Minister must accept the licensee's proposal under subsection (4)(a) if it reasonably allows for the grant of new exploration licences over the area or areas to be excised. (5a) Subsections (3), (4) and (5) do not apply in relation to a gas storage exploration licence. (5b) The area to be subject to an excision under subsection (3) will be reduced by an amount equal to the area of any production licence or retention licence granted during the immediately preceding term of the exploration licence. (6) When a licence falls due for renewal, the licensee, if not in default under the licence, is entitled to the renewal of the licence in accordance with the terms of the licence. 27—Production of regulated resource under exploration licence (1) The holder of a petroleum exploration licence or a regulated substance exploration licence may produce a regulated substance from a well in the licence area for the purpose of establishing the nature and extent of a discovery. (1a) The holder of a geothermal exploration licence may produce geothermal energy from a well in the licence area for the purpose of establishing the nature and extent of a discovery. (2) However, the licensee must not produce a regulated resource from a well for more than 10 days in aggregate without the Minister's approval. Maximum penalty: $20 000. (2a) The holder of a gas storage exploration licence may place a regulated substance in a natural reservoir for the purpose of establishing the suitability of the natural reservoir for storage purposes. (3) The Minister may grant an approval under this section on conditions the Minister considers appropriate. Part 5—Retention 28—Retention licences (1) There will be 4 categories of retention licence: (a) a petroleum retention licence; (b) a geothermal retention licence; (c) a gas storage retention licence; (d) a regulated substance retention licence. (2) A retention licence protects the interests of the licensee in a regulated resource of the kind relevant to the category of the licence for a reasonable period in connection with 1 or more of the following purposes: (a) to facilitate— (i) proper evaluation of the productive potential of a discovery that has been made by the licensee; or (ii) carrying out the work necessary to bring the discovery to commercial production; or (iii) without limiting a preceding subparagraph, in the case of a gas storage retention licence—the testing of the natural reservoir for the storage of a regulated substance; (b) without limiting paragraph (a), to provide a means by which the licensee may maintain an interest in a regulated resource until production is commercially feasible (subject to limits and conditions under this Act); (c) to facilitate other activities considered appropriate by the Minister. (3) Accordingly, a retention licence authorises the licensee to carry out in the licence area (according to the terms of the licence)— (a) operations to establish the nature and extent of a discovery of regulated resources; and (b) operations to establish the commercial feasibility of production and appropriate production techniques; and (c) other regulated activities specified in the licence. 30—Grant of retention licence (1) Subject to this Act, a person is, on application, entitled to the grant of a petroleum retention licence, a regulated substance retention licence or a geothermal retention licence in respect of a discovery of a relevant resource if— (a) a regulated resource has been discovered in the area for which the retention licence is to be granted and the existence of the regulated resource has been demonstrated by the drilling of at least one well; and (b) the person holds, or held at the time of the application for the retention licence, an exploration licence or a production licence over the area for which the retention licence is to be granted; and (c) the exploration licence or production licence authorised exploration for or production of a regulated resource of the relevant kind; and (d) the Minister is satisfied that production of the regulated resource is not currently commercially feasible, but is more likely than not to become commercially feasible within 15 years. (1a) Subject to this Act, a person is, on application, entitled to the grant of a gas storage retention licence in respect of a natural reservoir if the Minister is satisfied as to 1 or both of the following: (a) that it is reasonable to facilitate the testing of the natural reservoir for the storage of a regulated substance; (b) that the use of the natural reservoir for the storage of a regulated substance is not currently commercially feasible or reasonable (including by virtue of the fact that production of a regulated substance from a related area is not currently commercially feasible). (2) If the holder of an exploration or production licence is in default under the terms of the licence, the Minister may decline to grant a retention licence until the default is remedied. 31—Area of retention licence (1) The area of a petroleum retention licence or regulated substance retention licence must not exceed— (a) twice the area under which (according to a reasonable estimate at the time when the licence was granted or last renewed) the discovery is likely to extend; or (b) 10 000 km², whichever is the lesser. (2) The area of a geothermal retention licence or gas storage retention licence must not exceed 1 000 km2. 32—Term of retention licence (1) The term of a retention licence is 5 years or such term of less than 5 years as specified by the Minister in a particular case. (2) A retention licence may be renewed from time to time for a further term but only if the Minister is satisfied that production is not currently commercially feasible but is more likely than not to become commercially feasible within the next 15 years. (3) However, in the case of a gas storage retention licence it is unnecessary to be satisfied as to the 15 year period referred to in subsection (2) unless the Minister assesses or determines that the natural reservoir is more likely than not to be used in connection with the production of petroleum. (4) Subsection (3) does not derogate from the operation of section 36 or 79. 33—Work program to be carried out by retention licensee (1) A retention licence may include a mandatory condition requiring the licensee to carry out work, in accordance with a work program approved by the Minister, for either or both of the following purposes: (a) to establish the nature and extent of a discovery of regulated resources; (b) to establish the commercial feasibility of production and appropriate production techniques. (2) A work program to be carried out under the licence must, if the Minister so requires, be submitted with the application for the licence and from time to time as required under the conditions of the licence. (3) The Minister may approve a proposed work program with or without addition or variation. (4) The Minister may, on application by a licensee— (a) approve deferment of the work to be carried out under an approved work program; and (b) approve variation of the work program by substitution for work previously programmed of work that is, in the Minister's opinion, of equal or greater value. (5) To avoid doubt, Ministerial approval is not required for the acceleration of work to be carried out under an approved work program. Part 6—Production 34—Production licences (1) There will be 4 categories of production licence: (a) a petroleum production licence; (b) a geothermal production licence; (c) a gas storage licence; (d) a regulated substance production licence. (2) A petroleum production licence authorises, subject to its terms— (a) operations for the recovery of petroleum or some other regulated substance from the ground including— (i) operations involving the injection of petroleum or another substance into a natural reservoir for the recovery (or enhanced recovery) of petroleum or another regulated substance; and (ii) if the licence so provides—the extraction of petroleum or another regulated substance by an artificial means such as in situ gasification or the techniques used to recover coal seam methane; (b) operations for the processing of regulated substances; (c) operations for the storage or withdrawal of petroleum or some other regulated substance for the prudent supply or delivery of the petroleum or other regulated substance to the market. (3) A geothermal production licence authorises, subject to its terms, operations for the extraction or release of geothermal energy. (4) A gas storage licence authorises, subject to its terms— (a) operations for the use of a natural reservoir for the storage of a regulated substance; and (b) operations for the withdrawal of that substance from a natural reservoir. (4a) A regulated substance production licence authorises, subject to its terms, operations of a kind prescribed by the regulations associated with the production of a regulated substance. (5) A production licence also authorises (subject to its terms) the licensee to carry out other regulated activities within the licence area. 35—Grant of production licence (1) Subject to this Act, a person is, on application, entitled to the grant of a production licence for the production of a regulated resource of a particular kind if— (a) a regulated resource exists in the area for which the production licence is to be granted; and (b) the person holds, or held at the time of the application for the production licence— (i) an exploration licence or a retention licence over the area for which the production licence is to be granted; or (ii) a mineral tenement under the Mining Act 1971 over the area for which the production licence is to be granted; and (c) — (i) in a case where paragraph (b)(i) applies—the exploration licence authorised exploration for a regulated resource of the relevant kind or the retention licence was granted for a regulated resource of the relevant kind; (ii) in a case where paragraph (b)(ii) applies—the mineral tenement authorised operations for exploration for or the recovery of coal and the production licence is to be granted for in situ gasification or coal seam methane production (and other related activities as the Minister considers appropriate); and (d) production is currently commercially feasible or is more likely than not to become commercially feasible within the next 24 months. (2) If the holder of an exploration or retention licence is in default under the terms of the licence, the Minister may decline to grant a production licence until the default is remedied. (3) If— (a) the Minister is satisfied that— (i) a regulated resource exists in a particular area; and (ii) production is currently commercially feasible or is more likely than not to become commercially feasible within the next 24 months; but (b) there is no person who is currently entitled to the grant of a production licence under subsection (1), the Minister may call for tenders for the grant of a production licence and grant a production licence to the applicant who submits the successful tender. (3a) Subsection (3) does not apply if the Minister has entered into a safety net agreement under section 94 in relation to a production licence in respect of a regulated resource in the particular area referred to in subsection (3)(a)(i). (4) Subsections (1)(b) and (c) do not apply if the application is for a gas storage licence. (5) If a person applies for a gas storage licence that is within the area of an existing production licence (the first application), the Minister must— (a) as soon as practicable after receiving the first application, give written notice of the application to the holder of the existing production licence; and (b) if the holder of the existing production licence applies for a gas storage licence within the area of their licence within a period (which must be at least 6 months) specified by the Minister in the notice given under paragraph (a)—consider the application made by the holder of the existing production licence before considering the first application. 36—Power to require holder of exploration licence or retention licence to apply for production licence (1) The Minister may, after consultation with the holder of an exploration licence or a retention licence, give a written notice to the holder stating that— (a) production of a regulated resource is, in the Minister's opinion, currently commercially feasible within the whole or a specified part of the licence area; and (b) the holder of the licence should apply for a production licence of the relevant category for the relevant area within a period (which must be at least 6 months) stated in the notice. (2) If the holder of the licence does not apply for a production licence for the relevant area within the time stipulated in the notice, the Minister may— (a) excise the relevant area from the exploration or retention licence; and (b) call for tenders for the grant a production licence for the relevant area; and (c) grant a production licence to the applicant who submits the successful tender. 37—Area of production licence (1) The area of a petroleum production licence or regulated substance production licence must not exceed either of the following limits: (a) twice the area under which (according to a reasonable estimate at the time of granting the licence) the discovery is more likely than not to extend; (b) 100 km2. (2) The area of a geothermal production licence or gas storage licence must not exceed 1 000 km2. 38—Work program to be carried out by production licensee (1) A production licence may include a condition requiring the licensee to carry out work— (a) for the development of the licence area; and (b) for the production of regulated resources, in accordance with a work program approved by the Minister. (2) If a production licence includes such a condition, a proposed work program must be submitted for the Minister's approval from time to time as required under the relevant licence condition. (3) The Minister may approve a proposed work program with or without addition or variation. (4) The Minister may, on application by the licensee, vary an approved work program. (5) However, Ministerial approval is not required for the acceleration of the work to be carried out under an approved work program. 39—Requirement to proceed with production (1) The holder of a production licence must, subject to this Act, proceed with operations for production of the relevant regulated resources— (a) with due diligence; and (b) in accordance with the conditions of the licence. Maximum penalty: $60 000. (2) If operations for production of the relevant regulated resource have not commenced within 24 months after the grant of the production licence, the Minister may, by written notice given to the holder of the licence, require the holder of the licence to commence the operations. (3) If, in the Minister's opinion, production from the area of a production licence is practicable and commercially feasible, the Minister may, by written notice given to the licensee, require the licensee to undertake or continue operations in accordance with requirements specified in the notice until the licensee satisfies the Minister that the operations are no longer practicable or commercially feasible. (4) A notice under subsection (3) may require production from the area comprised in a production licence at a rate that is no less than a rate specified in the notice. (5) If the holder of a production licence fails to proceed with operations for production of a regulated resource as required under the terms of the licence or by notice under this section (and has not entered into arrangements, satisfactory to the Minister, for future production), the Minister may, by written notice to the licensee, cancel the licence. 40—Term of production licence A production licence is to be granted for an unlimited term. 41—Cancellation or conversion of production licence where commercial operations in abeyance (1) If operations resulting in production from the licence area on a commercial basis have not been carried on within the area of a production licence for 24 months or more (and the licensee has not entered into arrangements, satisfactory to the Minister, for commencing or resuming such operations at a reasonable future time), the Minister may, by written notice to the licensee— (a) convert the licence into a retention licence; or (b) cancel the licence. (2) Before cancelling a licence under this section, the Minister must give the licensee a reasonable opportunity to make representations about the proposed action. 42—Unitisation of production (1) If the Minister is satisfied that— (a) a natural reservoir containing, or suitable for storage of, a regulated substance extends beyond the area of a production licence; and (b) the adjacent area is covered by an exploration, retention or production licence held by a different person, the Minister may, by written notice given to the holders of the respective licences, require them to enter into negotiations with a view to establishing a scheme for working or using the relevant areas as a single unit. (2) If the holders of the licences fail to reach agreement on the terms of such a scheme within a reasonable time, the Minister may, by written notice given to the licensees, establish such a scheme. (3) Before the Minister establishes a scheme under this section, the Minister must allow the holders of the licences affected by the scheme a reasonable opportunity to make submissions on the terms of the scheme. (4) A scheme under this section is binding on the holders, for the time being, of the licences affected by the scheme. Part 7—Royalty 43—Royalty on regulated resources (1) The holder of a licence must pay to the Crown a royalty equivalent to the prescribed percentage of the value (at the well head) of a regulated resource produced from land comprised in the licence. (2) The prescribed percentage is— (a) for a regulated substance—10%; (b) for geothermal energy—2.5%. (3) Royalty is not payable on the following: (a) a regulated substance that— (i) has been placed in a natural reservoir in the area of a production licence for storage purposes; or (ii) has been destroyed or dissipated in accordance with sound production practice; or (iii) is to be used in the course of productive operations, or for purposes incidental to productive operations, that the producer carries out in the State and are associated with production of a regulated substance in the State; and (b) geothermal energy that is dissipated before it reaches the point of delivery to the purchaser. (4) A licensee must, by the last day of the month immediately following each month in which a regulated substance or geothermal energy is produced, provide the Minister with a return for the relevant month setting out— (a) the quantity of the regulated substance or energy produced; and (b) the quantity of any regulated substance or energy sold, and the amount realised on sale; and (c) any other relevant information required by the Treasurer after consultation with the Minister. Administrative penalty. (5) A return must be accompanied by the royalty payable by the licensee in respect of the month to which the return relates. (5a) The Treasurer may, after consultation with the Minister— (a) determine that a requirement of subsection (4) or (5) will not apply to a particular licensee or class of licensee; and (b) impose, by notice to the particular licensee or by notice in the Gazette, such other requirements on the licensee or those licensees as may be appropriate in the circumstances. (5b) The Treasurer may, after consultation with the Minister, by further notice, vary or revoke requirements imposed under subsection (5a), or impose new requirements. (6) The value at the well head of a regulated substance is a value calculated by subtracting from the price (exclusive of any GST component) that could reasonably be realised on sale of the substance to a genuine purchaser at arms length from the producer all reasonable expenses (exclusive of any GST component) reasonably incurred by the producer— (a) in treating processing or refining the substance; and (b) in transporting the substance from the well head to the point of delivery. (7) The value at the well head of geothermal energy is a value calculated by subtracting from the price (exclusive of any GST component) that could reasonably be realised on sale of the energy to a genuine purchaser at arms length from the producer all reasonable expenses (exclusive of any GST component) reasonably incurred by the producer in getting the energy to the point of delivery to the purchaser. (8) The value at the well head of a regulated substance or geothermal energy is to be assessed by the Treasurer after consultation with the Minister. (9) The Treasurer may, after consultation with the Minister, on application by the producer or on the Treasurer's own initiative after consultation with the Minister, review and revise an earlier assessment of the value at the well head of a regulated substance or geothermal energy. (10) The Supreme Court may, on appeal by the producer, vary the Treasurer's assessment. (11) In any other proceedings, the Treasurer's assessment is to be taken as conclusive evidence of the value of a regulated substance or geothermal energy at the well head. (12) The regulations may provide that the whole or a prescribed proportion of a fee of a prescribed class payable by licensees under this Act may be taken to be a reasonable expense for the purposes of subsection (6). (13) The Treasurer may, after consultation with the Minister, reduce or waive royalty payable by a licensee under this section— (a) in respect of a regulated substance or a regulated resource prescribed by the regulations; or (b) in prescribed circumstances. 44—Penalty for late payment (1) If a licensee fails to pay royalty as and when required by or under this Part— (a) the amount in arrears will, unless the Treasurer determines otherwise, be increased by penalty interest at the prescribed rate; and (b) the Treasurer may impose on the licensee a fine of an amount fixed by the Treasurer up to a limit of $1,000 or 10% of the outstanding royalty, whichever is the greater. (2) The Treasurer may, after consultation with the Minister, for any proper reason remit penalty interest or a fine imposed under subsection (1) wholly or in part. 45—Recovery of royalty Royalty (and any penalty interest or fine imposed by the Treasurer under this Part) may be recovered as a debt due to the Crown. Part 7A—Rental 45A—Rental payable for utilising natural reservoir for storage (1) This secti