Tasmania: Petroleum (Submerged Lands) Act 1982 (Tas)

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 certain submerged lands adjacent to the coast of the State of Tasmania and to provide for related matters [Royal Assent 30 June 1982] 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 of the Continental Shelf signed at Geneva on 29th April 1958 in which those rights are defined: And whereas by the Seas and Submerged Lands Act 1973 of the Commonwealth it is declared and enacted that the sovereignty in respect of the territorial sea of Australia and in respect of the air space over it and in respect of its sea-bed and subsoil, and the sovereignty in respect of certain internal waters of Australia and in respect of the air space over those waters and in respect of the sea-bed 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 sea-bed and subsoil referred to in the last preceding paragraph 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 sea-bed 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 16th October 1967 – (A) 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 3 nautical miles), and the States and the Northern Territory should share in the administration of that legislation; (B) 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) ; (C) 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 (D) 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; Be it therefore enacted by His Excellency the Governor of Tasmania, by and with the advice and consent of the Legislative Council and House of Assembly, in Parliament assembled, as follows: PART I - 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. Commencement (1) This Act shall commence on the day on which the Petroleum (Submerged Lands) Amendment Act 1980 of the Commonwealth comes into operation. (2) The Minister shall as soon as is practicable after the commencement of this Act cause notice of the commencement to be published in the Gazette. 3. Interpretation (1) In this Act, except in so far as the subject-matter indicates or requires – access authority means an access authority granted and in force under Part III ; adjacent area means, subject to subsection (2) , so much of the area the boundary of which is described in Schedule 2 as is part of the territorial sea of Australia, including the territorial sea adjacent to any island forming part of Tasmania and, subject to subsection (3) , includes an area which – (a) is within the area the boundary of which is described in Schedule 2 ; (b) is seaward of the coastline of Tasmania at mean low water and landward of the inner limit of the territorial sea of Australia; and (c) was, immediately before the commencement of this Act, the subject of an exploration permit for petroleum subsisting under the Commonwealth Act ; application for a primary licence means an application under section 39 (1) or (2) or 39A (1) or (2) ; application for a secondary licence means an application under section 39 (3) or 39A (3) ; the applied provisions means the provisions (other than the provisions of this Act) which apply within the adjacent area by virtue of the Coastal and Other Waters (Application of State Laws) Act 1982 ; approved means approved by the Minister; block means a block constituted as provided by section 16 ; Commonwealth Act means – (a) the Petroleum (Submerged Lands) Act 1967 of the Commonwealth, as amended from time to time; or; (b) if the Petroleum (Submerged Lands) Act 1967 of the Commonwealth is repealed and re-enacted, with or without modification, the Act of the Commonwealth that re-enacts it, as amended from time to time; the Commonwealth Minister means the Minister of the Crown in right of the Commonwealth for the time being administering the Commonwealth Act; construct includes "place"; the Convention means the Convention entitled "Convention on the Continental Shelf" signed at Geneva on 29th April 1958, being the Convention a copy of which in the English language is set out in Schedule 1 ; corresponding law means an Act of a State other than Tasmania or a law in force in a Territory of the Commonwealth 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; document includes any map, book, record, or writing; good oil-field 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 16 ; inspector means a person appointed and holding office, or deemed to hold office, under section 125 ; interstate Minister means the Minister of the Crown in right of a State (other than Tasmania) or of the Northern Territory who is for the time being authorised under the law of that State or Territory to perform the functions of a Designated Authority under the Commonwealth Act; the Joint Authority means the Commonwealth-Tasmania Offshore Petroleum Joint Authority established by the Commonwealth Act ; lease means a retention lease under Part III ; lease area means the area constituted by the blocks that are the subject of a lease; lessee means the registered holder of a lease; licence means a production licence for petroleum granted and in force under Part III ; 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 has the meaning given in section 150C ; location means a block or blocks in respect of which a declaration under section 36 is in force; Minister means the Minister for the time being administering the Mineral Resources Development Act 1995 ; natural resources has the same meaning as in the Convention; OHS inspector means an OHS inspector appointed under the Commonwealth Act; partly cancelled means – (a) in relation to a permit or licence – cancelled as to one 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 or lease, means determined as to one or more but not all of the blocks the subject of the permit or lease; permit means an exploration permit for petroleum granted and in force under Part III ; 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 one or more hydrocarbons, whether in a gaseous, liquid, or solid state, and one or more of the following, that is to say, hydrogen-sulphide, nitrogen, helium, and carbon dioxide – and includes any petroleum as defined by paragraph (a) , (b) , or (c) of this definition that has been returned to a natural reservoir in the adjacent area; petroleum pool means a naturally occurring discrete accumulation of petroleum; pipeline means a pipe or system of pipes in the adjacent area for conveying petroleum 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 to a terminal station without passing through another terminal station, whether the terminal station to which the petroleum is conveyed is in the adjacent area or not; pipeline licence means a licence granted and in force under Part III to construct and operate a pipeline; pipeline licensee means the registered holder of a pipeline licence; prescribed means prescribed by the regulations; primary entitlement means – (a) in relation to a permittee – 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 39 (1) ; and (b) in relation to a lessee – the number of blocks in the lease area in respect of which that lessee may make an application under section 39A (1) ; primary licence means a licence granted on an application under section 39 (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 Division 5 of Part III ; registered holder, in relation to a permit, lease, licence, pipeline licence, special prospecting authority, or access authority, means the person whose name is for the time being shown in the register as being the holder of the permit, lease, licence, pipeline licence, special prospecting authority, or access authority; the regulations means regulations made and in force under this Act; the relinquished area means – (a) in relation to a permit, lease, or licence that has expired – the area constituted by the blocks in respect of which the permit, lease, or licence was in force but has not been renewed; and (b) in relation to a permit or lease that has been wholly determined or partly determined – the area constituted by the blocks as to which the permit or lease 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 block as to which the permit or licence was so cancelled; and (ca) in relation to a lease that has been wholly cancelled – the area constituted by the blocks in respect of which the lease was in force; and (d) in relation to a pipeline licence that is no longer in force – that 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; royalty period, in relation to a permit, lease, or licence, means – (a) the period from and including the date from which the permit, lease, or licence comes into force to the end of the month of the year during which the 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 39 (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 granted and in force under Part III ; 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 62 or under the Commonwealth Act or a corresponding law; 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 a sea-bed 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, lease, licence, or pipeline licence, means cancelled as to all the blocks, or as to the whole of the pipeline, the subject of the permit, lease, licence, or pipeline licence; wholly determined, in relation to a permit or lease, means determined as to all the blocks the subject of the permit or lease. (2) If at any time the breadth of the territorial sea is determined or declared to be greater than 3 nautical 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 3 nautical miles. (3) When an area described in paragraphs (a) , (b) , and (c) of the definition of adjacent area becomes an area which is – (a) not the subject of a permit; and (b) not the subject of a licence; and (c) not the subject of an application for a licence – the area ceases to be part of the adjacent area. (4) In this Act, a reference to the term of a permit, lease, licence, pipeline licence, special prospecting authority, or access authority is a reference to the period during which the permit, lease, licence, pipeline licence, special prospecting authority, or access authority remains in force and a reference to the date of expiration of a permit, lease, licence, pipeline licence, special prospecting authority, or access authority is a reference to the day on which the permit, lease, licence, pipeline licence, special prospecting authority, or access authority ceases to be in force. (5) In this Act, a reference to a year of the term of a permit, lease, licence, or pipeline licence is a reference to a period of 1 year commencing on the day on which the permit, lease, licence, or pipeline licence, as the case may be, comes into force or on any anniversary of that day. (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. (6A) In this Act, a reference to the renewal, or the grant of a renewal, of a lease is a reference to the grant of a lease in respect of the blocks in respect of which the first-mentioned lease was in force to commence on the day after the date of expiration of the first-mentioned lease or on the day after the date of expiration of the lease granted upon a previous renewal of the first-mentioned lease. (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, lease, licence, pipeline licence, or access authority is a reference to the permit, lease, licence, pipeline licence, or access authority as varied for the time being under this Act. (11) A power conferred by this Act to make, grant, or issue an instrument or a notice shall be construed as including a power, exercisable in the same manner and subject to the same conditions (if any), to revoke or vary the instrument or notice. (12) . . . . . . . . (13) . . . . . . . . (14) . . . . . . . . (15) . . . . . . . . (16) For the purposes of this Act – (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. 4. Construction of Act (1) This Act shall be construed as intended to operate, and as operating, to the full extent of the legislative powers of the State (any presumption to the contrary notwithstanding) but subject to, and so as not to exceed, the limits of those powers to the intent that where any provision of this Act would, but for this subsection, be construed as being in excess of those powers, it shall nevertheless be a valid enactment to the extent to which it is not in excess of those powers. (2) No other provision of this Act shall be read or construed so as to limit, or as limiting, the operation of subsection (1) . 5. Application of Act This Act applies to all natural persons, whether Australian citizens or not, and whether resident in Tasmania or not, and to all corporations, whether incorporated or carrying on business in Tasmania or not. 6. Petroleum pool extending into two licence areas (1) Where – (a) a well-head is situated in a licence area; and (b) the well from that well-head 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. (2) Where – (a) a petroleum pool is partly in one licence area and partly in an adjoining licence area of the same licensee; and (b) petroleum is recovered from that pool through a well or wells in one 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 (3) . (3) The proportions to be determined for the purposes of subsection (2) 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. (4) Where – (a) a petroleum pool is partly in a licence area and partly in another area in which the licensee has authority under the Commonwealth Act to explore for, or recover, petroleum; and (b) 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 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 (5) . (5) The proportion to be determined for the purposes of subsection (4) may be determined – (a) by agreement between the licensee, the Joint Authority, and the Minister; or (b) in the absence of agreement, by the Supreme Court on the application of the licensee, the Joint Authority, or the Minister. (6) Where – (a) a petroleum pool is partly in a licence area and partly in another area in which the licensee has authority under a corresponding law to explore for or recover petroleum; and (b) 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 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 (7) . (7) The proportion to be determined for the purposes of subsection (6) may be determined – (a) by agreement between the licensee, the Minister, and the Minister of the other State administering the corresponding law; or (b) in the absence of agreement, by the Supreme Court on the application of any of those persons. (8) 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 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 be recovered from the other area – the Supreme Court of Tasmania shall not make a determination under this section that would be inconsistent with the determination of the Supreme Court of the other State. (9) 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 58 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. (10) In this section, a reference to a licence, licensee, or a licence area shall be read as including a reference to a permit and a lease, a permittee and a lessee, or a permit area and a lease area. 7. Points, &c., to be ascertained by reference to Australian Geodetic Datum (1) Where, for the purposes of this Act, or for the purposes of an instrument under this Act, 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 6 378 160 metres and a flattening of 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 133 degrees, 12 minutes and 30·0771 seconds of East Longitude and at 25 degrees, 56 minutes and 54·5515 seconds of South Latitude and to have a ground level of 571·2 metres above the spheroid referred to in subsection (1) . Division 2 - Administration of the Commonwealth adjacent area 8. Interpretation In this Division, unless the contrary intention appears – Commonwealth Act means, as the context requires – (a) the Petroleum (Submerged Lands) Act 1967 of the Commonwealth; or (b) the Petroleum (Submerged Lands) (Registration Fees) Act 1967 of the Commonwealth; or (c) the Petroleum (Submerged Lands) Fees Act 1994 of the Commonwealth – or, if an Act specified in paragraph (a) , (b) or (c) is repealed and re-enacted, with or without modification, the Act of the Commonwealth that re-enacts it, as amended from time to time; Commonwealth adjacent area means – (a) if the Petroleum (Submerged Lands) Act 1967 of the Commonwealth is in force, the adjacent area in respect of Tasmania determined in accordance with section 5A of that Act; or (b) if the Petroleum (Submerged Lands) Act 1967 of the Commonwealth has been repealed and been re-enacted (with or without modifications), the area that, under the re-enacted Act of the Commonwealth, corresponds to the adjacent area in respect of Tasmania determined in accordance with section 5A of the repealed Act. 9. Minister as member of Joint Authority (1) The Minister may exercise any power which the Commonwealth Act is expressed to authorize him to exercise as a member of the Joint Authority. (2) The Minister shall perform any function or duty which the Commonwealth Act is expressed to require him to perform as a member of the Joint Authority. 10. Minister as Designated Authority The Minister is authorized to perform the functions and duties and exercise the powers which the Commonwealth Act is expressed to require or empower the Designated Authority in respect of the Commonwealth adjacent area to perform or exercise. 11. Delegations under Commonwealth Act Where, in the exercise of a power which the Commonwealth Act is expressed to confer upon the Designated Authority in respect of the Commonwealth adjacent area, the Minister delegates a power to a person who is an officer of the Public Service or who holds any office in the service of this State, that person may exercise the power. 12. Officers of Public Service performing functions under Commonwealth Act A State Service officer or State Service employee is to perform any function or duty which the Minister, as the Designated Authority in respect of the Commonwealth adjacent area, or as a member of the Joint Authority, requires him to perform in relation to the Commonwealth Act . PART II - Application of Laws 13. Power to make regulations providing for non-application or modification of applied provisions (1) In this section – modification includes the omission or insertion of a provision or the substitution of a provision for another provision. (2) Regulations under this Act may provide that such of the applied provisions as are specified in the regulations – (a) do not apply; or (b) apply with such modifications as are specified in the regulations – to or in relation to an act, omission, matter, circumstance, or thing touching, concerning, arising out of, or connected with, the exploration of the sea-bed or subsoil of the adjacent area for petroleum or the exploitation of the petroleum resources of that sea-bed or subsoil. (3) Without limiting the operation of subsection (2) , regulations under this Act may provide that such of the applied provisions as are specified in the regulations – (a) do not apply; or (b) apply with such modifications as are specified in the regulations – to or in relation to – (c) any – (i) act or omission that takes in, on, above, below, or in the vicinity of; or (ii) matter, circumstance, or thing that exists or arises with respect to or in connection with – a vessel, aircraft, structure or installation, or equipment, or other property, that is in the adjacent area for any reason touching, concerning, arising out of, or connected with, the exploration of the sea-bed or subsoil of the adjacent area for petroleum or the exploitation of the natural resources, being petroleum, of that sea-bed or subsoil; (d) a person who – (i) is in the adjacent area for a reason of the kind referred to in paragraph (c) ; or (ii) is in, on, above, below, or in the vicinity of, a vessel, aircraft, structure or installation, or equipment, or other property that is in the adjacent area for a reason of the kind referred to in paragraph (a) ; or (e) a person in respect of his carrying on any operation or doing any work in the adjacent area for a reason of the kind referred to in paragraph (c) . (4) Where any regulations are made as provided in subsection (2) or (3) , the applied provisions shall have effect only to the extent that they are not excluded by, or, as the case may be, shall have effect subject to and in accordance with the modifications specified in, those regulations. 14. Jurisdiction of State courts The jurisdiction with which the several courts of this State are invested by section 5 of the Coastal and Other Waters (Application of State Laws) Act 1982 extends to all matters arising under any modification of the applied provisions effected by regulations under section 13 . 14A. Disapplication of State occupational health and safety laws (1) The prescribed occupational health and safety laws do not apply in relation to – (a) a facility; or (b) a person at a facility; or (c) a person near a facility, to the extent to which the person is affected by – (i) a facility; or (ii) activities that take place at a facility; or (d) activities that take place at a facility. (2) A reference in subsection (1) to the prescribed occupational health and safety laws is a reference to such of the provisions of those laws that, but for subsection (1) , would apply in the adjacent area by virtue of the Coastal and Other Waters (Application of State Laws) Act 1982 or the cooperative scheme within the meaning of the Crimes at Sea Act 1999 . (3) In this section – facility has the same meaning as in Schedule 5 ; prescribed occupational health and safety laws mean any laws of the State relating to occupational health and safety (whether or not they also relate to other matters) that are prescribed by the regulations for the purposes of this section. (4) This section applies despite anything to the contrary in the Coastal and Other Waters (Application of State Laws) Act 1982 or the Crimes at Sea Act 1999 . PART III - Mining for Petroleum Division 1 - Preliminary 15. Delegation (1) The Minister may, either generally or as otherwise provided by the instrument of delegation, by writing signed by him, delegate to a person any of his functions, powers, or duties under this Act, other than this power of delegation. (2) A function, power, or duty as so delegated, when performed or exercised by the delegate, shall, for the purposes of this Act or the regulations, be deemed to have been performed or exercised 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 of the Commonwealth. (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 does not prevent the exercise of a power by the Minister. (6) The Minister may, by writing signed by him, vary or revoke a delegation made under this section. (7) A copy of each instrument making, varying, or revoking a delegation shall be published in the Gazette. 16. Graticulation of Earth's surface and constitution of blocks (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 5 minutes, or a multiple of 5 minutes, of longitude; and (b) by the equator and by parallels of latitude that are at a distance from the equator of five minutes, or a multiple of 5 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 5 minutes of longitude; and (d) by portions of 2 of those parallels of latitude that are at a distance from each other of 5 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. 17. Reservation of blocks (1) The Minister may, by notice published in the Gazette, declare that a block specified in the notice (not being a block in respect of which a permit, lease, or licence is in force or over or in which there is a pipeline) shall not be the subject of a permit, lease, 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, lease, 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 18. 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. Penalty: Fine not exceeding 500 penalty units or imprisonment for a term not exceeding 5 years, or both. 19. Advertisement of blocks (1) The Minister may, by notice published in the Gazette – (a) invite applications for the grant of a permit in respect of the block or blocks specified in the notice; and (b) specify a period within which applications may be made. (2) The Minister may, for reasons that he thinks sufficient, in a notice referred to in subsection (1) , direct that subsection (2) or (3) of section 20 does not apply, or that neither of those subsections do apply, to or in relation to the applications. (3) Where a notice is published under subsection (1) and – (a) no application is made within the period specified in the notice; or (b) after consideration of the applicants, 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 notice – 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 notice, 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 he thinks sufficient, upon request in writing served on him, by instrument in writing direct that subsection (2) or (3) of section 21 does not apply, or that neither of those subsections do apply, to or in relation to an application made under subsection (3) . 20. Application for permit (1) An application under section 19 – (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 his employees; and (iii) the technical advice available to the applicant; and (iv) the financial resources available to the applicant; and (e) may set out any other matters that the applicant wishes the Minister to consider; and (f) shall be accompanied by a fee of $3 000. (2) The number of blocks specified in the application – (a) if 16 or more blocks 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 him to furnish, within the time specified in the notice, further information in writing in connection with his application. (5) Where a permit is not granted, an amount equal to nine-tenths of the fee paid in accordance with subsection (1) shall be refunded to the applicant. 21. Grant or refusal of permit in relation to application (1) Where an application has been made under section 19 , the Minister may – (a) by instrument in writing served on the applicant, inform the applicant – (i) that he 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 him, or within such further period, not exceeding 1 month, as the Minister, on application in writing served on him 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 him 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 him 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. 22. Application for permit in respect of surrendered, &c., blocks (1) Where – (a) a lease is surrendered, cancelled, or determined as to a block or blocks; or (aa) 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 notice 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 a notice is published under subsection (1) and – (a) no application is made within the period specified in the notice; or (b) after consideration of the applications, a permit is not granted – in respect of the block or blocks specified in the notice, the Minister may cause a further notice to be published in the Gazette to the effect that no such application has been made or, as the case may be, that no such permit has been granted and may, at any subsequent time and without invitation under section 19 (1) , receive an application for the grant of a permit in respect of the block specified in the notice or, if more than one block was specified in the notice, in respect of one 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 pursuant to an invitation under subsection (1) or section 19 (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 20 (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 23 (1) (a) , in respect of the grant of a permit to him 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 him to furnish, within the time specified in the instrument, further information in writing in connection with his application. 23. Application fee, &c. (1) An application under section 22 shall be accompanied by – (a) a fee of $3 000; and (b) a deposit of 10 per cent of the amount specified in the application under section 22 (4) (d) . (2) Where a permit is not granted on the application – (a) an amount equal to nine-tenths 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 24 does not request the Minister in accordance with section 25 to grant to him the permit referred to in the instrument, the deposit shall not, unless the Minister otherwise determines, be refunded to the applicant. 24. Consideration of application (1) Where, at the expiration of the period specified in a notice published under section 22 (1) , only one application has been made under that subsection in respect of the block or blocks specified in the notice, the Minister may reject the application or may, by instrument in writing served on the applicant, inform the applicant that he is prepared to grant to him a permit in respect of that block or those blocks. (2) Where, at the expiration of the period specified in a notice published under section 22 (1) , 2 or more applications have been made under that subsection in respect of the block or blocks specified in the notice, the Minister may reject any or all of the applications and, if he does not reject all the applications, may – (a) if only one 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 one of the applicants, whose application has not been rejected and who has specified as the amount that he is prepared to pay in respect of the grant of a permit to him an amount that is not less than the amount specified by any other applicant whose application has not been rejected – inform him that he is prepared to grant to him a permit in respect of that block or those blocks. (3) Where an application is made under section 22 (2) , the Minister may reject the application or may, by instrument in writing served on the applicant, inform the applicant that he is prepared to grant to him 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, he shall, by the instrument, inform the applicant that he 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 25 (1) ; and (ii) pay the balance of the amount to be paid in respect of the grant of the permit to him 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. 25. 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 24 may, within a period of 3 months after the date of service of the instrument on him, or within such further period, not exceeding 3 months, as the Minister, on application in writing served on him 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 him 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 him 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 24 – (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 him 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 on the expiration of that period. (3) Where the application of an applicant on whom an instrument has been served under section 24 (2) lapses as provided by subsection (2) of this section, section 25 (2) applies in respect of the application or applications, if any, then remaining unrejected. 26. Grant of permit on request Where a person on whom an instrument has been served under section 24 – (a) has made a request under section 25 (1) ; and (b) has paid the balance of the amount to be paid in respect of the grant of a permit to him 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. 27. Rights conferred by permit A permit, while it remains in force, authorizes the permittee, subject to this Act 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. 28. 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 or, if a later day is specified in the permit as being the day on which the permit comes into force, on that later day; 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 or, if a later day is specified in the permit as being the day on which the permit comes into force, on that later day. 29. Application for renewal of permit (1) Subject to section 30 , a permittee may, from time to time, make an application to the Minister for 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 he 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. 30. 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 – one-half of that number; or (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 – one-half 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 in 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 one 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 the maximum number of blocks in respect of which an application for the renewal of a permit may be made in accordance with the preceding provisions of this section 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 he thinks fit concerning the blocks in respect of which the application may be made. (7) The Minister may, for reasons that he thinks sufficient, by instrument in writing – (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 he thinks fit concerning the blocks in respect of which that application may be made. 31. 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 he is prepared to grant to him the renewal of the permit; and (d) that he 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) he has, by instrument in writing served on the permittee, given not less than one month's notice of his intention to refuse to grant the renewal of the permit; and (b) he has served a copy of the instrument on such other persons, if any, as he thinks fit; and (c) he 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 wishes the Minister to consider; and (d) he has taken into account any matters so submitted to him 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 one month after the date of service of the instrument on him – (a) by instrument in writing served on the Minister request the Minister to grant to him 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 him 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. 32. 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 – (a) conditions with respect to – (i) work to be carried out by the permittee in or in relation to the permit area during the term of the permit; or (ii) amounts to be expended by the permittee in the carrying out of any such work – or with respect to both those matters; and (b) conditions requiring the permittee to comply with directions given in accordance with the permit concerning those matters. 33. 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 him, within the period specified in the instrument, particulars in writing of any one 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) If a person to whom a direction is given under subsection (2) fails to comply with the direction, he is guilty of an offence and is liable on conviction to a fine not exceeding 100 penalty units. 34. 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) If a person to whom a direction is given under subsection (1) fails to comply with the direction, he is guilty of an offence and is liable on conviction to a fine not exceeding 100 penalty units. 35. 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