Legislation, In force, Western Australia
Western Australia: Natural Gas (Canning Basin Joint Venture) Agreement Act 2013 (WA)
An Act to ratify, and authorise the implementation of, an agreement between the State and Buru Energy Limited, Diamond Resources (Fitzroy) Pty Ltd, Diamond Resources (Canning) Pty Ltd and Mitsubishi Corporation relating to the evaluation, development and exploitation of natural gas resources in the Canning Basin region of the State, to ratify a further agreement for the termination of that agreement, and for incidental and other purposes.
          Western Australia
Natural Gas (Canning Basin Joint Venture) Agreement Act 2013
Western Australia
Natural Gas (Canning Basin Joint Venture) Agreement Act 2013
Contents
1. Short title 2
2. Commencement 2
3. Terms used 2
4. Ratification and authorisation 2
4A. Ratification of termination agreement 3
5. State empowered under clause 30 3
6. Effect on other laws 3
Schedule 1 — Natural Gas (Canning Basin Joint Venture) Agreement 2012
Schedule 2 — 2015 variation agreement
Schedule 3 — Termination agreement
Notes
Compilation table 103
Defined terms
Western Australia
Natural Gas (Canning Basin Joint Venture) Agreement Act 2013
An Act to ratify, and authorise the implementation of, an agreement between the State and Buru Energy Limited, Diamond Resources (Fitzroy) Pty Ltd, Diamond Resources (Canning) Pty Ltd and Mitsubishi Corporation relating to the evaluation, development and exploitation of natural gas resources in the Canning Basin region of the State, to ratify a further agreement for the termination of that agreement, and for incidental and other purposes.
[Long title amended: No. 12 of 2018 s. 4.]
The Parliament of Western Australia enacts as follows:
1. Short title
This is the Natural Gas (Canning Basin Joint Venture) Agreement Act 2013.
2. Commencement
This Act comes into operation as follows —
(a) sections 1 and 2 — on the day on which this Act receives the Royal Assent;
(b) the rest of the Act — on the day after that day.
3. Terms used
In this Act —
2015 variation agreement means the agreement a copy of which is set out in Schedule 2;
scheduled agreement means the agreement a copy of which is set out in Schedule 1;
termination agreement means the agreement a copy of which is set out in Schedule 3;
the Agreement means the scheduled agreement as varied from time to time in accordance with its terms and by the 2015 variation agreement.
[Section 3 amended: No. 1 of 2016 s. 4; No. 12 of 2018 s. 5.]
4. Ratification and authorisation
(1) The scheduled agreement is ratified.
(2A) The 2015 variation agreement is ratified.
(2) The implementation of the Agreement is authorised.
[Section 4 amended: No. 1 of 2016 s. 5.]
4A. Ratification of termination agreement
The termination agreement is ratified.
[Section 4A inserted: No. 12 of 2018 s. 6.]
5. State empowered under clause 30
The State has power in accordance with clause 30 of the Agreement.
6. Effect on other laws
(1) The Agreement operates and takes effect despite any enactment or other law.
(1A) The termination agreement operates and takes effect despite any enactment or other law.
(2) If a provision of the scheduled agreement, the 2015 variation agreement or the termination agreement expressly or by implication purports to modify or exclude the application or operation of an enactment for a purpose or in relation to a person or thing, the application or operation of the enactment is modified or excluded for that purpose, or in relation to that person or thing, to the extent or for the period mentioned in the provision or necessary for the provision to have effect.
(3) This section does not limit or otherwise affect the application of the Government Agreements Act 1979.
[Section 6 amended: No. 1 of 2016 s. 6; No. 12 of 2018 s. 7.]
Schedule 1 — Natural Gas (Canning Basin Joint Venture) Agreement 2012
[s. 3]
2012
THE STATE OF WESTERN AUSTRALIA
and
BURU ENERGY LIMITED
ACN 130 651 437
DIAMOND RESOURCES (FITZROY) PTY LTD
ACN 145 113 177
DIAMOND RESOURCES (CANNING) PTY LTD
ACN 145 113 186
and
MITSUBISHI CORPORATION
NATURAL GAS (CANNING BASIN JOINT VENTURE) AGREEMENT 2012
[Solicitor's details]
THIS AGREEMENT is made this seventh day of November 2012
BETWEEN
THE HONOURABLE COLIN JAMES BARNETT, MEc., M.L.A., Premier of the State of Western Australia, acting for and on behalf of the said State and its instrumentalities from time to time (hereinafter called the State) of the first part
AND
BURU ENERGY LIMITED ACN 130 651 437 of Level 2, 97 William Street, Perth, Western Australia, DIAMOND RESOURCES (FITZROY) PTY LTD ACN 145 113 177 of Level 36, 120 Collins Street, Melbourne, Victoria and DIAMOND RESOURCES (CANNING) PTY LTD ACN 145 113 186 of Level 36, 120 Collins Street, Melbourne, Victoria (hereinafter collectively called the Joint Venturers in which term shall be included their successors and permitted assigns) of the second part
AND
MITSUBISHI CORPORATION of 3‑1, Marunouchi 2‑Chome, Chiyoda‑Ku, Tokyo, Japan (Guarantor) of the third part.
WHEREAS:
A. The Joint Venturers are the registered and beneficial holders of the petroleum exploration permits listed in the Schedule and granted under the Petroleum and Geothermal Energy Resources Act 1967 (WA).
B. The Joint Venturers are actively exploring the Title Areas for petroleum including for the purposes of:
(a) evaluating the technical and economic viability of the natural gas resources within the Title Areas (which areas are prospective for both conventional and unconventional resources); and
(b) proving up sufficient reserves of natural gas to underpin the establishment and sustained operation of firstly the Domgas Project (as hereinafter defined) and secondly the production of liquefied natural gas for export to overseas purchasers.
C. The State, for the purposes of:
(a) encouraging accelerated expenditure by the Joint Venturers in the continuing exploration and evaluation of natural gas resources within the Title Areas; and
(b) promoting industrial development in Western Australia generally; and
(c) promoting energy security in the said State in particular,
desires to facilitate the establishment of the Domgas Project and, if the Joint Venturers so wish, of the LNG Project upon and subject to the terms of this Agreement.
NOW THIS AGREEMENT WITNESSES:
1. Definitions
In this Agreement subject to the context:
Aboriginal Heritage Act means the Aboriginal Heritage Act 1972 (WA).
advise, apply, approve, approval, consent, certify, direct, notice, notify, request, or require, means advise, apply, approve, approval, consent, certify, direct, notice, notify, request or require in writing as the case may be and any inflexion or derivation of any of those words has a corresponding meaning.
approved proposal means a proposal approved or deemed to be approved under this Agreement.
Canning Basin means the Canning Basin region of the said State.
Commencement Date means the day after the day on which the Ratifying Act comes into operation.
Commonwealth means the Commonwealth of Australia and includes the Government for the time being thereof.
Contaminated Sites Act means the Contaminated Sites Act 2003 (WA).
DBNGP corridor has the meaning given to it in the DBP Act.
DBNGP Land Access Minister means the corporation sole created by section 29(1) of the DBP Act.
DBP Act means the Dampier to Bunbury Pipeline Act 1997 (WA).
Domgas means natural gas for delivery and use in the said State. It does not include natural gas to be exported or used in the production of natural gas to be exported.
Domgas Commitment means the Joint Venturers' commitment in respect of Domgas set out in clause 8 and to submit proposals for, and establish and operate, a Domgas Project in accordance with approved proposals pursuant to clauses 11, 12 and 13.
Domgas Project means the treatment of natural gas obtained from within the Title Areas and, subject to this Agreement, from other areas, to produce Domgas and, if the Joint Venturers so wish, condensate and the conveyance of Domgas through the Domgas Project Pipeline into the domestic gas pipeline network and all related activities for that purpose including:
(a) the construction, operation and maintenance of Domgas Project Treatment Plants, the Domgas Project Pipeline (subject to clause 34) and any necessary pipeline connections joining a Domgas Project Treatment Plant to the Domgas Project Pipeline and the Domgas Project Pipeline to the abovementioned domestic gas pipeline network; and
(b) other ancillary activities, services and facilities permitted to be undertaken, provided or constructed as the case may be by the Joint Venturers as part of such project in accordance with this Agreement.
For the avoidance of doubt, the Domgas Project does not include:
(a) pre‑treatment plants, wells, in‑field and intra‑field pipelines and flow lines; or
(b) any extension of the Domgas Project Pipeline the construction of which extension, the State (after consulting the Joint Venturers) does not consider is a significant modification, expansion or other variation of the Domgas Project Pipeline.
Domgas Project Operation Date means the date upon which Domgas produced as part of the Domgas Project is first delivered through the Domgas Project Pipeline (other than for construction or commissioning purposes) into the Western Australian domestic gas market using the relevant connecting domestic gas pipeline network.
Domgas Project Pipeline means a pipeline (as defined in the Pipelines Act (as modified by this Agreement)) commencing from a Domgas Project Treatment Plant at a location in the Title Areas agreed between the Minister and the Joint Venturers pursuant to clause 10 and extending to and connecting to the domestic gas pipeline network near Port Hedland or near Dampier in the said State (unless the State otherwise approves another location in the north west region of the said State, in which case near such other location) to convey Domgas and which pipeline is, or is to be (as the case may be), the subject of approved proposals pursuant to clauses 11 and 12 and includes any extension thereto or enlargement thereof that may be approved in accordance with clause 13.
Domgas Project Pipeline Corridor means prior to the grant of the Domgas Project Pipeline Easement, the land for the route of the Domgas Project Pipeline, access roads and other infrastructure and works which is agreed between the Minister and the Joint Venturers pursuant to clause 10 and, after the grant of the Domgas Project Pipeline Easement, the land from time to time the subject of the Domgas Project Pipeline Easement.
Domgas Project Pipeline Easement means the easement granted or to be granted (as the case may be) to the Joint Venturers under the Pipelines Act (as modified by this Agreement) and in accordance with clause 15(1)(b), as varied in accordance with clauses 15(7) or 15(8), and according to the requirements of the context describes the area of land from time to time the subject of the easement.
Domgas Project Pipeline Licence means the licence granted or to be granted (as the case may be) to the Joint Venturers under the Pipelines Act (as modified by this Agreement) and in accordance with clause 15(1)(a) for the construction, operation and maintenance of the Domgas Project Pipeline, as varied from time to time in accordance with the Pipelines Act (as modified by this Agreement).
Domgas Project Treatment Plant means the treatment plant within the Title Areas for the production of Domgas as part of the Domgas Project referred to in the above definition of Domgas Project Pipeline which treatment plant is, or is to be (as the case may be), the subject of approved proposals pursuant to clauses 11 and 12 and any other treatment plant within the Title Areas for the production of Domgas as part of the Domgas Project which treatment plant is the subject of approved proposals pursuant to clauses 11 and 12 or clause 13 and includes any expansion of any such treatment plant that may be approved in accordance with clause 13.
Environmental Protection Act means the Environmental Protection Act 1986 (WA).
Government agreement has the meaning given in the Government Agreements Act 1979 (WA).
Land Act means the Land Administration Act 1997 (WA).
Land Act Minister means the Minister for Lands, a body corporate under section 7 of the Land Act.
Law includes any applicable requirement of any statute, regulation, proclamation, ordinance or by‑law, present or future, and whether State, Commonwealth or otherwise.
laws relating to native title means laws applicable from time to time in Western Australia in respect of native title and includes the Native Title Act 1993 (Commonwealth).
local government means a local government established under the Local Government Act.
Local Government Act means the Local Government Act 1995 (WA).
LNG Precinct means:
(a) the Burrup Peninsula region of the said State; or
(b) the strategic industrial area known at the date of this Agreement as the Ashburton North Strategic Industrial Area near Onslow in the said State; or
(c) such other liquefied natural gas precinct in the north west region of the said State which the State may approve for the purposes of this Agreement and which at the date of such approval has been established or the establishment of which the State has approved.
LNG Production Facility means a processing plant (whether owned by the Joint Venturers or by a third party) within the Relevant LNG Precinct for the production of liquefied natural gas for export.
LNG Project means the conveyance through the LNG Project Pipeline of natural gas obtained from within the Title Areas and, subject to this Agreement, from other areas to the LNG Production Facility (or to a third party pipeline for conveyance to the LNG Production Facility) for the production from it for export of liquefied natural gas and, if the Joint Venturers so wish, condensate and all related activities for that purpose including:
(a) the treatment (if required) of natural gas to be conveyed through the LNG Project Pipeline to a standard suitable for conveyance through the LNG Project Pipeline; and
(b) the construction, operation and maintenance of LNG Project Treatment Plants, the LNG Project Pipeline and any necessary pipeline connections joining a LNG Project Treatment Plant to the LNG Project Pipeline and the LNG Project Pipeline to the LNG Production Facility (or to a third party pipeline for conveyance of the natural gas to the LNG Production Facility); and
(c) other ancillary activities, services and facilities permitted to be undertaken, provided or constructed as the case may be by the Joint Venturers as part of such project in accordance with this Agreement.
For the avoidance of doubt, the LNG Project does not include:
(a) pre‑treatment plants, wells, in‑field and intra‑field pipelines and flow lines; or
(b) any extension of the LNG Project Pipeline the construction of which extension, the State (after consulting the Joint Venturers) does not consider is a significant modification, expansion or other variation of the LNG Project Pipeline.
LNG Project Operation Date means the date upon which natural gas obtained from within the Title Areas is first conveyed through the LNG Project Pipeline (other than for construction or commissioning purposes) to the LNG Production Facility (or into the relevant connecting third party pipeline for conveyance to the LNG Production Facility).
LNG Project Pipeline means a pipeline (as defined in the Pipelines Act (as modified by this Agreement)) commencing from a location in the Title Areas agreed between the Minister and the Joint Venturers pursuant to clause 20 and extending to and connecting to the LNG Production Facility (or to a third party pipeline for conveyance to the LNG Production Facility) which pipeline is, or is to be (as the case may be), the subject of approved proposals pursuant to clauses 21 and 22 and includes any extension thereto or enlargement thereof that may be approved in accordance with clause 23. For the avoidance of doubt, the LNG Project Pipeline must be a separate pipeline to the Domgas Project Pipeline.
LNG Project Pipeline Corridor means prior to the grant of the LNG Project Pipeline Easement, the land for the route of the LNG Project Pipeline, access roads and other infrastructure and works which is agreed between the Minister and the Joint Venturers pursuant to clause 20 and, after the grant of the LNG Project Pipeline Easement, the land from time to time the subject of the LNG Project Pipeline Easement.
LNG Project Pipeline Easement means the easement granted or to be granted (as the case may be) to the Joint Venturers under the Pipelines Act (as modified by this Agreement) and in accordance with clause 15(2)(b), as varied in accordance with clauses 15(9) or 15(10), and according to the requirements of the context describes the area of land from time to time the subject of the easement.
LNG Project Pipeline Licence means the licence granted or to be granted (as the case may be) to the Joint Venturers under the Pipelines Act (as modified by this Agreement) and in accordance with clause 15(2)(a) for the construction, operation and maintenance of the LNG Project Pipeline, as varied from time to time in accordance with the Pipelines Act (as modified by this Agreement).
LNG Project Treatment Plant means a plant within the Title Areas for the treatment as part of the LNG Project of natural gas to a standard suitable for conveyance through the LNG Project Pipeline which treatment plant is, or is to be (as the case may be), the subject of approved proposals pursuant to clauses 21 and 22 or 23 and includes any expansion of such treatment plant that may be approved in accordance with clause 23.
Minister means the Minister in the Government of Western Australia for the time being responsible for the administration of the Ratifying Act and pending the passing of that Act means the Minister for the time being designated in a notice from the State to the Joint Venturers and includes the successors in office of that Minister.
natural gas includes liquefied petroleum gas, liquefied natural gas and compressed natural gas.
Petrochemical feed stocks means ethane, propane, butane and condensate obtained from natural gas or other petroleum obtained from within the Title Areas.
Petroleum Act means the Petroleum and Geothermal Energy Resources Act 1967 (WA).
Petroleum Act Minister means the Minister in the Government of Western Australia for the time being responsible for the administration of the Petroleum Act and includes the successors in office of that Minister.
Petroleum Act Department means the department in the Government of Western Australia for the time being principally responsible for assisting the Petroleum Act Minister in the administration of the Petroleum Act.
Petroleum Titles means, subject to clause 14(3):
(a) the petroleum exploration permits granted under the Petroleum Act and listed in the Schedule, including any extensions or renewals thereof; and
(b) any other petroleum exploration permits granted under the Petroleum Act which are approved by the Minister as Petroleum Titles pursuant to clause 14(2), including any extensions or renewals thereof; and
(c) each petroleum exploration permit granted under section 37A of the Petroleum Act in respect of a petroleum exploration permit which prior to such grant was a Petroleum Title, including any extensions or renewals thereof; and
(d) any petroleum drilling reservations granted under the Petroleum Act which are approved by the Minister as Petroleum Titles pursuant to clause 14(2), as extended; and
(e) each petroleum retention lease granted under the Petroleum Act in respect of one or more blocks within a petroleum exploration permit or a petroleum drilling reservation which, in each case, is a Petroleum Title, including any renewals of such petroleum retention lease; and
(f) each petroleum production licence granted under the Petroleum Act in respect of one or more blocks within a petroleum exploration permit, petroleum drilling reservation or a petroleum retention lease which, in each case, is a Petroleum Title, excluding petroleum production licences granted pursuant to applications STP‑PRA 004 and 005.
Pipeline Easements means:
(a) subject to clause 34, the Domgas Project Pipeline Easement; and
(b) subject to clauses 35(6) and 39(6), the LNG Project Pipeline Easement.
Pipeline Licences means:
(a) subject to clause 34, the Domgas Project Pipeline Licence; and
(b) subject to clauses 35(6) and 39(6), the LNG Project Pipeline Licence.
Pipelines Act means the Petroleum Pipelines Act 1969 (WA).
Pipelines Act Minister means the Minister in the Government of Western Australia for the time being responsible for the administration of the Pipelines Act and includes the successors in office of that Minister.
Plan means the plan marked "A" initialled by or on behalf of the parties hereto for the purpose of identification.
Port means a port established under the Port Authorities Act 1999 (WA).
private roads means the roads referred to in clause 17 and any other roads (whether within or outside the Pipeline Easements) constructed by the Joint Venturers in accordance with approved proposals or agreed by the parties to be a private road for the purposes of this Agreement.
Project Pipelines means;
(a) subject to clause 34, the Domgas Project Pipeline; and
(b) subject to clauses 35(6) and 39(6), the LNG Project Pipeline.
Project Titles means:
(a) the Domgas Project Pipeline Easement; and
(b) the LNG Project Pipeline Easement; and
(c) any leases, licences or other easements granted to the Joint Venturers in accordance with clause 15(3); and
(d) any DBP Act section 41(2)(b) approvals or DBP Act section 34 access rights granted to the Joint Venturers pursuant to this Agreement.
Ratifying Act means the Act that ratifies this Agreement.
Relevant LNG Precinct means the LNG Precinct agreed between the Minister and the Joint Venturers pursuant to clause 20.
said State means the State of Western Australia.
Suspension Period means the period commencing on the Commencement Date and expiring on 31 January 2020.
this Agreement, hereof and hereunder refer to this Agreement, whether in its original form or as from time to time added to, varied or amended.
Title Areas means the areas which from time to time during the continuance of this Agreement are the subject of the Petroleum Titles.
2. Interpretation
(1) In this Agreement:
(a) monetary references are references to Australian currency unless otherwise specifically expressed;
(b) power given under any clause other than clause 37 to extend any period or date shall be without prejudice to the power of the Minister under clause 37;
(c) clause headings do not affect interpretation or construction;
(d) words in the singular shall include the plural and words in the plural shall include the singular according to the requirements of the context;
(e) one gender includes the other gender;
(f) a covenant or agreement by more than one person binds, and is enforceable against, those persons jointly and each of them severally;
(g) reference to an Act includes the amendments to that Act for the time being in force and also any Act passed in substitution therefor or in lieu thereof and the regulations for the time being in force thereunder;
(h) reference in this Agreement to any other document includes that document as from time to time added to, varied or amended and notwithstanding any change in the identity of the parties;
(i) reference to a clause or schedule is a reference to a clause or schedule to this Agreement, and a reference to a subclause or paragraph is a reference to the subclause of the clause or paragraph of the clause or subclause as the case may be in, or in relation to, which the reference is made;
(j) a reference to this Agreement includes the Plan and any recital, schedule or annexure;
(k) "including" means "including, but not limited to"; and
(l) reference to a "person" includes a body corporate.
(2) Nothing in this Agreement shall be construed:
(a) to exempt the State or the Joint Venturers from compliance with or to require the State or the Joint Venturers to do anything contrary to any law relating to native title or any lawful obligation or requirement imposed on the State or the Joint Venturers as the case may be pursuant to any law relating to native title; or
(b) to exempt the Joint Venturers from compliance with any requirement in connection with the protection of the environment arising out of or incidental to its activities under this Agreement that may be made by or under the Environmental Protection Act, the Contaminated Sites Act, the Petroleum Act (as modified by this Agreement) or the Pipelines Act (as modified by this Agreement); or
(c) to exempt the Joint Venturers from compliance with the provisions of the Aboriginal Heritage Act (as modified by this Agreement).
3. Ratification and operation
(1) The State shall introduce and sponsor a Bill in the State Parliament of Western Australia prior to 31 December 2012 or such later date as may be agreed between the parties hereto to ratify this Agreement. The State shall endeavour to secure the timely passage of such Bill as an Act.
(2) The provisions of this Agreement other than this clause and clauses 1 and 2 will not come into operation until the day after the day on which the Bill referred to in subclause (1) has been passed by the State Parliament of Western Australia and commences to operate as an Act.
(3) If by 31 December 2013 the said Bill has not commenced to operate as an Act then, unless the parties hereto otherwise agree, this Agreement will then cease and determine and no party hereto will have any claim against any other party hereto with respect to any matter or thing arising out of, done, performed, or omitted to be done or performed under this Agreement.
(4) On the day after the day on which the said Bill commences to operate as an Act all the provisions of this Agreement will operate and take effect despite any enactment or other law.
4. Initial obligations of the State
(1) The State shall subject to the adequate protection of the environment (including flora and fauna) and the land affected (including improvements thereon) arrange for the issue of requisite authority under any one or more of (as determined by the State in its discretion):
(a) section 91 of the Land Act; or
(b) section 7 of the Pipelines Act; or
(c) section 182 of the Land Act,
to allow the Joint Venturers to enter upon Crown land within the meaning of the Land Act or the Pipelines Act as the case may be (including, if applicable, land the subject of a pastoral lease but excluding land within a Port or the DBNGP corridor) with plant and equipment to carry out all works to the extent reasonably necessary for the purposes of undertaking its obligations under clause 5(1)(b)(ii).
(2) For the purposes of paragraph (c) of subclause (1), section 182 of the Land Act shall apply as if the Domgas Project is a proposed public work for which the Land Act Minister is under that section authorised to take interests in land within the meaning of that section.
(3) The Joint Venturers acknowledge that they shall be responsible for obtaining in a form and substance acceptable to the Minister all unconditional and irrevocable consents of each person whose consent the relevant grantor (acting with the concurrence of the Minister) requires for the grant of any requisite authority referred to in subclause (1).
5. Initial obligations of the Joint Venturers
(1) The Joint Venturers shall:
(a) continue to explore and evaluate the Title Areas in accordance with their obligations under the Petroleum Act (as modified by this Agreement) as holders of the relevant Petroleum Titles; and
(b) in addition undertake field and office geological, geophysical, geotechnical, engineering and environmental investigations, appraisals and studies and in due course marketing and finance studies and other matters necessary for them:
(i) to prove up sufficient reserves of natural gas within the Title Areas to underpin the establishment and sustained operation of a technically and economically viable Domgas Project; and
(ii) subject to subparagraph (i), to finalise and to submit to the Minister the detailed proposals referred to in clause 11.
(2) The Joint Venturers shall keep the State fully informed in writing at 6 monthly intervals from the Commencement Date as to the progress and results of their investigations, appraisals, studies and other matters undertaken by them under subclause (1)(b) and supply to the Minister such information in relation thereto as the Minister may request from time to time.
(3) The Joint Venturers shall co‑operate with the State and consult with the representatives or officers of the State regarding matters referred to in subclauses (1) and (2) and any other relevant studies in relation to those subclauses that the Minister may reasonably request the Joint Venturers to undertake.
(4) For the purposes of this Agreement in relation to the undertaking or proposed undertaking of the Domgas Project or the LNG Project the Aboriginal Heritage Act applies as if it were modified by:
(a) the insertion before the full stop at the end of section 18(1) of the words:
"and the expression "the Joint Venturers" means the persons from time to time comprising "the Joint Venturers" in their capacity as such under the agreement made on or about 6 November 2012 between The Honourable Colin James Barnett, Premier of the State of Western Australia acting for and on behalf of the said State and its instrumentalities from time to time, Buru Energy Limited ACN 130 651 437, Diamond Resources (Fitzroy) Pty Ltd ACN 145 113 177, Diamond Resources (Canning) Pty Ltd ACN 145 113 186 and Mitsubishi Corporation, as varied from time to time, in relation to the use or proposed use of land pursuant to that agreement after and in accordance with approved proposals under that agreement and in relation to the use of that land before any such approval of proposals where the Joint Venturers have the requisite authority to enter upon and so use the land";
(b) the insertion in sections 18(2), 18(4), 18(5) and 18(7) of the words "or the Joint Venturers as the case may be" after the words "owner of any land";
(c) the insertion in section 18(3) of the words "or the Joint Venturers as the case may be" after the words "the owner";
(d) the insertion of the following sentences at the end of section 18(3):
"In relation to a notice from the Joint Venturers the conditions that the Minister may specify can as appropriate include, among other conditions, a condition restricting the Joint Venturers' use of the relevant land to after the approval or deemed approval as the case may be under the abovementioned agreement of all the Joint Venturers submitted detailed proposals for the Domgas Project or the LNG Project (as each is defined in the above‑mentioned agreement), as the case may be, or in the case of additional proposals submitted or to be submitted by the Joint Venturers to after the approval or deemed approval under that agreement of such additional proposals, and to the extent so approved." and
(e) the insertion in sections 18(2) and 18(5) of the words "or it as the case may be" after the word "he".
The Joint Venturers acknowledge that nothing in this subclause nor the granting of any consents under section 18 of the Aboriginal Heritage Act will constitute or be construed as constituting the approval of any proposals submitted or to be submitted by the Joint Venturers under this Agreement or as the grant or promise of any land tenure for the purposes of this Agreement.
6. Community development plan
(1) In this clause, the term "community and social benefits" includes:
(a) assistance with skills development and training opportunities to promote work readiness and employment for persons living in the north west region of the said State; and
(b) regional development activities in the north west region of the said State including partnerships and sponsorships; and
(c) contribution to any community projects, town services or facilities having regard to the impact of the Domgas Project or the LNG Project as the case may be on towns or communities in the north west region of the said State.
(2) The Joint Venturers acknowledge the need for community and social benefits flowing from this Agreement.
(3) The Joint Venturers agree that, prior to the time at which they submit any proposals pursuant to clause 11 and, if required by the Minister, prior to the time at which they submit any proposals pursuant to clauses 13, 21 or 23, they shall:
(a) prepare a plan which describes the Joint Venturers' proposed strategies for achieving community and social benefits in connection with the developments proposed; and
(b) submit to the Minister the plan prepared pursuant to subclause (3)(a) and confer with the Minister in respect of the plan.
(4) The Minister shall within one month after receipt of a plan submitted under subclause (3)(b), either notify the Joint Venturers that the Minister approves the plan as submitted or notify the Joint Venturers of changes which the Minister requires be made to the plan. If the Joint Venturers are unwilling to accept the changes which the Minister requires they shall notify the Minister to that effect and either party may refer to arbitration hereunder the question of the reasonableness of the changes required by the Minister.
(5) The effect of an award made on an arbitration pursuant to subclause (4) shall be that the plan submitted by the Joint Venturers pursuant to subclause (3)(b) shall, with such changes required by the Minister under subclause (4) as the arbitrator determines to be reasonable (with or without modification by the arbitrator), be deemed to be the plan approved by the Minister under this clause.
(6) During the currency of this Agreement, the Joint Venturers shall implement the plan approved or deemed to be approved by the Minister under this clause.
(7) The Joint Venturers shall at least annually report to the Minister about the Joint Venturers' implementation of the plan approved or deemed to be approved by the Minister under this clause.
(8) At the request of either of them made at any time and from time to time, the Minister and the Joint Venturers shall confer as to any amendments desired to any plan approved or deemed to be approved by the Minister under this clause and may agree to amendment of the plan or adoption of a new plan. Any such amended plan or new plan will be deemed to be the plan approved by the Minister under this clause.
7. Local industry participation plan
(1) In this clause, the term "local industry participation benefits" means:
(a) the use and training of labour available within the said State; and
(b) the use of the services of engineers, surveyors, architects and other professional consultants, experts, specialists, project managers and contractors available within the said State; and
(c) the procurement of works, materials, plant, equipment and supplies from Western Australian suppliers, manufacturers and contractors.
(2) The Joint Venturers acknowledge the need for local industry participation benefits flowing from this Agreement.
(3) The Joint Venturers agree that they shall prepare and, in accordance with clause 11(8)(c), provide to the Minister a plan which contains in connection with the development proposed or to be proposed as the case may be pursuant to clause 11:
(a) a clear statement on the strategies which the Joint Venturers will use, and require a third party as referred to in clause 27(2) to use, to maximise the uses and procurement referred to in subclause (1); and
(b) detailed information on the procurement practices the Joint Venturers will adopt, and require a third party as referred to in clause 27(2) to adopt, in calling for tenders and letting contracts for works, materials, plant, equipment and supplies and how such practices will provide full fair and reasonable opportunity for suitably qualified Western Australian suppliers, manufacturers and contractors to tender or quote for works, materials, plant, equipment and supplies; and
(c) detailed information on the methods the Joint Venturers will use, and require a third party as referred to in clause 27(2) to use, to have their respective procurement officers promptly introduced to Western Australian suppliers, manufacturers and contractors seeking such introduction; and
(d) details of the communication strategies the Joint Venturers will use, and require a third party as referred to in clause 27(2) to use, to alert Western Australian engineers, surveyors, architects and other professional consultants, experts, specialists and project managers and Western Australian suppliers, manufacturers and contractors to services opportunities and procurement opportunities respectively as referred to in subclause (1).
It is acknowledged by the Joint Venturers that the strategies of the Joint Venturers referred to in subclause (3)(a) will include strategies of the Joint Venturers in relation to the supply of services, labour, works, materials, plant and equipment or supplies for the purposes of this Agreement.
(4) During the currency of this Agreement the Joint Venturers shall implement the plan provided in compliance with this clause.
(5) At the request of either of them made at any time and from time to time, the Minister and the Joint Venturers shall confer as to any amendments desired to any plan provided in compliance with this clause and may agree to the amendment of the plan or the provision of a new plan in substitution for the one previously provided.
(6) The provisions of subclauses (3) and (4) shall apply mutatis mutandis to any development proposed or to be proposed as the case may be pursuant to clauses 13, 21 or 23 (unless the Minister otherwise requires).
8. Domgas Commitment
(1) The parties acknowledge for the purposes of this clause and clauses 10 and 11 that it is their common aspiration that the Joint Venturers will, subject to the proving up of sufficient reserves of natural gas within the Title Areas, prior to the date that is 25 years after the Domgas Project Operation Date progressively and continuously make available for sale into the Western Australian domestic gas market a quantity of Domgas (produced as part of the Domgas Project from natural gas obtained from within the Title Areas) that is equivalent to at least 1,500 petajoules of natural gas.
(2) The Joint Venturers shall no later than 31 March 2016 commence to market Domgas (to be produced as part of the Domgas Project from natural gas obtained from within the Title Areas) on an ongoing basis for sale into the Western Australian domestic gas market and Petrochemical feed stocks for sale as contemplated by clause 28.
(3) In the event liquefied natural gas for export is being produced, or is to be produced, from natural gas obtained from within the Title Areas, the Joint Venturers shall be obliged to market and make available for sale into the Western Australian domestic gas market a quantity of Domgas (produced from natural gas obtained from within the Title Areas) which at any time during the currency of this Agreement (including as extended from time to time) is equal to the equivalent of at least the Relevant Percentage of the aggregate energy value of liquefied natural gas which at that point in time has been produced for export from natural gas obtained from within the Title Areas.
The parties acknowledge that for the purpose of this subclause the energy value of:
(a) Domgas (produced after the Commencement Date from natural gas obtained from within the Title Areas) sold by any one or more of the Joint Venturers into the Western Australian domestic gas market; and
(b) Petrochemical feed stocks produced and sold by any one or more of the Joint Venturers in compliance with clause 28,
shall be counted towards the Joint Venturers' Domgas Commitment as set out in this subclause.
For the purpose of this subclause:
Domestic Gas Reservation Policy means the State's policy on securing domestic gas supplies as published in August 2012 in the Strategic Energy Initiative: Energy 2031, as revised or replaced from time to time including legislatively;
energy value means in relation to a quantity of petroleum product the thermal energy equivalent of that quantity in joules calculated in accordance with good industry practice;
Relevant Percentage means 15% or such greater or lesser percentage as may be specified in, or applying for the purposes of, the Domestic Gas Reservation Policy at the Relevant Time; and
Relevant Time means:
(a) the date on which the Minister first gives consent pursuant to clause 19 for the commercialisation of natural gas obtained from within the Title Areas as liquefied natural gas for export; or
(b) the date on which agreement between the Minister and the Joint Venturers is first reached pursuant to clause 20 on all matters required by that clause to be agreed between them,
whichever occurs first.
(4) The parties acknowledge that it is their common expectation that the Joint Venturers will expand their Domgas Project in accordance with this Agreement so as to allow them to supply additional Domgas as contemplated by subclause (3).
(5) As part of their Domgas Commitment the Joint Venturers agree:
(a) to reserve or procure the reservation from time to time of natural gas within the Title Areas sufficient for the sustained operation of the Domgas Project in accordance with approved proposals and otherwise for them to meet their Domgas Commitment generally; and
(b) to discharge their abovementioned ongoing marketing obligations in good faith, actively and diligently (exercising the degree of skill, prudence and foresight which would reasonably be exercised by a skilled and experienced person engaged in the same type of undertaking) including assessing through activities such as market research and discussions with potential buyers demand for such Domgas and Petrochemical feed stocks; and
(c) to provide the Minister at least every 12 months (unless the Minister requests otherwise) after 31 March 2016 with a report as to the performance of their Domgas Commitment.
(6) The Minister may at any time appoint at the cost of the Joint Venturers (subject to an agreed budget) an agreed person who is independent of the parties and does not have any conflict of interest with other companies involved in the Western Australian domestic gas industry to advise the Minister of the extent to which the Joint Venturers have actively and diligently undertaken ongoing marketing in accordance with this clause. The Joint Venturers will provide on a confidential basis to such person, information on their marketing activities including indicative prices, quantities and qualities of Domgas and Petrochemical feed stocks offered for sale.
(7) The provisions of clause 36 shall not apply to this clause.
(8) Subject to clause 19 and the provisions of this Agreement relating or otherwise relevant to the submission and approval of proposals, nothing in this Agreement is to be construed as preventing or restricting the Joint Venturers from commercialising, by the production of Domgas as part of the Domgas Project, more natural gas from within the Title Areas than is required to be reserved for that purpose pursuant to subclause (5)(a).
9. Joint Venturers' continuing exploration obligation
(1) The Joint Venturers shall notwithstanding the submission and approval of proposals for the establishment and operation of the Domgas Project continue to actively explore the Title Areas for natural gas in accordance with the Petroleum Act (as modified by this Agreement) with a view to commercialising such natural gas as Domgas and, if the Joint Venturers so wish, liquefied natural gas for export.
(2) The Joint Venturers shall keep the State fully informed in writing at 6 monthly intervals from the date of approval or deemed approval of all of their proposals submitted under clause 11(1) as to the progress and results of the exploration undertaken by them under subclause (1) and supply to the Minister such information in relation thereto as the Minister may request from time to time.
(3) The Joint Venturers shall co‑operate with the State and consult with the representatives or officers of the State regarding matters referred to in subclauses (1) and (2).
10. Domgas Project Pipeline Corridor
(1) During their investigations, appraisals and studies required under clause 5 (but not earlier than 31 December 2014) the Joint Venturers shall consult with the Minister to seek the agreement of the Minister (after the Minister consults the Pipelines Act Minister and (if relevant) the DBNGP Land Access Minister and the Commissioner of Main Roads) as to:
(a) the diameter of the Domgas Project Pipeline having regard to (but not limited to) the parties' aspirations as set out in clause 8(1), proven reserves of natural gas within the Title Areas and information provided by the Joint Venturers pursuant to clause 5; and
(b) where the Domgas Project Pipeline will begin and end; and
(c) the route for the Domgas Project Pipeline and associated access roads to be within the Domgas Project Pipeline Corridor; and
(d) the land required to be included in the Domgas Project Pipeline Easement for that route as well as for associated infrastructure and works and areas from which stone, sand, clay and gravel may be taken.
In seeking such agreement on the matters referred to in paragraphs (b), (c) and (d), regard shall be had to achieving a balance between engineering matters including costs, the nature and use of any lands concerned and interests therein and the costs of acquiring the land (all of which shall be borne by the Joint Venturers). The parties acknowledge that the width of the Domgas Project Pipeline Corridor may need to vary along its route to accommodate the Domgas Project Pipeline, access roads and associated infrastructure and works and areas from which stone, sand, clay and gravel may be taken.
(2) The Minister and the Joint Venturers may from time to time before the submission of proposals vary their agreement pursuant to subclause (1).
(3) The Joint Venturers acknowledge that they shall be responsible for obtaining in a form and substance acceptable to the Minister all unconditional and irrevocable consents of each person whose consent the Land Act Minister (acting with the concurrence of the Minister) requires for:
(a) the grant of the Domgas Project Pipeline Easement; and
(b) the inclusion of additional land in the Domgas Project Pipeline Easement as referred to in clause 15(8).
(4) The provisions of clause 42 shall not apply to subclauses (1) or (2).
(5) An application under the Pipelines Act for the same purpose (or in the Minister's opinion substantially the same purpose) as the Domgas Project Pipeline may only be made by the Joint Venturers after agreement has been reached by them with the Minister in accordance with subclause (1).
(6) The Joint Venturers acknowledge that they shall be responsible for applying (consistent with the matters agreed by them with the Minister pursuant to clause 10) under the Pipelines Act for the grant to them of the Domgas Project Pipeline Licence.
11. Joint Venturers to submit proposals for Domgas Project
(1) Subject to the Environmental Protection Act and the other provisions of this Agreement, the Joint Venturers shall submit to the Minister by 30 June 2016 to the fullest extent reasonably practicable their detailed proposals (including plans where practicable and specifications where reasonably required by the Minister and any other details normally required by a local government in whose areas any works are to be situated) with respect to undertaking of the Domgas Project, which proposals shall include the location, area, layout, design, materials and time program for the commencement and completion of construction or the provision (as the case may be) of each of the following matters namely:
(a) the Domgas Project Treatment Plant at the commencement of the Domgas Project Pipeline and other Domgas Project Treatment Plants (if any);
(b) the Domgas Project Pipeline within the Domgas Project Pipeline Corridor;
(c) the pipeline connections to connect the Domgas Project Pipeline to each Domgas Project Treatment Plant to be constructed and to the domestic gas network in the said State;
(d) associated infrastructure and works to be within the Domgas Project Pipeline Corridor;
(e) temporary works in relation to the construction and testing of any Domgas Project Treatment Plant and the Domgas Project Pipeline;
(f) accommodation for the Joint Venturers' construction workforce in the vicinity of the Domgas Project Pipeline Corridor;
(g) water supply;
(h) electricity supplies;
(i) telecommunications;
(j) construction and permanent road access including within the Domgas Project Pipeline Corridor;
(k) any other works, services or facilities required by the Joint Venturers; and
(l) leases, licences or easements under the Land Act or DBP Act section 41(2)(b) approval or DBP Act section 34 access right required by the Joint Venturers from the State.
(2) The Joint Venturers may only submit proposals under subclause (1) if:
(a) a plan as referred to in clause 6 has been approved by the Minister; and
(b) the Minister and the Joint Venturers have reached agreement pursuant to clause 10 on all matters required to be agreed between them by that clause; and
(c) the Joint Venturers have applied under the Pipelines Act for the grant to them of the Domgas Project Pipeline Licence and such application is current.
(3) Proposals pursuant to subclause (1):
(a) must specify the matters agreed between the Minister and the Joint Venturers pursuant to clause 10 and must not be contrary to or inconsistent with such agreed matters;
(b) must specify the capacity (expressed in terajoules per day) of the Domgas Project Pipeline proposed to be constructed; and
(c) must specify the capacity of each Domgas Project Treatment Plant proposed to be constructed; and
(d) must specify the term of the Domgas Project; and
(e) must provide for the construction of the Domgas Project Pipeline to be commenced within 12 calendar months after approval of all of the Joint Venturers' proposals or grant of the Domgas Project Pipeline Licence (whichever is the later) and completed, and first transmission of natural gas to commence, within 2 years thereafter; and
(f) must provide for the construction of all other proposed facilities, infrastructure and works to commence not later than 12 months after the approval of all of the Joint Venturers' proposals and to be completed and operational within 3 years thereafter.
The parties also acknowledge that proposals pursuant to subclause (1) shall contemplate the construction, operation and maintenance of the Domgas Project Pipeline, access roads and associated infrastructure and works within the Domgas Project Pipeline Corridor subject to and in accordance with the safety cases and such other plans and requirements from time to time of the Pipelines Act and regulations under the Pipelines Act.
(4) Each of the proposals submitted pursuant to subclause (1) may with the consent of the Minister and that of any other parties concerned instead of providing for the construction of new facilities or equipment or the provision of new services of the kind therein mentioned provide for the use by the Joint Venturers of any existing facilities equipment or services of such kind (other than the pipe or system of pipes, being part of the LNG Project Pipeline) belonging to the Joint Venturers or, upon terms and conditions agreed between the Joint Venturers and the other parties of any other existing facilities equipment or services of such kind.
(5) The Joint Venturers may with the consent of the Minister propose, as part of their proposals under this clause or under clause 13 the construction, establishment, provision, enlargement or extension as the case may be as part of the Domgas Project of facilities, equipment or services (other than the pipe or system of pipes, being part of the Domgas Project Pipeline) for use as part of the LNG Project (whether current or proposed).
(6) Each of the proposals pursuant to subclause (1) may with the approval of the Minister, or must if so required by the Minister, be submitted separately and in any order as to the matter or matters mentioned in one or more of paragraphs (a) to (l) of subclause (1), and until all of its proposals under this clause have been approved the Joint Venturers may withdraw and may resubmit any proposal but the withdrawal of any proposal shall not affect the obligations of the Joint Venturers to submit a proposal under this clause in respect of the subject matter of the withdrawn proposal.
(7) The Joint Venturers shall, whenever any of the following matters referred to in this subclause are proposed by the Joint Venturers (whether before or during the submission of proposals under this clause), submit to the Minister details of any services (including any elements of the project investigations, design and management) and any works, materials, plant, equipment and supplies that they propose to consider obtaining from or having carried out or permitting to be obtained from or carried out outside Australia, together with their reasons therefor and shall, if required by the Minister consult with the Minister with respect thereto.
(8) At the time when the Joint Venturers submit the last of the said proposals pursuant to this clause, they shall:
(a) furnish to the Minister's reasonable satisfaction evidence:
(i) that the Joint Venturers are financially capable of undertaking the operations to which the said proposals refer; and
(ii) that the Joint Venturers are ready to embark upon and proceed to carry out the operations referred to in the said proposals including with respect to connecting the Domgas Project Pipeline to the domestic gas pipeline network; and
(iii) that the Pipelines Act Minister is ready to, upon the Minister's approval of the said proposals, grant the Domgas Project Pipeline Licence; and
(iv) that the Pipelines Act Minister is ready to, upon the Minister's approval of the said proposals, grant all consents required under the Pipelines Act or regulations made thereunder for the commencement of pipeline construction; and
(v) the DBNGP Land Access Minister is ready to, upon the Minister's approval of the said proposals, grant any DBP Act section 41(2)(b) approval and DBP Act section 34 access right required by the Joint Venturers; and
(vi) that the Joint Venturers hold, or the readiness of relevant authorities and agencies to, upon the Minister's approval of their proposals, grant approvals, consents, licences or other rights required to implement the proposals; and
(b) furnish to the Minister the consents required by the Land Act Minister (acting with the concurrence of the Minister) for the grant of the Domgas Project Pipeline Easement as referred to in clause 10(3)(a); and
(c) furnish to the Minister the local industry participation plan referred to in clause 7(3).
(9) The provisions of clause 36 shall not apply to this clause.
12. Consideration of Domgas Project proposals
(1) In respect of each proposal pursuant to clause 11(1) the Minister shall subject to the Environmental Protection Act:
(a) approve of the proposal without qualification or reservation; or
(b) defer consideration of or decision upon the same until such time as the Joint Venturers submit a further proposal or proposals in respect of some other of the matters mentioned in clause 11(1) not covered by the said proposal or until such time as clause 11(8) has been complied with by the Joint Venturers; or
(c) require as a condition precedent to the giving of his approval to the said proposal that the Joint Venturers make such alteration thereto or comply with such conditions in respect thereto as he (having regard to the circumstances including the overall development of and the use by others as well as the Joint Venturers of all or any of the facilities proposed to be provided) think reasonable and in such a case the Minister shall disclose his reasons for such conditions,
PROVIDED ALWAYS that where implementation of any proposals hereunder have been approved pursuant to the Environmental Protection Act subject to conditions or procedures, any approval or decision of the Minister under this clause shall if the case so requires incorporate a requirement that the Joint Venturers make such alterations to the proposals as may be necessary to make them accord with those conditions or procedures.
(2) The Minister shall within 2 months after the later of:
(a) receipt of proposals pursuant to clause 11(1);
(b) where the proposals are to be assessed under Part IV of the Environmental Protection Act, service on the Minister of an authority under section 45(7) of the Environmental Protection Act;
(c) where a proposal will or may require the State to do any act which affects any native title rights and interests, completion of all processes required by laws relating to native title to be undertaken by the State before that act may be done by the State,
give notice to the Joint Venturers of his decision in respect to the proposals.
(3) If the decision of the Minister is as mentioned in either of paragraphs (b) or (c) of subclause (1) the Minister shall afford the Joint Venturers full opportunity to consult with him and should they so desire to submit new or revised proposals either generally or in respect to some particular matter.
(4) If the decision of the Minister is as mentioned in either of paragraphs (b) or (c) of subclause (1) and the Joint Venturers consider that the decision is unreasonable the Joint Venturers within 2 months after receipt of the notice mentioned in subclause (2) may elect to refer to arbitration in the manner hereinafter provided the question of the reasonableness of the decision provided that any requirement of the Minister pursuant to the proviso to subclause (1) shall not be referable to arbitration hereunder.
(5) An award made on an arbitration pursuant to subclause (4) shall have force and effect as follows:
(a) if by the award the dispute is decided against the Joint Venturers then unless the Joint Venturers within 3 months after delivery of the award give notice to the Minister of their acceptance of the award this Agreement shall on the expiration of that period of 3 months cease and determine; or
(b) if by the award the dispute is decided in favour of the Joint Venturers the decision shall take effect as a notice by the Minister that the Minister is so satisfied with and approves the matter or matters the subject of the arbitration.
(6) Notwithstanding any provision of this Agreement or that the plan required to be approved pursuant to clause 6 has not been approved or that the agreement required to be reached between the Minister and the Joint Venturers pursuant to clause 10 has not been so reached or that under this clause any proposals of the Joint Venturers are approved by the Minister or determined by arbitration award, unless each and every matter required pursuant to clause 11 is so approved or determined by 30 June 2018, the Minister may give the Joint Venturers 6 months notice of intention to determine this Agreement and unless before the expiration of the said 6 months period all the detailed proposals and matters are so approved or determined this Agreement shall on the expiration of that period cease and determine subject to the provisions of clause 39.
(7) Subject to and in accordance with the Environmental Protection Act and any approvals and licences required under that Act the Joint Venturers shall implement the approved proposals in accordance with the terms thereof.
(8) Notwithstanding clause 35 the Minister may during the implementation of approved proposals approve variations to those proposals.
13. Expansion of Domgas Project
(1) If the Joint Venturers at any time during the currency of this Agreement desire to:
(a) extend or enlarge the Domgas Project Pipeline or a Domgas Project Treatment Plant or increase the capacity of that pipeline or treatment plant beyond that specified in the approved proposals; or
(b) connect an existing or proposed pipeline to the Domgas Project Pipeline; or
(c) otherwise to significantly modify, expand or otherwise vary their activities that are the subject of this Agreement and that may be carried on by them pursuant to this Agreement as part of the Domgas Project beyond those activities specified in the then approved proposals,
they shall give notice of such desire to the Minister and furnish to the Minister with that notice an outline of their proposals in respect thereto (including such matters mentioned in clauses 10 and 11(1) as are relevant or as the Minister otherwise requires).
(2) The Minister shall within one month after receiving a notice under subclause (1) advise the Joint Venturers whether or not he approves in‑principle the proposed extension, enlargement, increase, connection or other modification, expansion or variation. An in‑principle approval by the Minister under this subclause may be given subject to conditions including a condition requiring variations or additions to this Agreement provided that any such condition shall not without the consent of the Joint Venturers require variations of:
(a) the term of any Petroleum Titles or rentals or royalties payable thereunder; or
(b) the rates or method of calculating royalty on petroleum produced from the Petroleum Titles.
The Minister shall afford the Joint Venturers full opportunity to consult with the Minister in respect of any decision of the Minister under this subclause.
(3) If the Minister gives in‑principle approval under subclause (2) the Joint Venturers may but not otherwise submit detailed proposals in respect thereof provided that the provisions of clause 5 (other than subclause (1)(a) and (1)(b)(i)) and (if the proposals are to include an extension or enlargement of the Domgas Project Pipeline) clause 10 shall mutatis mutandis apply prior to submission of detailed proposals in respect thereof.
(4) Subject to the Environmental Protection Act and the provisions of this Agreement the Joint Venturers shall submit to the Minister within a reasonable timeframe (as determined by the Minister) after the giving of the Minister's in‑principle approval, detailed proposals in respect thereof in accordance with any conditions of that approval otherwise that in‑principle approval shall lapse.
(5) The provisions of clause 11 (other than subclause (3)(d), with the reference in subclause (8)(a)(iii) being read as a reference to the Pipelines Act Minister being ready to vary the Domgas Pipeline Licence to accord with the approved proposals, with the reference in subclause (8)(b) being read as a reference to clause 10(3)(b) and the reference in subclause (8)(c) being read as a reference to clause 7(3) as applying pursuant to clause 7(6)) and of clause 12 (other than subclauses (5)(a) and (6)) shall mutatis mutandis apply to detailed proposals submitted pursuant to this clause. The Joint Venturers may withdraw such proposals at any time before approval thereof or, where any decision of the Minister in respect thereof is referred to arbitration, within 3 months after the award by notice to the Minister that it shall not be proceeding with the same. In that event the Minister's in‑principle approval shall lapse.
(6) Subject to and in accordance with the Environmental Protection Act and any approvals or licences required under that Act, the Joint Venturers shall implement approved proposals pursuant to this clause in accordance with the terms thereof.
14. Petroleum Titles
(1) For the purposes of this Agreement and without limiting the operation of other subclauses, the application of the Petroleum Act and the regulations made thereunder in relation to Petroleum Titles is, and the rights and obligations of the holders from time to time of Petroleum Titles are, specifically modified during the continuance of this Agreement as follows:
(a) section 41 of the Petroleum Act shall not apply to an application made during the Suspension Period under section 40 of the Petroleum Act for the renewal of a petroleum exploration permit; and
(b) an application made under section 40 of the Petroleum Act during the Suspension Period for the renewal of a petroleum exploration permit must be in respect of all of the blocks in respect of which the permit is then in force unless the Petroleum Act Minister (acting with the concurrence of the Minister) otherwise consents to the application being made in respect of a lesser number of blocks;
(c) an application made under section 40 of the Petroleum Act during the Suspension Period for the renewal of a petroleum exploration permit may not be made earlier than 6 calendar months before the date of expiration of the permit; and
(d) in relation to section 97:
(i) section 97(3) shall not apply:
(A) during the Suspension Period in respect of a petroleum exploration permit; and
(B) to a petroleum exploration permit that is renewed during the Suspension Period in respect of that renewed term; and
(ii) without restricting
        
      