Petroleum (Offshore) Act 1982 (NSW)

Petroleum (Offshore) Act 1982 No 23 An Act relating to the exploration for, and the exploitation of, the petroleum resources, and certain other resources, of certain submerged lands adjacent to the coasts of New South Wales; to repeal the Petroleum (Submerged Lands) Act 1967 and the Petroleum (Submerged Lands) Taxation Act 1967; to amend the Petroleum Act 1955 and the Pipelines Act 1967; and for other purposes. Preamble WHEREAS in accordance with international law Australia as a coastal state has sovereign rights over the continental shelf beyond the limits of Australian territorial waters for the purpose of exploring it and exploiting its natural resources: AND WHEREAS Australia is a party to the Convention on the Continental Shelf signed at Geneva on 29 April 1958 in which those rights are defined: AND WHEREAS by the Seas and Submerged Lands Act 1973 of the Parliament of the Commonwealth, it is declared and enacted that the sovereignty in respect of the territorial sea of Australia and in respect of the airspace over it and in respect of its sea-bed and subsoil, and the sovereignty in respect of certain internal waters of Australia and in respect of the airspace over those waters and in respect of the 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 recital and the Parliament of the Commonwealth has vested in the Crown in right of each of the States and the Crown in right of the Northern Territory certain proprietary rights in respect of that 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 16 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 the Queen's Most Excellent Majesty, by and with the advice and consent of the Legislative Council and Legislative Assembly of New South Wales in Parliament assembled, and by the authority of the same, as follows: Part 1 Preliminary 1 Name of Act This Act may be cited as the Petroleum (Offshore) Act 1982. 2 Commencement (1) This section and section 1 shall commence on the date of assent to this Act. (2) Except as provided by subsection (1), this Act shall commence on the first day on which all of the following Acts of the Parliament of the Commonwealth, with or without amendments, are in operation, namely, the Seas and Submerged Lands Amendment Act 1980, the Coastal Waters (State Powers) Act 1980, the Coastal Waters (State Title) Act 1980 and the Petroleum (Submerged Lands) Amendment Act 1980. (3) 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 Repeals, amendments and transitional provisions (1) The Petroleum (Submerged Lands) Act 1967 and the Petroleum (Submerged Lands) Taxation Act 1967 are repealed. (2), (3) (Repealed) (4) The scheme agreed on between the Commonwealth, the States and the Northern Territory, being the scheme set out in Schedule 3, so far as that scheme relates to the operation of this Act, has the force of law by virtue of this subsection. (5) For the purposes of the scheme set out in Schedule 3, this Act is the State Act of New South Wales and the Minister is the Designated Authority under this Act. (6) A reference to the Designated Authority in a new permit (within the meaning of the scheme set out in Schedule 3) or a new pipeline licence (within the meaning of that scheme) shall for the purposes of that permit or pipeline licence and this Act be read as a reference to the Minister. (7) A reference in any other Act, or in any regulation, by-law or other statutory instrument or in any other document, whether of the same or of a different kind, to the "Petroleum (Submerged Lands) Act 1967" shall be read and construed as a reference to the "Petroleum (Submerged Lands) Act 1982". (8) Schedule 4 (Savings, transitional and other provisions) has effect. (9) During the period commencing on the date of commencement of this subsection and ending at the time the Petroleum (Submerged Lands) (Cash Bidding) Amendment Act 1985 of the Commonwealth ceases to be in force this Act shall be read as if the amendments set forth in Schedule 5 (Applications for exploration permits by way of cash bidding) were in force. 4 (Repealed) 5 Definitions (1) In this Act, except in so far as the context or subject-matter otherwise indicates or requires: access authority means an access authority under Part 4. application for a primary licence means an application under section 41 (1) or (2) or 41A (1) or (2). application for a secondary licence means an application under section 41 (3) or 41A (3). approved means approved by the Minister. block means a block constituted as provided by section 18. Chief Commissioner means the Chief Commissioner of State Revenue. construct includes place. corresponding law means an Act of another State or a law in force in a Territory of the Commonwealth giving effect to the agreement between 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 18. inspector means a person appointed under section 126. lease means a retention lease under Part 4. 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 under Part 4. licence area means the area constituted by the blocks that are the subject of a licence. licensee means the registered holder of a licence. location means a block or blocks in respect of which a declaration under section 38 is in force. natural resources has the same meaning as in the Convention. partly cancelled means: (a) in relation to a permit or licence—cancelled as to 1 or more but not all of the blocks the subject of the permit or licence, and (b) in relation to a pipeline licence—cancelled as to a part of the pipeline the subject of the licence. partly determined, in relation to a permit or lease, means determined as to 1 or more but not all of the blocks the subject of the permit or lease. permit means an exploration permit for petroleum under Part 4. 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, (b) any naturally occurring mixture of hydrocarbons, whether in a gaseous, liquid or solid state, or (c) any naturally occurring mixture of 1 or more hydrocarbons, whether in a gaseous, liquid or solid state, and 1 or more of the following, that is to say, hydrogen sulphide, nitrogen, helium and carbon dioxide, and includes any petroleum as defined by paragraph (a), (b) or (c) that has been returned to a natural reservoir 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, (b) for conveying petroleum for use for the purposes of petroleum exploration operations or operations for the recovery of petroleum, (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 under Part 4 to construct and operate a pipeline. pipeline licensee means the registered holder of a pipeline licence. 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 41 (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 41A (1). primary licence means a licence granted on an application under section 41 (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 4. 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. regulations means regulations made under this Act. 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 that date occurs, and (b) each month thereafter. secondary licence means a licence granted on an application under section 41 (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 in this subsection. special prospecting authority means a special prospecting authority under Part 4. 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 64 or under the Commonwealth Act or a corresponding law. the adjacent area means the area specified in Schedule 2 as being the adjacent area of New South Wales. the applied provisions means the provisions applied in accordance with section 15. the Commonwealth Act means the Offshore Petroleum and Greenhouse Gas Storage Act 2006 of the Parliament of the Commonwealth as amended from time to time and any Act of Parliament of the Commonwealth with which that Act is incorporated. the Convention means the Convention entitled "Convention on the Continental Shelf" signed at Geneva on 29 April 1958, being the Convention a copy of which in the English language is set out in Schedule 1. the Joint Authority means the Commonwealth–New South Wales Offshore Petroleum Joint Authority established by the Commonwealth 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, (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, (c) in relation to a permit or licence that has been wholly cancelled or partly cancelled—the area constituted by the blocks as to which the permit or licence was so cancelled, (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, (d) in relation to a pipeline licence that is no longer in force—the part of the adjacent area in which the pipeline was constructed, (e) in relation to a pipeline licence that has been wholly cancelled or partly cancelled—the part of the adjacent area in which the pipeline or the part of the pipeline, as the case may be, was constructed, and (f) in relation to a special prospecting authority or access authority that has been surrendered or cancelled or has expired—the area constituted by the blocks in respect of which that authority was in force. valve station means equipment for regulating the flow of petroleum and includes any structure associated with that equipment. vessel means a vessel used in navigation, other than air navigation, and includes a barge, lighter or other floating vessel. water line means a pipe or system of pipes for conveying water in connexion with petroleum exploration operations or operations for the recovery of petroleum. well means a hole in the sea-bed or subsoil made by drilling, boring or any other means in connexion 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) 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. (3) 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. (4) 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 firstmentioned permit to commence on the day after the date of expiration of the firstmentioned permit or on the day after the date of expiration of the permit granted upon a previous renewal of the firstmentioned permit. (4A) 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 firstmentioned lease was in force to commence on the day after the date of expiration of the firstmentioned lease or on the day after the date of expiration of the lease granted upon a previous renewal of the firstmentioned lease. (5) 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 firstmentioned licence or on the day after the date of expiration of the licence granted upon a previous renewal of the firstmentioned licence. (6) 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 firstmentioned pipeline licence or on the day after the date of expiration of the pipeline licence granted upon a previous renewal of the firstmentioned pipeline licence. (7) In this Act, a reference to a pipeline includes a reference to a part of a pipeline. (8) 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. (9) The power conferred by this Act to make, grant or issue any instrument shall, unless the contrary intention appears, be construed as including a power exercisable in the like manner and subject to the like conditions, if any, to repeal, rescind, revoke, amend or vary any such instrument. 6 Spaces above and below adjacent areas For the purposes of this Act and the regulations: (a) the space above or below the adjacent area shall be deemed to be in that area, and (b) the space above or below an area that is part of the adjacent area shall be deemed to be in that part. 7 Ascertaining points and other matters (1) The position on the surface of the Earth of a point, line or area that is necessary to be determined for the purposes of this Act (other than Schedule 2), or of any order, instrument or notification under this Act, is to be determined by reference to the Geocentric Datum of Australia within the meaning of the Surveying and Spatial Information Act 2002. (2) The points of latitude and longitude referred to in Schedule 2 are to 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 100/29825 and by reference to the position of the Johnston Geodetic Station in the Northern Territory of Australia, which is 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 that spheroid. 8 Petroleum pool extending into 2 licence, permit or lease areas (1) The provisions of this section have effect for the purposes of this Act and of licences. (2) Where a well-head is situated in a licence area and 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. (3) Where a petroleum pool is partly in 1 licence area and partly in an adjoining licence area of the same licensee and petroleum is recovered from that pool through a well or wells in 1 or both of the licence areas, there shall be deemed to have been recovered in each of the licence areas, under the licence in respect of that area, such proportion of all petroleum so recovered as may reasonably be treated as being derived from that area, having regard to the nature and probable extent of the pool, and the respective proportions shall be determined in accordance with subsection (4). (4) The proportions to be determined for the purposes of subsection (3) may be determined by agreement between the licensee and the Minister or, in the absence of agreement, may be determined by the Supreme Court on the application of the licensee or the Minister. (5) Where a petroleum pool is partly in a licence area and partly in an area (in this subsection referred to as the Commonwealth licence area) in which the licensee has authority under the Commonwealth Act to explore for, or recover, petroleum, and petroleum is recovered from that pool through a well or wells in the licence area, the Commonwealth licence area or both, there shall be deemed to have been recovered in the licence area such proportion of all petroleum so recovered as may reasonably be treated as being derived from that area, having regard to the nature and probable extent of the pool, and that proportion shall be determined in accordance with subsection (6). (6) The proportion to be determined for the purposes of subsection (5) may be determined by agreement between the licensee, the Joint Authority and the Minister or, in the absence of agreement, may be determined by the Supreme Court on the application of the licensee, the Joint Authority or the Minister. (7) Where a petroleum pool is partly in a licence area and partly in an area (in this section called the other State licence area) in which the licensee has authority, under a corresponding law, to explore for, or recover, petroleum, and petroleum is recovered from that pool through a well or wells in the licence area, the other State licence area or both, there shall be deemed to have been recovered in the licence area such proportion of all petroleum so recovered as may reasonably be treated as being derived from that area, having regard to the nature and probable extent of the pool, and that proportion shall be determined in accordance with subsection (8). (8) The proportion to be determined for the purposes of subsection (7) may be determined by agreement between the licensee, the Minister and the Minister of the other State administering the corresponding law or, in the absence of agreement, may be determined by the Supreme Court on the application of any of those persons. (9) Where: (a) a petroleum pool is partly in a licence area and partly in another area, being an area which is outside the adjacent area and in which the licensee has, under the Commonwealth Act or a corresponding law, authority to explore for, or recover, petroleum, (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 have been recovered from the other area, the Supreme Court shall not make a determination under this section that is inconsistent with the determination of the Supreme Court of the other State. (10) Where: (a) a petroleum pool is partly in a licence area and partly in another area, whether in the adjacent area or not, in respect of which another person has authority, whether under this Act, the Commonwealth Act or a corresponding law, to explore for or recover petroleum, (b) a unit development agreement in accordance with section 60 is in force between the licensee and that other person, and (c) petroleum is recovered from that pool through a well or wells in the licence area, the other area or both, there shall be deemed to have been recovered in the licence area such proportion of all petroleum so recovered as is specified in, or determined in accordance with, the agreement. (11) In this section, a reference to a licence, a licensee or a licence area shall be read as including a reference to a permit and a lease, a permittee and a lessee or a permit area and a lease area. 9 Application of Act This Act applies to all natural persons, whether Australian citizens or not and whether resident in New South Wales or not, and to all corporations, whether incorporated or carrying on business in New South Wales or not. Part 2 Administration of the Commonwealth offshore area 10 Definition In this Part, the Commonwealth offshore area means the offshore area for New South Wales for the purposes of the Commonwealth Act. 11 Minister as member of Joint Authority (1) The Minister may exercise any power which the Commonwealth Act is expressed to authorize the Minister to exercise as a member of the Joint Authority. (2) The Minister shall perform any function which the Commonwealth Act is expressed to require the Minister to perform as a member of the Joint Authority. 12 Minister as Designated Authority The Minister is authorized to perform the functions and exercise the powers which the Commonwealth Act is expressed to require or empower the Designated Authority in respect of the Commonwealth offshore area to perform or exercise. 13 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 offshore area the Minister delegates a power to a person who is a public servant or who holds any office in the service of New South Wales, the person may exercise the power. 14 Public servants performing functions under Commonwealth Act A public servant shall perform any function which the Minister, as the Designated Authority in respect of the Commonwealth offshore area, or as a member of the Joint Authority, requires the public servant to perform in relation to the Commonwealth Act. Part 3 Application of laws 15 Application of laws in the adjacent area (1) Subject to this Act and the regulations, the provisions of the laws, whether written or unwritten, in force in New South Wales for the time being (other than laws of the Commonwealth) and the provisions of any instrument having effect under any of those laws, apply, as provided by this section, in the adjacent area and so apply as if that area were part of New South Wales. (2) The laws referred to in subsection (1) do not include laws that for the time being apply in the adjacent area by virtue of the Crimes at Sea Act 1998 or the Application of Laws (Coastal Sea) Act 1980. (3) A law shall be taken to be a law in force in New South Wales notwithstanding that that law applies to part only of New South Wales. (4) The provisions referred to in subsection (1) apply to and in relation to all acts, omissions, matters, circumstances and things touching, concerning, arising out of or connected with the exploration of the sea-bed or subsoil of the adjacent area for petroleum and the exploitation of the natural resources, being petroleum, of that sea-bed or subsoil. (5) Without limiting the operation of subsection (4), the provisions referred to in subsection (1) apply: (a) to and in relation to: (i) an act or omission that takes place in, on, above, below or in the vicinity of, and (ii) a 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, (b) to and in relation to a person who: (i) is in the adjacent area for a reason of the kind referred to in paragraph (a), 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), and (c) to and in relation to a person in respect of the person's carrying on any operation or doing any work in the adjacent area for a reason of the kind referred to in paragraph (a). (6) This section does not extend to the provisions of any law or instrument: (a) in so far as they apply to or in relation to exploration for, or operations for the recovery of, petroleum, (b) in so far as they apply to or in relation to the construction or operation of pipelines, (c) in so far as they are incapable of application in the adjacent area, or (d) in so far as they are expressed not to extend to or apply in the adjacent area. (7) This section does not limit the operation that any law or instrument has apart from this section. (8) The regulations may provide that such of the provisions referred to in subsection (1) as are specified in the regulations do not apply by reason of this section or so apply with such modifications as are specified in the regulations. (9) For the purposes of subsection (8), modification includes the omission or addition of a provision or the substitution of a provision for another provision. 16 Jurisdiction of State courts (1) Subject to this section, the several courts of New South Wales are invested with jurisdiction in all matters arising under the applied provisions, this Act or the regulations. (2) The jurisdiction with which the several courts are invested by subsection (1) is invested within the limits (other than limits having effect by reference to localities) of their several jurisdictions. (3) (Repealed) (4) This section does not limit the jurisdiction that any court has apart from this section. Part 4 Mining for petroleum Division 1 Preliminary 17 Delegation (1) The Minister may, either generally or as otherwise provided by the instrument of delegation, by writing signed by the Minister delegate to a person any of the Minister's powers or functions under this Act or the regulations, other than this power of delegation. (2) A power or function so delegated, when exercised or performed by the delegate, shall, for the purposes of this Act or the regulations, be deemed to have been exercised or performed by the Minister. (3) A delegation under this section may be expressed as a delegation to the person for the time being holding, or performing the duties of, a specified office under the Commonwealth, a State or a Territory. (4) A delegation under this section made at any time by a person who is at that time the Minister continues in force notwithstanding that at some subsequent time a different person is the Minister or there is no person who is the Minister, but such a delegation may be revoked or varied by any person who is for the time being the Minister. (5) A delegation under this section of a power or function does not prevent the exercise of the power or the performance of the function by the Minister. (6) A copy of each instrument making, varying or revoking a delegation shall be published in the Gazette. 18 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,