Attorney-General (Vict); Ex rel Black v The Commonwealth

The Attorney-General of Victoria, on the relation of one Black, sought to restrain the Commonwealth from proceeding with the implementation of the Petroleum and Minerals Authority Act 1973 (Cth) and the Petroleum and Minerals (Temporary Provisions) Act 1973 (Cth). The High Court of Australia was asked to determine the constitutional validity of these Commonwealth statutes.

The central legal issue before the Court was whether the Commonwealth Parliament had the constitutional power to enact legislation that effectively nationalised the exploration and exploitation of petroleum and minerals within Australia, including its territorial sea and continental shelf. This involved an examination of the scope of Commonwealth legislative power, particularly in relation to the external affairs power, and whether the impugned legislation encroached upon the powers reserved to the States.

The Court, by a majority, held that the Commonwealth legislation was invalid. The majority reasoned that the legislation purported to grant the Petroleum and Minerals Authority powers that extended to the territorial sea and continental shelf, areas which, at the time, were considered to be within the sovereign territory of the States. The Court found that the Commonwealth lacked the constitutional power to legislate with respect to the seabed beyond the low-water mark of the States, except in relation to matters falling within specific heads of Commonwealth power, such as defence or external affairs. The external affairs power was found not to be sufficiently broad to support the legislation in this instance, as it was not based on any existing international treaty or obligation.

Consequently, the Court made orders restraining the Commonwealth from further implementing the impugned Acts.