Mineral and Energy Resources (Financial Provisioning) Act 2018 (Qld)

Mineral and Energy Resources (Financial Provisioning) Act 2018

An Act to establish a financial provisioning scheme to deal with the environmental impacts of resource activities, and to administer payments made for residual risks arising from resource activities

Part 1    Preliminary

Division 1 Introduction

1   Short title

This Act may be cited as the Mineral and Energy Resources (Financial Provisioning) Act 2018.

2   Commencement

This Act commences on a day to be fixed by proclamation.

Division 2 Purposes and application of Act

3   Main purposes

The main purposes of this Act are—

(a)to provide for holders of authorities to pay a contribution to the scheme fund, or give a surety, for the authorities; and

(b)to provide a way to manage the risk to the State of incurring costs and expenses if the holder of an authority or small scale mining tenure does not comply with the holder’s obligations under the authority or tenure; and

(c)to provide a source of funds to the State for costs and expenses relating to preventing or minimising environmental harm, or rehabilitating or restoring the environment, or securing compliance with an authority or small scale mining tenure; and

(d)to provide a source of funds to the State for—

(i)remediation activities in relation to mining activities previously carried out on an abandoned mine site; and

(ii)remediation activities in relation to an abandoned operating plant; and

(iii)research that may contribute to the rehabilitation of land on which resource activities have been carried out; and

(e)to administer payments received by the State under the Environmental Protection Act 1994 for residual risks of land on which resource activities have been carried out.

4   How main purposes to be achieved

The main purposes are to be achieved by—

(a)establishing a financial provisioning scheme to deal with the environmental impacts of resource activities (the scheme), including, for example—

(i)a scheme fund; and

(ii)a cash surety account; and

(b)establishing a residual risks fund; and

(c)providing for the appointment of a person to manage the scheme and administer the residual risks fund; and

(d)providing for the person mentioned in paragraph (c)—

(i)for managing the scheme—to make payments from the scheme fund and the cash surety account, enter into surety arrangements, and call on and release sureties; and

(ii)for administering the residual risks fund—to make payments from the residual risks fund.

5   Relationship with Environmental Protection Act 1994

(1)This Act does not exclude, limit or otherwise affect the operation of the Environmental Protection Act 1994 unless this Act otherwise expressly provides.

(2)Without limiting subsection (1), this Act does not exclude, limit or otherwise affect the duties, obligations, requirements or restrictions imposed, under the Environmental Protection Act 1994, on the holder of an authority or small scale mining tenure.

6   Act does not affect other rights or remedies

(1)This Act does not affect or limit a civil right or remedy that exists apart from this Act, whether at common law or otherwise.

(2)Without limiting subsection (1), compliance with this Act does not necessarily show that a civil obligation that exists apart from this Act has been satisfied or has not been breached.

(3)In addition, a breach of an obligation under this Act does not of itself give rise to an action for breach of statutory duty or another civil right or remedy.

(4)To remove any doubt, it is declared that nothing in this Act creates an obligation on the State to take action, or incur costs and expenses, to—

(a)prevent or minimise environmental harm or rehabilitate or restore the environment, in relation to the carrying out of an activity under an authority or small scale mining tenure; or

(b)secure compliance with an authority or small scale mining tenure.

Division 3 Interpretation

Subdivision 1 Dictionary

7   Definitions

The dictionary in schedule 1 defines particular words used in this Act.

Subdivision 2 Key definitions

8   What is the estimated rehabilitation cost

The estimated rehabilitation cost, for an environmental authority for a resource activity (an authority), is the amount of the estimated cost of the following, for an ERC period, as decided under the Environmental Protection Act 1994, section 300 by the administering authority—

(a)rehabilitating the land on which the resource activity is carried out;

(b)preventing or minimising environmental harm, or rehabilitating or restoring the environment, in relation to the resource activity.

9   What is an entity’s total estimated rehabilitation cost

The total estimated rehabilitation cost, for an entity, is the sum of the estimated rehabilitation cost for each authority for which—

(a)a contribution to the scheme fund is payable; and

(b)the entity is the holder or, if there is more than 1 holder of the authority, the relevant holder.

10   What is the State’s total estimated rehabilitation cost

The total estimated rehabilitation cost, for the State, is the sum of the estimated rehabilitation cost for each authority granted by the State.

11   What is the fund threshold

(1)The fund threshold applying to an authority is—

(a)the amount prescribed for the authority by regulation for this paragraph; or

(b)if no amount is prescribed under paragraph (a) for the authority—the amount under subsection (2) for the authority.

(2)The amount for subsection (1)(b) is—

(a)if the holder of the authority has a prescribed rating—$600m; or

(b)if the scheme manager considers the financial soundness of a parent corporation of the holder when making an allocation decision for the authority and the parent corporation has a prescribed rating—$600m; or

(c)for an authority for which there is more than 1 holder—

(i)if the scheme manager considers the financial soundness of any or all of the holders of the authority when making an allocation decision for the authority and at least 1 of the holders considered has a prescribed rating—$600m; or

(ii)if the scheme manager considers the financial soundness of a parent corporation of any or all of the holders of the authority when making an allocation decision for the authority and at least 1 of the parent corporations considered has a prescribed rating—$600m; or

(d)in any other case—$450m.

(3)Before recommending to the Governor in Council that an amount be prescribed under subsection (1)(a), the Minister must have regard to—

(a)the percentage of the State’s total estimated rehabilitation cost that the amount represents; and

(b)the number of holders of authorities affected by the amount; and

(c)the effect of the matters mentioned in paragraphs (a) and (b) on the financial viability of the scheme fund; and

(d)if the actuarial sustainability of the scheme has been investigated under section 73—the actuary’s opinion, and the scheme manager’s recommendation, about whether the fund threshold applying to all or some of the authorities should be changed.

(4)In this section—

prescribed rating, in relation to the holder of an authority, means a credit rating prescribed by regulation.

Part 2    Establishment of scheme and residual risks fund

Division 1 Scheme manager

12   Appointment

(1)There is to be a scheme manager.

(2)The scheme manager is to be appointed by the Governor in Council.

(3)The scheme manager is appointed under this Act and not the Public Sector Act 2022.

(4)The scheme manager may be appointed on a full-time or part-time basis.

13   Term of appointment

(1)The scheme manager holds office for the term stated in the scheme manager’s instrument of appointment.

(2)The stated term must not be more than 5 years.

(3)The scheme manager may be reappointed.

14   Remuneration and conditions

(1)The scheme manager is to be paid the remuneration and other allowances decided by the Governor in Council.

(2)The remuneration must not be reduced during the scheme manager’s term of office without the scheme manager’s written consent.

(3)The scheme manager holds office on the terms and conditions, not provided for by this Act, that are decided by the Governor in Council.

15   Resignation

The scheme manager may, at any time, resign office as scheme manager by signed notice given to the Minister.

16   Acting scheme manager

(1)The Minister may appoint a person to act as scheme manager—

(a)during a vacancy in the office; or

(b)during any period, or during all periods, when the scheme manager is absent from duty or from the State or is, for another reason, unable to perform the duties of the office.

(2)However, the person can not be appointed for more than 6 months in any 12 month period.

(3)The acting scheme manager is appointed under this Act and not the Public Sector Act 2022.

(4)It does not matter whether the appointee is or is not a public service officer.

17   Preservation of rights

(1)This section applies if a public service officer is appointed as the scheme manager.

(2)The person keeps all rights accrued or accruing to the person as a public service officer as if service as the scheme manager were a continuation of service as a public service officer.

(3)Without limiting subsection (2), the person’s appointment does not—

(a)prejudice the person’s existing or accruing rights to superannuation or recreation, sick, long service or other leave; or

(b)interrupt continuity of service, except that the employee is not entitled to claim the benefit of a right or entitlement more than once in relation to the same period of service; or

(c)entitle the person to a payment or other benefit because the person is no longer a public service officer.

18   Relationship with State

(1)The scheme manager represents the State.

(2)Without limiting subsection (1), the scheme manager has the status, privileges and immunities of the State.

19   Finance

(1)The scheme manager is a part of the department for the purposes of the Financial Accountability Act 2009.

(2)Despite the Financial Accountability Act 2009, section 76, the accountable officer for the department under that Act may delegate the officer’s functions under that Act to the scheme manager.

20   Not statutory body for particular Acts

The scheme manager is not a statutory body for the Statutory Bodies Financial Arrangements Act 1982 or the Financial Accountability Act 2009.

21   Functions

(1)The scheme manager has the following functions—

(a)allocating authorities to a risk category;

(b)reviewing the risk category to which authorities have been allocated;

(c)managing the scheme;

(d)administering the residual risks fund;

(e)setting investment objectives for the scheme fund or part of the scheme fund, and for the residual risks fund or part of the residual risks fund, and establishing investment strategies and policies to achieve the objectives.

(2)In performing the function under subsection (1)(e), the scheme manager must ask for advice from—

(a)the Long Term Asset Advisory Board; or

(b)if the Treasurer nominates another entity for this paragraph—the nominated entity.

(3)In this section—

Long Term Asset Advisory Board means the Long Term Asset Advisory Board established under the Queensland Treasury Corporation Act 1988, section 10.

22   Powers

(1)Subject to subsection (3), the scheme manager has all the powers of an individual and may, for example—

(a)enter into contracts; and

(b)acquire, hold, deal with and dispose of property; and

(c)appoint agents and attorneys; and

(d)engage consultants; and

(e)do anything else necessary or convenient to be done in the performance of the scheme manager’s functions.

(2)Subject to subsection (3), the scheme manager also has the powers given to the scheme manager under this Act or another Act.

(3)The scheme manager does not have power to borrow money.

23   Staff services from department

(1)The chief executive may, at the scheme manager’s request, assign public service employees of the department to perform work for the scheme manager.

(2)A person assigned to perform work for the scheme manager under subsection (1) is not subject to the direction of the chief executive in relation to the work.

Division 2 Scheme fund and cash surety account

24   Establishment of scheme fund

(1)The Financial Provisioning Fund (the scheme fund) is established.

(2)Accounts for the scheme fund must be kept as part of the departmental accounts of the department.

(3)Amounts received for the scheme fund—

(a)must be deposited in a departmental financial institution account of the department; and

(b)may be deposited in an account used for depositing other amounts of the department.

(4)The chief executive (environment) must pay into the scheme fund an amount recovered under the Environmental Protection Act 1994 in relation to costs and expenses for which the chief executive (environment) receives an amount from the scheme manager under section 65.

(5)The Treasurer may advance amounts to the scheme fund on the terms the Treasurer considers appropriate.

(6)An advance by the Treasurer under subsection (5) is to be paid by the Treasurer out of the consolidated fund which is appropriated accordingly.

(7)Amounts received for the scheme fund include the following—

(a)contributions to the scheme fund paid under this Act;

(b)fees paid under this Act;

(c)amounts received from the chief executive (environment) under subsection (4);

(d)amounts advanced by the Treasurer;

(e)amounts earned as interest on the cash surety account deposited into the scheme fund by the scheme manager;

(f)amounts earned as interest on the scheme fund.

(8)An amount mentioned in subsection (7) is a controlled receipt for the Financial Accountability Act 2009.

(9)An amount is payable from the scheme fund for—

(a)the purposes of this Act, including, for example, a cost related to the administration of the scheme or staff services under section 23; or

(b)the repayment of an amount advanced to the scheme fund by the Treasurer.

25   Cash surety account

(1)The scheme manager must keep a separate bank account (a cash surety account) with a financial institution for the management of cash amounts paid as surety for an authority or small scale mining tenure.

(2)Accounts for the cash surety account must be kept as part of the departmental accounts of the department.

(3)The scheme manager must pay into the cash surety account a cash amount paid as surety for an authority or small scale mining tenure.

(4)The scheme manager may make payments from the cash surety account only for—

(a)giving an amount to a requesting entity under section 68(b); or

(b)depositing an amount of interest earned on the account into the scheme fund; or

(c)releasing a surety under section 58.

(5)The scheme manager may invest an amount in the cash surety account only in—

(a)deposits with a financial institution; or

(b)investment arrangements mentioned in the Statutory Bodies Financial Arrangements Act 1982, section 44(1)(d).

(6)An investment mentioned in subsection (5) must be—

(a)at call; or

(b)for a fixed time of not more than 1 year.

Division 3 Residual risks fund

25A   Establishment of residual risks fund

(1)The Residual Risks Fund is established.

(2)Accounts for the residual risks fund must be kept as part of the departmental accounts of the department.

(3)Amounts received for the residual risks fund—

(a)must be deposited in a departmental financial institution account of the department; and

(b)may be deposited in an account used for depositing other amounts of the department.

(4)Amounts received for the residual risks fund are—

(a)residual risk payment amounts; or

(b)amounts earned as interest on the residual risks fund or as a return from investment of monies in the residual risks fund.

(5)An amount mentioned in subsection (4) is a controlled receipt for the Financial Accountability Act 2009.

(6)An amount is payable from the residual risks fund—

(a)for payment of costs and expenses related to the administration of the fund; or

(b)under part 3A.

Part 3    Operation of scheme

Division 1 Risk category allocation

Subdivision 1 Initial allocation

26   Application of subdivision

(1)This subdivision applies if—

(a)the administering authority decides, under the Environmental Protection Act 1994, section 300, the estimated rehabilitation cost for an authority; and

(b)the estimated rehabilitation cost decided by the administering authority is equal to or more than the following amount (the prescribed ERC amount)—

(i)the amount, of more than $100,000, prescribed by regulation for this subparagraph;

(ii)if no amount is prescribed under subparagraph (i)—$10m.

(2)Also, this subdivision applies if—

(a)the administering authority decides, under the Environmental Protection Act 1994, section 300, the estimated rehabilitation cost for an authority; and

(b)the estimated rehabilitation cost decided by the administering authority is equal to or more than $100,000 but less than the prescribed ERC amount; and

(c)the scheme manager gives the holder an election notice for the authority.

(3)If the administering authority makes more than 1 decision under the Environmental Protection Act 1994, section 300 in relation to an authority—

(a)subsection (1) applies only in relation to the first decision for which the estimated rehabilitation cost is equal to or more than the prescribed ERC amount; and

(b)subsection (2) applies only in relation to the first decision for which the estimated rehabilitation cost is equal to or more than $100,000 but less than the prescribed ERC amount.

(4)However, subsection (1) does not apply in relation to the first decision for which the estimated rehabilitation cost is equal to or more than the prescribed ERC amount if—

(a)before the decision is made, the scheme manager had given the holder an election notice for the authority; and

(b)immediately before the decision is made, the election notice is in effect.

(5)Also, subsection (2) does not apply in relation to the first decision for which the estimated rehabilitation cost is equal to or more than $100,000 but less than the prescribed ERC amount if, immediately before the decision is made, the estimated rehabilitation cost for the authority is equal to or more than the prescribed ERC amount.

(6)A reference in subsections (3), (4) and (5) to a decision of the administering authority includes a decision made before the commencement.

27   Scheme manager must make initial risk category allocation

(1)The scheme manager must decide to allocate the authority to 1 of the following risk categories (the initial risk category allocation)—

(a)very low;

(b)low;

(c)moderate;

(d)moderate-high;

(e)high.

(2)In deciding the initial risk category allocation, the scheme manager—

(a)must consider—

(i)the scheme manager’s opinion of the probability of the State incurring costs and expenses because the holder of the authority has not prevented or minimised environmental harm, or rehabilitated or restored the environment, in relation to a resource activity carried out under, or to ensure compliance with, the authority; and

(ii)submissions made under section 28; and

(iii)the scheme guidelines; and

(b)may consider any other matter the scheme manager considers relevant to the decision.

(3)In forming an opinion under subsection (2)(a)(i), the scheme manager—

(a)must consider—

(i)the financial soundness of the holder; and

(ii)the scheme guidelines; and

(b)may consider—

(i)the characteristics of a resource project to which the authority relates; and

(ii)any other matter the scheme manager considers relevant to forming the opinion.

(4)In considering the financial soundness of the holder, the scheme manager may consider the financial soundness of a parent corporation of the holder.

(5)If there is more than 1 holder, the scheme manager—

(a)may consider the financial soundness of any or all of the holders; and

(b)in considering the financial soundness of any or all of the holders, may consider the financial soundness of a parent corporation of any or all of the holders; and

(c)must assign the authority to only 1 of the holders (the relevant holder of the authority).

27A   Scheme manager must decide annual review allocation day

(1)The scheme manager must decide the annual review allocation day for the authority.

(2)In deciding the annual review allocation day, the scheme manager—

(a)must consider—

(i)the effect the day will have on the operation of the scheme; and

(ii)any administrative efficiencies the day may achieve for the holder of the authority; and

(iii)submissions made under section 28; and

(b)may consider any other matter the scheme manager considers relevant to the decision.

28   Scheme manager must notify holder of indicative risk category allocation and indicative review day

(1)The scheme manager must, before deciding the initial risk category allocation and the annual review allocation day, give the holder a notice (a notice of indicative decision) stating—

(a)the risk category to which the scheme manager intends to allocate the authority (the indicative risk category allocation); and

(b)the reasons for the indicative risk category allocation; and

(c)if section 27(5) applies—the relevant holder of the authority under section 27(5)(c); and

(d)the annual review allocation day the scheme manager intends to decide for the authority (the indicative review day); and

(e)whether a contribution to the scheme fund, or a surety, is required under the indicative risk category allocation; and

(f)that the holder may, within 20 business days after the notice of indicative decision is given—

(i)make submissions to the scheme manager about a matter mentioned in paragraph (a), (b), (c), (d) or (e); or

(ii)give the scheme manager notice that the holder accepts the indicative risk category allocation.

(2)The scheme manager may extend the period mentioned in subsection (1)(f) by notice given to the holder.

29   When indicative risk category allocation and indicative review day become the initial risk category allocation and annual review allocation day

(1)The scheme manager must decide to allocate the authority to the risk category stated under section 28(1)(a) in the notice of indicative decision if the holder—

(a)does not make submissions under section 28 in relation to the indicative risk category allocation; or

(b)gives the scheme manager a notice under section 28 that the holder accepts the indicative risk category allocation.

(2)Also, the scheme manager must decide the annual review allocation day for the authority as being the day stated under section 28(1)(d) in the notice of indicative decision if the holder—

(a)does not make submissions under section 28 in relation to the indicative review day; or

(b)gives the scheme manager a notice under section 28 that the holder accepts the indicative review day.

30   Period for deciding initial risk category allocation and annual review allocation day

The scheme manager must decide the initial risk category allocation and the annual review allocation day—

(a)if the holder gives the scheme manager a notice under section 28 that the holder accepts the indicative risk category allocation and the indicative review day—within 5 business days after the scheme manager receives the notice; or

(b)if the holder does not make submissions under section 28—within 5 business days after the period in which the holder was permitted to make submissions ends; or

(c)if the holder makes submissions under section 28—within 20 business days after the scheme manager receives the submissions; or

(d)if the scheme manager requires the holder, under section 44, to give the scheme manager information or a document the scheme manager reasonably requires to decide the initial risk category allocation—within 20 business days after the scheme manager receives the information or document.

31   Notice of initial risk category allocation and annual review allocation day

(1)The scheme manager must, as soon as practicable after deciding both the initial risk category allocation and the annual review allocation day, give the holder a notice stating—

(a)the day the risk category allocation was decided (the initial allocation day for the authority); and

(b)the initial risk category allocation; and

(c)if section 27(5) applies—the relevant holder of the authority under section 27(5)(c); and

(d)the annual review allocation day; and

(e)when the annual review allocation day takes effect; and

(f)the amount of the contribution to the scheme fund, or surety, required under division 2 in relation to the authority, and when the amount must be paid or given; and

(g)the amount of the assessment fee for the decision, and when the fee must be paid.

(2)The annual review allocation day takes effect on the day stated in the notice.

Subdivision 2 Changed holder allocation

31A   Meaning of changed holder event

(1)A changed holder event, in relation to an authority, means any of the following—

(a)an entity applies to the Minister under the Mineral and Energy Resources (Common Provisions) Act 2014, section 19 for approval of a prescribed dealing to enable its registration under section 17 of that Act that is an assessable transfer, of a resource authority relating to the authority, to another entity (the changed holder);

(b)an entity gives notice to the chief executive under the Mineral and Energy Resources (Common Provisions) Act 2014, section 19B of a notifiable dealing to enable its registration under section 17A of that Act that is a non-assessable transfer of a resource authority, or of a share in a resource authority, relating to the authority, if part of 1 holder’s share in the resource authority will be transferred to another holder of the resource authority (also the changed holder);

(c)an entity starts or stops controlling a holder of the authority (also the changed holder) under the Corporations Act, section 50AA;

(d)a holder of the authority (also the changed holder) starts or stops being a subsidiary of a corporation under the Corporations Act, section 46.

(2)For subsection (1)(a) and (b), a resource authority relates to an authority if the resource authority authorises the carrying out of a resource activity for the authority.

32   Scheme manager decision on risk category allocation if changed holder

(1)This section applies if—

(a)an authority is allocated to a risk category; and

(b)the estimated rehabilitation cost for the authority is equal to or more than the prescribed ERC amount; and

(c)a changed holder event happens in relation to the authority.

(2)Also, this section applies if—

(a)the estimated rehabilitation cost for an authority is equal to or more than $100,000 but less than the prescribed ERC amount; and

(b)a changed holder event happens in relation to the authority; and

(c)the scheme manager gives the changed holder an election notice for the authority.

(3)If the authority is allocated to a risk category, the scheme manager may—

(a)review the risk category to which the authority is allocated; and

(b)decide to confirm or change the risk category to which the authority is allocated (the changed holder review allocation).

(4)If the authority is not allocated to a risk category, the scheme manager must—

(a)decide to allocate the authority to a risk category (the changed holder initial allocation); and

(b)decide the annual review allocation day for the authority.

(5)In making the changed holder allocation, the scheme manager—

(a)must consider—

(i)the scheme manager’s opinion of the probability mentioned in section 27(2)(a)(i) having regard to the changed holder; and

(ii)submissions made under section 34; and

(iii)the scheme guidelines; and

(b)may consider any other matter the scheme manager considers relevant.

(6)In forming an opinion under subsection (5)(a)(i), the scheme manager—

(a)must consider—

(i)the financial soundness of the changed holder; and

(ii)the scheme guidelines; and

(b)may consider—

(i)the characteristics of a resource project to which the authority relates; and

(ii)any other matter the scheme manager considers relevant to forming the opinion.

(7)In considering the financial soundness of the changed holder, the scheme manager may consider the financial soundness of a parent corporation of the changed holder.

(8)If there is more than 1 holder, or changed holder, of the authority, the scheme manager—

(a)may consider the financial soundness of any or all of the holders, or changed holders, of the authority; and

(b)in considering the financial soundness of any or all of the holders, or changed holders, of the authority, may consider the financial soundness of a parent corporation of any or all of the holders, or changed holders, of the authority; and

(c)must assign the authority to only 1 of the holders, or changed holders, of the authority (the relevant holder of the authority).

(9)In deciding the annual review allocation day, the scheme manager—

(a)must consider—

(i)the effect the day will have on the operation of the scheme; and

(ii)any administrative efficiencies the day may achieve for the changed holder of the authority; and

(iii)submissions made under section 34; and

(b)may consider any other matter the scheme manager considers relevant.

33   Application to scheme manager if proposed changed holder

(1)This section applies if—

(a)an authority is allocated to a risk category; and

(b)the estimated rehabilitation cost for the authority is equal to or more than the prescribed ERC amount; and

(c)a changed holder event is proposed in relation to the authority.

(2)Also, this section applies if—

(a)the estimated rehabilitation cost for an authority is equal to or more than $100,000 but less than the prescribed ERC amount; and

(b)a changed holder event is proposed in relation to the authority; and

(c)had the proposed changed holder event happened, division 1A would apply in relation to the changed holder.

(3)A holder of the authority, or the changed holder with the consent of a holder of the authority, may apply to the scheme manager to make a changed holder allocation as if—

(a)the proposed changed holder event had happened; and

(b)for an authority to which subsection (2) applies—the scheme manager had given the changed holder an election notice for the authority.

(4)The scheme manager must make the changed holder allocation only if the application is accompanied by the assessment fee for the decision.

34   Scheme manager must notify interested entity of indicative changed holder allocation

(1)The scheme manager must, before deciding the changed holder allocation in relation to an authority, give the interested entity a notice (the notice of indicative decision) stating—

(a)the risk category to which the scheme manager intends to allocate the authority (the indicative changed holder allocation); and

(b)the reasons for the indicative changed holder allocation; and

(c)if the authority is not allocated to a risk category—the annual review allocation day the scheme manager intends to decide for the authority (the indicative review day); and

(d)if section 32(8) applies—the relevant holder of the authority under section 32(8)(c); and

(e)whether a contribution to the scheme fund, or a surety, is required under the indicative changed holder allocation; and

(f)that the interested entity may, within 20 business days after the notice of indicative decision is given—

(i)make submissions to the scheme manager about a matter mentioned in paragraph (a), (b), (c), (d) or (e); or

(ii)give the scheme manager notice that the interested entity accepts the indicative changed holder allocation.

(2)The scheme manager may extend the period mentioned in subsection (1)(f) by notice given to the interested entity.

(3)In this section—

interested entity means—

(a)for an authority in relation to which a changed holder event has happened—

(i)for a changed holder event of a type mentioned in section 31A(1)(a)—the entity that applied to the Minister for approval of the prescribed dealing under the Mineral and Energy Resources (Common Provisions) Act, section 19; or

(ii)for a changed holder event of a type mentioned in section 31A(1)(b)—the entity that gave notice to the chief executive of the notifiable dealing under the Mineral and Energy Resources (Common Provisions) Act, section 19B; or

(iii)for a changed holder event of a type mentioned in section 31A(1)(c) or (d)—each holder of the authority; or

(b)for an authority in relation to which a changed holder event is proposed—the applicant under section 33 for a changed holder allocation for the proposed changed holder event.

35   When indicative changed holder allocation and indicative review day become the changed holder allocation and annual review allocation day

(1)The scheme manager must decide to allocate the authority to the risk category stated under section 34(1)(a) in the notice of indicative decision if the interested entity—

(a)does not make submissions under section 34 in relation to the indicative changed holder allocation; or

(b)gives the scheme manager a notice under section 34 that the interested entity accepts the indicative changed holder allocation.

(2)If the authority is not allocated to a risk category, the scheme manager must decide the annual review allocation day for the authority as being the day stated under section 34(1)(c) in the notice of indicative decision if the interested entity—

(a)does not make submissions under section 34 in relation to the indicative review day; or

(b)gives the scheme manager a notice under section 34 that the interested entity accepts the indicative review day.

36   Notice of changed holder allocation

(1)The scheme manager must, as soon as practicable after deciding the changed holder allocation, give a notice to the interested entity stating—

(a)the day the changed holder allocation was decided; and

(b)the risk category to which the authority is allocated under the changed holder allocation; and

(c)if the scheme manager decides the annual review allocation day for the authority under section 32(4)(b)—

(i)the annual review allocation day; and

(ii)when the annual review allocation day takes effect; and

(d)if section 32(8) applies—the relevant holder of the authority under section 32(8)(c); and

(e)the amount of the contribution to the scheme fund, or surety, required under division 2 in relation to the authority, and when the amount must be paid or given; and

(f)the amount of the assessment fee for the decision, and when the fee must be paid, unless the assessment fee has been paid under section 33; and

(g)when the changed holder allocation takes effect.

(2)The annual review allocation day takes effect on the day stated in the notice.

37   When changed holder allocation takes effect

(1)The changed holder allocation takes effect—

(a)for a changed holder event of a type mentioned in section 31A(1)(a)—when the prescribed dealing is approved under the Mineral and Energy Resources (Common Provisions) Act 2014, section 19 by the Minister; or

(b)for a changed holder event of a type mentioned in section 31A(1)(b)—when the notifiable dealing is notified under the Mineral and Energy Resources (Common Provisions) Act 2014, section 19B to the chief executive; or

(c)for a changed holder event of a type mentioned in section 31A(1)(c) or (d)—on the day that is 10 business days after the notice under section 36(1) is given to the interested entity; or

(d)for a proposed changed holder event of a type mentioned in section 31A(1)(a)—if and when the prescribed dealing is approved under the Mineral and Energy Resources (Common Provisions) Act 2014, section 19 by the Minister; or

(e)for a proposed changed holder event of a type mentioned in section 31A(1)(b)—if and when the notifiable dealing is notified under the Mineral and Energy Resources (Common Provisions) Act 2014, section 19B to the chief executive; or

(f)for a proposed changed holder event of a type mentioned in section 31A(1)(c) or (d)—if and when the proposed event happens.

(2)However—

(a)subsection (1)(d) applies only if—

(i)the application for approval of the prescribed dealing is made within the prescribed period after the notice under section 36(1) is given to the interested entity; and

(ii)for an authority to which section 33(2) applied—the scheme manager gives the changed holder an election notice for the authority; and

(b)subsection (1)(e) applies only if—

(i)notice of the notifiable dealing is given within the prescribed period after the notice under section 36(1) is given to the interested entity; and

(ii)for an authority to which section 33(2) applied—the scheme manager gives the changed holder an election notice for the authority; and

(c)subsection (1)(f) applies only if—

(i)the proposed changed holder event happens within the prescribed period after the notice under section 36(1) is given to the interested entity; and

(ii)for an authority to which section 33(2) applied—the scheme manager gives the changed holder an election notice for the authority.

(3)In this section—

prescribed period means—

(a)the period prescribed by regulation for this paragraph; or

(b)if no period is prescribed under paragraph (a)—6 months.

Subdivision 3 Annual review allocation

38   Annual review of risk category allocation

(1)This section applies if—

(a)an authority is allocated to a risk category; and

(b)the estimated rehabilitation cost for the authority is equal to or more than the prescribed ERC amount.

(2)Also, this section applies if—

(a)an authority is allocated to a risk category; and

(b)the estimated rehabilitation cost for the authority is equal to or more than $100,000 but less than the prescribed ERC amount; and

(c)the scheme manager has given the holder an election notice for the authority; and

(d)the election notice is in effect.

(3)The scheme manager must, within 30 business days before the annual review allocation day for the authority—

(a)review the risk category to which the authority is allocated; and

(b)decide to confirm or change the risk category to which the authority is allocated (the annual review allocation).

(4)However, subsection (3) does not apply to an annual review allocation day that is within 9 months after—

(a)the initial allocation day for the authority; or

(b)the day a changed holder allocation takes effect for the authority; or

(c)the day a change to the annual review allocation day takes effect.

(5)In making the annual review allocation, the scheme manager—

(a)must consider—

(i)the scheme manager’s opinion of the probability mentioned in section 27(2)(a)(i); and

(ii)submissions made under section 39; and

(iii)the scheme guidelines; and

(b)may consider any other matter the scheme manager considers relevant.

(6)In forming an opinion under subsection (5)(a)(i), the scheme manager—

(a)must consider—

(i)the financial soundness of the holder; and

(ii)the scheme guidelines; and

(b)may consider—

(i)the characteristics of a resource project to which the authority relates; and

(ii)any other matter the scheme manager considers relevant to forming the opinion.

(7)In considering the financial soundness of the holder, the scheme manager may consider the financial soundness of a parent corporation of the holder.

(8)If there is more than 1 holder, the scheme manager—

(a)may consider the financial soundness of any or all of the holders; and

(b)in considering the financial soundness of any or all of the holders, may consider the financial soundness of a parent corporation of any or all of the holders; and

(c)must assign the authority to only 1 of the holders (the relevant holder of the authority).

39   Scheme manager must notify holder of indicative annual review allocation

(1)The scheme manager must, before deciding the annual review allocation, give the holder a notice (the notice of indicative decision) stating—

(a)the risk category to which the scheme manager intends to allocate the authority (the indicative annual review allocation); and

(b)the reasons for the indicative annual review allocation; and

(c)if section 38(8) applies—the relevant holder of the authority under section 38(8)(c); and

(d)whether a contribution to the scheme fund, or a surety, is required under the indicative annual review allocation; and

(e)that the holder may, within 20 business days after the notice of indicative decision is given—

(i)make submissions to the scheme manager about a matter mentioned in paragraph (a), (b), (c) or (d); or

(ii)give the scheme manager notice that the holder accepts the indicative annual review allocation.

(2)The scheme manager may extend the period mentioned in subsection (1)(e) by notice given to the holder.

40   When indicative annual review allocation becomes the annual review allocation

The scheme manager must decide to allocate the authority to the risk category stated under section 39(1)(a) in the notice of indicative decision if the holder—

(a)does not make submissions under section 39; or

(b)gives the scheme manager a notice under section 39 that the holder accepts the indicative annual review allocation.

41   Notice of annual review allocation

The scheme manager must, as soon as practicable after deciding the annual review allocation, give a notice to the holder stating—

(a)the day the annual review allocation was decided (the annual review day for the authority); and

(b)the risk category to which the authority is allocated under the annual review allocation; and

(c)if section 38(8) applies—the relevant holder of the authority under section 38(8)(c); and

(d)the amount of the contribution to the scheme fund, or surety, required under division 2 in relation to the authority, and when the amount must be paid or given; and

(e)the amount of the assessment fee for the decision, and when the fee must be paid.

Subdivision 3A Changing annual review allocation day

41A   Application to scheme manager to change annual review allocation day

(1)The holder of an authority may apply to the scheme manager to change the annual review allocation day for the authority to another day (the proposed day).

(2)The application must state—

(a)the proposed day; and

(b)the reasons for the proposed change.

(3)In deciding the application, the scheme manager—

(a)must consider—

(i)the effect the proposed day will have on the operation of the scheme; and

(ii)any administrative efficiencies the proposed day may achieve for the holder; and

(b)may consider any other matter the scheme manager considers relevant.

(4)The scheme manager must consider the application and decide—

(a)to change the annual review allocation day to the proposed day; or

(b)to refuse the application.

(5)The scheme manager must make the decision within—

(a)20 business days after receiving the application; or

(b)if the scheme manager and the holder agree to a longer period for deciding the application—the longer period.

(6)As soon as practicable after making the decision, the scheme manager must give the holder notice of the decision.

(7)If the scheme manager decides to change the annual review allocation day, the notice under subsection (6) must state—

(a)the annual review allocation day for the authority; and

(b)when the change to the annual review allocation day takes effect.

41B   Scheme manager may change annual review allocation day on own initiative

(1)The scheme manager may decide, on the scheme manager’s own initiative, to change the annual review allocation day for an authority to another day (the new day).

(2)The scheme manager must, before deciding to change the annual review allocation day to the new day, give the holder of the authority a notice (a notice of indicative decision) stating—

(a)the new day; and

(b)the reasons for the proposed change; and

(c)that the holder may, within 20 business days after the notice of indicative decision is given—

(i)make submissions to the scheme manager about a matter mentioned in paragraph (a) or (b); or

(ii)give the scheme manager notice that the holder accepts the new day as the annual review allocation day for the authority.

(3)The scheme manager may extend the period mentioned in subsection (2)(c) by notice given to the holder.

(4)In deciding whether to change the annual review allocation day to the new day, the scheme manager—

(a)must consider—

(i)the effect the new day will have on the operation of the scheme; and

(ii)any administrative efficiencies the new day may achieve for the holder; and

(b)may consider any other matter the scheme manager considers relevant.

(5)After considering any submissions made under subsection (2), the scheme manager must decide—

(a)to change the annual review allocation day to the new day; or

(b)to change the annual review allocation day to another day agreed between the scheme manager and the holder; or

(c)not to change the annual review allocation day.

(6)The scheme manager must make the decision—

(a)if the holder gives the scheme manager a notice under subsection (2) that the holder accepts the new day—within 5 business days after the scheme manager receives the notice; or

(b)if the holder does not make submissions under subsection (2)—within 5 business days after the period in which the holder was permitted to make submissions ends; or

(c)if the holder makes submissions under subsection (2)—within 20 business days after the scheme manager receives the submissions.

(7)As soon as practicable after making the decision, the scheme manager must give the holder notice of the decision.

(8)If the scheme manager decides to change the annual review allocation day, the notice under subsection (7) must state—

(a)the annual review allocation day for the authority; and

(b)when the change to the annual review allocation day takes effect.

41C   When change to annual review allocation day takes effect

A change to the annual review allocation day for an authority takes effect on the day stated in the notice given under section 41A(6) or 41B(7) for the authority.

41D   Change to annual review allocation day in relation to changed holder event

(1)This section applies if—

(a)a changed holder event happens or is proposed in relation to an authority; and

(b)the scheme manager is reviewing or deciding, under section 32, the risk category allocation to which the authority is allocated.

(2)Sections 41A and 41B apply in relation to the changed holder as if a reference in the sections to the holder of an authority were a reference to the changed holder for the authority.

(3)However, a change to the annual review allocation day must not take effect before the changed holder allocation takes effect under section 37.

Subdivision 4 Information disclosure

42   Holder must give scheme manager notice if changed holder

(1)If the estimated rehabilitation cost for an authority is equal to or more than $100,000, the holder of the authority must give the scheme manager a notice under this section if a changed holder event happens in relation to the authority.

Maximum penalty—100 penalty units.

(2)The notice must—

(a)state the details of the changed holder event; and

(b)include the other information prescribed by regulation.

(3)The notice must be given within 10 business days after—

(a)for a changed holder event of a type mentioned in section 31A(1)(a)—the application for approval of the prescribed dealing is made; or

(b)for a changed holder event of a type mentioned in section 31A(1)(b)—the notice of the notifiable dealing is given; or

(c)for a changed holder event of a type mentioned in section 31A(1)(c) or (d)—the event happens.

(4)If a notice under subsection (1) relates to a changed holder event of a type mentioned in section 31A(1)(c) or (d), the scheme manager must give the chief executive (resources) a copy of the notice within 10 business days after the scheme manager receives the notice.

43   Holder must give scheme manager notice if cessation in production

(1)This section applies to an authority if the resource activity for which the authority is given is authorised under any of the following resource authorities—

(a)a mining lease or mining development licence under the Mineral Resources Act 1989;

(b)an authority to prospect or petroleum lease under the Petroleum and Gas (Production and Safety) Act 2004;

(c)a geothermal production lease under the Geothermal Energy Act 2010.

(2)The holder of the authority must give the scheme manager a notice under this section if, after the start of production under the resource authority—

(a)the holder ceases production under the resource authority and does not expect production to restart within 6 months after the cessation; or

(b)production has not been carried out under the resource authority for 6 months.

Maximum penalty—100 penalty units.

(3)The notice must—

(a)state the details of the matter mentioned in subsection (2); and

(b)include the other information prescribed by regulation.

(4)The notice must be given within 10 business days after —

(a)for the matter mentioned in subsection (2)(a)—the holder ceases production; or

(b)for the matter mentioned in subsection (2)(b)—the end of the 6 month period mentioned in that subsection.

(5)In this section—

production means—

(a)for a resource authority mentioned in subsection (1)(a)—an activity mentioned in the Mineral Resources Act 1989, section 6A(1)(a) or (b); or

(b)for a resource authority mentioned in subsection (1)(b)—an activity mentioned in the Petroleum and Gas (Production and Safety) Act 2004, section 15; or

(c)for a resource authority mentioned in subsection (1)(c)—an activity mentioned in the Geothermal Energy Act 2010, section 14.

44   Scheme manager may require further information from holder before allocation decision

(1)The scheme manager may, before making an allocation decision for an authority, require the holder of the authority to give the scheme manager further information or a document the scheme manager reasonably requires to make the decision.

(2)For an initial allocation decision, the scheme manager may exercise the power mentioned in subsection (1) at any time after the holder has applied for an ERC decision under the Environmental Protection Act 1994, section 298 in relation to the authority.

(3)The requirement must—

(a)be made by notice given to the holder; and

(b)state a reasonable period of at least 10 business days within which the holder must comply with the requirement.

(4)The scheme manager may extend the period mentioned in subsection (3)(b) by notice given to the holder.

(5)The holder of the authority must, unless the holder has a reasonable excuse, comply with the requirement.

Maximum penalty—100 penalty units.

(6)If the holder of the authority does not comply with the requirement, the scheme manager may make the decision without the further information or document.

45   Scheme manager may require further information from interested entity before changed holder allocation

(1)The scheme manager may, before making a changed holder allocation for an authority, require an interested entity for the authority to give the scheme manager further information or a document the scheme manager reasonably requires to make the decision.

(2)The requirement must—

(a)be made by notice given to the interested entity; and

(b)state a reasonable period of at least 10 business days within which the interested entity must comply with the requirement.

(3)The scheme manager may extend the period mentioned in subsection (2)(b) by notice given to the interested entity.

(4)The interested entity must, unless the interested entity has a reasonable excuse, comply with the requirement.

Maximum penalty—100 penalty units.

(5)If the interested entity does not comply with the requirement, the scheme manager may make the decision without the further information or document.

Division 1A Election for risk category allocation

45A   Definitions for division

In this division—

applicable holder, of an authority, means—

(a)if section 45B(1) or (2) applies in relation to the authority—the holder of the authority; or

(b)if section 45B(3) applies in relation to the authority—the changed holder of the authority.

election period, in relation to an authority, means the period—

(a)starting on the day the applicable holder is given a notice under section 45C in relation to the authority; and

(b)ending on the earlier of the following—

(i)20 business days after the applicable holder is given the notice under section 45C;

(ii)if the applicable holder gives a notice under section 45D(2) in relation to the authority—the day the notice is given.

45B   Application of division

(1)This division applies if—

(a)the administering authority decides, under the Environmental Protection Act 1994, section 300, the estimated rehabilitation cost for an authority; and

(b)the estimated rehabilitation cost decided by the administering authority is equal to or more than $100,000 but less than the prescribed ERC amount; and

(c)the decision is the first decision in relation to the authority for which the estimated rehabilitation cost is equal to or more than $100,000 but less than the prescribed ERC amount; and

(d)immediately before the decision is made, the authority is not subject to risk category allocation under division 1; and

(e)the holder of the authority is also the holder of an authority—

(i)for which the estimated rehabilitation cost is equal to or more than $100,000; and

(ii)that is allocated to a risk category other than high.

(2)Also, this division applies if—

(a)the administering authority decides, under the Environmental Protection Act 1994, section 300, the estimated rehabilitation cost for an authority; and

(b)the estimated rehabilitation cost decided by the administering authority is equal to or more than $100,000 but less than the prescribed ERC amount; and

(c)immediately before the decision is made—

(i)the estimated rehabilitation cost for the authority is equal to or more than the prescribed ERC amount; and

(ii)the authority is allocated to a risk category other than high; and

(d)the holder of the authority is also the holder of an authority—

(i)for which the estimated rehabilitation cost is equal to or more than $100,000; and

(ii)that is allocated to a risk category other than high.

(3)Further, this division applies if—

(a)the estimated rehabilitation cost for an authority is equal to or more than $100,000 but less than the prescribed ERC amount; and

(b)a changed holder event happens in relation to the authority; and

(c)the changed holder is also the holder of an authority—

(i)for which the estimated rehabilitation cost is equal to or more than $100,000; and

(ii)that is allocated to a risk category other than high.

(4)A reference in subsection (1)(c) to a decision of the administering authority includes a decision made before the commencement.

45C   Scheme manager must give notice about election

(1)The scheme manager must give the applicable holder of the authority a notice stating the applicable holder may elect for the authority to be subject to risk category allocation under division 1 within the election period.

(2)The scheme manager must give the applicable holder the notice—

(a)if section 45B(1) or (2) applies in relation to the authority—within 10 business days after the scheme manager receives notice of the administering authority’s decision in relation to the authority under the Environmental Protection Act 1994, section 301; or

(b)if section 45B(3) applies in relation to the authority—within 10 business days after the scheme manager receives a notice under section 42 in relation to the changed holder event.

45D   Applicable holder may elect for authority to be subject to risk category allocation

(1)The applicable holder may elect for the authority to be subject to risk category allocation under division 1 by giving the scheme manager notice of the election within the election period.

(2)If the applicable holder decides not to make the election, the applicable holder may give the scheme manager notice of the applicable holder’s decision within the election period.

45E   Scheme manager to give election notice

If the applicable holder gives the scheme manager a notice under section 45D(1) within the election period, the scheme manager must give the applicable holder a notice (an election notice) stating—

(a)the day the notice is given; and

(b)the authority to which the notice relates; and

(c)that the authority is subject to risk category allocation under division 1.

45F   Period of election notice

(1)An election notice for the authority has effect from the day the election notice is given to the applicable holder.

(2)An election notice for the authority stops having effect if—

(a)the estimated rehabilitation cost for the authority is—

(i)less than $100,000; or

(ii)equal to or more than the prescribed ERC amount; or

(b)the scheme manager makes an allocation decision for the authority that allocates the authority to a risk category of high; or

(c)the authority is surrendered under the Environmental Protection Act 1994, chapter 5; or

(d)for an applicable holder mentioned in section 45A, definition applicable holder, paragraph (a)—a changed holder event happens that has the effect of another holder of the authority being liable to pay a contribution, or give a surety, under this part; or

(e)for an applicable holder mentioned in section 45A, definition applicable holder, paragraph (b) if a changed holder event of a type mentioned in section 31A(1)(a) happened—the prescribed dealing is not approved under the Mineral and Energy Resources (Common Provisions) Act 2014, section 19 by the Minister.

Division 2 Liability under scheme

Subdivision 1 Contribution to scheme fund

46   Application of subdivision

This subdivision applies if—

(a)both of the following apply—

(i)the scheme manager makes an allocation decision for an authority that allocates the authority to 1 of the following risk categories—

(A)very low;

(B)low;

(C)moderate;

(D)moderate-high;

(ii)the scheme manager does not decide, under section 53(c)(ii), that the holder of the authority must give a surety rather than pay a contribution; or

(b)all of the following apply—

(i)the scheme manager makes an annual review decision for an authority that allocates the authority to the risk category of high;

(ii)the previous annual review decision for the authority, made within 21 months before the decision mentioned in subparagraph (i), allocated the authority to 1 of the following risk categories—

(A)very low;

(B)low;

(C)moderate;

(D)moderate-high;

(iii)the scheme manager is satisfied when the scheme manager makes the annual review decision mentioned in subparagraph (i) that the holder is not reasonably able to give a surety for the authority within 12 months after the decision is made;

(iv)the scheme manager is satisfied when the scheme manager makes the annual review decision mentioned in subparagraph (i) that the scheme manager is unlikely to be asked under section 64 to make a payment from the scheme fund in relation to the authority.

47   Holder must pay contribution to scheme fund

(1)The holder of the authority must pay a contribution to the scheme fund within 30 business days after—

(a)for an initial allocation decision—the initial allocation day for the authority; or

(b)for a changed holder allocation—the day the decision takes effect under section 37; or

(c)for an annual review decision—the annual review day for the authority.

Note—

The holder of the authority must not carry out, or allow the carrying out of, a resource activity under the authority unless the holder has paid the contribution—see the Environmental Protection Act 1994, section 297.

(2)The contribution payable must be worked out using the formula—

where—

A is the estimated rehabilitation cost for the authority at the beginning of the day that is the current review day.

B is the prescribed percentage for the authority.

C is the amount of the contribution.

D is the number of days between the current review day and—

(a)for an initial allocation decision—the annual review allocation day occurring more than 9 months after the current review day; or

(b)for a changed holder allocation—

(i)if a change to the annual review allocation day takes effect on the current review day—the changed annual review allocation day occurring more than 9 months after the current review day; or

(ii)otherwise—the annual review allocation day occurring more than 9 months after the current review day; or

(c)for an annual review decision—

(i)if a change to the annual review allocation day takes effect on the current review day—the changed annual review allocation day occurring more than 9 months after the current review day; or

(ii)otherwise—the next annual review allocation day occurring more than 9 months after the current review day.

(3)For the Mineral and Energy Resources (Common Provisions) Act 2014, section 21, the holder mentioned in subsection (1) is the entity mentioned in section 21(2) of that Act.

48   Rate of contribution if holder not able to give surety

An authority mentioned in section 46(b) is taken to be allocated to the risk category of moderate-high for working out, under section 47, the contribution payable for the authority.

49   Holder must pay contribution and give surety if estimated rehabilitation cost more than fund threshold

(1)This section applies if the estimated rehabilitation cost for the authority is more than the fund threshold applying to the authority.

(2)Despite section 47(2), the contribution payable must be worked out using the formula—

where—

A is the fund threshold applying to the authority.

B is the prescribed percentage for the authority.

C is the amount of the contribution.

D is the number of days between the current review day and—

(a)for an initial allocation decision—the annual review allocation day occurring more than 9 months after the current review day; or

(b)for a changed holder allocation—

(i)if a change to the annual review allocation day takes effect on the current review day—the changed annual review allocation day occurring more than 9 months after the current review day; or

(ii)otherwise—the annual review allocation day occurring more than 9 months after the current review day; or

(c)for an annual review decision—

(i)if a change to the annual review allocation day takes effect on the current review day—the changed annual review allocation day occurring more than 9 months after the current review day; or

(ii)otherwise—the next annual review allocation day occurring more than 9 months after the current review day.

(3)In addition to paying the contribution worked out under subsection (2), the holder of the authority must give a surety for the amount that equals the estimated rehabilitation cost for the authority less the fund threshold applying to the authority.

50   Refund of contribution to previous holder if changed holder allocation takes effect

(1)This section applies if—

(a)a holder of an authority (a previous holder) pays a contribution; and

(b)during the period for which the contribution is paid, the scheme manager makes a changed holder allocation that has the effect of another holder of the authority (the changed holder) being liable to pay a contribution, or give a surety, under this part.

(2)The scheme manager must, within 30 business days after the changed holder pays the contribution or gives the surety under this part, refund to the previous holder the proportion of the amount of the contribution the previous holder paid that is equal to the number of days between—

(a)the day the changed holder allocation takes effect; and

(b)the end of the period for which the previous holder paid the contribution.

50A   Refund of contribution to previous holder if election notice not given to changed holder

(1)This section applies if—

(a)a holder of an authority (a previous holder) pays a contribution; and

(b)during the period for which the contribution is paid, a changed holder event happens that has the effect of another holder of the authority (the changed holder) being liable to give a surety under this part; and

(c)the changed holder is liable to give the surety because the scheme manager did not give the changed holder an election notice for the authority.

(2)The scheme manager must, within 30 business days after the changed holder gives the surety under this part, refund to the previous holder the proportion of the amount of the contribution the previous holder paid that is equal to the number of days between—

(a)the day the changed holder’s liability takes effect under subdivision 2; and

(b)the end of the period for which the previous holder paid the contribution.

51   Recovery of unpaid contribution

A contribution payable under this subdivision may be recovered as a debt payable to the State.

52   Notification of administering authority

The scheme manager must, as soon as practicable after the holder of an authority has paid a contribution under this subdivision, give the administering authority for the authority notice of the payment.

Subdivision 2 Surety

53   Application of subdivision

This subdivision applies if—

(a)both of the following apply—

(i)the scheme manager makes an allocation decision for an authority that allocates the authority to the risk category of high;

(ii)section 46(b) does not apply; or

(b)both of the following apply—

(i)the scheme manager makes an allocation decision for an authority that allocates the authority to the risk category of very low, low, moderate or moderate-high;

(ii)the holder of the authority is required to give a surety under section 49(3); or

(c)both of the following apply—

(i)the scheme manager makes an allocation decision for an authority that allocates the authority to the risk category of very low, low, moderate or moderate-high;

(ii)the scheme manager decides the holder of the authority must give a surety, rather than pay a contribution, to preserve the financial viability of the scheme fund; or

(d)all of the following apply—

(i)a changed holder event of a type mentioned in section 31A(1)(a) happens in relation to an authority for which the estimated rehabilitation cost is equal to or more than $100,000 but less than the prescribed ERC amount;

(ii)the prescribed dealing is approved under the Mineral and Energy Resources (Common Provisions) Act 2014, section 19 by the Minister;

(iii)if division 1A applies in relation to the changed holder for the changed holder event—the election period has ended and the scheme manager has not given the changed holder an election notice for the authority; or

(e)both of the following apply—

(i)a changed holder event of a type mentioned in section 31A(1)(b), (c) or (d) happens in relation to an authority for which the estimated rehabilitation cost is equal to or more than $100,000 but less than the prescribed ERC amount;

(ii)if division 1A applies in relation to the changed holder for the changed holder event—the election period has ended and the scheme manager has not given the changed holder an election notice for the authority; or

(f)all of the following apply—

(i)the administering authority decides, under the Environmental Protection Act 1994, section 300, the estimated rehabilitation cost for an authority;

(ii)the estimated rehabilitation cost decided by the administering authority is equal to or more than $100,000 but less than the prescribed ERC amount;

(iii)if division 1A applies in relation to the holder for the administering authority’s decision—the election period has ended;

(iv)an election notice is not in effect for the authority; or

(g)both of the following apply—

(i)a changed holder event happens in relation to an authority for which the estimated rehabilitation cost is less than $100,000;

(ii)if the changed holder event is of a type mentioned in section 31A(1)(a)—the prescribed dealing is approved under the Mineral and Energy Resources (Common Provisions) Act 2014, section 19 by the Minister; or

(h)both of the following apply—

(i)the administering authority decides, under the Environmental Protection Act 1994, section 300, the estimated rehabilitation cost for an authority;

(ii)the estimated rehabilitation cost decided by the administering authority is less than $100,000; or

(i)the holder of a small scale mining tenure is required under the Environmental Protection Act 1994, section 21A(2) to give a surety before carrying out an activity, or allowing the carrying out of an activity, under the tenure.

54   Scheme manager’s decision about financial viability of scheme fund

(1)This section applies for making a decision under section 53(c)(ii).

(2)The scheme manager may consider whether the sum of the following is likely to be more than the fund threshold applying to the authority—

(a)the total estimated rehabilitation cost for the holder of the authority or, if there is more than 1 holder, the relevant holder of the authority;

(b)the total estimated rehabilitation cost for any or all of the following—

(i)a parent corporation of the holder of the authority or, if there is more than 1 holder, the relevant holder of the authority;

(ii)a subsidiary corporation, under the Corporations Act, section 46, of a parent corporation mentioned in subparagraph (i);

(iii)a corporation controlled, under the Corporations Act, section 50AA, by a parent corporation mentioned in subparagraph (i).

55   Holder must give surety

(1)The holder of the authority, or small scale mining tenure, must give a surety for the authority, or tenure, in a form approved by the scheme manager under section 56.

Notes—

1The holder of the authority must not carry out, or allow the carrying out of, a resource activity under the authority unless the holder has given the surety—see the Environmental Protection Act 1994, sections 297 and 430.

2For small scale mining tenures, see the Environmental Protection Act 1994, sections 21A and 435A.

(2)The amount of the surety is—

(a)for an authority mentioned in section 53(a) or (c) —the amount of the estimated rehabilitation cost for the authority at the beginning of the day that is—

(i)for an initial allocation decision—the initial allocation day for the authority; or

(ii)for a changed holder allocation—the day the decision takes effect under section 37; or

(iii)for an annual review decision—the annual review day for the authority; or

(b)for an authority mentioned in section 53(b)—the amount worked out under section 49(3); or

(c)for an authority mentioned in section 53(d), (e), (f), (g) or (h)—the amount of the estimated rehabilitation cost for the authority; or

(d)for a small scale mining tenure mentioned in section 53(i)—the amount under the Environmental Protection Act 1994, section 21A(2)(a).

(3)For the Mineral and Energy Resources (Common Provisions) Act 2014, section 21, the holder mentioned in subsection (1) is the entity mentioned in section 21(2) of that Act.

55A   When surety must be given

(1)This section states when the holder of the authority must give the surety.

(2)For an authority mentioned in section 53(a) or (b), the surety must be given within 30 business days after—

(a)for an initial allocation decision—the initial allocation day for the authority; or

(b)for a changed holder allocation—the day the decision takes effect under section 37; or

(c)for an annual review decision—the annual review day for the authority.

(3)For an authority mentioned in section 53(c), the surety must be given within 30 business days after the day the scheme manager decides the holder must give a surety, rather than pay a contribution, to preserve the financial viability of the scheme fund.

(4)For an authority mentioned in section 53(d), the surety must be given within 30 business days after the later of the following—

(a)if division 1A applies in relation to the changed holder for the changed holder event—the day the election period ends;

(b)the day the prescribed dealing is approved.

(5)For an authority mentioned in section 53(e), the surety must be given within 30 business days after—

(a)if division 1A applies in relation to the changed holder for the changed holder event—the day the election period ends; or

(b)otherwise—the day the changed holder event happens.

(6)For an authority mentioned in section 53(f), if division 1A applies in relation to the holder for the administering authority’s decision, the surety must be given within 30 business days after—

(a)if the period for which a contribution to the scheme fund has been paid for the authority has not ended immediately before the election period ends—the day that is the end of the period for which the contribution was paid; or

(b)otherwise—the day the election period ends.

(7)For another authority mentioned in section 53(f), the surety must be given within 30 business days after—

(a)if the period for which a contribution to the scheme fund has been paid for the authority has not ended immediately before the administering authority makes the decision—the day that is the end of the period for which the contribution was paid; or

(b)otherwise—the day the administering authority makes the decision.

(8)For an authority mentioned in section 53(g), the surety must be paid within 30 business days after the changed holder event happens.

(9)For an authority mentioned in section 53(h), the surety must be paid within 30 business days after—

(a)if the period for which a contribution to the scheme fund has been paid for the authority has not ended immediately before the administering authority made the decision—the day that is the end of the period for which the contribution was paid; or

(b)otherwise—the day the administering authority makes the decision.

(10)For a small scale mining tenure mentioned in section 53(i), the surety must be given before carrying out an activity, or allowing the carrying out of an activity, under the tenure.

(11)The scheme manager may extend a period mentioned in any of subsections (2) to (9) if the scheme manager is satisfied it is not reasonably practicable for the holder to obtain the surety within the period.

56   Form of surety

(1)The scheme manager may only approve a surety in 1 or more of the following forms—

(a)a bank guarantee—

(i)in the approved form; or

(ii)on terms and conditions approved by the scheme manager;

(b)an insurance bond issued by a prescribed insurer—

(i)in the approved form; or

(ii)on terms and conditions approved by the scheme manager;

(c)a payment of a cash amount—

(i)on the condition that the giver of the surety is not entitled to interest on the amount of the surety; and

(ii)subject to subparagraph (i), on the terms and conditions approved by the scheme manager.

(2)The Acts Interpretation Act 1954, section 48A(1) does not apply to a form mentioned in subsection (1).

(3)In this section—

prescribed insurer means an insurer prescribed by regulation for this section.

57   When holder must give increased surety

(1)This section applies if—

(a)a surety is given for an authority mentioned in section 53(a), (b) or (c); and

(b)before the next allocation decision is made for the authority—

(i)the estimated rehabilitation cost for the authority increases; or

(ii)for an authority mentioned in section 53(b)—the fund threshold applying to the authority decreases.

(2)In addition to giving the surety under section 55, the holder of the authority must give a surety in the amount—

(a)for an authority mentioned in section 53(a) or (c)—that equals the amount of the increased estimated rehabilitation cost for the authority less the amount of the surety for the authority already given; or

(b)for an authority mentioned in section 53(b)—

(i)if subsection (1)(b)(i) applies—that equals the amount of the increased estimated rehabilitation cost for the authority less both the fund threshold applying to the authority and the amount of the surety for the authority already given; or

(ii)if subsection (1)(b)(ii) applies—that equals the amount of the estimated rehabilitation cost for the authority less both the amount of the decreased fund threshold applying to the authority and the amount of the surety for the authority already given.

(3)The surety must be in the form approved by the scheme manager under section 56.

(4)The surety must be given within 30 business days after the estimated rehabilitation cost for the authority increases.

(5)The scheme manager may extend the period mentioned in subsection (4) if the scheme manager is satisfied it is not reasonably practicable for the holder to obtain the surety within the period.

58   Release of surety

(1)The scheme manager must release a surety given under this subdivision for an authority if—

(a)the surety is replaced with another surety for the authority in a form approved by the scheme manager under section 56; or

(b)the surety is no longer required to be given because a contribution to the scheme fund is required to be paid under subdivision 1 for the authority.

(2)The surety must be released to the giver of the surety as soon as practicable after—

(a)for subsection (1)(a)—the replacement surety is given; or

(b)for subsection (1)(b)—the contribution to the scheme fund is paid.

(3)The scheme manager may release a surety given under this subdivision for an authority, or small scale mining tenure, to the giver of the surety if the scheme manager is satisfied the scheme manager will not be asked under division 3, subdivision 2 to make a claim on or realise the surety or part of it.

(4)Without limiting subsection (3), the scheme manager may be satisfied under that subsection if the administering authority for the authority gives the scheme manager a notice stating the administering authority will not ask the scheme manager, under division 3, subdivision 2, for the payment of costs and expenses by the scheme manager making a claim on or realising the surety or part of it.

59   Notification of administering authority

The scheme manager must, as soon as practicable after the holder of an authority or small scale mining tenure gives a surety under this subdivision, give the administering authority for the authority notice of the giving of the surety.

Subdivision 3 Fees

60   Assessment fee

(1)If the scheme manager makes an allocation decision for an authority, the holder of the authority must pay the scheme manager the assessment fee prescribed by regulation for the decision.

(2)The assessment fee must be paid within 30 business days after the decision is made.

61   Administration fee for particular sureties

(1)This section applies if—

(a)the holder of an authority is required to give a surety under section 53(d), (e), (f), (g) or (h); or

(b)the holder of a small scale mining tenure is required to give a surety under section 53(i); or

(c)the holder of an authority or small scale mining tenure replaces a surety.

(2)The holder must pay the scheme manager the administration fee prescribed by regulation for the surety.

(3)The administration fee must be paid—

(a)for subsection (1)(a) or (b)—within the period mentioned in section 55A for giving the surety; or

(b)for subsection (1)(c)—within 30 business days after the replacement surety is given.

62   Recovery of unpaid fee

A fee payable under this subdivision may be recovered as a debt payable to the State.

Division 3 Claiming financial provision

Subdivision 1 Payments from scheme fund

63   Application of subdivision

This subdivision applies if—

(a)the administering authority (the requesting entity) decides, under the Environmental Protection Act 1994, section 316G, to ask the scheme manager for the payment of costs and expenses from the scheme fund; or

(b)the chief executive (mineral resources) (also the requesting entity) incurs, or might reasonably incur, costs and expenses in authorising a person, under the Mineral Resources Act 1989, section 344C, to carry out remediation activities in relation to mining activities previously carried out on an abandoned mine site; or

(c)the chief executive (petroleum) (also the requesting entity) incurs, or might reasonably incur, costs and expenses in authorising a person, under the Petroleum and Gas (Production and Safety) Act 2004, section 799D, to carry out remediation activities in relation to an abandoned operating plant; or

(d)the chief executive (common provisions) or the chief executive (environment) (also the requesting entity) incurs, or might reasonably incur, costs and expenses relating to particular research that may contribute to the rehabilitation of land on which resource activities have been carried out.

64   Requesting entity may ask for payment from scheme fund

(1)The requesting entity may ask the scheme manager for payment of the costs and expenses from the scheme fund.

(2)The request must—

(a)be in writing; and

(b)state the details of the costs and expenses; and

(c)for costs and expenses mentioned in section 63(a)—state the details of the authority to which the costs and expenses relate; and

(d)include the other information prescribed by regulation.

(3)Before making a request for payment of the costs and expenses mentioned in section 63(b) relating to mining activities carried out on a pre-commencement abandoned mine site, the requesting entity must consult with the advisory committee about the proposed request.

(a)the day the notice under former section 36 is given to the interested entity;

(b)the day the changed holder review decision would take effect under new section 37.

(13)A reference in this Act to the changed holder review allocation taking effect under new section 37 is taken to include a reference to the day the changed holder review allocation takes effect under subsection (12).

(14)For applying new section 37, a reference in the section to section 36(1) is taken to be a reference to former section 36.

(15)If the changed holder does not give the scheme manager a notice under subsection (4) within the period mentioned in subsection (3)(b)—

(a)the changed holder review process ends; and

(b)the scheme manager must give the changed holder a notice stating that the changed holder review process has ended; and

(c)for an authority in relation to which a changed holder event has happened—new part 3, division 2, subdivision 2 applies in relation to the authority as if—

(i)a reference in new section 53(d) and (e) to a changed holder event happening or a prescribed dealing being approved included a reference to the event happening or the prescribed dealing being approved before the commencement; and

(ii)new section 55A required the surety for the authority to be given within 30 business days after the later of the following—

(A)if the changed holder event is of a type mentioned in section 31A(1)(a)—when the prescribed dealing is approved;

(B)the day the period mentioned in subsection (3)(b) ends.

101   Option to elect for particular authorities if changed holder review allocation not in effect before the commencement

(1)This section applies if—

(a)before the commencement, the scheme manager had made a changed holder review allocation under former section 32 in relation to an authority that allocated the authority to the risk category of very low, low or moderate; and

(b)immediately before the commencement, the changed holder review allocation had not taken effect under former section 37; and

(c)on the commencement, the estimated rehabilitation cost for the authority is equal to or more than $100,000 but less than $10m.

(2)The scheme manager must, within 10 business days after the commencement, give the changed holder a notice stating—

(a)that the changed holder may elect for the authority to be subject to risk category allocation under part 3, division 1; and

(b)that the changed holder may make the election within 20 business days after the notice is given to the changed holder.

(3)The changed holder may elect for the authority to be subject to risk category allocation under new part 3, division 1 by giving the scheme manager notice of the election within the period mentioned in subsection (2)(b).

(4)If the changed holder gives the scheme manager a notice under subsection (3) within the period mentioned in subsection (2)(b), the scheme manager must give the changed holder a notice stating—

(a)the day the notice is given; and

(b)the authority to which the notice relates; and

(c)that the authority is subject to risk category allocation under part 3, division 1.

(5)A notice given under subsection (4) is taken to be an election notice for the authority under new part 3, division 1A.

(6)If the scheme manager gives the changed holder a notice under subsection (4)—

(a)the scheme manager must—

(i)decide the annual review allocation day for the authority; and

(ii)give the changed holder notice of the decision before or when the notice mentioned in former section 36 is given to the interested entity; and

(b)the changed holder review allocation is taken to be a changed holder review allocation for the authority under new section 32; and

(c)the changed holder review allocation takes effect on the later of the following days—

(i)the day the notice is given under subsection (4);

(ii)the day the changed holder review allocation would take effect under new section 37.

(7)A reference in this Act to the changed holder review allocation taking effect under new section 37 is taken to include a reference to the day the changed holder review allocation takes effect under subsection (6)(c).

(8)For applying new section 37, a reference in the section to section 36(1) is taken to be a reference to former section 36.

(9)The annual review allocation day takes effect when the changed holder review allocation takes effect under subsection (6)(c).

(10)If the changed holder does not give the scheme manager a notice under subsection (3) within the period mentioned in subsection (2)(b)—

(a)the changed holder review allocation does not take effect; and

(b)the scheme manager must give the changed holder a notice stating that the changed holder review allocation does not take effect; and

(c)for an authority in relation to which the changed holder event has happened—new part 3, division 2, subdivision 2 applies in relation to the authority as if—

(i)a reference in new section 53(d) and (e) to a changed holder event happening or a prescribed dealing being approved included a reference to the event happening or the prescribed dealing being approved before the commencement; and

(ii)new section 55A required the surety for the authority to be given within 30 business days after the later of the following—

(A)if the changed holder event is of a type mentioned in section 31A(1)(a)—when the prescribed dealing is approved;

(B)the day the period mentioned in subsection (2)(b) ends.

102   Existing authorities with high risk category allocation if changed holder review allocation not in effect before the commencement

(1)This section applies if—

(a)before the commencement, the scheme manager had made a changed holder review allocation under former section 32 in relation to an authority that allocated the authority to the risk category of high; and

(b)immediately before the commencement, the changed holder review allocation had not taken effect under former section 37; and

(c)on the commencement, the estimated rehabilitation cost for the authority is equal to or more than $100,000 but less than $10m.

(2)On the commencement—

(a)the changed holder review allocation does not take effect; and

(b)the scheme manager must give the holder a notice stating that the changed holder review allocation does not take effect.

(3)For an authority in relation to which the changed holder event has happened, new part 3, division 2, subdivision 2 applies in relation to the authority as if—

(a)a reference in new section 53(d) and (e) to a changed holder event happening or a prescribed dealing being approved included a reference to the event happening or the prescribed dealing being approved before the commencement; and

(b)new section 55A required the surety for the authority to be given within 30 business days after the later of the following—

(i)if the changed holder event is of a type mentioned in former section 31A(1)(a)—when the prescribed dealing is approved;

(ii)the day the scheme manager gives the notice under subsection (2)(b).

103   Option to elect for particular authorities if annual review process not finished before the commencement

(1)This section applies if—

(a)before the commencement, the scheme manager had started, but not finished, the annual review process for an authority; and

(b)on the commencement—

(i)the estimated rehabilitation cost for the authority is equal to or more than $100,000 but less than $10m; and

(ii)the authority is allocated to the risk category of very low, low or moderate.

(2)On the commencement, the annual review process stops.

(3)The scheme manager must, within 10 business days after the commencement, give the holder a notice stating—

(a)that the holder may elect for the authority to be subject to risk category allocation under part 3, division 1; and

(b)that the holder may make the election within 20 business days after the notice is given to the holder.

(4)The holder may elect for the authority to be subject to risk category allocation under new part 3, division 1 by giving the scheme manager notice of the election within the period mentioned in subsection (3)(b).

(5)If the holder gives the scheme manager a notice under subsection (4) within the period mentioned in subsection (3)(b), the scheme manager must give the holder a notice stating—

(a)the day the notice is given; and

(b)the authority to which the notice relates; and

(c)that the authority is subject to risk category allocation under part 3, division 1.

(6)A notice given under subsection (5) is taken to be an election notice for the authority under new part 3, division 1A.

(7)If the scheme manager gives the holder a notice under subsection (5)—

(a)the balance of the annual review process restarts as if the amendment Act had not been enacted; and

(b)the scheme manager must—

(i)decide the annual review allocation day for the authority; and

(ii)give the holder notice of the decision before or when the notice mentioned in former section 41 is given to the holder.

(8)The annual review allocation day takes effect on the relevant anniversary day for the authority.

(9)New section 38(3) does not apply to an annual review allocation day that is within 9 months after the relevant anniversary day for the authority.

(10)For restarting the annual review process under subsection (7)(a), if a period mentioned in former section 39 had started but not ended before the commencement, the period is extended by the period—

(a)starting on the commencement; and

(b)ending at the end of the period mentioned in subsection (3)(b).

(11)Despite subsection (7)(a) and former section 41(d), a notice given under former section 41 must state the amount of the contribution to the scheme fund, or surety, required under new part 3, division 2 in relation to the authority, and when the amount must be paid or given under the new division.

(12)The annual review allocation decided for the authority under the annual review process is taken to be an annual review allocation for the authority under new section 38.

(13)The day the annual review allocation is decided under the annual review process is taken to be the annual review day for the authority under new section 41(a).

(14)To the extent new part 3, division 2, subdivision 1 applies in relation to the annual review decision, a reference in new sections 47 and 49 to the current review day is taken to be a reference to the relevant anniversary day for the authority.

(15)If the holder does not give the scheme manager a notice under subsection (4) within the period mentioned in subsection (3)(b)—

(a)the review process ends; and

(b)the scheme manager must give the holder a notice stating—

(i)that the review process has ended; and

(ii)that part 3, division 2, subdivision 2 applies in relation to the authority; and

(c)new part 3, division 2, subdivision 2 applies in relation to the authority as if—

(i)the matters mentioned in new section 53(f) applied in relation to the authority; and

(ii)new section 55A required the surety for the authority to be given within 30 business days after the later of the following—

(A)the relevant anniversary day; or

(B)the day the period mentioned in subsection (3)(b) ends.

104   Existing authorities with high risk category allocation if annual review process not finished before the commencement

(1)This section applies if—

(a)before the commencement, the scheme manager had started, but not finished, the annual review process for an authority; and

(b)on the commencement—

(i)the estimated rehabilitation cost for the authority is equal to or more than $100,000 but less than $10m; and

(ii)the authority is allocated to the risk category of high.

(2)On the commencement—

(a)the review process ends; and

(b)the scheme manager must give the holder a notice stating that the review process has ended.

(3)If, for the last annual review decision made in relation to the authority before the commencement, former section 46(b) applied, new part 3, division 2, subdivision 2 applies in relation to the authority as if—

(a)the matters mentioned in new section 53(f) applied in relation to the authority; and

(b)new section 55A required the surety for the authority to be given within 30 business days after the later of the following—

(i)the relevant anniversary day for the authority;

(ii)the day the scheme manager gives the notice under subsection (2)(b).

105   Option to elect before relevant anniversary day for particular existing authorities

(1)This section applies if—

(a)immediately before the commencement—

(i)an authority was allocated to the risk category of very low, low or moderate; and

(ii)the annual review process for the authority had not started; and

(b)on the commencement, the estimated rehabilitation cost for the authority is equal to or more than $100,000 but less than $10m.

(2)The scheme manager must, at least 30 business days before the relevant anniversary day for the authority, give the holder a notice stating—

(a)that the holder may elect for the authority to be subject to risk category allocation under part 3, division 1; and

(b)that the holder may make the election within 20 business days after the notice is given to the holder.

(3)The holder may elect for the authority to be subject to risk category allocation under new part 3, division 1 by giving the scheme manager notice of the election within the period mentioned in subsection (2)(b).

(4)If the holder gives the scheme manager a notice under subsection (3) within the period mentioned in subsection (2)(b), the scheme manager must give the holder a notice stating—

(a)the day the notice is given; and

(b)the authority to which the notice relates; and

(c)that the authority is subject to risk category allocation under part 3, division 1.

(5)A notice given under subsection (4) is taken to be an election notice for the authority under new part 3, division 1A.

(6)If the scheme manager gives the holder a notice under subsection (4)—

(a)new part 3, division 1, subdivision 3 applies in relation to the authority as if a reference in new section 38(3) to the annual review allocation day included a reference to the relevant anniversary day for the authority; and

(b)the scheme manager must—

(i)decide the annual review allocation day for the authority; and

(ii)give the holder notice of the decision before or when the notice under new section 41 is given to the holder.

(7)The annual review allocation day takes effect on the relevant anniversary day for the authority.

(8)New section 38(3) does not apply to an annual review allocation day that is within 9 months after the relevant anniversary day for the authority.

(9)To the extent new part 3, division 2, subdivision 1 applies in relation to an annual review decision made because of subsection (6), a reference in new sections 47 and 49 to the current review day is taken to be a reference to the relevant anniversary day for the authority.

(10)If the holder does not give the scheme manager a notice under subsection (3) within the period mentioned in subsection (2)(b)—

(a)the scheme manager must give the holder a notice stating that part 3, division 2, subdivision 2 applies in relation to the authority; and

(b)new part 3, division 2, subdivision 2 applies in relation to the authority as if—

(i)the matters mentioned in new section 53(f) applied in relation to the authority; and

(ii)new section 55A required the surety for the authority to be given within 30 business days after the later of the following—

(A)the relevant anniversary day;

(B)the day the period mentioned in subsection (2)(b) ends.

(11)This section stops applying in relation to the authority if, after the commencement and before the relevant anniversary day for the authority—

(a)the estimated rehabilitation cost for the authority is less than $100,000; or

(b)the authority is surrendered under the Environmental Protection Act 1994, chapter 5; or

(c)a changed holder event happens that has the effect of another holder of the authority being liable to pay a contribution, or give a surety, under new part 3.

(12)Also, this section stops applying in relation to the authority if—

(a)the estimated rehabilitation cost for the authority is equal to or more than the prescribed ERC amount; and

(b)immediately before the estimated rehabilitation cost increased, an election notice is not in effect for the authority.

106   Application of new pt 3, div 1, sdiv 2 for particular authorities to which s 105 applies

(1)This section applies if—

(a)section 105 stops applying in relation to an authority—

(i)under section 105(11)(c); or

(ii)because section 105, according to its terms, is spent; and

(b)under new part 3, division 1A, the scheme manager gives the changed holder an election notice for the authority.

(2)For deciding the changed holder allocation in relation to the changed holder event, new part 3, division 1, subdivision 2 applies in relation to the authority as if the authority were not allocated to a risk category.

107   Particular existing authorities if s 105 stops applying because estimated rehabilitation cost equal to or more than prescribed ERC amount

(1)This section applies if section 105 stops applying in relation to an authority under section 105(12).

(2)New section 26(1) does not apply in relation to the administering authority’s decision of the estimated rehabilitation cost for the authority.

(3)New part 3, division 1, subdivision 3 applies in relation to the authority as if a reference in new section 38(3) to the annual review allocation day included a reference to the relevant anniversary day for the authority.

(4)The scheme manager must—

(a)decide the annual review allocation day for the authority; and

(b)give the holder notice of the decision before or when the notice under new section 41 is given to the holder.

(5)The annual review allocation day takes effect on the relevant anniversary day for the authority.

(6)New section 38(3) does not apply to an annual review allocation day that is within 9 months after the relevant anniversary day for the authority.

(7)To the extent new part 3, division 2, subdivision 1 applies in relation to an annual review decision made because of subsection (3), a reference in new sections 47 and 49 to the current review day is taken to be a reference to the relevant anniversary day for the authority.

Subdivision 4 Transitional regulation

108   Transitional regulation-making power

(1)A regulation (a transitional regulation) may make provision about a matter for which—

(a)it is necessary to make provision to allow or facilitate the doing of anything to achieve the transition from the operation of this Act, as in force before its amendment by the amendment Act, to the operation of this Act, as in force after its amendment by the amendment Act; and

(b)this Act does not provide or sufficiently provide.

(2)A transitional regulation may have retrospective operation to a day not earlier than the day this section commences.

(3)A transitional regulation must declare it is a transitional regulation.

109   Expiry of subdivision and transitional regulation

This subdivision and any transitional regulation under section 108 expire on the day that is 2 years after the day this section commences.

Schedule 1 Dictionary

section 7

abandoned mine ...

abandoned mine site see the Mineral Resources Act 1989, section 344.

abandoned operating plant see the Petroleum and Gas (Production and Safety) Act 2004, section 799C.

acting scheme manager means an acting scheme manager appointed under section 16.

administering authority, for an authority or small scale mining tenure, means the chief executive (environment).

administration fee means the administration fee prescribed by regulation under section 61.

advisory committee means the advisory committee established under section 83.

allocation decision, for an authority, means any of the following for the authority—

(a)an initial allocation decision;

(b)a changed holder allocation;

(c)an annual review decision.

annual review allocation see section 38(3)(b).

annual review allocation day, for an authority, means—

(a)the day, in each year, decided by the scheme manager before which the scheme manager will make an annual review allocation for the authority; or

(b)if a change to the day mentioned in paragraph (a) takes effect under part 3, division 1, subdivision 3A—the day, in each year, as changed from time to time under that subdivision.

annual review day, for an authority, see section 41(a).

annual review decision, for an authority, means a decision under section 38 in relation to the authority.

applicable holder, for part 3, division 1A, see section 45A.

approved form means a form approved under section 86.

assessment fee, for a decision of the scheme manager, means the assessment fee for the decision prescribed by regulation under section 60.

authority see section 8.

cash surety account see section 25(1).

changed holder, for an authority in relation to which a changed holder event happens or is proposed, means the changed holder mentioned in section 31A for the event.

changed holder allocation means a changed holder initial allocation or a changed holder review allocation.

changed holder event, in relation to an authority, see section 31A.

changed holder initial allocation see section 32(4)(a).

changed holder review allocation see section 32(3)(b).

changed holder review day ...

changed holder review decision ...

chief executive (common provisions) means the chief executive of the department in which the Mineral and Energy Resources (Common Provisions) Act 2014 is administered.

chief executive (environment) means the chief executive of the department in which the Environmental Protection Act 1994 is administered.

chief executive (mineral resources) means the chief executive of the department in which the Mineral Resources Act 1989 is administered.

chief executive (petroleum) means the chief executive of the department in which the Petroleum and Gas (Production and Safety) Act 2004 is administered.

chief executive (resources) means—

(a)the chief executive (mineral resources); or

(b)the chief executive (petroleum); or

(c)the chief executive of the department in which the Geothermal Energy Act 2010 is administered; or

(d)the chief executive of the department in which the Greenhouse Gas Storage Act 2009 is administered.

confidential information, for part 5, see section 79.

contribution means a contribution under part 3, division 2, subdivision 1 to the scheme fund.

control has the meaning given by the Corporations Act, section 50AA.

current review day, for an authority, means—

(a)for an initial allocation decision—the initial allocation day for the authority; or

(b)for a changed holder allocation—the day the decision takes effect under section 37; or

(c)for an annual review decision—the annual review allocation day before which the annual review decision is made for the authority.

departmental accounts, of the department, means the accounts of the department under the Financial Accountability Act 2009, section 69.

departmental financial institution account, of the department, means an account of the department kept under the Financial Accountability Act 2009, section 83.

disclose, for part 5, see section 79.

election notice see section 45E.

election period, in relation to an authority, see section 45A.

environmental authority, for a resource activity, means an environmental authority for the resource activity under the Environmental Protection Act 1994.

ERC period see the Environmental Protection Act 1994, section 296.

estimated rehabilitation cost, for an authority, see section 8.

fund threshold see section 11(1).

holder, of an authority or small scale mining tenure, means the holder of the authority or tenure within the meaning of the Environmental Protection Act 1994.

indicative annual review allocation see section 39(1)(a).

indicative changed holder allocation see section 34(1)(a).

indicative review day—

(a)for part 3, division 1, subdivision 1—see section 28(1)(d); or

(b)for part 3, division 1, subdivision 2—see section 34(1)(c).

indicative risk category allocation see section 28(1)(a).

information, for part 5, see section 79.

initial allocation day, for an authority, see section 31(1)(a).

initial allocation decision, for an authority, means a decision under section 27 in relation to an authority.

initial risk category allocation see section 27(1).

interested entity see section 34(3).

notice means written notice.

notice of indicative decision—

(a)for part 3, division 1, subdivision 1—see section 28(1); or

(b)for part 3, division 1, subdivision 2—see section 34(1); or

(c)for part 3, division 1, subdivision 3—see section 39(1); or

(d)for part 3, division 1, subdivision 3A—see section 41B(2).

parent corporation, of a holder, means—

(a)a corporation that controls the holder under the Corporations Act, section 50AA; or

(b)a corporation of which the holder is a subsidiary under the Corporations Act, section 46.

prescribed ERC amount see section 26(1)(b).

prescribed percentage, for an authority, means the percentage prescribed by regulation for the authority.

rehabilitation activities ...

relevant holder, of an authority, for a matter relating to—

(a)an initial allocation decision—see section 27(5)(c); or

(b)a changed holder allocation—see section 32(8)(b); or

(c)an annual review decision—see section 38(8)(c).

remediation activities...

remediation activity—

(a)in relation to mining activities previously carried out on an abandoned mine site—see the Mineral Resources Act 1989, section 344A; or

(b)in relation to an abandoned operating plant—see the Petroleum and Gas (Production and Safety) Act 2004, section 799CA.

requesting entity—

(a)for part 3, division 3, subdivision 1—see section 63; or

(b)for part 3, division 3, subdivision 2—see section 66.

(c)for part 3A—see section 76A.

residual risk activities means remedial action or ongoing management activities carried out in relation to land because of residual risks of the land.

residual risk payment amount means an amount paid by the holder of an environmental authority for a resource activity under the Environmental Protection Act 1994 for residual risks of land within the area of the environmental authority.

residual risks, of land, see the Environmental Protection Act 1994, schedule 4.

residual risks fund means the Residual Risks Fund established under section 25A.

resource activity see the Environmental Protection Act 1994, section 107.

resource authority see the Mineral and Energy Resources (Common Provisions) Act 2014, section 10.

risk category means a category mentioned in section 27(1).

scheme see section 4(a).

scheme fund see section 24(1).

scheme guidelines means the guidelines made by the scheme manager under section 70 and in effect.

scheme manager means the scheme manager appointed under section 12.

scheme manager guidelines ...

small scale mining tenure see the Environmental Protection Act 1994, section 21A(2).

surety means a surety under part 3, division 2, subdivision 2.

total estimated rehabilitation cost—

(a)for an entity, see section 9; or

(b)for the State, see section 10.

Treasurer means the Minister administering the Financial Accountability Act 2009.