Mineral Resources Amendment Regulation (No. 3) 1997 (Qld)

Queensland Subordinate Legislation 1997 No. 241 Mineral Resources Act 1989 MINERAL RESOURCES AMENDMENT REGULATION (No. 3) 1997 TABLE OF PROVISIONS Section Page 1 Short title . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2 Regulation amended . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 3 Amendment of sch 1 (Rate of royalties) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

s1 2 s3 Mineral Resources Amendment (No. 3) No. 241, 1997 ˙ Short title 1. This regulation may be cited as the Mineral Resources Amendment Regulation (No. 3) 1997 . ˙ Regulation amended 2. This regulation amends the Mineral Resources Regulation 1990 . ˙ Amendment of sch 1 (Rate of royalties) 3. Schedule 1, part 2— insert— ‘ Oil shale ‘ 18A.(1) The royalty payable on oil processed from oil shale is the lesser of— (a) 10% of the oil’s value; or (b) the WTI%, rounded to a second decimal place, of the oil’s value. ‘ (2) The WTI% is worked out using the formula— WTI% = ( [CPI BASE x WTI] 2 ÷ 1 000 ) + 0.5 CPI NOW ‘ (3) In subsection (2)— “CPI” means the ‘Consumer Price Index: All Groups Index Numbers—Weighted average of eight capital cities’ published by the Australian Bureau of Statistics. “CPI BASE ” means the CPI for the December quarter 1993. “CPI NOW ” means the CPI for the calendar quarter to which the calculation relates. “WTI” means the ‘Crude Oil West Texas—Spot—Last’ price in US dollars per barrel published in the Australian Financial Review, converted to Australian dollars at the hedge settlement rate, for each day of trading, averaged over the calendar quarter to which the calculation relates.

s3 3 s3 Mineral Resources Amendment (No. 3) No. 241, 1997 Example of how to work out royalty payable— The CPI BASE is 110.0. If, for a particular quarter, the CPI is 134.2 and the WTI is $A30, then the WTI% = ( [110.0 x 30] 2 ÷ 1 000 ) + 0.5 134.2 = 1.10% Because 1.10% is less than 10%, the royalty payable is 1.10% of the oil’s value. ‘ (4) No royalty is payable on the first 1 600 000 barrels of oil processed, in a calendar year, from oil shale from mining lease 80003. ‘ (5) If less than 1 600 000 barrels are processed in any calendar year, the shortfall can be carried forward (and added to the 1 600 000 exemption) for the next calendar year. ‘ (6) However, any unused shortfall can not be carried forward beyond that next calendar year. Example— In 1998, 1 300 000 barrels are produced. In 1999, 1 700 000 barrels are produced. In 2000, 2 000 000 barrels are produced. In 1998, no royalty is payable because production is 300 000 below 1 600 000. The shortfall of 300 000 is carried forward to 1999. In 1999, no royalty is payable because production is 200 000 below 1 900 000 (ie. 1 600 000 + 300 000). There is no shortfall from 1999 to carry forward because 1 700 000 is above 1 600 000. Also, the unused shortfall from 1998, ie 200 000, is not carried forward to 2000. In 2000, royalty is payable on the 400 000 barrels produced above 1 600 000, with no shortfall to be carried forward. ‘ (7) In this section— “shortfall” means the shortfall between the number of barrels actually processed and 1 600 000 barrels. “unused shortfall” means any shortfall that was carried forward but not used in the year in which it was carried forward. ‘ (8) Subsections (4) to (8) expire on 1 January 2006.’.

4 Mineral Resources Amendment (No. 3) No. 241, 1997 ENDNOTES 1. Made by the Governor in Council on 31 July 1997. 2. Notified in the gazette on 1 August 1997. 3. Laid before the Legislative Assembly on . . . 4. The administering agency is the Department of Mines and Energy. © State of Queensland 1997