Minister for Resources v BHP Petroleum

The Minister for Resources (the Minister) appealed to the High Court of Australia against a decision of the Federal Court of Australia concerning the validity of a petroleum exploration permit. The dispute arose between the Minister, acting on behalf of the Commonwealth, and BHP Petroleum Pty Ltd (BHP), a company seeking to explore for petroleum in an area off the coast of Western Australia.

The central legal issue before the High Court was whether the Minister had the power to grant a petroleum exploration permit under the *Petroleum (Submerged Lands) Act 1967* (Cth) in respect of an area that had previously been the subject of a permit granted under the *Petroleum (Submerged Lands) Act 1967* (WA). Specifically, the court had to determine if the Commonwealth Act validly applied to the area in question, given the existence of the State permit and the potential for conflict between the two legislative regimes.

Brennan and Dawson JJ held that the Commonwealth Minister did have the power to grant the exploration permit. Their Honours reasoned that the *Petroleum (Submerged Lands) Act 1967* (Cth) was enacted pursuant to the external affairs power of the Commonwealth Constitution, implementing international obligations undertaken by Australia. They found that the Commonwealth Act operated to vest in the Commonwealth the exclusive right to grant exploration permits in the designated offshore areas, notwithstanding any prior or existing State permits. The court concluded that the Commonwealth legislation validly regulated the exploration for petroleum in the area, and the Minister's grant of the permit to BHP was therefore lawful.