National Gas (Queensland) Law (Qld)

National Gas (Queensland) Law

Editor’s note—

The National Gas Law is applied (with modifications) as a law of Queensland by the National Gas (Queensland) Act 2008. This version is the Law as it applies in Queensland—see the National Gas (Queensland) Act 2008, section 7. It is intended a new reprint of the National Law will be prepared by the Office of the Queensland Parliamentary Counsel when any change in the National Law takes effect.

Chapter 1    Preliminary

Part 1    Citation and interpretation

1   Short title

This law may be cited as the National Gas (Queensland) Law.

2   Definitions

(1)In this Law—

15-year no-coverage determination ...

ACCC means the Australian Competition and Consumer Commission established by section 6A of the Competition and Consumer Act 2010 of the Commonwealth;

access arrangement means an arrangement setting out terms and conditions about access to pipeline services provided or to be provided by means of a scheme pipeline;

access determination means a determination of the relevant adjudicator for an access dispute under Chapter 5 Part 5 and includes a determination varied under Part 6 of that Chapter;

access dispute means a dispute between a user or prospective user and a service provider about 1 or more aspects of access to a pipeline service provided by means of a pipeline and includes a matter that is deemed to be an access dispute under the Rules;

adoptive jurisdiction means a participating jurisdiction for which AEMO is authorised to exercise its declared system functions or STTM functions;

AEMC means the Australian Energy Market Commission established by section 5 of the Australian Energy Market Commission Establishment Act 2004 of South Australia;

AEMO amendments means—

(a)the amendments to this Law made by the National Gas (South Australia) (National Gas Law—Australian Energy Market Operator) Amendment Act 2009; and

(b)the amendments to the Rules made by the National Gas (South Australia) (National Gas Rules—Australian Energy Market Operator) Amendment Rules 2009; and

(c)the Procedures first made under this Law after the enactment of the amendments referred to in paragraph (a);

AER means the Australian Energy Regulator established by section 44AE of the Competition and Consumer Act 2010 of the Commonwealth;

AER Compliance Procedures and Guidelines has the meaning given by section 64F;

AER economic regulatory decision means a decision (however described) of the AER under this Law or the Rules performing or exercising an AER economic regulatory function or power;

AER economic regulatory function or power means a function or power performed or exercised by the AER under this Law or the Rules (other than making a rate of return instrument) that relates to the economic regulation of pipeline services provided by a service provider—

(a)by means of; or

(b)in connection with,

a pipeline and includes a function or power performed or exercised by the AER under this Law or the Rules (other than making a rate of return instrument) that relates to—

(c)the preparation of a service provider performance report;

(d)a ring fencing decision;

(e)an applicable access arrangement decision;

(f)an access determination (if the AER is the dispute resolution body);

Note—

The application of a rate of return instrument under this Law is an AER economic regulatory function or power. See section 30Q(2).

AER gas price reporting functions means the functions of the AER performed under section 27(1)(fa);

AER ring fencing determination means a determination of the AER under section 143(1);

AER trial waiver functions means the functions conferred on the AER under Chapter 2 Part 1 Division 1B;

AER wholesale market monitoring functions—the AER wholesale market monitoring functions are set out in section 30AC(1);

AER wholesale market reporting functions—the AER wholesale market reporting functions are set out in section 30AC(2);

annual turnover has the same meaning as in section 2(1) of Schedule 2 to the Competition and Consumer Act 2010 of the Commonwealth;

applicable access arrangement means an access arrangement that has taken effect after being approved or made by the AER under the Rules and includes an applicable access arrangement as varied—

(a)under the Rules; or

(b)by an access determination as provided by this Law or the Rules;

applicable access arrangement decision means a decision of the AER under the Rules that—

(a)approves or does not approve an access arrangement or revisions to an applicable access arrangement submitted to the AER under section 113 or the Rules; or

(b)makes an access arrangement—

(i)in place of an access arrangement the AER does not approve in that decision; or

(ii)because a scheme pipeline service provider does not submit an access arrangement in accordance with section 113 or the Rules; or

(c)makes revisions to an access arrangement—

(i)in place of revisions submitted to the AER under section 113 that the AER does not approve in that decision; or

(ii) because a scheme pipeline service provider does not submit revisions to the AER under section 113;

application Act means an Act of a participating jurisdiction that applies, as a law of that jurisdiction, this Law or any part of this Law;

approved associate contract means an associate contract approved by the AER under an associate contract decision;

associate in relation to a person has the same meaning it would have under Division 2 of Part 1.2 of the Corporations Act 2001 of the Commonwealth if sections 13, 16(2) and 17 did not form part of that Act;

associate contract means—

(a)a contract, arrangement or understanding between a service provider and an associate of the service provider in connection with the provision of an associate pipeline service; or

(b)a contract, arrangement or understanding between a service provider and any person in connection with the provision of an associate pipeline service—

(i)that provides a direct or indirect benefit to an associate; and

(ii)that is not at arm’s length;

associate contract decision means a decision of the AER under the Rules that approves or does not approve an associate contract for the purposes of Chapter 4 Part 2 Division 4;

associate pipeline service means a pipeline service provided by means of a pipeline other than a pipeline to which a greenfields incentive determination applies;

Australian Energy Market Operator or AEMO means Australian Energy Market Operator Limited (ACN 072 010 327);

bilateral trading agreement, for Chapter 2 Part 1 Division 1AA—see section 30AA;

BB Procedures means Procedures directed at regulating the Gas Bulletin Board;

biogas means a gas derived or recovered from organic matter other than fossilised organic matter;

biomethane means a substance—

(a)that is in a gaseous state at standard temperature and pressure; and

(b)the principal constituent of which is methane; and

(c)that is produced by refining biogas; and

(d)that is suitable for consumption;

blend processing facility means a facility for 1, or more, of the following:

(a)the blending of 1 or more primary gases, with or without other substances, for injection into a pipeline;

(b)the separation of a gas blend withdrawn from a pipeline into constituent gases before re-injection into a pipeline as—

(i)a primary gas; or

(ii)a gas blend;

blend processing service means a service provided by means of a blend processing facility;

blend processing service provider means a person who owns, operates or controls a blend processing facility;

Bulletin Board information means information that—

(a)a person gives to AEMO or the AER to comply with Chapter 7 (or any Rules under that Chapter); or

(b)a person gives to AEMO in its capacity as operator of the Gas Bulletin Board in circumstances expressly permitted by the Rules;

Bulletin Board operator ...

capacity auction means an auction conducted by AEMO through which a person may buy transportation capacity;

capacity auction agreement means an agreement that relates to participation in a capacity auction and to which AEMO and persons participating in the capacity auction are parties;

capacity auction functions of AEMO are set out in section 91BRM(1);

capacity auction information means information that––

(a)a person gives to AEMO, to comply with section 91FEE(1); or

(b)a person gives, in circumstances expressly required or permitted by the Procedures or Rules—

(i)to AEMO in its capacity as operator of a capacity auction in which the person participates; or

(ii)to AEMO in its capacity as operator of a regulated gas market or a gas trading exchange if that information is to be used for the purpose of a capacity auction in which the person participates;

capacity auction participant means a person (other than AEMO) who is, or who was at the relevant time, a party to a capacity auction agreement;

Capacity Transfer and Auction Procedures means Procedures directed at the operation and administration of capacity auctions and transaction support arrangements;

changeover date means—

(a)a date fixed by or under legislation of a participating jurisdiction for AEMO’s assumption of responsibility for the operation of a gas market in the relevant jurisdiction under this Law and the Rules; or

(b)a date fixed by Ministerial Gazette notice as the changeover date;

Note—

The changeover date may vary from gas market to gas market, from provision to provision and from jurisdiction to jurisdiction. In addition, AEMO’s assumption of statutory functions in a particular participating jurisdiction may occur in stages on different changeover dates.

charge, in relation to a pipeline service, means the amount that is payable by a user to a service provider for the provision of the pipeline service to that user;

civil monetary liability means a liability for damages, compensation or any other monetary amount that can be recovered by way of civil proceedings but does not include a liability for a civil penalty or an infringement penalty under this Law or a liability for the costs of a proceeding;

civil penalty—see section 3A;

civil penalty provision has the meaning given by section 3;

classification decision means a decision of the AER under Chapter 3 Part 6 Division 1;

classification decision under the Rules ...

commission, in relation to a pipeline, has the meaning given by section 12;

Commonwealth Minister means the Minister of the Commonwealth administering the Australian Energy Market Act 2004 of the Commonwealth;

compression service facility means—

(a)a designated compression service facility; or

(b)any other facility or part of a facility (whether or not forming part of another facility or located on or connected to another facility) for compressing covered gas other than—

(i)a facility operated as part of a gathering system operated as part of an upstream producing operation for processable gas; or

(ii)anything downstream of a point on a pipeline from which a person takes covered gas for consumption purposes;

compression service provider means a person who owns, controls or operates a compression service facility;

conduct provision has the meaning given by section 4;

constituent components, in relation to a designated regulatory decision, means the matters that constitute the elements or components of the designated regulatory decision and on which that designated regulatory decision is based and includes—

(a)matters that go to the making of the designated regulatory decision; and

(b)decisions made by the AER for the purposes of the designated regulatory decision;

coverage determination ...

coverage recommendation ...

coverage revocation determination ...

coverage revocation recommendation ...

covered gas means the following:

(a)a primary gas;

(b)a gas blend;

covered gas industry includes—

(a)activities and transactions relating to the following:

(i)processable gas;

(ii)biogas;

(iii)covered gas, including liquefied natural gas, and covered gas services;

(iv)covered gas industry facilities;

(v)services provided by means of covered gas industry facilities; and

(b)activities and transactions relating to petroleum tenements; and

(c)any other activity or transaction, or type of activity or transaction, specified by the Regulations for the purpose of this definition;

covered gas industry facility means the following:

(a)a blend processing facility;

(b)a compression service facility;

(c)a gas processing plant;

(d)an LNG facility;

(e)a pipeline;

(f)a storage facility;

(g)a user facility;

(h)another facility of a type specified by the Regulations for the purpose of this definition;

covered gas service means the following:

(a)a pipeline service;

(b)the supply of covered gas;

(c)a service ancillary to the service described in paragraph (b);

covered pipeline ...

covered pipeline service provider ...

cross boundary distribution pipeline ...

cross boundary transmission pipeline ...

declared distribution system of an adoptive jurisdiction has the meaning given by the application Act of that jurisdiction;

declared LNG storage provider of an adoptive jurisdiction has the meaning given by the application Act of that jurisdiction;

declared system functions—AEMO’s declared system functions are as set out in section 91BA(1);

declared system provisions means—

(a)Chapter 2 Part 6 Division 2; and

(b)the Rules regulating the declared wholesale gas market of an adoptive jurisdiction or otherwise relevant to Chapter 2 Part 6 Division 2;

declared transmission system of an adoptive jurisdiction has the meaning given by the application Act of that jurisdiction;

declared wholesale gas market means the wholesale market for covered gas defined in the application Act of an adoptive jurisdiction;

designated compression service facility means a facility or part of a facility for compressing covered gas prescribed by the Regulations as a designated compression service facility;

designated pipeline means a pipeline classified by the Regulations, or designated in the application Act of a participating jurisdiction, as a designated pipeline and includes an extension to, or expansion of the capacity of, the pipeline that is taken to be part of the pipeline under section 18;

Note—

A designated pipeline is a scheme pipeline. See the definition of scheme pipeline.

designated regulatory decision means an applicable access arrangement decision (other than a decision that does not approve an access arrangement), or a decision prescribed by the Regulations to be a designated regulatory decision;

developable capacity means the difference between the current capacity of a pipeline and the capacity of a pipeline which would be available if a new facility was constructed, but does not include any new capacity of a pipeline resulting from an extension to the geographic range of a pipeline;

disposal ...

dispute resolution body means the AER;

Note—

In Western Australia, under the National Gas Access (WA) Act 2009 of Western Australia, section 9, the dispute resolution body generally is the entity known as the Western Australian Energy Disputes Arbitrator.

Dispute resolution panel means a person or panel of persons appointed under the Rules to hear and determine a rule dispute;

distribution pipeline means a pipeline that—

(a)is classified as a distribution pipeline under a licence or authorisation granted in relation to the pipeline under jurisdictional gas legislation; or

(b)if the licence or authorisation mentioned in paragraph (a) does not include a classification of the pipeline—is classified by the AER as a distribution pipeline,

and includes a pipeline that is reclassified by the AER as a distribution pipeline;

Note—

See Chapter 3 Part 6 in relation to the classification and reclassification of pipelines. See also sections 18 and 19.

distributor means, except where elsewhere defined in this Law, a service provider who owns, operates or controls a scheme pipeline that is a distribution pipeline;

draft Rule determination means a determination of the AEMC under section 308;

east coast gas system means the following, located wholly or partly within an east coast jurisdiction:

(a)a covered gas industry facility;

(b)a regulated gas market;

(c)a gas trading exchange for which AEMO has established a gas trading exchange agreement;

(d)a system, market or other thing specified by the Rules;

east coast gas system direction, for Part 6 Division 1A—see section 91AF(1);

East Coast Gas System Procedures, for Part 6 Division 1A—see section 91AD(1)(h);

east coast gas system reliability and supply adequacy functions of AEMO are set out in section 91AD;

east coast jurisdiction means a participating jurisdiction other than Western Australia;

ECA amendments means the amendments to this Law made by the Statutes Amendment (Energy Consumers Australia) Act 2014 of South Australia;

effective competition, for Chapter 2 Part 1 Division 1AA—see section 30AB;

end user means a person who acquires covered gas for consumption purposes, and includes a retail customer;

Energy Consumers Australia or ECA means the company incorporated, or to be incorporated, by the name Energy Consumers Australia Limited;

energy ombudsman has the same meaning as in the National Energy Retail Law;

Energy Security Board means the Energy Security Board referred to in section 2(1) of the NEL;

ERA means the Economic Regulation Authority established by section 4 of the Economic Regulation Authority Act 2003 of Western Australia;

excluded infrastructure, in relation to a pipeline, means tanks, reservoirs, machinery, equipment or other infrastructure that forms part of the pipeline but is classified by the Rules as excluded infrastructure for the purposes of this Law;

exempted participant means a person exempted from registration as a Registered participant;

extension and expansion requirements means—

(a)the requirements contained in an access arrangement that, in accordance with the Rules, specify—

(i)the circumstances when an extension to a scheme pipeline is to be treated as forming part of the scheme pipeline; and

(ii)whether the pipeline services provided or to be provided by means of, or in connection with, spare capacity arising out of an extension to a scheme pipeline will be subject to the applicable access arrangement applying to the pipeline services to which that arrangement applies; and

(iii)whether an extension to, or expansion of the capacity of, a scheme pipeline will affect a reference tariff and, if so, the effect on the reference tariff; and

(b)any other requirements specified by the Rules as extension and expansion requirements;

Note—

See also sections 18 and 19.

final Rule determination means a determination of the AEMC under section 311;

financial risk management product, for Chapter 2 Part 1 Division 1AA—see section 30AA;

foreign company has the same meaning as in the Corporations Act 2001 of the Commonwealth;

foreign source means—

(a)source beyond the outer limits of all of the following:

(i)the adjacent area of this jurisdiction;

(ii)the adjacent area of another participating jurisdiction; or

(b)a source within the joint petroleum development area (within the meaning of the Petroleum (Timor Sea Treaty) Act 2003 of the Commonwealth);

former gas market operator means any of the following:

(a)VENCorp;

(b)Gas Market Company Limited (ACN 095 400 258);

(c)in relation to South Australia (but not Western Australia)—Retail Energy Market Company Limited (ACN 103 318 556);

(d)the gas retail market operator appointed under section 257A of the Gas Supply Act 2003 (Qld);

form of regulation factors has the meaning given by section 16;

full access arrangement ...

full access arrangement decision ...

gas blend means primary gases that have been blended together;

Gas Bulletin Board means the website maintained by AEMO that contains information of the kind specified in the Rules for the covered gas industry;

Gas Code means the National Third Party Access Code for Natural Gas Pipeline Systems set out in Schedule 2 to the Gas Pipelines Access (South Australia) Act 1997 of South Australia as in force from time to time before the commencement of section 20 of the National Gas (South Australia) Act 2008 of South Australia;

gas contract, for Chapter 2 Part 1 Division 1AA—see section 30AA;

gas market operator ...

gas powered generator means the owner, controller or operator of a generating system, within the meaning of the National Electricity Rules, that is powered by covered gas;

gas statement of opportunities means the statement published under Chapter 2 Part 6 Division 4;

gas trading exchange means a facility through which persons may elect to buy and sell covered gas or related goods or services, including a pipeline capacity right;

gas trading exchange agreement means an agreement that relates to participation in, and the operation and administration of, a gas trading exchange established by AEMO to which AEMO (or a person appointed by AEMO to operate the gas trading exchange), and a person who becomes a member of the exchange, are parties;

gas trading exchange functions—AEMO’s gas trading exchange functions are as set out in section 91BRK;

gas trading exchange member means a person who is (or who was at the relevant time) a member of a gas trading exchange under a gas trading exchange agreement;

general market information order means an order under section 91F(1)(a) requiring information from persons of a class specified in the order;

general regulatory information order has the meaning given by section 45;

greenfields incentive determination has the meaning given by section 100;

greenfields pipeline incentive ...

greenfields pipeline project means a project for the construction of—

(a)a pipeline that is to be structurally separate from any existing pipeline; or

(b)a major extension to an existing pipeline;

greenfields price protection determination has the meaning given by section 109;

GSOO information means information that—

(a)a person gives to AEMO to comply with section 91DB; or

(b)a person gives to AEMO for the preparation of the gas statement of opportunities in circumstances expressly permitted by the Rules;

GSOO Procedures means Procedures directed at regulating the collection of information for the gas statement of opportunities;

GTE amendments means the amendments to this Law made by the National Gas (South Australia) (Gas Trading Exchanges) Amendment Act 2013;

haulage, in relation to covered gas, includes conveyance or reticulation of covered gas;

initial classification decision ...

initial National Gas Procedures means National Gas Procedures made under section 294A and includes Wholesale Market Procedures and BB Procedures in force immediately before the commencement of the National Gas (South Australia) (National Gas Law—Australian Energy Market Operator) Amendment Act 2009;

initial National Gas Rules means the Initial National Gas Rules made under Chapter 9 Part 2;

initial Operational Transportation Service Code means the Operational Transportation Service Code made under section 294DA;

innovative trial principles—see section 24A;

international pipeline ...

jurisdictional determination criteria ...

jurisdictional gas legislation means an Act of a participating jurisdiction (other than national gas legislation), or any instrument made or issued under or for the purposes of that Act, that regulates the haulage of gas in that jurisdiction;

jurisdictional regulator means—

(a)for New South Wales—the Independent Pricing and Regulatory Tribunal of New South Wales established by section 5(1) of the Independent Pricing and Regulatory Tribunal Act 1992 of New South Wales;

(b)for Victoria—the Essential Services Commission established by section 7(1) of the Essential Services Commission Act 2001 of Victoria;

(c)for Queensland—the Queensland Competition Authority established by section 7 of the Queensland Competition Authority Act 1997 of Queensland;

(d)for South Australia—the Essential Services Commission established by section 4(1) of the Essential Services Commission Act 2002 of South Australia;

(e)for Tasmania—the Director of Gas appointed under section 7 of the Gas Act 2000 of Tasmania;

(f)for the Australian Capital Territory—the Independent Competition and Regulatory Commission for the Australian Capital Territory established by section 5(1) of the Independent Competition and Regulatory Commission Act 1997 of the Australian Capital Territory;

(g)any other person or body—

(i)to which the functions of the jurisdictional regulator for a participating jurisdiction are assigned by or under an Act of the participating jurisdiction; or

(ii)that is prescribed by the Regulations as jurisdictional regulator of a participating jurisdiction;

light regulation determination ...

light regulation services ...

limited access arrangement ...

limited access arrangement decision ...

listed corporation has the meaning given by section 9 of the Corporations Act 2001 of the Commonwealth;

LNG facility means a facility for the processing of natural gas from a gaseous to a liquefied state or from a liquefied to a gaseous state;

LNG service provider means a person who owns, controls or operates an LNG facility;

local regulation means the regulations under the application Act of a participating jurisdiction;

market information instrument means a general market information order or a market information notice;

market information notice means a notice under section 91F(1)(b) requiring information from the person to whom the notice is addressed;

market operator service means a service classified under the Rules as a market operator service;

MCE means the group of Ministers (constituting or forming part of a Ministerial Council, Standing Council of Ministers or similar body (however described)) responsible for energy matters at a national level comprising 9 Ministers as follows:

(a)1 Minister from the Commonwealth;

(b)1 Minister from each State (totalling 6 Ministers);

(c)1 Minister from each Territory (totalling 2 Ministers),

acting in accordance with its own procedures;

MCE directed review means a review conducted by the AEMC under Chapter 2 Part 2 Division 4;

MCE statement of policy principles means a statement of policy principles issued by the MCE under section 25;

minimum ring fencing requirement means a requirement under Chapter 4 Part 2 Division 2;

Ministerial coverage decision ...

Ministerial Gazette notice means a notice in the South Australian Government Gazette published by the South Australian Minister on the recommendation of the MCE;

Minister of a participating jurisdiction means a Minister who is a Minister of a participating jurisdiction within the meaning of section 22;

National Electricity Law means the National Electricity Law set out in the Schedule to the National Electricity (South Australia) Act 1996 of South Australia;

National Electricity Rules has the same meaning as in the National Electricity Law;

National Energy Retail Law means the National Energy Retail Law set out in the Schedule to the National Energy Retail Law (South Australia) Act 2011 of South Australia;

National Energy Retail Rules has the same meaning as in the National Electricity Law;

national gas legislation means—

(a)the National Gas (South Australia) Act 2008 of South Australia and Regulations in force under that Act; and

(b)the National Gas (South Australia) Law; and

(c)the National Gas Access (WA) Act 2009 of Western Australia; and

(d)the National Gas Access (Western Australia) Law within the meaning given in the National Gas Access (WA) Act 2009 of Western Australia; and

(e)Regulations made under the National Gas Access (WA) Act 2009 of Western Australia for the purposes of the National Gas Access (Western Australia) Law; and

(f)an Act of a participating jurisdiction (other than South Australia or Western Australia) that applies, as a law of that jurisdiction, any part of—

(i)the Regulations referred to in paragraph (a); or

(ii)the National Gas Law set out in the Schedule to the National Gas (South Australia) Act 2008 of South Australia; and

(g)the National Gas Law set out in the Schedule to the National Gas (South Australia) Act 2008 of South Australia as applied as a law of a participating jurisdiction (other than South Australia or Western Australia); and

(h)the Regulations referred to in paragraph (a) as applied as a law of a participating jurisdiction (other than South Australia or Western Australia);

national gas objective means the objective set out in section 23;

National Gas Procedures or Procedures means—

(a)the initial National Gas Procedures; and

(b)Procedures made by AEMO under this Law, including Procedures that amend or revoke the initial National Gas Procedures or Procedures earlier made by AEMO;

National Gas Rules or Rules means—

(a)the initial National Gas Rules; and

(ab)Rules made under Chapter 9 Part 2 Division 2; and

(b)Rules made by the AEMC under this Law, including Rules that amend or revoke—

(i)the initial National Gas Rules or Rules made under Chapter 9 Part 2 Division 2; or

(ii)Rules made by it;

natural gas means a substance that—

(a)is in a gaseous state at standard temperature and pressure; and

(b)consists of naturally occurring hydrocarbons, or a naturally occurring mixture of hydrocarbons and non-hydrocarbons, the principal constituent of which is methane; and

(c)is suitable for consumption;

natural gas industry ...

natural gas industry facility ...

natural gas service ...

Natural Gas Services Bulletin Board ...

NCC ...

NCC recommendation or decision ...

new facility means an extension to, or expansion of the capacity of, a pipeline which is to be treated as part of the pipeline—

(a)in accordance with the extension and expansion requirements contained in an applicable access arrangement applying to the pipeline services provided by means of that pipeline; or

(b)under this Law;

Note—

See also sections 18 and 19.

no-coverage recommendation ...

non-scheme pipeline means a pipeline other than a scheme pipeline;

non-scheme pipeline access dispute means an access dispute that involves a non-scheme pipeline;

non scheme pipeline user ...

offence provision means a provision of this Law the breach or contravention of which by a person exposes that person to a finding of guilt by a court;

officer has the same meaning as officer has in relation to a corporation under section 9 of the Corporations Act 2001 of the Commonwealth;

old access law means Schedule 1 to the Gas Pipelines Access (South Australia) Act 1997 of South Australia as in force from time to time before the commencement of section 20 of the National Gas (South Australia) Act 2008 of South Australia;

old scheme classification or determination means a classification or determination under section 10 or 11 of the old access law in force at any time before the repeal of the old access law;

old scheme distribution pipeline means a pipeline that was, at any time before the repeal of the old access law—

(a)a distribution pipeline as defined in that law; and

(b)a covered pipeline as defined in the Gas Code;

old scheme transmission pipeline means a pipeline that was, at any time before the repeal of the old access law—

(a)a transmission pipeline as defined in that law; and

(b)a covered pipeline as defined in the Gas Code;

operational transportation service means—

(a)a transportation service that is provided under an operational transportation service agreement using transferred transportation capacity; and

(b)a service ancillary to the provision of a service referred to in paragraph (a);

operational transportation service agreement means an agreement between a transportation service provider and a transportation facility user that provides for—

(a)the transportation facility user to receive a transfer of transportation capacity acquired through any of the following means—

(i)a capacity auction; or

(ii)a gas trading exchange; or

(iii)any other means provided for in the agreement; and

(b)the terms and conditions applicable to the use of that transportation capacity;

Operational Transportation Service Code has the meaning given by section 228H;

operative period, for a greenfields incentive determination, has the meaning given by section 102(2);

participating jurisdiction means a jurisdiction that is a participating jurisdiction by reason of section 21;

petroleum includes any naturally occurring hydrocarbon, mixture of hydrocarbons or mixture of hydrocarbons and non-hydrocarbons, whether in gaseous, liquid or solid state;

petroleum tenement means a right granted under law to explore for, extract, recover or process petroleum;

pipeline means—

(a)a pipe or system of pipes for the haulage of covered gas, and any tanks, reservoirs, machinery or equipment directly attached to that pipe or system of pipes; or

(b)a proposed pipe or system of pipes for the haulage of covered gas, and any proposed tanks, reservoirs, machinery or equipment proposed to be directly attached to the proposed pipe or system of pipes; or

(c)a part of a pipe or system of pipes or proposed pipe or system of pipes referred to in paragraph (a) or (b),

but does not include—

(d)unless paragraph (e) applies, anything upstream of a prescribed exit flange on a pipeline conveying covered gas from a prescribed gas processing plant; or

(e)if a connection point upstream of an exit flange on such a pipeline is prescribed, anything upstream of that point; or

(f)a gathering system operated as part of an upstream producing operation for processable gas; or

(g)any tanks, reservoirs, machinery, plant, facility or equipment used to remove or add components to or change covered gas (other than odourisation facilities) such as a gas processing plant or blend processing facility; or

(h)anything downstream of a point on a pipeline from which a person takes covered gas for consumption purposes;

(i)in relation to a blend processing facility—anything from the point on a pipeline from which covered gas is taken for blend processing to the point where the gas blend is injected into the pipeline or another pipeline;

Note—

See also sections 18 and 19.

pipeline capacity right means a right under a contract with a service provider to be provided with a pipeline service, by means of a pipeline, for a given quantity of covered gas over a given period of time;

pipeline classification criterion has the meaning given by section 13;

pipeline coverage criteria ...

pipeline interconnection principles has the meaning given by section 136;

pipeline reliability standard means a standard imposed by or under an Act of a participating jurisdiction, or any instrument made or issued under or for the purposes of that Act, relating to the reliable haulage of covered gas in that jurisdiction;

pipeline safety duty means a duty or requirement under an Act of a participating jurisdiction, or any instrument made or issued under or for the purposes of that Act, relating to—

(a)the safe haulage of covered gas in that jurisdiction; or

(b)the safe operation of a pipeline in that jurisdiction;

pipeline service means—

(a)service provided by means of a pipeline, including—

(i)a haulage service (such as firm haulage, interruptible haulage, spot haulage and backhaul); and

(ii)a service providing for, or facilitating, the interconnection of pipelines; or

(b)a service ancillary to the provision of a service referred to in paragraph (a),

but does not include—

(c)the production of a primary gas, a processable gas or biogas; or

(d)the sale or purchase of a covered gas, a processable gas or biogas; or

(e)a blend processing service;

pipeline service standard means a standard relating to the standard of the pipeline services provided by a service provider imposed—

(a)by or under jurisdictional gas legislation; or

(b)by the AER—

(i)under an access arrangement decision; or

(ii)in accordance with the Rules;

prescribed transparency information has the meaning given by section 136C;

price information order has the meaning given by section 46A;

price or revenue regulation ...

price regulation exemption ...

price regulation exemption recommendation ...

primary capacity transaction ...

primary gas means the following:

(a)natural gas;

(b)hydrogen;

(c)biomethane;

(d)synthetic methane;

(e)a substance prescribed by the Regulations for the purpose of this definition;

(f)a substance prescribed as a primary gas in a participating jurisdiction by a local regulation of the participating jurisdiction;

processable gas means a substance that—

(a)is in a gaseous state at standard temperature and pressure; and

(b)consists of naturally occurring hydrocarbons, or a naturally occurring mixture of hydrocarbons and non-hydrocarbons, the principal constituent of which is methane;

producer means a person who carries on a business of producing 1 or more primary gases;

prospective user has the meaning given by section 5;

protected information has the meaning given by section 91G;

queuing requirements means terms and conditions providing for the priority that a prospective user has, as against any other prospective user, to obtain access to spare capacity and developable capacity;

rate of return instrument—see section 30D(2);

reclassification decision means a decision of the AER under Chapter 3 Part 6 Division 2;

recognised energy industry ombudsman ...

reference service means a pipeline service specified by, or determined or approved by the AER under, the Rules as a reference service;

reference tariff means a tariff or charge for a reference service—

(a)specified in an applicable access arrangement approved or made under an access arrangement decision; or

(b)determined by applying the formula or methodology contained in an applicable access arrangement approved or made under an access arrangement decision;

Registered participant means a person registered as such by AEMO under this Law (section 91BJ, section 91BRD or section 91LB) and the Rules, but does not include a transportation service provider registered under section 91BRR;

regulated gas market means—

(a)a declared wholesale gas market; or

(ab)a short term trading market; or

(b)a regulated retail gas market;

regulated retail gas market has the meaning given by section 91L(2);

Regulations means the regulations made under Part 3 of the National Gas (South Australia) Act 2008 of South Australia that apply as a law of this jurisdiction;

regulatory information instrument means—

(a)a general regulatory information order; or

(b)a regulatory information notice;

(c)a price information order;

regulatory information notice has the meaning given by section 46;

regulatory obligation or requirement has the meaning given by section 6;

regulatory payment has the meaning given by section 7;

relevant entity, for Part 6 Division 1A—see section 91AF(8);

relevant adjudicator means—

(a)for a scheme pipeline access dispute—the dispute resolution body; or

(b)for a non-scheme pipeline access dispute—the arbitrator for the dispute;

relevant agreement, for Chapter 2 Part 1 Division 1AA—see section 30AA;

relevant Minister ...

relevant Regulator has the same meaning as in section 2 of the old access law;

REMCo means the Retail Energy Market Company Limited (ACN 103 318 556);

retail customer means a person to whom covered gas is sold for premises by a retailer.

retailer means a person who is the holder of a retailer authorisation issued under the National Energy Retail Law in respect of the sale of gas;

retail gas market has the meaning given by section 91L(1);

Retail Market Procedures means Procedures directed at regulating a retail gas market;

revenue and pricing principles, in relation to a pipeline service provided by means of a scheme pipeline, means the principles set out in section 24;

reviewable regulatory decision ...

ring fencing decision means—

(a)an AER ring fencing determination; or

(b)a decision granting or not granting an exemption under Rules made under section 148A; or

(c)an associate contract decision;

rule dispute means a dispute for the resolution of which provision is made in the Rules;

scheme pipeline means—

(a)a pipeline to which a scheme pipeline determination applies; or

(b)a designated pipeline; or

(c)a pipeline in respect of which a scheme pipeline election takes effect;

Note—

However, see section 99 in relation to when a pipeline the subject of a scheme pipeline revocation determination ceases to be a scheme pipeline.

scheme pipeline access dispute means an access dispute that involves a scheme pipeline;

scheme pipeline determination has the meaning given by section 92(1);

scheme pipeline election has the meaning given by section 95;

scheme pipeline revocation determination means a determination made under section 97(1);

scheme pipeline service provider means a service provider who provides or intends to provide pipeline services by means of a scheme pipeline;

secondary capacity transaction ...

service provider has the meaning given by section 8;

service provider performance report means a report prepared by the AER under section 64;

short term trading market means a market for the supply of covered gas that—

(a)operates in an adoptive jurisdiction; and

(b)is defined in a Rule made for the purposes of Chapter 2 Part 6 Division 2A to be a short term trading market of that adoptive jurisdiction;

Note—

There may be more than 1 short term trading market of an adoptive jurisdiction.

small shipper has the meaning given by section 8AB;

South Australian Minister means the Minister of the Crown in right of South Australia administering Part 2 of the National Gas (South Australia) Act 2008 of South Australia;

spare capacity means unutilised capacity of a pipeline;

standard gas day means the 24 hour period starting at the time specified in the standard market timetable;

standard market timetable means the standard market timetable provided for in the Rules in accordance with section 83B;

standard OTSA means an operational transportation service agreement within the meaning of section 228B as amended from time to time;

statutory functions, in relation to AEMO, means functions or powers conferred under—

(a)this Law, the Rules or the Procedures; or

(b)the National Electricity Law or the National Electricity Rules;

storage facility means a facility for storing processable gas, biogas or covered gas (including liquefied natural gas) before or after processing, blending or separating;

storage provider means any person who owns, controls or operates a storage facility;

STTM amendments means—

(a)the amendments to this Law made by the National Gas (South Australia) (Short Term Trading Market) Amendment Act 2009 of South Australia; and

(b)the amendments to the Rules made under section 294B; and

(c)the STTM Procedures first made under this Law after the enactment of the amendments referred to in paragraph (a);

STTM functions—AEMO’s STTM functions are as set out in section 91BRB;

STTM hub means a point or points, situated in an adoptive jurisdiction, specified in the Rules or STTM Procedures, at which a short term trading market operates;

STTM information means information that—

(a)a person gives to AEMO, to comply with section 91FEA(1); or

(b)a person gives, in circumstances expressly required or permitted by the Procedures or Rules—

(i)to AEMO in its capacity as operator of a short term trading market in which the person participates;

(ii)to AEMO in its capacity as operator of another regulated gas market if that information is to be used for the purpose of a short term trading market in which the person participates;

STTM Procedures means Procedures directed at regulating a short term trading market;

STTM trading participant means a person referred to in section 91BRC;

superseded jurisdictional rules means—

(a)legislation (including subordinate legislation) of a participating jurisdiction regulating the gas industry in that jurisdiction that—

(i)was in force immediately before the relevant changeover date; and

(ii)is superseded by the AEMO amendments; and

(b)rules to which a member of a corporate former gas market operator was subject, immediately before the relevant changeover date, under the constitution of the former gas market operator; and

(c)a licence condition governing the activities of the licensee in, or in relation to, a regulated retail gas market in a participating jurisdiction—

(i)in force immediately before the relevant changeover date; and

(ii)superseded by the AEMO amendments; and

(d)a guideline, code, standard or other instrument governing the operation or regulation of a gas market in a participating jurisdiction—

(i)made or issued by the jurisdictional regulator; and

(ii)in force immediately before the relevant changeover date; and

(iii)superseded by the AEMO amendments;

Examples—

1The Gas Market Retail Rules (Vic) and the Gas Industry Market and System Operation Rules (Vic).

2The Gas Retail Market Business Rules to Support Retail Competition in Gas (NSW).

3The Gas Market Retail Rules (Qld).

4The Retail Market Rules (SA).

supply includes—

(a)in relation to goods—supply (including re-supply) by way of sale, exchange, lease, hire or hire purchase; and

(b)in relation to services—provide, grant or confer;

synthetic methane means a substance—

(a)that is in a gaseous state at standard temperature and pressure; and

(b)the principal constituent of which is methane; and

(c)that is produced by the methanation of carbon dioxide; and

(d)that is suitable for consumption;

tariff means a rate by which a charge for a pipeline service is calculated;

tender approval decision ...

Territory means the Australian Capital Territory or the Northern Territory;

trader means a person who—

(a)buys or sells covered gas; and

(b)in doing so is not acting in some other registrable capacity; and

(c)where the person is the purchaser of covered gas, is not buying the covered gas for the purchaser’s own use;

transaction support arrangements means arrangements to facilitate transactions with respect to transportation capacity and related goods and services concluded or to be concluded through a gas trading exchange or a capacity auction;

transfer, in relation to transportation capacity, includes a reduction in a person’s right to the transportation capacity and a corresponding increase in another person’s right to transportation capacity, whether or not on the same terms and conditions;

transmission pipeline means a pipeline that—

(a)is classified as a transmission pipeline under a licence or authorisation granted in relation to the pipeline under jurisdictional gas legislation; or

(b)if the licence or authorisation mentioned in paragraph (a) does not include a classification of the pipeline—is classified by the AER as a transmission pipeline,

and includes a pipeline that is reclassified by the AER as a transmission pipeline;

Note—

See Chapter 3 Part 6 in relation to the classification and reclassification of pipelines. See also sections 18 and 19.

transportation capacity means a right under a contract with a transportation service provider to be provided with a transportation service by means of a transportation facility, for a given quantity of covered gas over a given period of time;

transportation facility means—

(a)a pipeline; or

(b)a compression service facility; or

(c)another facility of a type specified by the Regulations for the purposes of this paragraph;

transportation facility user means a person who is a party to a contract with a transportation service provider under which the transportation service provider provides, or intends to provide, a transportation service to that person by means of a transportation facility and includes a user;

transportation service means—

(a)a pipeline service; or

(b)a service provided by means of a compression service facility; or

(c)

a service provided by means of any other facility of a type specified by the Regulations for the purposes of paragraph (c) of the definition of transportation facility;

transportation service provider means a person who owns, controls or operates a transportation facility;

trial project means a project—

(a)that—

(i)the AER is satisfied is genuinely innovative taking into account the innovative trial principles (in relation to a trial waiver for a trial project); or

(ii)the AEMC is satisfied is genuinely innovative taking into account the innovative trial principles (in relation to a trial Rule for the purposes of a trial project); and

(b)tests an approach in relation to covered gas services;

trial Rule—see section 290;

trial waiver—see section 30W;

Tribunal means the Australian Competition Tribunal referred to in the Competition and Consumer Act 2010 of the Commonwealth and includes a member of the Tribunal or a Division of the Tribunal performing functions of the Tribunal;

user means a person who—

(a)is a party to a contract with a service provider under which the service provider provides or intends to provide a pipeline service to that person by means of a pipeline; or

(b)has a right under an access determination to be provided with a pipeline service by means of a pipeline;

user facility means a facility by means of which covered gas is consumed (including by transformation of the gas into a new form) and which is not any other form of covered gas industry facility;

user or consumer association ...

user or consumer interest group ...

VENCorp means the Victorian Energy Networks Corporation continued under Part 8 of the Gas Industry Act 2001 of Victoria until the AEMO amendments come into force;

wholesale gas market, for Chapter 2 Part 1 Division 1AA—see section 30AA;

wholesale gas market participant, for Chapter 2 Part 1 Division 1AA—see section 30AA;

wholesale market monitoring guidelines, for Chapter 2 Part 1 Division 1AA—see section 30AA;

Wholesale Market Procedures means Procedures directed at regulating the declared wholesale gas market of an adoptive jurisdiction.

(2)A reference in this Law to an end user includes a reference to a prospective end user.

(3)A reference in this Law to the east coast gas system includes a reference to part of the east coast gas system.

(4)The Minister responsible for the administration of an application Act under which a regulation is made for paragraph (f) of the definition of primary gas must publish notice of the making of the regulation in the South Australian Government Gazette.

2A   Additives and impurities

The nature of a substance as a primary gas or a gas blend is not changed by the presence in the substance of the following:

(a)an additive required for safety;

(b)an impurity.

3   Meaning of civil penalty provision

A civil penalty provision is—

(a)a provision of this Law specified in an item in the Table at the foot of this section; or

(b)a provision of this Law (other than an offence provision) or the Rules that is prescribed by the Regulations to be a civil penalty provision; or

(c)a declared system provision that is prescribed by or under the application Act of the adoptive jurisdiction to be a civil penalty provision.

Table

Item	Provision
1	Section 56
2	Section 57
2A	Section 91BE(1)
2B	Section 91BF(1)
2C	Section 91BJ(1)
2D	Section 91BN(5)
2DA	Section 91BRD(1)
2DB	Section 91BRJ(5)
2DC	Section 91FC(3) and (4)
2E	Section 91FEA
2F	Section 91LB(1)
2G	Section 91MB(6)
3	Section 131
4	Section 133
6	Section 135
7	Section 136
8	Section 139
9	Section 140
10	Section 141
11	Section 143(6)
12	Section 147
13	Section 148
18	Section 223
19	Section 225

3A   Civil penalty amounts for breaches of civil penalty provisions

(1)Subject to this section, the civil penalty for a breach of a civil penalty provision is—

(a)in the case of a breach of a civil penalty provision, other than a provision prescribed under paragraph (b) or (c)—

(i)if the breach is by a natural person—

(A)an amount not exceeding $33 900; plus

(B)an amount not exceeding $3 390 for every day during which the breach continues;

(ii)if the breach is by a body corporate—

(A)an amount not exceeding $170 000; plus

(B)an amount not exceeding $17 000 for every day during which the breach continues; or

(b)in the case of a breach of a civil penalty provision prescribed by the Regulations for the purposes of this paragraph—

(i)if the breach is by a natural person—

(A)an amount not exceeding $287 000; plus

(B)an amount not exceeding $14 400 for every day during which the breach continues;

(ii)if the breach is by a body corporate—

(A)an amount not exceeding $1 435 000; plus

(B)an amount not exceeding $71 800 for every day during which the breach continues; or

(c)in the case a breach of a civil penalty provision prescribed by the Regulations for the purposes of this paragraph—

(i)if the breach is by a natural person—an amount not exceeding $500 000;

(ii)if the breach is by a body corporate—an amount not exceeding the greater of the following:

(A)$10 000 000;

(B)if the Court can determine the value of any benefit reasonably attributable to the breach of the civil penalty provision that the body corporate, and any body corporate related to the body corporate, has obtained, directly or indirectly—3 times the value of that benefit;

(C)if the Court cannot determine the value of the benefit—10% of the annual turnover of the body corporate during the 12-month period ending at the end of the month in which the body corporate breached, or began breaching, the civil penalty provision.

Note—

See Schedule 2 clause 47A, which provides for the amounts specified in this subsection to be adjusted every 3 years to reflect movements in the consumer price index. The adjusted amounts are published on the AER’s website.

(2)Subsection (1)(c)(ii)(B) or (C) will only apply in a particular case if the AER, in applying for an order under section 231(2)(a), requests that those provisions be applied in that particular case.

4   Meaning of conduct provision

A conduct provision is—

(a)a provision of this Law specified in an item in the Table at the foot of this section; or

(b)a provision of this Law (other than an offence provision) or the Rules that is prescribed by the Regulations to be a conduct provision; or

(c)a declared system provision that is prescribed by or under the application Act of the adoptive jurisdiction to be a conduct provision.

Table

Item	Provision
A1	Section 91BP
A2	Section 91BRF
A3	Section 91BRG
1	Section 133
3	Section 135
4	Section 136
5	Section 147
6	Section 148

5   Meaning of prospective user

(1)A prospective user is a person who seeks or wishes to be provided with a pipeline service by means of a pipeline.

(2)To avoid doubt, a user is also a prospective user if the user seeks or wishes to be provided with a pipeline service by means of a pipeline other than a pipeline service already provided to them under—

(a)a contract; or

(b)an access determination.

6   Meaning of regulatory obligation or requirement

(1)A regulatory obligation or requirement is—

(a)in relation to the provision of a pipeline service by a service provider—

(i)a pipeline safety duty; or

(ii)a pipeline reliability standard; or

(iii)a pipeline service standard; or

(b)an obligation or requirement under—

(i)this Law or the Rules; or

(ia)the National Energy Retail Law or the National Energy Retail Rules; or

(ii)an Act of a participating jurisdiction, or any instrument made or issued under or for the purposes of that Act, that levies or imposes a tax or other levy that is payable by a service provider; or

(iii)an Act of a participating jurisdiction, or any instrument made or issued under or for the purposes of that Act, that regulates the use of land in a participating jurisdiction by a service provider; or

(iv)an Act of a participating jurisdiction or any instrument made or issued under or for the purposes of that Act that relates to the protection of the environment; or

(v)an Act of a participating jurisdiction, or any instrument made or issued under or for the purposes of that Act (other than national gas legislation or an Act of a participating jurisdiction or an Act or instrument referred to in subparagraphs (ii) to (iv)), that materially affects the provision, by a service provider, of pipeline services to which an applicable access arrangement applies.

(2)A regulatory obligation or requirement does not include an obligation or requirement to pay a fine, penalty or compensation—

(a)for a breach of—

(i)a pipeline safety duty; or

(ii)a pipeline reliability standard; or

(iii)a pipeline service standard; or

(b)under this Law or the Rules, the National Energy Retail Law or the National Energy Retail Rules1 or an Act or an instrument referred to in subsection (1)(b)(ii) to (v).

Notes—

1See also section 24(2)(b).

2The RoLR cost recovery scheme is dealt with under Part 6 of the National Energy Retail Law.

7   Meaning of regulatory payment

A regulatory payment is a sum that a service provider had been required or allowed to pay to a user or an end user for a breach of, as the case requires—

(a)a pipeline reliability standard; or

(b)a pipeline service standard,

because it was efficient for the service provider (in terms of the service provider’s overall business) to pay that sum.

Note—

See also section 24(2)(b).

8   Meaning of service provider

(1)A service provider is a person who—

(a)owns, controls or operates; or

(b)intends to own, control or operate,

a pipeline or any part of a pipeline.

Note—

A service provider must not provide a pipeline service by means of a pipeline unless the service provider is a legal entity of a specified kind: see section 131.

(2)If AEMO controls or operates (without at the same time owning) a pipeline or any part of a pipeline, AEMO is not for that reason to be taken to be a service provider for the purposes of this Law.

8AA   Meaning of transportation service provider

If AEMO controls or operates (without at the same time owning) a compression service facility or another facility of a type prescribed by the Regulations for the purposes of paragraph (c) of the definition of transportation facility in section 2, AEMO is not for that reason to be taken to be a transportation service provider for the purposes of this Law.

8AB   Meaning of small shipper

(1)A small shipper is a user or prospective user—

(a)who is, or seeks to be, a party to a contract with a service provider for the provision of a pipeline service by means of a pipeline; and

(b)for whom the total daily pipeline capacity right provided, or sought to be provided, under 1 or more contracts with the same service provider and by means of the same pipeline is not more than—

(i)the daily pipeline capacity right prescribed for this definition by the Regulations; or

(ii)if no daily pipeline capacity right is prescribed by the Regulations, the lesser of the following amounts:

(A)5 terajoules per day;

(B)20% of the pipeline’s nameplate rating.

(2)However, a small shipper does not include a corporation with a market capitalisation of more than $500 000 000 or a related body corporate of the corporation.

Note—

See also section 19A in relation to related bodies corporate.

(3)In this section—

nameplate rating, in relation to a pipeline, means the maximum daily capacity of the pipeline under normal operating conditions.

8A   Nominated distributors

(1)A local regulation may—

(a)nominate an entity, being an entity that is licensed or otherwise authorised under the jurisdictional gas legislation of that jurisdiction to operate a distribution pipeline that is not a scheme pipeline, as an entity to which this section applies (the nominated distributor); and

(b)apply to the nominated distributor specified provisions of the Rules that relate to the following matters:

(i)the connection of premises of retail customers;

(ii)retail support obligations between distributors and retailers;

(iii)credit support arrangements between distributors and retailers.

(2)The application of any such specified provisions of the Rules to the nominated distributor is subject to such modifications as may be specified in the local regulation.

(3)The nominated distributor—

(a)must comply with the Rules to the extent that the Rules are applied by the local regulation to the nominated distributor; and

(b)may, to the extent that the Rules apply to the nominated distributor, be proceeded against under this Law for any breach of those Rules.

(4)A nomination of an entity by a local regulation may be made for—

(a)the whole or a specified part of the geographical area of a jurisdiction; or

(b)the whole or a specified part of the distribution pipeline that is operated by the entity,

or for both.

(5)The Minister responsible for administering the application Act (other than the application Act of South Australia) under which a local regulation referred to in this section is made is to make arrangements for notice of the making and publication of the regulation to be published for information in the South Australian Government Gazette.

9   Passive owners of pipelines deemed to provide or intend to provide pipeline services

(1)This section applies to a person who owns a pipeline but does not provide or intend to provide pipeline services by means of that pipeline.

(2)The person is, for the purposes of this Law, deemed to provide or intend to provide pipeline services by means of that pipeline even if the person does not, in fact, do so.

10   Things done by 1 service provider to be treated as being done by all of service provider group

(1)This section applies if—

(a)more than 1 person (a group) carries out a controlling facility activity in respect of a covered gas industry facility (or part of a covered gas industry facility); and

(b)under this Law or the Rules a person who carries out a controlling facility activity in respect of the facility (or part of the facility) mentioned in paragraph (a) is required or allowed to do a thing.

(2)A member of the group (the complying member) may do that thing on behalf of the other members of the group if the complying member has the written permission of all of the members of that group to do that thing on behalf of the group.

(3)Unless this Law or the Rules otherwise provide, on the doing of a thing referred to in subsection (2) by a complying member, the members of the group on whose behalf the complying member does that thing must, for the purposes of this Law and the Rules, each be taken to have done the thing done by the complying member.

(4)This section does not apply to a thing required or allowed to be done under section 131, Chapter 4 Part 2 or section 201, 202, 204, 228K or 228L.

(5)In this section—

controlling facility activity means—

(a)in relation to a pipeline—own, control or operate, or intend to own, control or operate, the pipeline (or part of the pipeline); or

(b)in relation to any other covered gas industry facility—own, control or operate the covered gas industry facility (or part of the facility).

11   Local agents of foreign service providers

(1)This section applies if—

(a)a service provider is a foreign company; and

(b)the service provider has, under the Corporations Act 2001 of the Commonwealth, appointed a local agent within the meaning of that Act.

(2)The local agent—

(a)is answerable for the doing of all acts, matters and things the service provider is required by or under this Law to do; and

(b)is personally liable to a penalty imposed on the service provider for a breach of a provision of this Law or the Rules if a court hearing the matter is satisfied that the local agent should be so liable.

12   Commissioning of a pipeline

A pipeline is commissioned when the pipeline is first used for the haulage of covered gas, on a commercial basis.

13   Pipeline classification criterion

(1)The pipeline classification criterion is whether the primary function of the pipeline is to—

(a)reticulate gas within a market (which is the primary function of a distribution pipeline); or

(b)convey gas to a market (which is the primary function of a transmission pipeline).

(2)Without limiting subsection (1), in determining the primary function of the pipeline, regard must also be had to whether the characteristics of the pipeline are those of a transmission pipeline or distribution pipeline having regard to—

(a)the characteristics and classification of, as the case requires, an old scheme transmission pipeline or an old scheme distribution pipeline;

(b)the characteristics of, as the case requires, a transmission pipeline or a distribution pipeline classified under this Law;

(c)the characteristics and classification of pipelines specified in the Rules (if any);

(d)the diameter of the pipeline;

(e)the pressure at which the pipeline is or will be designed to operate;

(f)the number of points at which gas can or will be injected into the pipeline;

(g)the extent of the area served or to be served by the pipeline;

(h)the pipeline’s linear or dendritic configuration;

(i)the type of pipeline licence or authorisation that has been obtained in respect of the pipeline under jurisdictional gas legislation.

14   Local regulations may exempt pipeline

(1)A local regulation may declare a pipeline, or a proposed pipeline, to be a remote pipeline if the pipeline—

(a)is, or will be, hauling covered gas other than natural gas or a natural gas equivalent, as defined in the National Energy Retail Law; and

(b)is, or will be, wholly within the jurisdiction for which the regulation is made; and

(c)is not, or will not be, interconnected in any way with the system of transmission pipelines and distribution pipelines used to convey gas within and between participating jurisdictions.

(2)A remote pipeline, and the service provider for the pipeline (but only in respect of the remote pipeline) is exempt from the following:

(a)section 91DB;

(b)Chapter 3;

(c)Chapter 4;

(d)Chapter 5;

(e)section 223;

(f)Chapter 7A.

(3)Before recommending the making of a local regulation declaring a pipeline or a proposed pipeline to be a remote pipeline, the responsible Minister of the participating jurisdiction must have regard to the national gas objective.

(4)A pipeline or a proposed pipeline ceases, with immediate effect, to be a remote pipeline if—

(a)1 or more of the requirements in subsection (1) ceases to apply to the pipeline; or

(b)the local regulation declaring the pipeline to be a remote pipeline is repealed.

15   [Repealed]

16   Form of regulation factors

The form of regulation factors are—

(a)the presence and extent of any barriers to entry in a market for pipeline services;

(b)the presence and extent of any network externalities (that is, interdependencies) between a covered gas service provided by a service provider and any other covered gas service provided by the service provider;

(c)the presence and extent of any network externalities (that is, interdependencies) between a covered gas service provided by a service provider and any other service provided by the service provider in any other market;

(d)the extent to which any market power possessed by a service provider is, or is likely to be, mitigated by any countervailing market power possessed by a user or prospective user;

(e)the presence and extent of any substitute, and the elasticity of demand, in a market for a pipeline service in which a service provider provides that service;

(f)the presence and extent of any substitute for, and the elasticity of demand in a market for, electricity or gas (as the case may be).

17   Effect of separate and consolidated access arrangements in certain cases

(1)This section applies despite anything to the contrary in this Law.

(2)If, under this Law and the Rules, separate access arrangements are approved in an applicable access arrangement decision for pipeline services provided, or to be provided, by means of different parts of a scheme pipeline, each part of the scheme pipeline—

(a)by which pipeline services are provided; and

(b)to which each separate applicable access arrangement applies,

must to be taken to be a separate scheme pipeline for the purposes of this Law.

(3)If under this Law and the Rules, a single access arrangement is approved in an applicable access arrangement decision for pipeline services provided, or to be provided, by means of 2 or more scheme pipelines, those pipelines must be taken to be a single scheme pipeline for the purposes of this Law.

18   Certain extensions to, or expansion of the capacity of, pipelines to be taken to be part of a scheme pipeline

(1)Subsection (2) applies in relation to an extension to a scheme pipeline if, by operation of the extension and expansion requirements under an applicable access arrangement, the applicable access arrangement will apply to pipeline services provided by means of the scheme pipeline as extended.

(2)For the purposes of this Law—

(a)the extension to the scheme pipeline must be taken to be part of the scheme pipeline; and

(b)the pipeline as extended must be taken to be a scheme pipeline.

(3)Also, for the purposes of this Law—

(a)an expansion of the capacity of a scheme pipeline must be taken to be part of the scheme pipeline; and

(b)the pipeline as expanded must be taken to be a scheme pipeline.

19   Expansions of the capacity of non-scheme pipelines to be taken to be part of non-scheme pipeline

For the purposes of this Law—

(a)an expansion of the capacity of a non-scheme pipeline must be taken to be part of the non-scheme pipeline; and

(b)the pipeline as expanded must be taken to be a non-scheme pipeline.

19A   Related bodies corporate

For the purposes of this Law, 2 or more bodies corporate are related to each other if they are related bodies corporate within the meaning of the Corporations Act 2001 of the Commonwealth.

20   Interpretation generally

Schedule 2 to this Law applies to this Law, the Regulations and the Rules and any other statutory instrument made under this Law.

Part 2    Participating jurisdictions

21   Participating jurisdictions

(1)The following jurisdictions are participating jurisdictions for the purposes of this Law—

(a)the State of South Australia; and

(b)the Commonwealth, a Territory or a State (other than South Australia) if there is in force, as part of the law of that jurisdiction, a law that applies this Law or any part of this Law (whether by a law that corresponds to Part 2 of the National Gas (South Australia) Act 2008 of South Australia or by some other law).

(2)If a law of a participating jurisdiction referred to in subsection (1)(b) ceases to be in force, the jurisdiction ceases to be a participating jurisdiction.

22   Ministers of participating jurisdictions

The Ministers of the participating jurisdictions are—

(a)the South Australian Minister; and

(b)the Ministers of the Crown in right of the other participating jurisdictions administering the laws of those jurisdictions that apply this Law or any part of this Law (whether by a law that corresponds to Part 2 of the National Gas (South Australia) Act 2008 of South Australia or by some other law).

Part 3    National gas objective and principles

Division 1 National gas objective

23   National gas objective

The objective of this Law is to promote efficient investment in, and efficient operation and use of, covered gas services for the long term interests of consumers of covered gas with respect to—

(a)price, quality, safety, reliability and security of supply of covered gas; and

(b)the achievement of targets set by a participating jurisdiction—

(i)for reducing Australia’s greenhouse gas emissions; or

(ii)that are likely to contribute to reducing Australia’s greenhouse gas emissions.

Note—

The AEMC must publish targets in a targets statement: see section 72A.

23A   Regulations may prescribe matters for national gas objective

Without limiting Part 3 of the National Gas (South Australia) Act 2008 of South Australia, the Regulations may make provision about a matter relating to the achievement of targets mentioned in section 23(b) of this Law.

Division 2 Revenue and pricing principles relating to scheme pipelines

24   Revenue and pricing principles relating to scheme pipelines

(1)The revenue and pricing principles that apply in relation to a pipeline service provided by means of a scheme pipeline are the principles set out in subsections (2) to (7).

(2)A scheme pipeline service provider should be provided with a reasonable opportunity to recover at least the efficient costs the service provider incurs in—

(a)providing reference services; and

(b)complying with a regulatory obligation or requirement or making a regulatory payment.

(3)A scheme pipeline service provider should be provided with effective incentives in order to promote economic efficiency with respect to reference services the service provider provides. The economic efficiency that should be promoted includes—

(a)efficient investment in, or in connection with, a pipeline with which the service provider provides reference services; and

(b)the efficient provision of pipeline services; and

(c)the efficient use of the pipeline.

(4)Regard should be had to the capital base with respect to a pipeline adopted—

(a)in any previous—

(i)access arrangement decision; or

(ii)decision of a relevant Regulator under section 2 of the Gas Code;

(b)in the Rules.

(5)A reference tariff should allow for a return commensurate with the regulatory and commercial risks involved in providing the reference service to which that tariff relates.

(6)Regard should be had to the economic costs and risks of the potential for under and over investment by a scheme pipeline service provider in a pipeline with which the service provider provides pipeline services.

(7)Regard should be had to the economic costs and risks of the potential for under and over utilisation of a pipeline with which a scheme pipeline service provider provides pipeline services.

Division 2A Innovative trial principles

24A   Innovative trial principles

The following principles (the innovative trial principles) must be taken into account in determining whether a trial project is genuinely innovative in connection with granting a trial waiver or making a trial Rule relating to a trial project:

(a)whether the trial project is focused on developing new or materially improved covered gas services;

(b)whether the trial project is likely to contribute to the achievement of the national gas objective;

(c)whether the trial project is able to demonstrate a reasonable prospect of giving rise to materially improved services and outcomes for consumers of covered gas;

(d)whether the trial project maintains adequate consumer protections, including whether the trial project may involve risks to consumers and (if so), how those risks might be mitigated;

(e)whether the trial project is unable to proceed under the existing regulatory framework;

(f)whether the trial project has moved beyond research and development stages but is not yet established, or of sufficient maturity, size or otherwise commercially ready, to attract investment;

(g)whether the trial project may negatively impact AEMO’s operation of systems relating to covered gas (including AEMO’s performance of its declared system functions), and markets and auctions for covered gas and, if there are impacts, how those impacts can be mitigated;

(h)whether the trial project may impact on competition in a competitive sector of a market for covered gas;

(ha)whether the licences, authorisations and consents required for the trial project under jurisdictional gas legislation have been obtained or will be obtained;

(i)any other principle prescribed by the Regulations.

Division 3 MCE policy principles

25   MCE statements of policy principles

(1)Subject to this section, the MCE may issue a statement of policy principles in relation to any matters that are relevant to the exercise and performance by the AEMC of its functions and powers in—

(a)making a Rule; or

(b)conducting a review under section 83.

(2)Before issuing a statement of policy principles, the MCE must be satisfied that the statement is consistent with the national gas objective.

(3)As soon as practicable after issuing a statement of policy principles, the MCE must give a copy of the statement to the AEMC.

(4)The AEMC must publish the statement in the South Australian Government Gazette and on its website as soon as practicable after it is given a copy of the statement.

Part 4    Operation and effect of National Gas Rules

26   National Gas Rules to have force of law

The National Gas Rules have the force of law in this jurisdiction.

Part 5    Corporations Act displacement

26A   Corporations Act displacement

(1)The Regulations may declare a relevant provision to be a Corporations legislation displacement provision for the purposes of section 5G of the Corporations Act 2001 of the Commonwealth in relation to the provisions of Chapter 5 of that Act.

(2)In this section—

relevant provision means a provision of the Rules that relates to any of the following:

(a)the functions of the AEMO under procedures relating to defaults by retailers;

(b)the application (or drawing on) of credit support held by a distributor in respect of a retailer who is the subject of a RoLR event within the meaning of Part 6 of the National Energy Retail Law.

Chapter 2    Functions and powers of gas market regulatory entities

Part 1    Functions and powers of the Australian Energy Regulator

Division 1 General

27   Functions and powers of the AER

(1)The AER has the following functions and powers:

(a)to monitor compliance by persons (including AEMO) with this Law, the Regulations and the Rules, including compliance with an applicable access arrangement, an access determination and a ring fencing decision; and

(b)to investigate breaches or possible breaches of provisions of this Law, the Regulations or the Rules, including offences against this Law; and

(ba)without limiting paragraphs (a) and (b), in relation to a person undertaking a trial project under a trial Rule or trial waiver, to monitor the conduct and outcomes of the trial project and investigate breaches or possible breaches by the person of—

(i)this Law, the Regulations and the Rules; and

(ii)in particular—

(A)in the case of a person undertaking a trial project under a trial Rule—the trial Rule and any requirements imposed by the AEMC under section 314B; and

(B)in the case of a person undertaking a trial project under a trial waiver—the trial waiver and any conditions to which the trial waiver is subject; and

(c)to institute and conduct proceedings in relation to breaches of provisions of this Law, the Regulations or the Rules, including offences against this Law; and

(d)to institute and conduct appeals from decisions in proceedings referred to in paragraph (c); and

(daa)to make—

(i)scheme pipeline determinations; and

(ii)scheme pipeline revocation determinations; and

(iii)greenfields incentive determinations; and

(iv)greenfields price protection determinations; and

(dab)to monitor service providers’ behaviour in relation to particular matters, including, for example, the prices charged by service providers for pipeline services; and

(da)to make a rate of return instrument; and

(e)AER economic regulatory functions or powers; and

(ea)to make and amend the Operational Transportation Service Code in accordance with this Law and the Rules; and

(eb)the AER trial waiver functions; and

(f)to prepare and publish reports on the financial and operational performance of service providers in providing pipeline services by means of scheme pipelines; and

(fa)in relation to goods or services in the covered gas industry—

(i)to prepare and publish, in accordance with the Rules, aggregated and anonymised information or data about prices for those goods or services; and

(ii)other monitoring, analysing or reporting functions that relate to prices for those goods or services conferred on the AER by this Law or the Rules; and

(iii)for the purposes of subparagraph (i) or (ii)—to collect and analyse information or data about prices from sources determined by the AER or specified in the Rules; and

(g)to approve compliance programs of service providers relating to compliance by service providers with this Law or the Rules; and

(ga)AER wholesale market monitoring functions and AER wholesale market reporting functions; and

(h)any other functions and powers conferred on it under this Law or the Rules.

(1a)The AER has the following functions and powers in relation to the Procedures:

(a)to investigate breaches or possible breaches of the Procedures referred to the AER by AEMO; and

(b)to institute and conduct proceedings in relation to breaches of the Procedures referred to the AER by AEMO; and

(c)to institute and conduct appeals from decisions in proceedings referred to in paragraph (b); and

(d)to approve, in consultation with AEMO, compliance programs relating to compliance by Registered participants with the Procedures.

(2)The AER has the power to do all things necessary or convenient to be done for or in connection with the performance of its functions.

28   Manner in which AER must perform or exercise AER economic regulatory functions or powers

(1)The AER must, in performing or exercising an AER economic regulatory function or power—

(a)perform or exercise that function or power in a manner that will or is likely to contribute to the achievement of the national gas objective; and

(b)if the AER is making a designated regulatory decision—

(i)ensure that—

(A)the scheme pipeline service provider that provides the pipeline services to which the applicable access arrangement decision will apply; and

(B)users or prospective users of the pipeline services that the AER considers have an interest in the matter; and

(2)On the earlier of the following events happening, the pipeline becomes a non-scheme pipeline—

(a)if there is an applicable access arrangement that applies to the pipeline services provided by means of that pipeline—when that arrangement expires;

(b)when a scheme pipeline revocation determination made in relation to that pipeline takes effect.

Subdivision 3 Provisions for voluntary access arrangement pipelines

108   Particular voluntary access arrangement pipelines become scheme pipelines

(1)This clause applies in relation to a voluntary access arrangement pipeline if the full access arrangement voluntarily submitted to the AER has not been approved before the commencement day.

(2)On the day the full access arrangement takes effect as an applicable access arrangement—

(a)the pipeline becomes a scheme pipeline; and

(b)a scheme pipeline determination is deemed to have been made in relation to the pipeline.

109   When particular scheme pipelines become non-scheme pipelines

(1)This clause applies to a pipeline that, before the commencement day, was a voluntary access arrangement pipeline and—

(a)is deemed to be a scheme pipeline under clause 105; or

(b)becomes a scheme pipeline under clause 108.

(2)On the earlier of the following events happening, the pipeline becomes a non-scheme pipeline—

(a)if there is an applicable access arrangement that applies to the pipeline services provided by means of that pipeline—when that arrangement expires;

(b)when a scheme pipeline revocation determination takes effect in relation to the pipeline.

Subdivision 4 Classification of pipelines

110   Classification under pre-amended Law continues in effect

(1)On the commencement day—

(a)a pipeline that, immediately before the commencement day, is a distribution pipeline within the meaning of section 2 of the pre-amended Law continues to be a distribution pipeline; and

(b)a pipeline that, immediately before the commencement day, is a transmission pipeline within the meaning of section 2 of the pre-amended Law continues to be a transmission pipeline.

(2)Nothing in subclause (1) prevents a pipeline from being reclassified, under this Law, as a distribution pipeline or transmission pipeline.

111   Pipelines not classified under pre-amended Law or jurisdictional gas legislation

(1)This clause applies in relation to an existing pipeline that, immediately before the commencement day, was not classified as a distribution pipeline or transmission pipeline under the pre-amended Law or under a licence or authorisation granted in relation to the pipeline under jurisdictional gas legislation.

(2)On the commencement day, the pipeline is taken to have the classification shown in the register known as the ‘Gas pipeline register’ that is maintained by the AEMC under Part 15 of the Rules (the AEMC register).

(3)However, if the AEMC register does not contain a classification for the pipeline, the service provider must apply to the AER for a classification decision within 2 months after the commencement day.

(4)Nothing in subclause (2) prevents the pipeline from being reclassified, under this Law, as a distribution pipeline or transmission pipeline.

112   Notice to be given about classification of particular pipelines

(1)This clause applies in relation to a pipeline that—

(a)immediately before the commencement day, was a pipeline to which the pre-amended Law applied; but

(b)does not have a classification that is continued, or taken to be, in effect for the pipeline under clauses 110 to 111.

(2)Within 2 months after the commencement day, the service provider for the pipeline must notify the AEMC whether the pipeline is classified as a distribution pipeline or as a transmission pipeline under the licence or authorisation granted in relation to the pipeline under jurisdictional gas legislation.

Division 3 Pending matters under Chapter 3 of pre-amended Law

113   Pending applications under Chapter 3 of pre-amended Law

(1)This clause applies despite clause 43(1)(b) and (c) of Schedule 2 to this Law.

(2)On the commencement day, any application under Chapter 3 of the pre-amended Law in respect of which a decision has not been made under that Chapter immediately before that day lapses.

114   Recommendation-making process under Chapter 3 of pre-amended Law

(1)This clause applies if, immediately before the commencement day, a relevant entity—

(a)is deciding whether to make a recommendation (however described) under a requirement of Chapter 3 of the pre-amended Law; and

(b)has not made the recommendation.

(2)On the commencement day—

(a)the requirement to make the recommendation stops having effect; and

(b)the relevant entity must stop deciding whether to make the recommendation.

115   Decision-making process under Chapter 3 of pre-amended Law

(1)This clause applies if, immediately before the commencement day, a relevant entity—

(a)is deciding whether to make a decision (however described) or determination (however described) under a requirement of Chapter 3 of the pre-amended Law; and

(b)has not made the decision or determination.

(2)On the commencement day—

(a)the requirement to make the decision or determination stops having effect; and

(b)the relevant entity must stop deciding whether to make the decision or determination.

Division 4 Provisions for limited access arrangements

116   Limited access arrangements

(1)This clause applies in relation to a limited access arrangement that is in force immediately before the commencement day.

(2)On the commencement day, the limited access arrangement lapses.

117   Submission of limited access arrangement

(1)This clause applies if, before the commencement day—

(a)a service provider has submitted a limited access arrangement to the AER for approval; and

(b)the AER has not approved the limited access arrangement.

(2)On the commencement day, the submission lapses.

Division 5 Provisions for 15-year no-coverage determinations

Subdivision 1 General provisions

118   15-year no-coverage determinations deemed to be greenfields incentive determinations

(1)On the commencement day, a 15-year no-coverage determination that was in force immediately before the commencement day is deemed to be a greenfields incentive determination.

(2)The determination continues in operation for a period of 15 years from the commissioning of the pipeline.

119   Exemption for pipelines to which a 15-year no-coverage determination applied

(1)This clause applies to a pipeline if a 15-year no-coverage determination that applied to the pipeline before the commencement day is deemed to be a greenfields incentive determination under clause 118.

(2)During the period mentioned in clause 118(2), Chapters 4 and 5 do not apply to the pipeline unless the pipeline is or becomes a third party access pipeline.

(3)A pipeline is a third party access pipeline for the purposes of this clause if any pipeline services provided by means of the pipeline are provided, directly or indirectly, to any person other than—

(a)the service provider for the pipeline; or

(b)a related body corporate of the service provider for the pipeline; or

(c)a joint venture in which the service provider for the pipeline or a related body corporate of the service provider is a joint venture participant.

120   Pending applications for 15-year no-coverage determinations under pre-amended Law

(1)This clause applies in relation to an application for a 15-year no-coverage determination under Chapter 5 Part 2 of the pre-amended Law in respect of which a decision has not been made under that Part immediately before the commencement day.

(2)Chapter 5 Part 2 as in force immediately before the commencement day continues to apply to the application as if that Part were still in force.

(3)To remove any doubt, a relevant entity may, in relation to the application, make a recommendation or determination under Chapter 5 Part 2 as in force immediately before the commencement day as if that Part were still in force.

(4)A 15-year no-coverage determination made on or after the commencement day, under the operation of this clause, is deemed to be a greenfields incentive determination.

(5)The greenfields incentive determination continues in operation for a period of 15 years from the commissioning of the pipeline.

Subdivision 2 Price regulation exemptions

121   Pending applications for price regulation exemption

On the commencement day, any application for a price regulation exemption under section 160 of the pre-amended Law in respect of which a decision has not been made under Chapter 5 Part 3 of the pre-amended Law immediately before that day lapses.

122   Making of recommendations for price regulation exemptions

(1)This clause applies if the NCC—

(a)has received under section 160 of the pre-amended Law an application for a price regulation exemption for a pipeline the subject of the application; and

(b)immediately before the commencement day, has not made a recommendation under section 162 of the pre-amended Law.

(2)On the commencement day—

(a)the requirement to make the recommendation stops having effect; and

(b)the NCC must not make the recommendation.

123   Granting of price regulation exemptions

(1)This clause applies if, immediately before the commencement day, the Commonwealth Minister—

(a)is deciding whether to make a decision to grant a price regulation exemption under section 164 of the pre-amended Law; and

(b)has not granted the exemption.

(2)On the commencement day—

(a)the requirement to decide whether to make a decision to grant the exemption stops having effect; and

(b)the Commonwealth Minister must stop deciding whether to make a decision to grant the exemption.

124   Price regulation exemptions deemed to be greenfields incentive determinations

(1)This clause applies in relation to a price regulation exemption if the exemption—

(a)has been granted before the commencement day; and

(b)immediately before the commencement day, is not ineffective only because of section 167(2) of the pre-amended Law.

Note—

Under section 167(2) of the pre-amended Law, a price regulation exemption is ineffective unless a limited access arrangement, approved by the AER, is in force in relation to the relevant pipeline.

(2)On the commencement day, the exemption is deemed to be a greenfields incentive determination.

(3)The greenfields incentive determination continues in operation for a period of 15 years from the commissioning of the pipeline.

Note—

Under section 167(1) of the pre-amended Law, if a price regulation exemption is granted, the exemption remains in force for a period of 15 years from the commissioning of the pipeline.

Division 6 Access disputes

125   Access disputes started under pre-amended Law

(1)This clause applies if—

(a)an access dispute has been started under Chapter 6 or 6A of the pre-amended Law; and

(b)the access dispute has not been finally dealt with or decided immediately before the commencement day.

(2)An access dispute started under Chapter 6 of the pre-amended Law must be dealt with and decided under that Chapter as if it were still in force and despite Chapter 5.

(3)An access dispute started under Chapter 6A of the pre-amended Law must be dealt with and decided under that Chapter as if it were still in force and despite Chapter 5.

Division 7 Miscellaneous provisions

126   Service provider for non-scheme pipeline not required to comply with section 131

(1)This clause applies in relation to a service provider for a pipeline that—

(a)was in operation before the commencement day; and

(b)on the commencement day, is a non-scheme pipeline.

(2)The service provider is not required to comply with section 131.

127   Exemptions from minimum ring fencing requirements

(1)This clause applies in relation to a service provider who held an exemption under section 146 of the pre-amended Law that was in force immediately before the commencement day.

(2)On the commencement day, the exemption continues in force.

128   Delayed commencement of ring fencing requirements for non-scheme pipelines

(1)This clause applies in relation to a pipeline that, immediately before the commencement day, was a non-scheme pipeline.

(2)On the commencement day, Part 2 of Chapter 4 does not apply to the pipeline.

(3)However, Part 2 of Chapter 4 starts applying to the pipeline at the end of 12 months after the commencement day.

129   Provision for Goldfields Gas Pipeline

(1)On the commencement day, any expansion of the Goldfields Gas Pipeline that did not previously form part of the scheme pipeline becomes part of the scheme pipeline.

(2)In this section—

Goldfields Gas Pipeline means the transmission pipeline between Yarraloola and Kalgoorlie in Western Australia and defined in Pipeline Licence 24 (as amended) issued under the Petroleum Pipelines Act 1969 of Western Australia, including any extension to, or expansion of the capacity of, that pipeline.

130   Provision for Northern Gas Pipeline

(1)This clause applies in relation to the Northern Gas Pipeline.

(2)On the commencement day, Chapters 4 and 5 do not apply to the pipeline.

(3)However, Chapters 4 and 5 start applying to the pipeline—

(a)if the pipeline becomes a scheme pipeline—when the pipeline becomes a scheme pipeline; or

(b)otherwise—at the end of a period of 15 years from the commissioning of the pipeline.

(4)In this clause—

access principles means the arrangements agreed between the service provider for the Northern Gas Pipeline and the Northern Territory Government under which a prospective user may gain access to pipeline services on the Northern Gas Pipeline;

Northern Gas Pipeline means the pipeline between Tennant Creek in the Northern Territory and Mount Isa in Queensland, the subject of Pipeline Licence 34 granted under the Energy Pipelines Act 1981 of the Northern Territory and Pipeline Licence 2015 granted under the Petroleum and Gas (Production and Safety) Act 2004 of Queensland, including any extension to, or expansion of the capacity of, that pipeline that is subject to the access principles.

131   Pending applications under Rules for approval of tender process

(1)This clause applies—

(a)in relation to an application that has been made to the AER under the Rules for the approval, by the AER, of a tender process for the construction and operation of a proposed pipeline as a competitive tender process; and

(b)in respect of which the AER has not made a tender approval decision before the commencement day.

(2)On the commencement day, the application lapses despite clause 43(1)(b) and (c) of Schedule 2 to this Law.

132   Decision-making process under Rules for approval of tender process

(1)This clause applies if, before the commencement day, the AER—

(a)is deciding whether to make a tender approval decision; and

(b)has not made the decision.

(2)On the commencement day—

(a)the requirement to make the tender approval decision stops having effect; and

(b)the AER must stop deciding whether to make the tender approval decision.

Part 20    Transitional provisions related to national gas objective amendments

133   Definitions

In this Part—

amended objective means the national gas objective as in force on the commencement of this clause;

amending Act means the Statutes Amendment (National Energy Laws) (Emissions Reduction Objectives) Act 2023;

government or regulatory entity means the AEMC, AEMO, the AER, the Energy Security Board, the MCE or another government entity;

start day—see clause 134(2)(a).

134   When amended objective takes effect for particular matters

(1)This clause applies in relation to a thing required or permitted to be done under this Law by a person or body, other than the AEMC, if, in doing the thing, the person or body is required to consider or apply the national gas objective including, for example, by—

(a)having regard to the national gas objective; or

(b)doing the thing in a manner that will or is likely to contribute to the achievement of the national gas objective.

(2)Despite section 14 of the amending Act—

(a)the national gas objective as in force before that section came into operation continues to apply for the doing of the thing until the day (the start day) that is 2 months after the commencement of this clause; and

(b)the amended objective applies in relation to the doing of the thing from the start day.

(3)However, if the thing required or permitted to be done relates to a relevant access arrangement—

(a)on the commencement of this clause the amended objective applies to the doing of the thing; and

(b)clause 135(3) does not apply in relation to the doing of the thing.

(4)Subclauses (1) and (2) are subject to clause 135.

(5)In this clause—

relevant access arrangement means an access arrangement under the Rules proposed to commence on 1 January 2025 for—

(a)the Mid-West and South-West Gas Distribution System comprised of the scheme distribution pipeline in Western Australia and defined in gas distribution licence 8 (as amended) issued under the Energy Coordination Act 1994 of Western Australia, including any extension to or expansion of the capacity of that pipeline; or

(b)the Goldfields Gas Pipeline comprised of the transmission pipeline between Yarraloola and Kalgoorlie in Western Australia and defined in Pipeline Licence 24 (as amended) issued under the Petroleum Pipelines Act 1969 of Western Australia, including an extension to or expansion of the capacity of, that pipeline.

135   Application of national gas objective to particular matters in progress on start day

(1)This clause applies if—

(a)before the start day, a person or body had started, or was required or permitted to start, doing a thing; and

(b)on the start day—

(i)the person or body has not finished doing the thing; or

(ii)the period within which the thing is required or permitted to be done has not ended; and

(c)in doing the thing the person or body is required to consider or apply the national gas objective by, for example—

(i)having regard to the national gas objective; or

(ii)doing the thing in a manner that will or is likely to contribute to the achievement of the national gas objective.

(2)The national gas objective as in force before the commencement of this clause, and as continued in effect under clause 134 until the start day, continues to apply in relation to the doing of the thing.

(3)However, a government or regulatory entity may decide to consider or apply the amended objective in relation to the doing of the thing.

(4)For subclause (1), a matter relating to an access arrangement is taken not to have been started, or required or permitted to have been started, before the start day if, on the start day, the access arrangement proposal for the access arrangement has not been submitted for the AER’s approval under Rule 46 of the Rules.

136   Administrative guidance for decisions under clause 135(3)

(1)If a government or regulatory entity, other than the AER, proposes to exercise a discretion under clause 135(3), the entity must use its best endeavours to ensure that within 45 days after the commencement of this clause, it issues administrative guidance about the matters the entity is likely to have regard to in deciding whether to consider or apply the amended objective in doing a thing.

(2)The AER must, within 45 days after the commencement of this clause, issue administrative guidance about the matters the AER is likely to have regard to in deciding whether to consider or apply the amended objective in doing a thing.

(3)A failure to comply with this section does not prevent a government or regulatory entity from exercising a discretion under clause 135(3).

137   Administrative guidance about value of greenhouse gas emissions

(1)This clause applies if—

(a)administrative guidance is issued by a government or regulatory entity about considering or applying the amended objective; and

(b)the guidance includes the value, or a method of working out the value, of greenhouse gas emissions or greenhouse gas emissions reduction; and

(c)the guidance is consistent with any MCE statement.

(2)The value or method stated in the administrative guidance must be complied with by the government or regulatory entity in considering or applying the amended objective.

(3)This clause applies until a Regulation or Rule takes effect for the matter described in subclause (1).

(4)In this clause—

MCE statement means a statement issued by the MCE that states the value, or a method of or guidance for working out the value, of greenhouse gas emissions or greenhouse gas emissions reduction, that is to be used by a government or regulatory entity in considering or applying the amended objective until a Regulation or Rule mentioned in subclause (3) takes effect.

138   Validation of things done in relation to Rules before commencement

(1)This clause applies if, before the commencement of this clause—

(a)the MCE or a Minister of a participating jurisdiction had requested a Rule under section 295(1) in relation to the national gas objective as if the amended objective were in force; and

(b)the AEMC had done a thing under Chapter 9, other than sections 313 to 315, in relation to the request.

(2)On the commencement of this clause—

(a)the thing is taken to have been validly done under Chapter 9; and

(b)the AEMC is taken to have satisfied a requirement under the Law to apply the national gas objective in relation to the thing.

Part 21    Transitional provisions related to other gas amendments

Division 1 Preliminary

139   Definition

In this Part—

commencement day means the day on which this Part comes into operation.

transition period means the period—

(a)commencing on 1 November 2022; and

(b)ending on the commencement day.

Division 2 Gas Bulletin Board

140   Gas Bulletin Board

The website maintained by AEMO as the Natural Gas Services Bulletin Board immediately before the commencement day is taken to be the Gas Bulletin Board.

141   References to Natural Gas Services Bulletin Board

A reference in a legislative instrument, a policy, a contract, an agreement or another document in force immediately before the commencement day, to the Natural Gas Services Bulletin Board or to the NGSBB, is taken to be a reference to the Gas Bulletin Board.

Division 3 Other matters

142   Greenfields incentive determinations

(1)Despite section 100(2)(a) an application for a greenfields incentive determination may be made after a pipeline is commissioned if—

(a)the pipeline was commissioned during the transition period; and

(b)the application is made within 90 days after the commencement day.

(2)This clause does not apply to a pipeline for natural gas.

143   Greenfields price protection determinations

(1)Despite section 109(2)(a) an application for a greenfields price protection determination may be made after a pipeline is commissioned if—

(a)the pipeline was commissioned during the transition period; and

(b)the application is made within 90 days after the commencement day.

(2)This clause does not apply to a pipeline for natural gas.

144   Information transparency rules

A rule made for the purposes of section 83A and that was in effect immediately before the commencement day is taken to be a rule made under section 198.