Offshore Minerals Act 1998 (Qld)

Offshore Minerals Act 1998

An Act relating to exploration for, and the recovery of, minerals (other than petroleum) in the first 3 nautical miles of the territorial sea in relation to Queensland, and for related purposes

Chapter 1    Introduction

Part 1.1    Preliminary

1   Short title

This Act may be cited as the Offshore Minerals Act 1998.

2   Commencement

This Act comes into operation on a day to be fixed by proclamation.

3   Commonwealth–State agreement (the Offshore Constitutional Settlement)

(1)The Commonwealth and the States have agreed that—

(a)Commonwealth offshore mining legislation should be limited to the area that is outside State coastal waters; and

(b)the States should share, in the way provided by the Offshore Minerals Act 1994 (Cwlth), in the administration of the Commonwealth offshore mining legislation; and

(c)State offshore mining legislation should apply to State coastal waters beyond the baseline for the territorial sea (that is, the first 3 nautical miles of the territorial sea); and

(d)the Commonwealth and the States should try to maintain, as far as practicable, common principles, rules and practices in regulating and controlling offshore mining beyond the baseline of Australia’s territorial sea.

Note 1—

So far as the agreement is about petroleum, it is reflected in this State’s legislation by the Petroleum (Submerged Lands) Act 1982.

Note 2—

The decimal part numbering system closely corresponds to the same decimal part numbering system in the Commonwealth Act. Also, sections 1 to 423 of this Act closely correspond to the same sections of the Commonwealth Act. Some sections of the Commonwealth Act contain provisions that are not relevant to the operation of this Act. To maximise uniformity between this Act and the Commonwealth Act, the numbers of some sections that are not relevant have not been used in the numbering of this Act, unless required for provisions particular to the State.

(2)Other Acts that provide background in this State to the agreement (commonly referred to as the Offshore Constitutional Settlement) are—

(a)the Seas and Submerged Lands Act 1973 (Cwlth), the Coastal Waters (State Powers) Act 1980 (Cwlth), the Coastal Waters (State Title) Act 1980 (Cwlth) and the Petroleum (Submerged Lands) Act 1967 (Cwlth); and

(b)the Petroleum (Submerged Lands) Act 1982.

Note 1—

The Seas and Submerged Lands Act 1973 (Cwlth)—

•declares and enacts that the sovereignty in respect of the territorial sea and the associated airspace, seabed and subsoil is vested in and exercisable by the Crown in right of the Commonwealth;

•gives the Governor-General power to declare, by proclamation, the limits of the territorial sea;

•declares and enacts that the sovereignty in respect of waters of the sea that are on the landward side of the baseline of the territorial sea (but not within the limits of a State) and in relation to the associated airspace, seabed and subsoil is vested in and exercisable by the Crown in right of the Commonwealth;

•declares and enacts that the sovereign rights of Australia as a coastal State in relation to the continental shelf of Australia (for the purpose of exploring it and exploiting its natural resources) are vested in and exercisable by the Crown in right of the Commonwealth;

•gives the Governor-General power to declare, by proclamation, the limits of the continental shelf of Australia.

Note 2—

The Coastal Waters (State Powers) Act 1980 (Cwlth) was enacted following a request from the Parliaments of all the States under section 51(xxxviii) of the Constitution of the Commonwealth and provides that the legislative powers exercisable under the Constitution of each State extend to the making of certain laws that would operate offshore.

Note 3—

The Coastal Waters (State Title) Act 1980 (Cwlth) vests in each State certain property rights in the seabed beneath the coastal waters.

Note 4—

The Petroleum (Submerged Lands) Act 1967 (Cwlth) and the Petroleum (Submerged Lands) Act 1982 of this State make provision, based on the agreement referred to in subsection (1), for the licensing regime that applies to the exploration for and recovery of petroleum in coastal waters and offshore areas of this State.

3A   Declaration for Commonwealth Act

The following are declared not to be personal property under the Personal Property Securities Act 2009 (Cwlth) —

(a)a special purpose consent;

(b)a tenure.

Part 1.2    Interpretation

Division 1 General

4   Note etc. in the text

A note, diagram or map in this Act is provided to help understanding and does not form part of the Act.

5   Definitions—the dictionary

The dictionary in schedule 5 defines particular words used in this Act.

6   Shares in a tenure

(1)A person has a share in a tenure if the person is the holder, or 1 of the holders, of the tenure.

(2)If a holder is entitled to a particular percentage of the value of the rights conferred by a tenure, that percentage is the holder’s share in the tenure.

Note—

A sole holder has a 100% share in the tenure.

(3)If—

(a)a person is a registered holder of a tenure; and

(b)the person is shown in the offshore mining register as being entitled to a specified percentage of the value of the rights conferred by the tenure;

the person’s share in the tenure is taken to be the percentage specified in the register.

7   Transfer of a tenure

(1)A tenure is transferred if—

(a)the tenure has only 1 holder and the holder transfers the whole of the licensee’s interest in the tenure to another person or other persons; or

(b)the tenure has 2 or more holders and the holders all transfer the whole of their interests in the tenure to another person or other persons.

(2)A share in a tenure is transferred if—

(a)the tenure has only 1 holder and the holder transfers a part of the holder’s share in the tenure to another person or other persons; or

(b)the tenure has 2 or more holders and—

(i)some, but not all, of the holders transfer the whole of their shares in the tenure to another person; or

(ii)some or all of the holders transfer a part of their shares in the tenure to another person.

(3)The other person referred to in subsection (2)(b) may be an existing tenure holder.

8   Successor tenures

(1)If—

(a)a mining lease takes effect immediately after an exploration permit expires; and

(b)the holder of the mining lease immediately after it takes effect was the holder of the exploration permit immediately before it expired;

the mining lease is a successor tenure to the exploration permit.

(2)If—

(a)a mineral development licence takes effect immediately after an exploration permit expires; and

(b)the holder of the mineral development licence immediately after it takes effect was the holder of the exploration permit immediately before it expired;

the mineral development licence is a successor tenure to the exploration permit.

(3)If—

(a)a mining lease takes effect immediately after a mineral development licence expires; and

(b)the mineral development licence took effect immediately after an exploration permit expired; and

(c)the holder of the mining lease immediately after it takes effect was the holder of the mineral development licence immediately before it expired; and

(d)the holder of the mineral development licence immediately after it took effect was the holder of the exploration permit immediately before it expired;

the mining lease is a successor tenure to the exploration permit and the mineral development licence.

9   Section number not used

See note 2 to section 3(1).

10   Position on the Earth’s surface

This is how the position of a point, line or area on the Earth’s surface must be worked out for this Act—

(a)the position must be worked out by reference to a spheroid that—

(i)has a major (equatorial) radius of 6,378,160 metres; and

(ii)has a flattening of 100/29825; and

(b)the Johnston Geodetic Station in the Northern Territory is taken to be located 571.2 metres above the point on the surface of the spheroid that is at—

(i)133º12'30.0771'' east longitude; and

(ii)25º56'54.5515'' south latitude.

11   Section number not used

See note 2 to section 3(1).

12   Power to amend and revoke instruments

(1)A provision of this Act that confers a power to do something in writing is also taken to confer the power to revoke or amend the written document by which that thing is done.

(2)The power to revoke or amend—

(a)must also be exercised in writing; and

(b)is subject to the same procedural requirements as the original power; and

(c)is subject to the same conditions as those that governed the exercise of the original power.

Division 2 Basic concepts for this Act

13–15    Section numbers not used

See note 2 to section 3(1).

16   Coastal waters, and effect of change in baseline

(1)Subject to this section, the coastal waters of the State are constituted by the first 3 nautical miles of the territorial sea from the baseline.

(2)The coastal waters do not include any waters that are inside the baseline.

(3)If—

(a)a tenure has been granted on the basis that an area is within coastal waters; and

(b)there is a change to the baseline or, because new data is obtained or existing data is reconsidered, the location of the baseline is reassessed; and

(c)as a result of the change to, or reassessment of the location of, the baseline, the area ceases to be within coastal waters;

this Act applies as if the area were still within coastal waters.

(4)Subsection (3) continues to apply to the area only while the tenure and any successor tenure remains in force.

(5)If—

(a)an area in the offshore area under the Commonwealth Act is covered by a tenure under the Commonwealth Act; and

(b)there is a change to the baseline; and

(c)as a result of the change to the baseline, the area—

(i)ceases to be within the offshore area under the Commonwealth Act; and

(ii)falls within coastal waters;

this Act does not apply to the area.

(6)Subsection (5) continues to apply to the area only while the tenure under the Commonwealth Act and any successor tenure under that Act remains in force.

(7)This Act has effect subject to the Mineral Resources Act 1989, section 4.

(8)In this section—

baseline means the baseline adjacent to the coast of the State (including the coast of any island forming part of the State) as for the time being decided under the Seas and Submerged Lands Act 1973 (Cwlth), section 7(2)(b).

Note 1—

Generally the baseline is the lowest astronomical tide along the coast but it also includes lines enclosing bays and indentations that are not bays and straight baselines that depart from the coast. See Australia’s territorial sea baseline published 1988 by the Australian Government Printing Service.

Note 2—

The map in schedule 1 shows the coastal waters of the State.

17   Sub-blocks

(1)This is how a sub-block is constituted in coastal waters—

(a)assume that there is laid over the coastal waters a grid constituted by—

(i)lines running along meridians drawn through each degree of longitude and the minutes between those degrees; and

(ii)lines running along parallels drawn through each degree of latitude and the minutes between those degrees;

(b)take a bounded space defined by the grid;

(c)the seabed and subsoil within the coastal waters that is under that space is a sub-block.

(2)The diagram in schedule 2 shows how a sub-block is constituted.

(3)Each sub-block is identified by giving the name of the plan in the 1:1000000 map series, an identifying number of the 5 minute block and a letter identifying the 1 minute sub-block.

18   Reserved sub-block

(1)Subject to subsection (2), the Minister may declare that a sub-block in coastal waters is a reserved sub-block.

Note 1—

A reserved sub-block may be put up for tender by the Minister publishing in the Gazette a tender sub-block tenure notice (see sections 74 and 218).

Note 2—

The Acts Interpretation Act 1954, section 32C, which provides that in an Act, the singular includes the plural, allows a single declaration under this subsection to be made for 2 or more sub-blocks.

(2)A declaration under subsection (1) must not be made about a sub-block if—

(a)a tenure over that sub-block is in force; or

(b)an application for a tenure over that sub-block has been made and has not been decided.

(3)A declaration under subsection (1) must be made by gazette notice.

19   Standard sub-block

A standard sub-block is a sub-block that is not the subject of a declaration under section 18(1).

20   Tender sub-block

A tender sub-block is a sub-block that is the subject of a tender sub-block tenure notice published by the Minister under section 74 or 218.

21   Discrete area

(1)A group of sub-blocks forms a discrete area if the area formed by the sub-blocks is continuous.

(2)Two sub-blocks that are joined at 1 point only do not form a continuous area.

22   Minerals

(1)A mineral is a naturally occurring substance or a naturally occurring mixture of substances.

Editor’s note—

This Act does not apply to petroleum, see section 35 (Act does not apply to exploration for or recovery of petroleum).

(2)Without limiting subsection (1), a mineral may be in the form of clay, limestone, evaporites, shale, oil-shale or coal.

(3)However, the following are not minerals under this Act—

(a)coral limestone;

(b)sand, gravel and rock.

Editor’s note—

See the Transport Infrastructure Act 1994, section 153 (Definitions for chapter), definition extractive material.

23   Exploration

(1)Exploration for minerals includes any activity that is directly related to the exploration for minerals.

(2)Exploration does not include the exploration for minerals of the subsoil of coastal waters that is carried out by way of underground mining from land in the State if that exploration is carried out under the Mineral Resources Act 1989.

24   Recovery

(1)Recovery of minerals includes any activity that is directly related to the recovery of minerals.

(2)Recovery does not include the recovery of minerals from the subsoil of coastal waters that is carried out by way of underground mining from land in the State if that exploration is carried out under the Mineral Resources Act 1989.

25   Tenure holder

(1)A reference to the holder of a tenure or the tenure holder is a reference to the person whose name is entered in the offshore mining register as the person who holds the tenure.

Note 1—

This Act is based upon the grant and registration of tenures.

Note 2—

If a tenure is granted to a person, that person’s name is entered in the register (see section 333).

Note 3—

The entry in the register about a tenure will be varied if there is a change in the holder of the tenure (see section 338(4)).

(2)A tenure may be held by more than 1 person.

26   Associates

(1)The following are the associates of a tenure holder—

(a)associated contractors of the holder;

(b)associated agents of the holder;

(c)associated agents of associated contractors;

(d)associated employees of the holder;

(e)associated employees of associated contractors.

(2)A person is an associated contractor of the holder if—

(a)the person enters into an agreement with the holder for carrying out activities under the tenure; or

(b)the person enters into an agreement with a person who is an associated contractor under paragraph (a) or this paragraph for carrying out activities under the tenure.

(3)A person is an associated agent of the holder if the person is the agent of, or acts on behalf of, the holder in relation to carrying out activities under the tenure.

(4)A person is an associated agent of an associated contractor if the person is the agent of, or acts on behalf of, the associated contractor in relation to carrying out activities under the tenure.

(5)A person is an associated employee of the holder if the person is employed by the holder and, in the course of that employment, carries out activities under the tenure.

(6)A person is an associated employee of an associated contractor if the person is employed by the associated contractor and, in the course of that employment, carries out activities under the tenure.

27   Confidential information

(1)Information is confidential information if—

(a)a tenure holder has given it to the Minister; and

(b)it is in a record, return, report or document; and

(c)it relates to activities authorised by the tenure; and

(d)it relates to an area of the seabed or subsoil that is covered by the tenure or a successor tenure to the tenure.

(2)However, if—

(a)a person is required to give the Minister a report about particular sub-blocks; and

(b)the person gives the Minister a report that relates not only to those sub-blocks but also to other sub-blocks; and

(c)the Minister is required to make the report available under section 376;

the information that relates to those other sub-blocks is not confidential information.

28   Confidential sample

A sample is a confidential sample if—

(a)a tenure holder has given it to the Minister; and

(b)it was recovered in the course of activities authorised by the tenure; and

(c)it was recovered from an area of the seabed or subsoil that is covered by the tenure or a successor tenure to the tenure.

Part 1.3    Administration of the Commonwealth–State offshore area

29   Definitions

In this part—

Commonwealth–State offshore area means the Commonwealth–State offshore area for the State under the Commonwealth Act, section 13.

Editor’s note—

The diagram in schedule 3 illustrates the Commonwealth–State offshore area.

30   Minister as member of Joint Authority, or as Designated Authority

(1)The Minister may perform any function that the Minister has under the Commonwealth Act or an associated revenue Act—

(a)as a member of the Joint Authority for the Commonwealth–State offshore area provided for by the Commonwealth Act, section 32(2); or

(b)as the Designated Authority for that area provided for by the Commonwealth Act, section 29(2).

(2)The Minister must perform any such function that the Minister is required to perform by the Commonwealth Act or an associated revenue Act.

31   State officer acting under delegation

An officer of the public service to whom a delegation is made under the Commonwealth Act, section 419 may perform any function that the officer has under that delegation and must perform any such function that the officer is required to perform under the Commonwealth Act.

32–34    Section numbers not used

See note 2 to section 3(1).

Part 1.4    Application of this Act

35   Act does not apply to exploration for or recovery of petroleum

This Act does not apply to the exploration for or recovery of petroleum.

Note 1—

Offshore petroleum exploration and mining are regulated by the Petroleum (Submerged Lands) Act 1967 (Cwlth) and the Petroleum (Submerged Lands) Act 1982.

Editor’s note—

For petroleum, see schedule 5 (Dictionary).

36   Section number not used

See note 2 to section 3(1).

37   Act applies to all individuals and corporations

(1)This Act applies to all individuals, including—

(a)individuals who are not Australian citizens; and

(b)individuals who are not resident in Queensland.

(2)This Act applies to all corporations, including—

(a)corporations that are not incorporated in Queensland; and

(b)corporations that do not carry on business in Queensland; and

(c)a company that, under the Corporations Act, is taken to be registered other than in Queensland.

Editor’s note—

The Penalties and Sentences Act 1992, section 181B provides that the maximum fine for a corporation is 5 times the maximum fine for an individual.

Chapter 2    Regulation of offshore exploration and mining

Part 2.1    General

38   General prohibition on exploring and mining without appropriate authorisation

A person must not—

(a)explore for minerals in coastal waters; or

(b)recover minerals from coastal waters;

unless the exploration or recovery is authorised by a tenure or special purpose consent granted under this Act.

Maximum penalty—400 penalty units.

Notes—

1A works licence may be necessary because exploration includes activities that are directly related to exploration (see section 23(1)) and recovery includes activities that are directly related to recovery (see section 24(1)).

2This provision is an executive liability provision—see section 443.

39   Tenure and consents available under this Act

This Act provides for the grant of—

(a)exploration permits; and

(b)mineral development licences; and

(c)mining leases; and

(d)works licences; and

(e)special purpose consents.

Note 1—

An exploration permit is designed to cover the exploration phase of a project and authorises—

•exploration; and

•the recovery of mineral samples.

Note 2—

A mineral development licence is designed to ensure the retention of rights pending the transition of a project from the exploration phase to the commercial mining phase and authorises—

•exploration; and

•the recovery of minerals but not as part of a commercial mining operation.

Note 3—

A mining lease is designed to cover the commercial mining phase of a project and authorises—

•exploration; and

•full commercial recovery.

Note 4—

A project might make use of any of the following 3 tenure arrangements—

•an exploration permit leading to a mining lease;

•an exploration permit leading to a mineral development licence and then a mining lease;

•a mining lease (without progressing through an exploration permit/mineral development licence stage).

Note 5—

A tenure is granted over a particular area (constituted by sub-blocks). The tenure holder may need to carry out engineering or other activities outside the tenure area. If so, the tenure holder or someone else must obtain a works licence to carry out those activities.

Note 6—

If a person wants to carry out—

•a scientific investigation; or

•a reconnaissance survey; or

•the collection of only small amounts of minerals;

in coastal waters, the person must obtain a special purpose consent under part 2.6 to carry out the activity.

Note 7—

Even though a person has a tenure or special purpose consent, the person must not interfere unnecessarily with navigation, native title, fishing, resource conservation or other activities in the area (see section 44).

40   Steps involved in the grant of a fully effective tenure

(1)The following 3 steps must happen before a tenure comes into force—

(a)provisional grant of the tenure;

(b)proper acceptance of the grant;

(c)registration of the grant.

Note—

See sections 88, 154, 232 and 286.

(2)If a tenure is provisionally granted to a person, the person must do the following to properly accept the grant—

(a)give the Minister a written acceptance;

(b)lodge any security that the Minister has required;

(c)pay the fee that is payable under section 425.

Note—

See sections 70, 84, 151, 214, 228 and 283.

(3)The following 3 steps must occur before a renewal of a tenure comes into force—

(a)provisional renewal of the tenure;

(b)proper acceptance of the renewal;

(c)registration of the renewal.

Note—

See sections 89, 155, 233 and 287.

(4)If a tenure is provisionally renewed, the holder must do the following to properly accept the renewal—

(a)give the Minister a written acceptance of the renewal;

(b)lodge any security that the Minister has required;

(c)pay the fee that is payable under section 425.

Note—

See sections 114, 173, 250 and 300.

41   Approval of form of applications etc.

(1)The Minister may approve the form and the way in which the following are to be made—

(a)applications for tenures over sub-blocks in coastal waters;

(b)applications for the renewal of tenures over sub-blocks in coastal waters.

(2)An approval under subsection (1) must be made in writing.

42   Rights to minerals recovered

(1)Any minerals recovered by a tenure holder or special purpose consent holder from a sub-block covered by the tenure or consent become the property of the holder when they are recovered.

(2)If the tenure or consent authorises the exploration for and the recovery of minerals only of a particular kind, subsection (1) only applies to the recovery of minerals of that kind.

(3)Subsection (1) does not apply to the recovery of minerals by a works licence holder.

(4)The minerals recovered are not subject to the rights of any other person.

(5)Subsection (4) does not apply to rights that the tenure or consent holder transfers to the other person.

43   Effect of grant of tenure or special purpose consent on native title

(1)The grant of a tenure or special purpose consent does not extinguish native title in the tenure or consent area.

(2)While a tenure or special purpose consent is in force over an area, native title in the area is subject to the rights conferred by the tenure or consent.

(3)If compensation is payable under the Native Title Act 1993 (Cwlth), section 23(4) in relation to the grant of a tenure or special purpose consent, the person who applied for the grant must, for section 23(5)(b) of that Act, pay the compensation.

44   Tenure etc. does not authorise unnecessary interference with other activities in the tenure area

A person who carries out activities in coastal waters under a tenure or special purpose consent granted under this Act must not do so in a way that interferes with—

(a)navigation; or

(b)the exercise of native title rights and interests; or

(c)fishing; or

(d)the conservation of the resources of the sea or the seabed; or

(e)any activities that someone else is lawfully carrying out;

to a greater extent than is necessary for—

(f)the reasonable exercise of the person’s rights under the tenure or consent; or

(g)the performance of the person’s duties under the tenure or consent.

Maximum penalty—134 penalty units.

Example—

The person referred to here might be the tenure or consent holder or might be an associated person.

Note—

If a corporation commits an offence against this provision, an executive officer of the corporation may be taken, under section 443A, to have also committed the offence.

Part 2.2    Exploration permits

Division 1 General

45   Exploration permits

(1)This part provides for the grant of exploration permits over sub-blocks in coastal waters.

(2)An exploration permit may be granted over a standard sub-block or over a tender sub-block.

Note—

A tender sub-block is a sub-block that has been declared available for tender. A standard sub-block is any sub-block that is not a reserved sub-block (see sections 19 and 20).

Editor’s note—

See division 2 (Application for a grant of exploration permit over standard sub-blocks) or division 3 (Application for and grant of exploration permit over tender sub-block).

46   Activities authorised by an exploration permit

(1)Subject to subsection (2), an exploration permit holder may—

(a)explore for minerals in the tenure area; and

(b)take samples of minerals in the tenure area.

Note—

Under section 23(1) the concept of exploration extends to activities that are directly related to exploration.

(2)If the tenure is expressed to restrict the kind of minerals covered by the tenure, the holder is not permitted to explore for, or to take samples of, minerals not covered by the tenure.

(3)A restriction on the kind of minerals covered by the tenure may be inclusive (for example, only minerals A, B and C) or exclusive (for example, all minerals except A, B and C).

(4)For subsection (2), the holder does not take samples of an excluded mineral if, in the course of exploring for, or taking samples of, another mineral, the holder recovers some excluded mineral.

47   Minister may cancel or not renew exploration permit without compensation

No compensation is payable because of the cancellation or non-renewal of an exploration permit by the Minister.

Note 1—

The Minister may cancel the tenure under section 130.

Note 2—

The Minister may refuse to renew the tenure under section 108.

48   Tenure rights may be suspended

(1)The Minister must suspend particular rights conferred by an exploration permit if the Minister is satisfied that it is necessary in the public interest to do so.

(2)The Minister may suspend rights under subsection (1) for a specified period or for an indefinite period.

(3)The Minister may end a suspension at any time.

(4)A suspension or the ending of a suspension must be in writing.

(5)If the Minister—

(a)suspends rights conferred by an exploration permit; or

(b)ends a suspension;

the Minister must give the tenure holder a notice that informs the holder of the suspension or the ending of the suspension.

Note—

See section 122 for the effect of the suspension on the obligations associated with the tenure.

(6)A suspension takes effect when—

(a)the holder has been given notice of the suspension under subsection (5); and

(b)the suspension has been registered under section 337.

49   Compensation for acquisition of property due to suspension of rights

(1)If—

(a)the Minister suspends tenure rights under section 48; and

(b)the suspension results in the acquisition of property from a person; and

(c)the State and the person agree on an amount of compensation for the acquisition;

the State must pay the person the agreed amount of compensation.

(2)If—

(a)the Minister suspends tenure rights under section 48; and

(b)the suspension results in the acquisition of property from a person; and

(c)the State and the person do not agree on an amount of compensation for the acquisition; and

(d)the person brings an action for compensation against the State in the Wardens Court;

the State must pay the person the amount of compensation (if any) that is decided by the court.

(3)In this section—

acquisition of property see the Commonwealth Constitution, section 51(xxxi).

Division 2 Application for and grant of exploration permit over standard sub-blocks

50   Application for exploration permit over standard sub-block

(1)A person may apply to the Minister for an exploration permit over a standard sub-block if—

(a)the sub-block is vacant; and

(b)the sub-block is not excluded.

Note—

For excluded sub-blocks see section 51.

(2)A standard sub-block is vacant if no exploration permit, mineral development licence or mining lease is in force over the sub-block.

(3)A person may apply for an exploration permit over a group of standard sub-blocks if—

(a)the group forms a discrete area; and

(b)there are not more than 500 sub-blocks in the group.

Note—

The Minister may, in certain circumstances, allow an application to be made for an exploration permit covering up to 3 discrete areas (see section 53).

51   Excluded sub-blocks

(1)A sub-block is excluded if—

(a)an exploration permit over the sub-block has been surrendered or cancelled; and

(b)a period of 30 days after the day on which the tenure was surrendered or cancelled has not ended.

(2)A sub-block is excluded for a particular applicant if—

(a)the applicant previously applied for an exploration permit over the sub-block; and

(b)the application was refused; and

(c)a period of 6 months after the day on which the previous application was refused has not ended.

(3)A sub-block is excluded for a particular applicant if—

(a)the applicant was previously the holder of an exploration permit, mineral development licence or mining lease over the sub-block; and

(b)that previous tenure was surrendered or cancelled; and

(c)a period of 6 months after the day on which the previous tenure was surrendered or cancelled has not ended.

(4)A sub-block is excluded for a particular applicant if—

(a)the applicant was previously the holder of an exploration permit, mineral development licence or mining lease over the sub-block; and

(b)the holder was—

(i)required by the tenure conditions; or

(ii)given a direction under section 387 or 392;

to provide the Minister with information; and

(c)the holder provided the information; and

(d)the holder surrendered the tenure; and

(e)a period of 6 months from the day on which the holder provided the information has not ended.

52   Minister may decide that excluded sub-block is available

(1)A person who wants to apply for an exploration permit over a sub-block that is excluded may apply to the Minister for a decision under subsection (2).

(2)The Minister may decide that the person may apply for the tenure over the sub-block despite section 51.

(3)The decision must be made in writing.

53   Minister may allow application for more than one discrete area

(1)If—

(a)a person (the first applicant) applies for an exploration permit; and

(b)another person (the second applicant) subsequently applies for an exploration permit for a group of sub-blocks that includes a sub-block covered by the application made by the first applicant; and

(c)an exploration permit is then granted to the first applicant; and

(d)as a result of the grant, the sub-blocks for which the second applicant can be granted an exploration permit no longer form a discrete area;

the second applicant may apply to the Minister for approval for the application to proceed even though the sub-blocks it covers no longer form a discrete area.

Note—

See also section 59.

(2)Subject to subsection (3), the Minister may approve the application proceeding even though the sub-blocks that the application covers do not form a discrete area.

(3)The Minister may give an approval under subsection (2) only if the sub-blocks covered by the application form not more than 3 discrete areas.

54   How to apply

(1)The application must—

(a)be made in accordance with the approved form; and

(b)be made in the approved way; and

(c)specify the sub-blocks for which the application is made; and

(d)include details of—

(i)the activities that the applicant intends to carry out on the sub-block or sub-blocks covered by the application; and

(ii)the amount of money that the applicant intends to spend on those activities; and

(iii)the technical qualifications of the applicant and of the applicant’s employees who are likely to be involved in activities authorised by the tenure; and

(iv)the technical advice available to the applicant; and

(v)the financial resources available to the applicant; and

(vi)if the tenure is to be held by more than 1 person—the share in the tenure that each prospective holder will hold; and

(e)be accompanied by maps that—

(i)relate to the sub-blocks; and

(ii)comply with the regulations; and

(f)specify an address for service of notices under this Act and the regulations.

Note 1—

For paragraphs (a) and (b) see section 41.

Note 2—

Paragraph (c): the Minister may, after consulting the applicant, vary the sub-blocks applied for (see section 59).

(2)The applicant may include in the application any other information that the applicant considers relevant.

55   Effect of inclusion of unavailable sub-block in application

If—

(a)a person applies for a tenure over a group of standard sub-blocks; and

(b)because of section 18, 50 or 51, an exploration permit can not be granted over 1 or more of the sub-blocks in the group;

the Minister may still deal with the application to the extent to which the application covers sub-blocks for which an exploration permit can be granted.

Note—

An exploration permit can not be granted over a sub-block that is not vacant or is excluded (see sections 50 and 51) or over a reserved sub-block (see section 18).

56   Payment of fee

(1)The applicant must pay the application fee prescribed under a regulation.

(2)The fee must be paid when the application is made.

(3)The Minister may refund any fee paid under subsection (1) but only if the Minister is satisfied that special circumstances exist that justify the refund of the fee.

57   Application must be advertised

(1)The applicant must advertise the application in a newspaper circulating throughout the State.

(2)The advertisement must contain—

(a)the applicant’s name and address; and

(b)a map and description of the sub-blocks applied for that are sufficient for the sub-blocks to be identified; and

(c)the address of the Minister; and

(d)a statement that—

(i)the applicant has applied for an exploration permit over the sub-blocks described in the notice; and

(ii)invites comment from the public on the application; and

(iii)requests that comments be sent to the applicant and the Minister within 30 days after the day on which the advertisement is published.

(3)The advertisement must be published—

(a)as soon as possible after the applicant makes the application; and

(b)in any case, subject to subsection (4), within 14 days after the day on which the applicant makes the application.

(4)If—

(a)the applicant applies to the Minister within the 14 day period referred to in subsection (3) for an extension of the period; and

(b)the Minister extends the period;

the advertisement must be published within the period as extended by the Minister.

58   How multiple applications are dealt with

(1)Subject to subsection (2), if a sub-block is covered by 2 or more applications for an exploration or mining lease, the Minister must deal with the applications in the order in which they are made.

Editor’s note—

See also section 203 (How multiple applications are dealt with).

(2)If—

(a)the applications are lodged within a particular time of each other; and

(b)the time is less than the time prescribed under a regulation;

the Minister must decide the order in which the applications are to be dealt with by drawing lots in the way prescribed under a regulation.

59   Discussions about sub-blocks applied for

(1)The Minister may ask the applicant to discuss with the Minister the sub-blocks covered by the application.

(2)The request under subsection (1) must be—

(a)made in writing; and

(b)given to the applicant.

(3)If, after discussions, the Minister and the applicant agree on the sub-blocks to be covered by the application, the applicant is taken to have applied for an exploration permit over the sub-blocks agreed on.

(4)The Minister must give the applicant written confirmation of the agreement as soon as possible after the agreement is reached.

(5)The Minister may include in the written confirmation a direction that the applicant must advertise the revised application under section 60.

(6)If the Minister and the applicant do not agree on the sub-blocks to be covered by the application—

(a)the Minister may make a written decision specifying the sub-blocks to be covered by the application; and

(b)the applicant is taken to have applied for an exploration permit over the sub-blocks specified in the decision.

(7)The Minister may include in the written decision a direction that the applicant must advertise the revised application under section 60.

(8)If the Minister makes a decision under subsection (6), the Minister must give a copy of the decision to the applicant as soon as possible after the decision is made.

60   Advertising revised application

(1)If—

(a)the application has been revised under section 59; and

(b)the applicant has been given a direction under section 59(5) or (7);

the applicant must advertise the revised application in a newspaper circulating throughout the State.

(2)The advertisement must contain—

(a)the applicant’s name and address; and

(b)a map and description of the sub-blocks covered by the revised application that are sufficient for the sub-blocks to be identified; and

(c)the address of the Minister; and

(d)a statement that—

(i)the applicant has applied for an exploration permit over the sub-blocks described in the notice; and

(ii)invites comment from the public on the application; and

(iii)requests that comments be sent to the applicant and the Minister within 30 days after the day on which the advertisement is published.

(3)The advertisement must be published—

(a)if the Minister and the applicant agree on the sub-blocks applied for under subsection 59(3)—as soon as possible after the applicant is given written confirmation of the agreement under section 59(4); or

(b)if the Minister makes a decision about the sub-blocks applied for under section 59(6)—as soon as possible after the applicant is given a copy of the decision under section 59(8);

but in any case, subject to subsection (4), within 14 days after the applicant is given the confirmation or copy.

(4)If—

(a)the applicant applies to the Minister within the 14 day period referred to in subsection (3) for an extension of the period; and

(b)the Minister extends the period;

the advertisement must be published within the period as extended by the Minister.

61   Request for further information

(1)The Minister may ask the applicant for further information about the application.

(2)The request must—

(a)be in writing; and

(b)be given to the applicant; and

(c)specify the time within which the information must be provided.

(3)Information requested under subsection (1) must be provided—

(a)in writing; and

(b)within the time specified in the request.

62   Section number not used

See note 2 to section 3(1).

63   Minister may provisionally grant tenure

If the applicant does what is required by sections 54 to 61, the Minister may—

(a)provisionally grant an exploration permit to the applicant; or

(b)refuse the application.

Note—

Under section 88, the grant of the tenure can not be effective before it is registered (see section 333 for registration). The grant will not be registered until it has been properly accepted (see section 70 for proper acceptance).

64   Section number not used

See note 2 to section 3(1).

65   Matters to be specified in the tenure

The tenure must specify—

(a)the sub-blocks covered by the tenure; and

(b)the term of the tenure; and

(c)the tenure conditions.

Note—

For the term of a tenure see section 18.

66   Applicant must be notified

(1)The Minister must give the applicant notice of a decision under section 63.

(2)If the Minister provisionally grants an exploration permit—

(a)the Minister must give the tenure to the provisional holder; and

(b)the notice under subsection (1) must contain notification—

(i)of any decision under section 399 that the provisional holder must lodge a security; and

(ii)that the provisional grant will lapse unless the provisional holder, before the end of the primary payment period—

(A)gives the Minister a written acceptance of the grant; and

(B)lodges any security required under section 399; and

(C)pays the fee that must be paid for the tenure under section 425.

67   Amendment of conditions

(1)If the provisional holder is dissatisfied with the tenure conditions, the provisional holder may ask the Minister to amend the conditions.

(2)The request must be made within 30 days after the day on which the provisional holder is given the tenure under section 66.

(3)If a request is made under subsection (1), the Minister may amend the tenure conditions as requested and, with the consent of the provisional holder, otherwise amend the conditions.

(4)The Minister must give the provisional holder notice of a decision under this section.

68   Amendment of security requirements

(1)If the provisional holder—

(a)is notified of a security requirement; and

(b)is dissatisfied with the amount of the security required;

the provisional holder may ask the Minister to make a new decision under section 399.

(2)The request must be made within 30 days after the day on which the provisional holder is given notice under section 66.

(3)If a request is made under subsection (1), the Minister may make a new decision under section 399.

(4)The Minister must give the provisional holder notice of the new decision.

69   Extension of primary payment period

(1)If the provisional holder makes a request under section 67 or 68, the provisional holder may ask the Minister to extend the primary payment period.

(2)The request must be made within 30 days after the day on which the provisional holder is given notice under section 66.

(3)If the Minister agrees to the request, the Minister must—

(a)decide the period of the extension; and

(b)give the provisional holder a notice of the period of the extension.

70   Acceptance of grant of exploration permit for standard sub-block

(1)The provisional grant of the exploration permit is properly accepted by the provisional holder if, before the required time, the provisional holder—

(a)gives the Minister a written acceptance of the grant; and

(b)lodges any security required under section 399; and

(c)pays the fee that must be paid for the tenure under section 425.

(2)The required time under subsection (1) is the end of the primary payment period or, if the provisional holder has been granted an extension of the primary payment period under section 69, the end of the secondary payment period.

Note—

Under section 88, the grant of the tenure can not be effective before it is registered (see section 333 for registration).

71   Conditions applicable to tenure on grant

If the provisional grant of the tenure is properly accepted under section 70, it is subject to—

(a)the conditions specified in the tenure given to the applicant under section 66; or

(b)if the Minister amended those conditions under section 67—those conditions as amended.

72   Lapse of provisional grant of exploration permit

If the provisional grant of the tenure is not properly accepted under section 70, the provisional grant lapses.

Division 3 Application for and grant of exploration permit over tender sub-block

73   Matters to be decided before applications for exploration permit over tender sub-blocks invited

If the Minister proposes to invite applications for the grant of an exploration permit over reserved sub-blocks, the Minister must, before inviting the applications, decide—

(a)the procedure and criteria that the Minister will adopt to allocate the tenure; and

(b)the amount of security that will be required for the tenure under section 399; and

(c)the tenure conditions.

74   Minister may invite applications for exploration permit over tender sub-blocks

(1)Subject to subsection (2), the Minister may invite applications for the grant of an exploration permit over reserved sub-blocks.

(2)Applications may be invited for a tenure covering a group of reserved sub-blocks only if the group forms a discrete area.

(3)The Minister is to invite applications by publishing a tender sub-block tenure notice for the tenure in the gazette.

75   Tender sub-block tenure notice—exploration permit

(1)A tender sub-block tenure notice for an exploration permit must—

(a)specify the sub-blocks to be covered by the tenure; and

(b)specify the period within which applications may be made; and

(c)specify the procedure and criteria that the Minister will adopt to allocate the tenure; and

(d)specify the amount of security that the successful applicant will be required to lodge; and

(e)include a statement to the effect that information about—

(i)the security that the successful applicant will be required to lodge; and

(ii)the tenure conditions;

      may be obtained from the Minister.

(2)Without limiting subsection (1)(c), the Minister may, for that paragraph, specify that the tender will be decided on the basis of either or both of the following—

(a)the nature and extent of the exploration activity proposed to be carried out;

(b)the amount of money offered for the tenure.

(3)The tender sub-block tenure notice may specify not more than 500 sub-blocks for the exploration permit.

76   Application for exploration permit over tender sub-blocks

If a tender sub-block tenure notice has been published inviting applications for an exploration permit, a person may apply to the Minister for the tenure.

77   How to apply

(1)The application must—

(a)be made in accordance with the approved form; and

(b)be made in the approved way; and

(c)be made before the end of the period specified in the tender sub-block tenure notice; and

(d)address the criteria specified under section 75(1)(c); and

(e)include details of—

(i)the technical qualifications of the applicant and of the applicant’s employees who are likely to be involved in activities authorised by the tenure; and

(ii)the technical advice available to the applicant; and

(iii)the financial resources available to the applicant; and

(iv)if the tenure is to be held by more than 1 person—the share in the tenure that each prospective holder will hold; and

(e)specify an address for service of notices under this Act and the regulations.

Note—

For paragraphs (a) and (b) see section 41.

(2)The applicant may include in the application any other information that the applicant considers relevant.

78   Payment of fee

(1)The applicant must pay the application fee prescribed under a regulation.

(2)The fee must be paid when the application is made.

(3)The Minister may refund any fee paid under subsection (1) but only if the Minister is satisfied that special circumstances exist that justify the refund of the fee.

79   Request for further information

(1)The Minister may ask the applicant for further information about the application.

(2)The request must—

(a)be in writing; and

(b)be given to the applicant; and

(c)specify the time within which the information must be provided.

(3)Information requested under subsection (1) must be provided—

(a)in writing; and

(b)within the time specified in the request.

80   Section number not used

See note 2 to section 3(1).

81   Minister may provisionally grant tenure

(1)The Minister may provisionally grant an exploration permit to an applicant who has done what is required by sections 77 to 79.

(2)When provisionally granting a tenure under subsection (1), the Minister must follow the procedure and apply the criteria specified in the tender sub-block tenure notice published for the tenure under section 74.

(3)If the Minister refuses to grant a tenure under subsection (1), the Minister must give the applicant notice of the refusal.

82   Section number not used

See note 2 to section 3(1).

83   Successful applicant must be notified

(1)If the Minister provisionally grants an exploration permit under section 81 or 87, the Minister must give the provisional holder—

(a)the tenure; and

(b)notice that the provisional grant will lapse unless the provisional holder, within 30 days after the day on which the notice is given—

(i)gives the Minister a written acceptance of the grant; and

(ii)lodges any security required under section 399; and

(iii)pays the fee that must be paid for the tenure under section 425; and

(iv)if the tender is decided on the basis of the amounts of money offered for the tenure—pays to the Minister the amount that the provisional holder offered for the tenure under section 77(1)(d).

(2)The tenure must specify—

(a)the sub-blocks covered by the tenure; and

(b)the term of the tenure; and

(c)the tenure conditions.

Editor’s note—

See section 88 (Initial term of exploration permit).

84   Acceptance of grant of exploration permit over tender sub-blocks

The provisional grant of an exploration permit is properly accepted by the provisional holder if, within 30 days after the day on which the provisional holder is given notice under section 83, the provisional holder—

(a)gives the Minister a written acceptance of the grant; and

(b)lodges any security required under section 399; and

(c)pays the fee that must be paid for the tenure under section 425; and

(d)if the tender is decided on the basis of the amount of money offered for the tenure—pays to the Minister the amount that the provisional holder offered for the tenure under section 77(1)(d).

Note—

Under section 88, the grant of the tenure can not be effective before it is registered (see section 333 for registration).

85   Conditions applicable to tenure on grant

If the provisional grant of the tenure is properly accepted, the tenure is subject to the conditions decided under section 73.

86   Lapse of provisional grant of exploration permit

If the provisional grant of the tenure is not properly accepted under section 84, the provisional grant lapses.

87   Provisional grant to next applicant if grant lapses

(1)If the provisional grant of the tenure lapses under section 86, the Minister may provisionally grant the tenure to another of the applicants for the tenure.

(2)When provisionally granting a tenure under subsection (1), the Minister must follow the procedure and apply the criteria specified in the tender sub-block tenure notice published for the tenure under section 74.

Division 4 Duration of exploration permit

88   Initial term of exploration permit

(1)An exploration permit comes into force on—

(a)the day on which the grant of the tenure is registered; or

(b)if a day later than the day on which the grant of the tenure is registered is specified in the tenure as its commencement day—that specified day.

(2)The initial term of an exploration permit ends—

(a)4 years after the day on which the tenure is provisionally granted; or

(b)if a day later than the day on which the tenure is provisionally granted is specified in the tenure as its commencement day—4 years after that specified day.

Note—

The tenure may be surrendered at any time (see section 127).

89   Term of renewal of exploration permit

(1)A renewal of an exploration permit comes into force on the later of the following days—

(a)the day on which the renewal is registered;

(b)the day on which the previous term of the tenure expires.

Note—

See division 6 for renewal.

(2)The term of a renewal of a tenure ends 2 years after the day on which the previous term of the tenure expires.

Note—

The tenure may be surrendered at any time (see section 127).

(3)In working out the previous term of the tenure, section 90 must be disregarded.

(4)An exploration permit can not be renewed more than 3 times.

90   Effect of suspension of rights on term of exploration permit

(1)If the Minister suspends rights conferred by an exploration permit for a specified period under section 48, the Minister may extend the term of the tenure.

(2)An extension of a tenure term under subsection (1)—

(a)must not be for a period that is longer than the period for which the tenure rights were suspended; and

(b)must be in writing.

(3)If the Minister extends the term of a tenure under subsection (1), the Minister must give the tenure holder a notice that informs the holder—

(a)that the tenure has been extended; and

(b)of the period of the extension.

91   Effect of application for renewal on term of exploration permit

If—

(a)an exploration permit holder applies to renew the tenure under section 101; and

(b)the current term of the tenure expires; and

(c)a renewal of the tenure does not take effect immediately after the current term expires;

the tenure remains in force after the current term expires until—

(d)a renewal of the tenure takes effect; or

(e)a provisional renewal of the tenure lapses; or

(f)the application for renewal is withdrawn or refused.

92   Effect of application for mineral development licence or mining lease on term of exploration permit

If—

(a)an exploration permit holder applies for—

(i)a mineral development licence; or

(ii)a mining lease;

over the tenure area, or part of the tenure area, of the exploration permit; and

(b)the current term of the exploration permit expires; and

(c)a grant of the mineral development licence or mining lease does not take effect before the current term of the exploration permit expires;

the exploration permit remains in force until—

(d)the grant of the mineral development licence or mining lease takes effect; or

(e)a provisional grant of the mineral development licence or mining lease lapses; or

(f)the application for the mineral development licence or mining lease is withdrawn or refused.

93   Effect of application for extension on term of tenure

(1)If—

(a)an exploration permit holder applies for an extension of the term of the tenure under section 94 or 96; and

(b)the holder has also applied to renew the tenure under section 101; and

(c)the extension application is not decided before the tenure is due to expire;

then—

(d)the renewal application lapses; and

(e)the tenure remains in force until—

(i)if the Minister extends the term of the tenure under section 95 or 97 for a specified period—30 days after the day on which that period ends; or

(ii)if the Minister refuses to extend the term of the tenure under section 95 or 97—30 days after the day on which the holder is given notice of the refusal under section 98.

94   Extension of tenure—activities disrupted

(1)If—

(a)an exploration permit authorises the tenure holder to carry out an activity; and

(b)circumstances beyond the control of the holder prevent the holder from carrying out the activity;

the holder may apply to the Minister for an extension of the term of the tenure.

(2)The application must be made—

(a)within 30 days after the day on which the holder first became aware of the circumstances; and

(b)before the tenure expires.

95   Grant of tenure extension—activities disrupted

(1)Subject to subsection (2), if an exploration permit holder applies for an extension under section 94, the Minister must—

(a)grant an extension of the term of the tenure if the Minister is satisfied that—

(i)the holder is or has been unable to carry out the activities authorised by the tenure; and

(ii)the holder is or has been unable to do so because of circumstances beyond the holder’s control; and

(iii)no excluded time is included in the period of inability for which an extension is sought; or

(b)refuse the application for extension if the Minister is not satisfied of the matters referred to in paragraph (a).

(2)The period for which the extension is granted must not be longer than the disruption period for the tenure less any excluded time for the tenure.

(3)The extension may be granted subject to whatever conditions the Minister considers appropriate.

(4)In this section—

disruption period for a tenure means the period during which the tenure holder is unable to carry out activities authorised by the tenure because of circumstances beyond the holder’s control.

excluded time for a tenure means any period during which the tenure was in force because of section 90, 91, 92 or 93.

Note—

Under section 90, if the Minister has under section 48 suspended rights under a tenure for a period, the Minister may extend the term of the tenure for an equivalent period. Under section 91, the term of a tenure is automatically extended if there is an application for the renewal of a tenure undecided when the tenure is due to expire. Under section 92, the term of a tenure is automatically extended if the holder applies for a mineral development licence or mining lease over the tenure area. Under section 93, the term of a tenure is automatically extended if there is an application for an extension of the tenure undecided when the tenure is due to expire.

96   Extension of tenure—other circumstances

(1)An exploration permit holder may apply to the Minister for an extension of the term of the tenure if, under section 121, the Minister—

(a)suspends a tenure condition; or

(b)exempts the holder from complying with a tenure condition.

(2)The application must be made not later than 30 days before the tenure expires.

97   Grant of tenure extension—other circumstances

(1)Subject to subsection (2), if an exploration permit holder applies for an extension under section 96, the Minister may—

(a)grant an extension of the term of the tenure; or

(b)refuse to grant an extension of the term of the tenure.

(2)The extension must not be for a period that is longer than the period of the suspension or exemption.

(3)The extension may be granted subject to whatever conditions the Minister considers appropriate.

98   Notification of decision

(1)If the Minister grants an extension of the term of the exploration permit under section 95 or 97, the Minister must give the tenure holder a notice that informs the holder of—

(a)the grant of extension; and

(b)the period of the extension; and

(c)if the extension is subject to conditions—the conditions.

(2)If the Minister refuses an application for a tenure extension, the Minister must give the tenure holder a notice that informs the holder of—

(a)the refusal; and

(b)the reasons for the refusal.

Division 5 Voluntary surrender of part of exploration permit area

99   Voluntary surrender of sub-blocks if discrete area remains

(1)An exploration permit holder may surrender a sub-block or some of the sub-blocks covered by the tenure if the remaining sub-blocks in the tenure area form a discrete area.

Editor’s note—

See section 127 (Voluntary surrender of exploration permit) for the surrender of the whole tenure.

(2)A surrender under subsection (1) must—

(a)be made in writing; and

(b)identify the sub-blocks surrendered; and

(c)be given to the Minister.

Note—

The surrender takes effect when it is registered under section 337 (see section 337(5)).

100   Voluntary surrender of sub-blocks if up to 3 discrete areas remain

(1)If—

(a)an exploration permit holder wants to surrender some of the sub-blocks covered by the tenure; and

(b)the sub-blocks remaining in the tenure area after the proposed surrender would form not more than 3 discrete areas;

the holder may apply to the Minister for approval of the proposed surrender.

(2)The application—

(a)must be in writing; and

(b)must include a surrender proposal that identifies the sub-blocks in the tenure area that the holder proposes to surrender; and

(c)may include any other information that the holder considers relevant.

(3)If the Minister agrees with the surrender proposal, the Minister may approve the surrender of the sub-blocks specified in the proposal by giving the holder notice of the approval.

Note—

The surrender takes effect when it is registered under section 337 (see section 337(5)).

(4)If the Minister does not agree with the surrender proposal, the Minister may ask the holder to discuss the proposal.

(5)If the Minister and the holder agree, after discussions, on the sub-blocks to be surrendered, the Minister may approve the surrender of the sub-blocks agreed on by giving the holder written confirmation of the agreement.

Note—

The surrender takes effect when it is registered under section 337 (see section 337(5)).

(6)If, after discussions, the Minister and the holder do not agree on the surrender proposal, no sub-blocks are surrendered.

Division 6 Application for and grant of renewal of exploration permit

101   Application for renewal of exploration permit

An exploration permit holder may apply to the Minister to renew the tenure.

Note 1—

Part of the tenure area must be surrendered on each renewal (see section 104).

Note 2—

At each renewal, the tenure conditions are reviewed (see section 118).

102   When application to be made

(1)Subject to subsections (2) and (3), the application must be made at least 30 days before the day on which the tenure is to expire.

Note—

If an application for extension of a tenure is made, the expiry of the tenure is postponed (see section 93). For expiry of a tenure see section 126.

(2)The Minister may accept an application that is made later than 30 days before the day on which the tenure is to expire if—

(a)the application is made before the day on which the tenure expires; and

(b)the Minister believes that there are reasonable grounds for accepting the application.

(3)If a tenure remains in force because of section 93(e)(ii), the application may be made at any time before the tenure ceases to be in force.

103   How to apply for renewal

(1)The application must—

(a)be made in accordance with the approved form; and

(b)be made in the approved way; and

(c)include details of—

(i)the activities carried out by the applicant under the tenure during its current term; and

(ii)the amount of money spent by the applicant in relation to the sub-blocks covered by the tenure during its current term; and

(iii)the activities that the applicant intends to carry out under the tenure during the term applied for; and

(iv)the amount of money that the applicant intends to spend on those activities during the term applied for; and

(d)specify the sub-blocks that the applicant nominates for surrender under section 104.

Note—

For paragraphs (a) and (b) see section 41.

(2)The applicant may include in the application any other information that the applicant considers relevant.

104   Mandatory reduction of tenure area on renewal of exploration permit

(1)This section deals with the mandatory reduction of the tenure area covered by an exploration permit when the tenure is renewed.

(2)Subject to subsection (4)(b), on each surrender day of an exploration permit, the tenure holder must surrender—

(a)50% of the number of sub-blocks in the tenure area; or

(b)if 50% of that number of the sub-blocks is a whole number and a fraction—the next higher whole number of the sub-blocks.

(3)Subject to subsection (4)(a), the sub-blocks that remain in the tenure area after a surrender under subsection (2) must form a discrete area.

(4)The Minister may give permission for—

(a)the surrender of sub-blocks in a tenure area, if the tenure area remaining after the proposed surrender would consist of not more than 3 discrete areas; or

(b)a tenure area to be reduced by less than 50%, if the Minister considers that there are special circumstances present in relation to the renewal application.

105   Request for further information

(1)The Minister may ask the applicant to provide further information about the application.

(2)The request must—

(a)be in writing; and

(b)be given to the applicant; and

(c)specify the time within which the information must be provided.

(3)Information requested under subsection (1) must be provided—

(a)in writing; and

(b)within the time specified in the request.

106   Payment of fee

(1)The applicant must pay the application fee prescribed under a regulation.

(2)The fee must be paid when the application is made.

(3)The Minister may refund any fee paid under subsection (1) but only if the Minister is satisfied that special circumstances exist that justify the refund of the fee.

107   Section number not used

See note 2 to section 3(1).

108   Provisional renewal of an exploration permit

(1)The Minister must provisionally renew an exploration permit if the applicant—

(a)does what is required by sections 101 to 106; and

(b)has complied with—

(i)this Act; and

(ii)the regulations; and

(iii)the tenure conditions.

Note 1—

Under section 89, the renewal of the tenure can not be effective before it is registered (see section 334 for registration). The renewal will not be registered until it has been properly accepted (see section 114 for proper acceptance).

Note 2—

Under section 118, new conditions may be imposed on renewal.

(2)If subsection (1) does not require the Minister to provisionally renew the tenure, the Minister may—

(a)provisionally renew the tenure; or

(b)refuse to renew the tenure.

109   Section number not used

See note 2 to section 3(1).

110   Applicant must be notified

(1)The Minister must give the applicant notice of the Minister’s decision under section 108.

(2)If the Minister provisionally renews the exploration permit under section 108, the notice must contain notification—

(a)of the conditions of the renewed tenure; and

(b)of any decision under section 399 that the applicant must lodge a security or a further security; and

(c)that the provisional renewal will lapse unless the applicant, before the end of the primary payment period—

(i)gives the Minister a written acceptance of the renewal; and

(ii)lodges any security required by the Minister under section 399; and

(iii)pays the fees that must be paid under section 425.

Note—

Section 118 provides for renewals to be granted subject to conditions.

111   Amendment of conditions

(1)If the tenure holder—

(a)has been provisionally granted a renewal of the tenure under section 108; and

(b)is notified of the tenure conditions; and

(c)is dissatisfied with the conditions;

the holder may ask the Minister to amend the conditions.

(2)The request must be made within 30 days after the day on which the holder is given notice under section 110.

(3)If a request is made under subsection (1), the Minister may amend the tenure conditions as requested and, with the consent of the holder, otherwise amend the conditions.

(4)The Minister must give the holder notice of a decision under this section.

112   Amendment of security requirements

(1)If the tenure holder—

(a)has been provisionally granted a renewal of the tenure under section 108; and

(b)is notified of a security requirement; and

(c)is dissatisfied with the amount of the security required;

the holder may ask the Minister to make a new decision under section 399.

(2)The request must be made within 30 days after the day on which the holder is given notice under section 110.

(3)If a request is made under subsection (1), the Minister may make a new decision under section 399.

(4)The Minister must give the holder notice of the new decision.

113   Extension of primary payment period

(1)If the tenure holder makes a request under section 111 or 112, the holder may ask the Minister to extend the primary payment period.

(2)The request must be made within 30 days after the day on which the holder is given notice under section 110.

(3)If the Minister agrees to the request, the Minister must—

(a)decide the period of the extension; and

(b)give the holder a notice informing the holder of the period of the extension.

114   Acceptance of renewal of exploration permit

(1)The provisional renewal of an exploration permit is properly accepted by the tenure holder if, before the required time, the holder—

(a)gives the Minister a written acceptance of the renewal; and

(b)lodges any security required under section 399; and

(c)pays the fee that must be paid under section 425.

(2)The required time under subsection (1) is the end of the primary payment period or, if the tenure holder has been granted an extension of the primary payment period under section 113, the end of the secondary payment period.

Note—

Under section 89, the renewal of the tenure can not be effective before it is registered (see section 334 for registration).

115   Conditions applicable to tenure on renewal

If the provisional renewal is properly accepted under section 114, the renewed tenure is subject to—

(a)the conditions specified in the notice given to the tenure holder under section 110; or

(b)if the Minister amended those conditions under section 111—those conditions as amended.

116   Lapse of provisional renewal of exploration permit

If the provisional renewal of an exploration permit is not properly accepted under section 114, the provisional renewal lapses.

Division 7 Obligations associated with exploration permit

117   General

(1)The sources of obligations associated with an exploration permit are—

(a)the tenure conditions; and

(b)obligations arising from directions under section 387 or 392 given by the Minister; and

(c)obligations imposed by this Act and the regulations.

Note—

For paragraph (a) see sections 118 to 120. For paragraph (c) see sections 44, 123 to 125, 372 and 391(1).

(2)If an exploration permit has 2 or more holders, all the holders are jointly and severally bound by the obligations that attach to the tenure.

118   Conditions of exploration permit

(1)The Minister may grant or renew an exploration permit subject to whatever conditions the Minister considers appropriate.

(2)If the Minister grants or renews an exploration permit subject to conditions, the conditions must be specified in the tenure.

(3)Without limiting subsection (1), the Minister may attach conditions to the grant or renewal of an exploration permit requiring the tenure holder to do the following types of things—

(a)take out insurance as required by the Minister;

(b)carry out certain work in or in relation to the tenure area during the term of the tenure;

(c)spend a specified amount of money in carrying out the work referred to in paragraph (b);

(d)lodge a security with the Minister;

(e)keep specified information;

(f)give the Minister, on request, specified information;

(g)a condition requiring the holder to take steps to protect the environment of the tenure area, including conditions about—

(i)protecting wildlife; or

(ii)minimising the effect on the environment of the tenure area and the area surrounding the tenure area of activities carried out in the tenure area;

(h)repair any damage to the environment caused by activities in the tenure area;

(i)pay a specified penalty to the State if the holder does not comply with a tenure condition.

(4)A condition under subsection (3)(d) must specify—

(a)the amount of the security required; and

(b)the kind of security required; and

(c)the way and the form in which the security is to be lodged.

(5)Without limiting subsection (3)(d), a condition under that paragraph may require the lodgment of a security in the form of a guarantee and, if a guarantee is required, the condition may specify—

(a)the kind of person who is to give the guarantee; and

(b)the terms of the guarantee.

119   No conditions requiring payment of money

Except for a condition requiring the payment of a penalty or lodgment of security, a tenure condition must not require the payment of money to the State.

120   Variation of conditions

(1)If—

(a)an exploration permit holder requests the Minister in writing to vary the tenure conditions; or

(b)an exploration permit continues in force because of section 93; or

(c)an extension of the term of an exploration permit is granted under section 95; or

(d)part of the tenure area of an exploration permit is surrendered under section 99 or 100;

the Minister may vary the tenure conditions.

(2)If the Minister gives—

(a)a direction under section 387; or

(b)an approval, consent or exemption under a regulation;

to an exploration permit holder, the Minister may vary the tenure conditions to the extent necessary to avoid inconsistency between the tenure conditions and the direction, approval, consent or exemption.

(3)The Minister may vary the tenure conditions subject to whatever conditions the Minister considers appropriate.

(4)If the Minister varies the tenure conditions, the Minister must give the tenure holder a notice that—

(a)informs the holder of the variation; and

(b)specifies the conditions that have been varied; and

(c)specifies any conditions to which the variation is subject.

121   Exemption from or suspension of conditions

(1)If—

(a)an exploration permit holder requests the Minister in writing to—

(i)suspend a tenure condition; or

(ii)exempt the holder from complying with a tenure condition; or

(b)an exploration permit continues in force because of section 93; or

(c)an extension of the term of an exploration permit is granted under section 95; or

(d)part of the tenure area of an exploration permit is surrendered under section 99 or 100;

the Minister may—

(e)suspend a tenure condition; or

(f)exempt the holder from complying with a tenure condition.

(2)If the Minister gives—

(a)a direction under section 387; or

(b)an approval, consent or exemption under a regulation;

to an exploration permit holder, the Minister may suspend a tenure condition, or exempt the holder from compliance with a tenure condition, to the extent necessary to avoid inconsistency between the tenure conditions and the direction, approval, consent or exemption.

(3)The Minister may—

(a)suspend a tenure condition; or

(b)exempt the tenure holder from complying with a tenure condition;

subject to whatever conditions the Minister considers appropriate.

(4)If the Minister—

(a)suspends a tenure condition; or

(b)exempts the tenure holder from complying with a tenure condition;

the Minister must give the holder a notice that—

(c)informs the holder of the exemption or suspension; and

(d)specifies the conditions that have been suspended or affected by the exemption; and

(e)specifies any conditions to which the suspension or exemption is subject.

Note—

A suspension or exemption of a condition can not be effective before it is registered (see section 337).

122   Automatic suspension of conditions if tenure rights are suspended

If—

(a)the Minister suspends particular rights conferred by an exploration permit under section 48; and

(b)a tenure condition is affected by the suspension;

the tenure condition is suspended for the period of the suspension of the rights.

123   Work practices

A person who is an exploration permit holder or an associate of the holder, in carrying out activities in the tenure area that are authorised by the tenure, must take all reasonable steps—

(a)to ensure that the activities are carried out at a standard that is accepted as reasonable and proper in the mining industry; and

(b)to maintain in good repair all structures and equipment erected in, or brought into, the tenure area by the person; and

(c)to remove from the tenure area any structure, equipment or other property that—

(i)belongs to the person, or is under the person’s control; and

(ii)is not being used, or is not going to be used, in connection with the activities.

Maximum penalty—267 penalty units.

Notes—

1The safety of offshore exploration activities is governed by the Mining and Quarrying Safety and Health Act 1999—see the definition of mine in section 9 of that Act.

2If a corporation commits an offence against this provision, an executive officer of the corporation may be taken, under section 443A, to have also committed the offence.

124   Tenure holder must keep specified records etc.

An exploration permit holder must—

(a)keep whatever records and samples; and

(b)give whatever records and samples to the Minister for inspection; and

(c)make whatever returns;

are necessary to comply with—

(d)the regulations; or

(e)the tenure conditions; or

(f)a direction given by the Minister under section 387.

Note—

Under sections 386 and 387 the Minister may direct a person to keep records and samples, to give records and samples to the Minister, and to make returns.

Maximum penalty—134 penalty units.

125   Tenure holder must help inspectors

An exploration permit holder must provide an inspector with reasonable facilities and help so that the inspector is able to carry out compliance inspections.

Note—

See sections 377 to 384 for compliance inspections.

Maximum penalty—67 penalty units.

Division 8 Expiry of exploration permit

126   General

(1)An exploration permit expires if—

(a)the term of the tenure ends without the tenure being renewed; or

(b)the tenure holder surrenders the tenure; or

(c)a mineral development licence is granted over the sub-blocks in the tenure area of the exploration permit; or

(d)a mining lease is granted over the sub-blocks in the tenure area of the exploration permit; or

(e)the tenure is cancelled.

Note—

For paragraph (a) see division 6. For paragraph (b) see section 127. For paragraph (c) see section 128. For paragraph (d) see section 129. For paragraph (e) see section 130.

(2)In subsection (1)(a), the reference to the term of the tenure includes any period during which the tenure is in force under section 90, 91, 92 or 93.

127   Voluntary surrender of exploration permit

An exploration permit holder may surrender the tenure.

Note 1—

See Division 5 for voluntary surrender of part of a tenure area.

Note 2—

The surrender takes effect when it is registered under section 337 (see section 337(5)).

128   Automatic expiry of exploration permit when mineral development licence takes effect

If—

(a)an exploration permit is in force; and

(b)a mineral development licence over all or some of the sub-blocks in the exploration permit area comes into force under section 154;

the exploration permit expires in relation to the sub-blocks covered by the mineral development licence.

129   Automatic expiry of exploration permit when mining lease takes effect

If—

(a)an exploration permit is in force; and

(b)a mining lease over all or some of the sub-blocks in the exploration permit area comes into force under section 232;

the exploration permit expires in relation to the sub-blocks covered by the mining lease.

130   Cancellation of exploration permit

(1)Subject to subsection (5), the Minister may cancel an exploration permit if the tenure holder—

(a)breaches a tenure condition; or

(b)contravenes a provision of this Act or the regulations; or

(c)breaches a condition attached to an approval under section 365(2).

(2)If the Minister proposes to cancel a tenure under subsection (1), the Minister must give the tenure holder a notice that informs the holder of the proposed cancellation.

(3)The notice must—

(a)specify the reason for the proposed cancellation; and

(b)invite the holder to make submissions about the proposed cancellation; and

(c)specify the day by which submissions may be given to the Minister; and

(d)specify an address where submissions are to be lodged.

(4)The day specified under subsection (3)(c) must be not less than 60 days after the day on which the notice is given.

(5)The Minister may cancel the tenure only if—

(a)the holder has been given a notice under subsection (2); and

(b)the Minister has considered—

(i)any submission made by the holder as provided by the notice under subsection (3); and

(ii)any steps taken by the holder to remedy the breach or contravention that led to the proposal to cancel the tenure and to prevent any similar breach or contravention from happening again; and

(c)the Minister is satisfied that no special circumstances exist that justify the tenure not being cancelled.

131   Obligations of former exploration permit holders and former associates

(1)Subject to subsection (4), if—

(a)a person was—

(i)an exploration permit holder; or

(ii)an associate of an exploration permit holder; and

(b)the tenure—

(i)expires; or

(a)the construction, maintenance and operation of installations used in or for use in exploration or mining activities in coastal waters; and

(b)the flow or discharge of fluids arising from exploration or mining activities in coastal waters; and

(c)the safety, health and welfare of persons working in offshore exploration or mining activities; and

(d)the maintenance of structures, equipment and property used in or for use in offshore exploration or mining activities.

Note—

For offshore exploration or mining activities see the dictionary.

387   Minister may give directions

(1)The Minister may direct a tenure holder or special purpose consent holder to do or not to do the thing specified in the direction.

(2)The direction must be in writing and is given by serving it on the holder.

388   Direction may incorporate material in another document

(1)A direction under section 387 may apply, adopt or incorporate a code of practice or a standard that is contained in another document.

(2)The application, adoption or incorporation of the other document may be made with or without modification.

(3)The other document may be one issued outside Australia.

(4)The direction may apply, adopt or modify the other document—

(a)as in force at the time when the direction is given; or

(b)as in force from time to time.

(5)If a direction applies, adopts or incorporates material in another document, a copy of the document must be attached to the direction when it is given to the tenure holder or special purpose consent holder.

389   Direction may impose absolute prohibition

Without limiting section 387, a direction under that section may—

(a)prohibit absolutely the doing of a thing; or

(b)prohibit the doing of a thing unless a person’s consent or approval is obtained.

390   Direction may extend to associates

(1)A direction under section 387 to a tenure holder or special purpose consent holder may extend to an associate specified in the direction.

(2)An associate may be specified by name or by class.

(3)The direction may provide that only particular obligations specified in the direction extend to a particular associate.

391   Holder to give notice of direction to associates

(1)If a direction under section 387 extends to an associate, the tenure holder or special purpose consent holder must either—

(a)give a copy of the direction to the associate; or

(b)display a copy of the direction at a place that the associate goes to in the course of carrying out activities under the tenure or consent.

Maximum penalty—67 penalty units.

Note—

If a corporation commits an offence against this provision, an executive officer of the corporation may be taken, under section 443A, to have also committed the offence.

(2)The Minister may give the tenure holder or special purpose consent holder a supplementary direction that specifies the way in which, or the places at which, copies of a direction are to be displayed under subsection (1)(b).

(3)A supplementary direction has effect as if it were part of the original direction.

392   Power to give directions after tenure etc. ends

(1)If a person is bound by an obligation because of section 131, 191, 266 or 314, the Minister may direct the person to do a thing or not to do a thing specified in the direction.

(2)A direction may be given only for the following purposes—

(a)to ensure that the obligation is complied with;

(b)a purpose that is incidental to the purpose in paragraph (a).

Note—

Sections 131, 191, 266 and 314 provide for undischarged obligations to continue to bind a former tenure holder or associate after the tenure ends.

(3)A direction must be in writing and is given by serving it on the person bound by the obligation.

393   Effect of directions on other instruments

(1)A later direction under section 387 or 392 overrides an earlier direction if they are inconsistent.

(2)A direction has effect despite anything in—

(a)the regulations; or

(b)a tenure condition about safety or environmental matters.

394   Minister may specify time for compliance

(1)If the Minister gives a direction under section 387 or 392 to a person, the Minister may—

(a)specify in the direction a time for compliance with the direction; or

(b)give the person a supplementary direction specifying a time for compliance with the direction.

(2)A supplementary direction has effect as if it were part of the original direction.

395   Minister may take action if holder fails to comply

(1)The Minister may do all or any of the things required by a direction under section 387 or 392 if—

(a)the time for compliance specified under section 394 has ended; and

(b)the person to whom the direction was given or to whom it extended has not complied with the direction.

(2)If the direction required consultation under section 387(3), the Minister must not take action under subsection (1) without similar consultation.

396   Costs incurred by Minister in taking action under section 395

(1)If—

(a)the Minister takes action under section 395 in relation to a direction under section 387 given to a tenure holder or special purpose consent holder; and

(b)the direction does not extend to an associate of the holder;

the costs and expenses incurred by the Minister in taking that action are a debt due to the State by the holder.

(2)If—

(a)a direction under section 387 specifies that a particular associate of a tenure holder or special purpose consent holder is subject to a particular obligation; and

(b)the Minister takes action under section 395 in relation to that obligation;

the costs and expenses incurred by the Minister in taking that action are a debt due to the State by the holder and the associate.

(3)The associate and the holder are jointly and severally liable to pay the debt arising under subsection (2).

(4)A debt under this section is recoverable in the Wardens Court.

397   Defences to actions to recover debts

(1)It is a defence to an action to recover the debt from the tenure holder, special purpose consent holder or the associate if—

(a)the holder or associate produces evidence that the holder or associate took all reasonable steps to comply with the direction; and

(b)the evidence is not rebutted.

(2)It is a defence to an action to recover the debt from the associate if—

(a)the associate produces evidence that the associate did not know of, and could not reasonably be expected to know of, the existence of the direction; and

(b)the evidence is not rebutted.

Division 3 Securities

398   Securities

(1)A person may be required to lodge a security with the Minister under—

(a)section 399; or

(b)section 118, 177, 254 or 304.

(2)Securities are required as a way of ensuring compliance with this Act and with tenure conditions.

(3)Securities may only be used for the purposes mentioned in section 400.

399   Decision about requirement to lodge security

(1)The Minister may decide that a person who has been provisionally granted a tenure must lodge a security with the Minister.

Note 1—

The provisional holder will be given notice of the decision under section 66 or 83, 147, 210 or 227 or 279.

Note 2—

If the provisional holder does not lodge the security within a particular time provided for in this Act, the provisional grant will lapse (see section 72 or 86, 153, 216 or 230 or 285).

(2)If the Minister provisionally renews a tenure, the Minister may decide that the tenure holder must lodge a security with the Minister.

Note 1—

The tenure holder will be given notice of the decision under section 110, 169, 246 or 296.

Note 2—

If the holder does not lodge the security within a particular time provided for in this Act, the provisional renewal will lapse (see section 116, 175, 252 or 302).

(3)A decision under subsection (1) or (2) must specify—

(a)the amount of the security required; and

(b)the kind of security required; and

(c)the way and the form in which the security is to be lodged.

(4)Without limiting subsections (1) and (2), a decision may require the lodgment of a security in the form of a guarantee and, if a guarantee is required, the decision may specify—

(a)the kind of person who is to give the guarantee; and

(b)the terms of the guarantee.

(5)The decision must be in writing.

(6)If a person is provisionally granted a tenure over a tender sub-block, the amount decided as a security under subsection (1) must be the amount of security referred to in the tender sub-block tenure notice.

Note—

For the contents of a tender sub-block tenure notice see sections 75 and 219.

400   Application of security

(1)If—

(a)a person is or was a tenure holder; and

(b)the person has lodged a security with the Minister;

the Minister may use the security to discharge the person’s obligations arising from a failure to comply with—

(c)this Act or the regulations; or

(d)the tenure conditions; or

(e)a direction under section 387 or 392.

(2)Without limiting subsection (1), the holder’s financial obligations include the obligation to pay a penalty imposed under the tenure conditions.

(3)Subject to subsection (1), the Minister is to deal with a security as provided under a regulation.

Division 4 Restoration of environment

401   Removal of property from coastal waters

(1)A regulation may provide for—

(a)the removal from coastal waters of property—

(i)that has been brought into coastal waters for use in offshore exploration or mining activities; and

(ii)that is not being used, and is not intended to be used, in exploration or mining activities under a tenure; and

(b)the disposal by the Minister of property removed under a regulation made for paragraph (a); and

(c)the recovery of costs and expenses incurred by the Minister or another person in removing or disposing of property under a regulation made for paragraphs (a) and (b).

Note—

For offshore exploration or mining activities see the dictionary.

(2)A regulation made for subsection (1)(a) may provide for removal by the Minister or by someone else.

(3)A regulation made for subsection (1)(c) may provide for the recovery of costs by way of deduction from the proceeds of the disposal.

(4)Subject to the regulations, no action lies in relation to the removal or disposal of property as provided under a regulation.

(5)In this section—

property includes a structure or equipment.

402   Rehabilitation of damaged areas

(1)A regulation may provide for—

(a)the rehabilitation of an area in coastal waters that has been damaged or affected by offshore exploration or mining activities of a tenure holder; and

(b)the recovery of costs and expenses incurred by the Minister in rehabilitating an area under a regulation made for paragraph (a).

(2)A regulation made for subsection (1)(a) may provide for the rehabilitation to be carried out by the Minister or someone else.

(3)A regulation made for subsection (1)(b) may provide for the recovery of costs and expenses by way of deduction from the tenure holder’s security.

Division 5 Safety zones

403   Declaration of safety zone around a structure or equipment

(1)A regulation may establish a safety zone around a structure or equipment in coastal waters.

(2)A safety zone may only be established for the purpose of protecting the structure or equipment.

(3)The safety zone may extend not more than 500m from the outer edge of the structure or equipment.

(4)The regulation may apply to—

(a)all vessels; or

(b)all vessels except those specified in the regulation.

404   Effect of declaration of safety zone

(1)If a safety zone is established by regulation under section 403, a vessel to which the regulation applies must not enter or remain in the safety zone without the written consent of the Minister.

(2)If a consent is given under subsection (1) on conditions, a vessel to which the consent applies may enter or remain in the safety zone only as provided by the conditions.

(3)The owner of a vessel and the person in command or in charge of a vessel each commit an indictable offence if the vessel enters or remains in a safety zone in contravention of subsection (1) or (2), and are liable to a maximum penalty of 4 150 penalty units.

Note—

If a corporation commits an offence against this provision, an executive officer of the corporation may be taken, under section 443A, to have also committed the offence.

(4)It is a defence to a prosecution of a person for an offence against subsection (3) if the person satisfies the court that—

(a)an unforeseen emergency made it necessary for the vessel to enter or remain in the safety zone to attempt to secure the safety of—

(i)a human life; or

(ii)the vessel; or

(iii)another vessel; or

(iv)a well, pipeline, structure or equipment; or

(b)the vessel entered or remained in the safety zone in circumstances beyond the control of the person who was in command or in charge of the vessel (for example, adverse weather).

(5)It is a defence to a prosecution of the owner of a vessel for an offence against subsection (3) if the owner satisfies the court that the owner—

(a)did not aid, abet, counsel or procure the vessel’s entering or remaining in the safety zone; and

(b)was not in any way, directly or indirectly, knowingly concerned in, or party to, the vessel’s entering or remaining in the safety zone.

405–420    Section numbers not used

See note 2 to section 3(1).

Part 4.3    Inspectors

421   Appointment of inspectors

(1)The Minister may appoint an officer of the public service to be an inspector for this Act and the regulations.

Note—

Inspectors have powers under sections 367, 368, 369, 370, 371, 378, 379, 380 and 381.

(2)The appointment must be in writing.

422   Identity cards

(1)The Minister must issue an inspector with an identity card.

(2)The card must—

(a)contain a recent photograph of the inspector; and

(b)be in the approved form.

423   Return of identity card

(1)A person who stops being an inspector must, as soon as is practicable, return the person’s identity card to the Minister or to an office holder specified by the Minister in a notice given to the person.

(2)A person must not contravene subsection (1) without reasonable excuse.

Maximum penalty—1.4 penalty units.

Part 4.4    Tenure fees and royalty

Division 1 Tenure Fees

424   Definition

In this division—

year, in relation to the period when a tenure is in force, means—

(a)the period of 12 months commencing on (and including) the day on which the provisional grant of the tenure is properly accepted; or

(b)a period of 12 months commencing on (and including) an anniversary of that day; or

(c)a period of less than 12 months that—

(i)commences on (and includes)—

(A)the day on which the provisional grant of the tenure is properly accepted; or

(B)an anniversary of that day; and

(ii)ends on the expiry of the tenure.

425   Tenure fees

(1)A tenure holder must pay a fee to the Minister for each year during which the tenure is in force.

(2)Subject to section 426, the amount of the fee for each type of tenure must be as prescribed under a regulation for that type of tenure.

(3)If the tenure has 2 or more holders, the holders are jointly and severally liable to pay the fee.

426   Limit on amount of fees

(1)The amount of the fee for an exploration permit for a year must not be more than the greater of the following amounts—

(a)$2000;

(b)the amount obtained by multiplying $100 by the number of sub-blocks covered by the tenure at the beginning of the year.

(2)The amount of the fee for a mineral development licence for a year must not be more than the amount obtained by multiplying $1000 by the number of sub-blocks covered by the tenure at the beginning of the year.

(3)The amount of the fee for a mining lease for a year must not be more than the amount obtained by multiplying $1000 by the number of sub-blocks covered by the tenure at the beginning of the year.

(4)The amount of the fee for a works licence for a year must not be more than $100 for each hectare or part of a hectare of the area specified in the tenure under section 278(1)(c).

427   Time for payment

The fee for a year becomes payable 1 month after the day on which the year begins.

Division 2 Royalty

428   Definition

In this division—

royalty period, in relation to a mining lease, means—

(a)the period from (and including) the day on which the tenure takes effect to (and including) the next 30 June or 31 December, whichever is the earlier; and

(b)each period of 6 months after that period.

429   Royalty

A person who is or has been a mining lease holder must pay to the Minister a royalty for all minerals recovered by the holder under the tenure.

430   Rate of royalty

(1)Subject to this section, the Minister may, by instrument in writing, decide the rate of royalty payable for a mineral of a kind specified in the instrument.

(2)Without limiting subsection (1), the rates of royalty decided under that subsection may include a rate that is related to the landed value, or to the quantity, of the mineral.

(3)A rate of royalty decided under subsection (1) applies to any mineral of the relevant kind recovered under a mining lease during the period when the rate is in force.

(4)A decision about a rate of royalty under subsection (1) takes effect on the day on which the decision instrument is published in the Gazette.

431   Reduction of royalty in certain cases

(1)The Minister may decide a rate of royalty that is lower than the rate decided under section 430 for—

(a)a particular kind of mineral; or

(b)all minerals recovered under a particular mining lease.

(2)A decision is be made by instrument in writing and specify the period for which the lower rate is to be in force.

(3)A decision may only be made under this section if the Minister is satisfied that recovery of the kind of mineral to which it applies would be uneconomic at the rate decided under section 430.

432   Fixing of landed value

For this division, the landed value of a mineral is—

(a)an amount agreed between the mining lease holder and the Minister; or

(b)if there is no agreement within such period as the Minister allows—an amount decided by the Minister by instrument in writing.

433   Fixing of quantity

For this division, the quantity of any mineral recovered by a mining lease holder during a royalty period is—

(a)the quantity agreed between the holder and the Minister; or

(b)if there is no agreement within such period as the Minister allows—the quantity decided by the Minister by instrument in writing.

434   Time for payment

Royalty for any mineral recovered during a royalty period is payable within one month after the last day of that royalty period.

435   State to pay 40% of royalties to Commonwealth

(1)The State must pay to the Commonwealth 40% of royalties received under this division.

(2)Payments under subsection (1) must be made not later than the end of the month that follows the month in which the royalties were received.

(3)In this section—

royalty includes any penalty for late payment of royalty.

Division 3 Penalties and recovery

436   Penalty if fee or royalty overdue

(1)Subject to this section, a tenure holder must pay a penalty to the Minister for any fee or amount of royalty that the holder fails to pay when it becomes payable.

(2)The penalty is calculated—

(a)on the amount of the fee or royalty that remains unpaid; and

(b)at the rate of 0.33% for each day during which the fee or royalty is unpaid.

(3)A penalty is not payable under subsection (1) on an amount of royalty for any period until 7 days after—

(a)the landed value of the mineral has been agreed or decided under section 432, if the rate of royalty is related to the landed value of the mineral; or

(b)the quantity of the mineral has been agreed or decided under section 433, if the rate of royalty is related to the quantity of the mineral recovered.

437   Fees etc. recoverable as debts

The State may recover the amount of any fee, royalty or penalty payable under this part in the Wardens Court as a debt due to the State.

Chapter 5    Miscellaneous

438   State functions under the Commonwealth Act, pt 5.1

(1)The Wardens Court may exercise any jurisdiction that is conferred on the court by the Commonwealth Act.

(2)A State authority may perform any function that it is necessary for the authority to perform to give effect to the Commonwealth Act, part 5.1.

(3)In this section—

State authority means—

(a)the Governor in Council; or

(b)a Minister; or

(c)a department of the public service; or

(d)an agency, authority or instrumentality established under a written law of the State; or

(e)a person holding or exercising the powers of an office established under a written law of the State; or

(f)an officer or employee of—

(i)an agency, authority or instrumentality referred to in paragraph (d); or

(ii)a person referred to in paragraph (e); or

(g)an officer appointed, or a person employed, under any other written law of the State; or

(h)any other person or entity prescribed under a regulation to be a State authority for this section.

439   Delegation by Minister

(1)The Minister may, by signed instrument, delegate to an appropriately qualified officer or an employee of the department the performance of all or any of the functions of the Minister under this Act.

Note—

See also the Interpretation Act 1954, section 27A.

(2)A copy of each instrument making, varying or revoking a delegation under this section must be published in the gazette.

(3)In this section—

appropriately qualified includes having the qualifications, experience or standing appropriate to exercise the power.

Example of ‘standing’—

The level at which a person is employed in the department.

440   Service of documents on tenure holders etc.

(1)A document that is to be given to a tenure holder may be given to the holder by posting it to the address that is the holder’s registered address for service.

Note—

See section 333 for registration of an address for service.

(2)A document that is to be given to an applicant for a tenure may be given to the applicant by posting it to the address that the applicant specified in the applicant’s application for the tenure.

441   Regulation-making power

(1)The Governor in Council may make regulations under this Act.

(2)Without limiting subsection (1), a regulation may provide for—

(a)the control of offshore exploration and mining activities; and

(b)procedures for giving notice to persons whose interests might be affected by the grant of a tenure or special purpose consent; and

(c)the conservation and protection of the mineral resources of coastal waters; and

(d)the remedying of damage caused—

(i)to the seabed or subsoil in coastal waters by offshore exploration and mining activities; or

(ii)by the escape of substances as a result of offshore exploration and mining activities; and

(e)the protection of the environment; and

(f)the keeping of records and samples; and

(g)the giving of records and samples to the Minister for inspection; and

(h)the making of returns; and

(i)the imposition and recovery of fees, including for access to reports under section 376.

Note—

For offshore exploration or mining activities see the dictionary.

(3)For subsection (2), the control of offshore exploration and mining activities extends to the control of—

(a)the construction, maintenance and operation of installations used in, or for use in, offshore exploration and mining activities; and

(b)the flow or discharge of fluids arising from offshore exploration and mining activities; and

(c)the safety, health and welfare of persons working in offshore exploration and mining activities; and

(d)the maintenance of structures, equipment and property used in, or for use in, offshore exploration and mining activities.

Note—

For offshore exploration or mining activities see the dictionary.

(4)For subsection (2)(b), interests that might be affected by the grant of a tenure include native title rights and interests that might be affected by the grant of the tenure.

(5)Subject to section 124, a regulation may provide for offences against the regulations.

(6)The penalties provided for offences against the regulations must not be more than—

(a)a maximum penalty of 14 penalty units; or

(b)a maximum penalty of 14 penalty units for each day after conviction on which the offence is taken to continue.

(7)Until the Governor in Council makes a regulation about the following matters, the relevant regulations under the Environmental Protection Act 1994 and the Mineral Resources Act 1989 apply to the matters—

(a)the control of offshore exploration and mining activities, so far as it relates to—

(i)the flow or discharge of fluids arising from offshore exploration and mining activities; or

(ii)the safety, health and welfare of persons working in offshore exploration and mining activities;

(b)the remedying of damage caused—

(i)to the seabed or subsoil in coastal waters by offshore exploration and mining activities; or

(ii)by the escape of substances as a result of offshore exploration and mining activities;

(c)the protection of the environment;

(d)the making of returns.

(8)In this section—

control includes restrict.

442   Proceedings for offences

(1)A proceeding for an offence against this Act may be taken before a Wardens Court by way of summary proceedings under the Justices Act 1886—

(a)within 1 year after the commission of the offence; or

(b)within 6 months after the commission of the offence comes to the complainant’s knowledge, but within 2 years after the commission of the offence.

(2)For a proceeding taken before it by way of summary procedure under the Justices Act 1886, a Wardens Court has and may exercise all the powers of a Magistrates Court subject to and in accordance with that Act.

(3)However, a proceeding for an offence against section 404(3) may be taken, at the prosecution’s election—

(a)by way of summary proceedings under the Justices Act 1886; or

(b)on indictment.

(4)A warden must not hear the offence summarily if—

(a)the defendant asks at the start of the hearing that the charge be prosecuted on indictment; or

(b)the warden considers that the charge should be prosecuted on indictment.

(5)If subsection (4) applies—

(a)the warden must proceed by way of an examination of witnesses for an indictable offence; and

(b)a plea of the person charged at the start of the proceeding must be disregarded; and

(c)evidence brought in the proceeding before the warden decided to act under subsection (4) is taken to be evidence in the proceeding for the committal of the person for trial or sentence; and

(d)before committing the person for trial or sentence, the warden must make a statement to the person as required by the Justices Act 1886, section 104(2)(b).

(6)The maximum penalty that may be summarily imposed for an indictable offence is 134 penalty units.

443   Liability of executive officer—offence committed by corporation against s 38

(1)An executive officer of a corporation commits an offence if—

(a)the corporation commits an offence against section 38; and

(b)the officer did not take all reasonable steps to ensure the corporation did not engage in the conduct constituting the offence.

Maximum penalty—the penalty for a contravention of section 38 by an individual.

(2)In deciding whether things done or omitted to be done by the executive officer constitute reasonable steps for subsection (1)(b), a court must have regard to—

(a)whether the officer knew, or ought reasonably to have known, of the corporation’s conduct constituting the offence against section 38; and

(b)whether the officer was in a position to influence the corporation’s conduct in relation to the offence against section 38; and

(c)any other relevant matter.

(3)The executive officer may be proceeded against for, and convicted of, an offence against subsection (1) whether or not the corporation has been proceeded against for, or convicted of, the offence against section 38.

(4)This section does not affect—

(a)the liability of the corporation for the offence against section 38; or

(b)the liability, under the Criminal Code, chapter 2, of any person, whether or not the person is an executive officer of the corporation, for the offence against section 38.

443A   Executive officer may be taken to have committed offence

(1)If a corporation commits an offence against a deemed executive liability provision, each executive officer of the corporation is taken to have also committed the offence if—

(a)the officer authorised or permitted the corporation’s conduct constituting the offence; or

(b)the officer was, directly or indirectly, knowingly concerned in the corporation’s conduct.

(2)The executive officer may be proceeded against for, and convicted of, the offence against the deemed executive liability provision whether or not the corporation has been proceeded against for, or convicted of, the offence.

(3)This section does not affect either of the following—

(a)the liability of the corporation for the offence against the deemed executive liability provision;

(b)the liability, under the Criminal Code, chapter 2, of any person, whether or not the person is an executive officer of the corporation, for the offence against the deemed executive liability provision.

(4)In this section—

deemed executive liability provision means any of the following provisions—

•section 44

•section 123

•section 183

•section 259

•section 308

•section 385(1)

•section 385(2)

•section 391(1)

•section 404(3).

444   Evidentiary provision

(1)This section applies to a proceeding under this Act.

(2)The appointment or power of an inspector or other office holder must be presumed unless a party, by reasonable notice, requires proof of—

(a)the appointment; or

(b)the power to do anything under this Act.

(3)A signature purporting to be the signature of the Minister, an inspector or other office holder is evidence of the signature it purports to be.

(4)A certificate purporting to be signed by a person mentioned in subsection (3), and stating any of the following matters is evidence of the matter—

(a)a stated document is—

(i)a tenure or a copy of a tenure; or

(ii)an order, direction, requirement or decision, or a copy of an order, direction, requirement or decision, given or made under this Act; or

(iii)a notice, or a copy of a notice, given under this Act; or

(iv)a record, or a copy of a record, kept under this Act;

(b)on a stated day, or during a stated period, a stated person was or was not the holder of a tenure or stated tenure;

(c)a stated tenure was or was not in force on a stated day or during a stated period;

(d)on a stated day, a stated tenure expired or was surrendered or cancelled;

(e)on a stated day, a stated person was given a stated notice, order, requirement or direction under this Act;

(f)a stated fee or other amount is payable by a stated person to the State and has not been paid;

(g)anything else prescribed under a regulation.

445   Approval of forms

Without limiting section 41(1), the Minister may approve forms for use under this Act.

446   [Repealed]

447   Repeal

The Mineral Resources (Adjacent Submarine Areas) Act 1964 No. 26 is repealed.

Schedule 1 Coastal waters of the State

section 16(1)

Schedule 2 Sub-blocks

section 17

Schedule 3 Commonwealth–State offshore area

section 29

Note 1—

for the baseline see Australia’s territorial sea baseline (AGPS) 1988: generally the baseline is the lowest astronomical tide along the coast but it also includes lines enclosing bays and indentations that are not bays and straight baselines that depart from the coast.

Note 2—

the Continental Shelf in a legal sense starts not from the coast but from the outer limits of the territorial sea. In a geophysical sense, of course, the continental shelf starts at the coast. The diagram shows the outer edge of the continental margin as the limit of the Continental Shelf but sometimes the 200 nautical mile limit defines the limit of the Continental Shelf.

Note 3—

sometimes the outer limit of the Commonwealth-State offshore area is a bilaterally negotiated boundary or a median line adopted pending bilateral negotiations.

Schedule 5 Dictionary

section 5

approved means approved by the Minister under section 41.

associate see section 26(1).

associated agent of a holder see section 26(3).

associated agent of an associated contractor see section 26(4).

associated contractor of a holder see section 26(2).

associated employee of a holder see section 26(5).

associated employee of an associated contractor see section 26(6).

caveat on a tenure means a caveat against—

(a)the registration of dealings in relation to the tenure; or

(b)the registration of a person as a holder of the tenure under section 340.

coastal waters see section 16(1) and (2).

Commonwealth Act means the Offshore Minerals Act 1994 (Cwlth).

compliance inspection see section 377.

confidential information see section 27.

confidential sample see section 28.

consent area means the sub-block or sub-blocks specified in a special purpose consent.

coral limestone means a calcareous deposit derived from coral, but does not include shell grit or star sand.

Editor’s note—

This definition is the same as the definition in the Fisheries Act 1994.

dealing in a tenure means a transaction that creates, transfers, affects or otherwise deals with an interest in the tenure and includes—

(a)a transfer of the tenure; and

(b)a transfer of a share in the tenure,

but does not include a document that comes within section 337(1) other than a document by which a sub-block or a tenure is surrendered.

discrete area see section 21.

document file means a document file kept for part 3.1.

executive officer, of a corporation, means a person who is concerned with, or takes part in, the corporation’s management, whether or not the person is a director or the person’s position is given the name of executive officer.

exploration see section 23.

exploration permit means a permit granted under part 2.2

holder of a tenure see section 25(1).

hydrocarbon means a hydrocarbon whether in a gaseous, liquid or solid state.

identity card of an inspector, see section 422.

inspector means an inspector appointed under section 421.

interest, in relation to a tenure, includes—

(a)an equitable interest in the tenure; and

(b)a security interest in the tenure.

mineral see section 22.

mineral development licence means a licence granted under part 2.3.

mining lease means a lease granted under part 2.4.

notice means notice in writing.

offshore exploration or mining activities means—

(a)the exploration for minerals in coastal waters; or

(b)the recovery of minerals from coastal waters; or

(c)activities carried out in coastal waters under a works licence.

offshore mining register means the register kept for part 3.1.

petroleum means—

(a)a hydrocarbon or a mixture of hydrocarbons; or

(b)a mixture of 1 or more hydrocarbons and 1 or more of the following—

(i)hydrogen sulphide;

(ii)nitrogen;

(iii)helium;

(iv)carbon dioxide.

primary payment period, for the provisional grant or provisional renewal of a tenure, means the period of 30 days after the day on which the applicant is given a written notice—

(a)in the case of the grant of an exploration permit—under section 66; and

(b)in the case of the renewal of an exploration permit—under section 110; and

(c)in the case of the grant of a mineral development licence—under section 147; and

(d)in the case of the renewal of a mineral development licence—under section 169; and

(e)in the case of the grant of a mining lease—under section 210; and

(f)in the case of the renewal of a mining lease—under section 246; and

(g)in the case of the grant of a works licence—under section 279; and

(h)in the case of the renewal of a works licence—under section 296.

provisional holder means a person who has been provisionally granted a tenure.

recovery see section 24.

registered means registered in the offshore mining register.

reserved sub-block means a sub-block that is declared to be reserved under section 18.

sample of the seabed or subsoil includes a core or cutting from the seabed or subsoil.

secondary payment period, for the provisional grant or provisional renewal of a tenure, means the period of 30 days after the day on which an extension of the primary payment period for the grant or renewal concerned ends.

share in a tenure, see section 6.

special purpose consent means a consent granted under part 2.6.

standard sub-block see section 19.

sub-block means a portion of the coastal waters constituted according to section 17.

successor tenure, to a tenure, see section 8.

surrender day for an exploration permit means—

(a)the day on which the initial term of the tenure ends; or

(b)a day on which the term of a renewal of the tenure ends.

tender sub-block see section 20.

tenure means—

(a)an exploration permit; or

(b)a mineral development licence; or

(c)a mining lease; or

(d)a works licence.

tenure area means the sub-block or sub-blocks covered by a tenure.

tenure holder see section 25(1).

transfer—

(a)if used in relation to a tenure—see section 7(1); or

(b)if used in relation to a share in a tenure—see section 7(2) and (3).

vary a tenure condition includes revoke or suspend.

works licence means a licence granted under part 2.5.