Offshore Petroleum and Greenhouse Gas Storage Amendment Act 2024 (Vic)
Offshore Petroleum and Greenhouse Gas Storage Amendment Act 2024
No. 42 of 2024
TABLE OF PROVISIONS
Section Page
1Purpose
2Commencement
3Principal Act
4Object
5Simplified outline
6Definitions
7Infrastructure facilities
8Significant risk of a significant adverse impact—approval of key greenhouse gas operations
9New section 67A inserted
10Simplified outline—Part 2.1
11Simplified outline—Part 2.4
12New section 149A inserted
13Rights conferred by petroleum production licence
14Termination of life-of-field petroleum production licence if no recovery operations for 5 years
15Simplified outline—Part 2.8
16Application for petroleum access authority
17Interference with other rights
18Property in recovered petroleum
19Minister must have regard to certain matters before approving key greenhouse gas operations
20Circumstances in which approval of key greenhouse gas operations must not be given
21Minister may give directions to greenhouse gas assessment permittees
22Minister must have regard to certain matters
23Circumstances in which the approval must not be given
24Minister may give directions to greenhouse gas holding lessees
25Offer document for application by permittee
26Offer document for application by lessee
27Grant of greenhouse gas injection licence—offer document
28Work practices
29Monitoring powers of petroleum project inspectors
30Definitions—Part 6.6
31Minister or petroleum project inspector may obtain information and documents
32New section 798E inserted
33Subject-matter for regulations
34Repeal of this Act
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Endnotes
1 General information
Offshore Petroleum and Greenhouse Gas Storage Amendment Act 2024
No. 42 of 2024
[Assented to 6 November 2024]
The Parliament of Victoria enacts:
1Purpose
The purpose of this Act is to amend the Offshore Petroleum and Greenhouse Gas Storage Act 2010 in relation to petroleum production licences.
2Commencement
This Act comes into operation on the day after the day on which it receives the Royal Assent.
3Principal Act
In this Act, the Offshore Petroleum and Greenhouse Gas Storage Act 2010 is called the Principal Act.
4Object
After section 3(a) of the Principal Act insert—
"(ab)underground petroleum storage; and".
5Simplified outline
After section 4(2)(b) of the Principal Act insert—
"(ba)underground petroleum storage;".
6Definitions
(1)In section 6(1) of the Principal Act insert the following definition—
"underground petroleum storage means—
(a)the injection into and storage of petroleum in natural reservoirs from which petroleum was previously recovered for the purpose of later recovering it; and
(b)the recovery of petroleum from a natural reservoir into which it was previously injected under paragraph (a); and
(c)any activity incidental to an activity listed in paragraph (a) or (b);".
(2)In section 6(1) of the Principal Act, in the definition of good oilfield practice—
(a)in paragraph (b), after "operations;" insert "or";
(b)after paragraph (b) insert—
"(c)underground petroleum storage operations;".
(3)In section 6(1) of the Principal Act, in the definition of petroleum—
(a)in paragraph (f), after "both;" insert "and";
(b)after paragraph (f) insert—
"(g)for the purposes of underground petroleum storage, also includes any petroleum as defined by paragraph (a), (b), (c) or (d), where—
(i)one or more things have been added; or
(ii)one or more things have been wholly or partly removed—
or both; and
(h)for the purposes of underground petroleum storage, also includes any mixture that—
(i)has been recovered from a natural reservoir; and
(ii)includes petroleum as defined by paragraph (a), (b), (c) or (d)—
whether or not—
(iii)one or more things have been added; or
(iv)one or more things have been wholly or partly removed—
or both;".
(4)In section 6(1) of the Principal Act, in the definition of well, after paragraph (b) insert—
"(ba)underground petroleum storage operations; or".
7Infrastructure facilities
In section 17(2) of the Principal Act—
(a)after paragraph (d) insert—
"(da)underground petroleum storage;";
(b)for "in paragraph (a)" substitute "in paragraphs (a) and (da)".
8Significant risk of a significant adverse impact—approval of key greenhouse gas operations
(1)In section 29(1) of the Principal Act, for "or petroleum recovery operations," substitute "petroleum recovery operations or underground petroleum storage operations".
(2)In section 29(2)(c) of the Principal Act, for "or petroleum recovery operations," substitute "petroleum recovery operations or underground petroleum storage operations".
(3)In section 29(5) of the Principal Act—
(a)for "or petroleum recovery operations," substitute "petroleum recovery operations or underground petroleum storage operations";
(b)in paragraphs (g) and (h), for "or petroleum recovery operations" substitute ", petroleum recovery operations or underground petroleum storage operations".
(4)In section 29(6) of the Principal Act, for "or petroleum recovery operations," substitute "petroleum recovery operations or underground petroleum storage operations".
9New section 67A inserted
After section 67 of the Principal Act insert—
"67A Ownership of petroleum injected and stored in the seabed or subsoil
(1)Subject to subsection (2), the ownership of petroleum that is injected into a natural reservoir under a petroleum production licence remains with the licensee or other person who owned the petroleum immediately before its injection (owner) and is not subject to any rights of other persons (other than a person to whom the owner transfers, assigns or otherwise disposes of the petroleum or an interest in the petroleum).
(2)If a petroleum production licence is cancelled or surrendered, the Crown becomes the owner of any petroleum that has been injected into and is stored in a natural reservoir under the licence.".
10Simplified outline—Part 2.1
In section 70 of the Principal Act—
(a)in subsection (7), after "petroleum recovery operations" insert "and underground petroleum storage operations";
(b)in subsection (11), for "and certain operations relating to the recovery of petroleum," substitute "certain operations relating to the recovery of petroleum and certain operations relating to underground petroleum storage".
11Simplified outline—Part 2.4
In section 148 of the Principal Act—
(a)in subsection (2), after "recover petroleum" insert ", or carry on underground petroleum storage operations,";
(b)in subsection (4), after "operations" insert "and underground petroleum storage operations".
12New section 149A inserted
After section 149 of the Principal Act insert—
"149A Prohibition of unauthorised underground petroleum storage in offshore area
A person must not intentionally carry on underground petroleum storage operations in the offshore area unless the underground petroleum storage operations are—
(a)authorised by a petroleum production licence; or
(b)otherwise authorised or required by or under this Act.
Penalty:5 years imprisonment.".
13Rights conferred by petroleum production licence
After section 150(1)(c) of the Principal Act insert—
"(ca)to inject into and store petroleum in natural reservoirs from which petroleum was previously recovered in the licence area for the purpose of later recovering it; and
(cb)to recover petroleum from a natural reservoir in the licence area into which the petroleum was previously injected under paragraph (ca); and".
14Termination of life-of-field petroleum production licence if no recovery operations for 5 years
(1)In the heading to section 163 of the Principal Act, after "recovery operations" insert "or underground petroleum storage operations".
(2)In section 163(1)(b) and (3) of the Principal Act, after "recovery operations" insert "or underground petroleum storage operations".
15Simplified outline—Part 2.8
In section 236(3) of the Principal Act, for "and certain operations relating to the recovery of petroleum" substitute "certain operations relating to the recovery of petroleum and certain operations relating to underground petroleum storage".
16Application for petroleum access authority
In Column 3 of Item 1 of the table to section 240(1) of the Principal Act—
(a)for "either or both" substitute "any or all";
(b)after paragraph (a) insert—
"(ab)underground petroleum storage operations;".
17Interference with other rights
After section 276(2)(d)(ii) of the Principal Act insert—
"(iii)underground petroleum storage; or".
18Property in recovered petroleum
(1)After section 280(3) of the Principal Act insert—
"(3A)This section does not apply in relation to petroleum that is recovered from a natural reservoir into which it was previously injected.
Note
See also section 67A regarding the ownership of petroleum injected into a natural reservoir.".
(2)In section 280(4) of the Principal Act, for "and (3)" substitute ", (3) and (3A)".
19Minister must have regard to certain matters before approving key greenhouse gas operations
In section 292(1), (2) and (3)(a) of the Principal Act, for "or petroleum recovery operations," substitute "petroleum recovery operations or underground petroleum storage operations".
20Circumstances in which approval of key greenhouse gas operations must not be given
In section 293(1) and (2)(a) of the Principal Act, for "or petroleum recovery operations," substitute "petroleum recovery operations or underground petroleum storage operations".
21Minister may give directions to greenhouse gas assessment permittees
In section 322(1) of the Principal Act, for "or petroleum recovery operations," substitute "petroleum recovery operations or underground petroleum storage operations".
22Minister must have regard to certain matters
In section 330(1), (2) and (3)(a) of the Principal Act, for "or petroleum recovery operations," substitute "petroleum recovery operations or underground petroleum storage operations".
23Circumstances in which the approval must not be given
In section 331(1) and (2)(a) of the Principal Act, for "or petroleum recovery operations," substitute "petroleum recovery operations or underground petroleum storage operations".
24Minister may give directions to greenhouse gas holding lessees
In section 366(1) of the Principal Act, for "or petroleum recovery operations," substitute "petroleum recovery operations or underground petroleum storage operations".
25Offer document for application by permittee
In section 382(1)(c), (d) and (e)(i) of the Principal Act, for "or petroleum recovery operations," substitute "petroleum recovery operations or underground petroleum storage operations".
26Offer document for application by lessee
In section 383(1)(c), (d) and (e)(i) of the Principal Act, for "or petroleum recovery operations," substitute "petroleum recovery operations or underground petroleum storage operations".
27Grant of greenhouse gas injection licence—offer document
In section 395 of the Principal Act—
(a)in paragraph (c), after "petroleum recovery operations" (where twice occurring) insert "or underground petroleum storage operations";
(b)in paragraphs (d), (e) and (f)(i), for "or petroleum recovery operations," substitute "petroleum recovery operations or underground petroleum storage operations";
(c)in paragraph (g)(ii), for "operations—" substitute "operations; or";
(d)after paragraph (g)(ii) insert—
"(iii)underground petroleum storage operations—".
28Work practices
In Column 3 of Item 1 of the table to section 616(1) of the Principal Act, after paragraph (b) insert—
"(ba)carry out all underground petroleum storage operations in the licence area in a proper and workmanlike manner and in accordance with good oilfield practice;".
29Monitoring powers of petroleum project inspectors
In section 649(2)(b)(iii) of the Principal Act, after "petroleum" insert ", including underground petroleum storage".
30Definitions—Part 6.6
In section 666 of the Principal Act, in the definition of petroleum well—
(a)in paragraph (b), for "operations—" substitute "operations; or";
(b)after paragraph (b) insert—
"(c)underground petroleum storage operations—".
31Minister or petroleum project inspector may obtain information and documents
In section 722(1)(e) of the Principal Act, after "petroleum" insert ", including underground petroleum storage".
32New section 798E inserted
After section 798D of the Principal Act insert—
"798E Transitional provision—underground petroleum storage
(1)This Act as amended by the amending Act applies in relation to—
(a)a petroleum production licence in force immediately before the commencement of the amending Act; and
(b)a petroleum production licence granted on or after that commencement, whether the application for the licence was made before, on or after that commencement.
(2)In this section—
amending Act means the Offshore Petroleum and Greenhouse Gas Storage Amendment Act 2024.".
33Subject-matter for regulations
After item 2 of Schedule 4 to the Principal Act insert—
"2AThe underground storage of petroleum, including the injection of petroleum into a natural reservoir for storage and the recovery of petroleum so injected, and the carrying on of operations, and the execution of works, for that purpose.".
34Repeal of this Act
This Act is repealed on the first anniversary of its commencement.
Note
The repeal of this Act does not affect the continuing operation of the amendments made by it (see section 15(1) of the Interpretation of Legislation Act 1984).
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ENDNOTES
1 General information
See for Victorian Bills, Acts and current authorised versions of legislation and up-to-date legislative information.
Minister's second reading speech—
Legislative Assembly: 12 September 2024
Legislative Council: 17 October 2024
The long title for the Bill for this Act was "A Bill for an Act to amend the Offshore Petroleum and Greenhouse Gas Storage Act 2010 in relation to petroleum production licences and for other purposes."
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