Oil Basins Ltd v Commonwealth

Oil Basins Ltd (the applicant) sought a declaration from the High Court of Australia that certain provisions of the *Petroleum (Submerged Lands) Act 1967* (Cth) (the Act) were invalid. The applicant argued that these provisions, which conferred powers on the Commonwealth Minister to grant exploration permits and licences, were beyond the legislative power of the Commonwealth Parliament. The dispute centred on the constitutional validity of the Act in relation to the external affairs power (s 51(xxix) of the *Constitution*).

The primary legal issue before Dawson J was whether the Act, in its purported reliance on the external affairs power, was a valid exercise of Commonwealth legislative authority. Specifically, the court had to determine if the Act implemented obligations arising under international law or related to the external affairs of the Commonwealth in a manner that justified its enactment under s 51(xxix). The applicant contended that the Act did not properly engage the external affairs power and therefore exceeded the Commonwealth's constitutional reach.

Dawson J reasoned that the external affairs power could be invoked to implement obligations under international law, but also to regulate conduct outside Australia or concerning Australia's relations with other countries. His Honour found that the Act, by providing for the regulation of petroleum exploration and exploitation in areas adjacent to the Australian coast, was a valid exercise of the external affairs power. This was because the Commonwealth had entered into international agreements concerning the continental shelf, and the Act was enacted to give effect to those agreements and to regulate activities within that jurisdiction, which was considered an external affair of the Commonwealth.

The application for a declaration of invalidity was dismissed.