Petroleum (Amendment) Act 1967 (NSW)

PETROLEUM (AMENDMENT) ACT.

jgelD ôut{) Males

ANNO SEXTO DECIMO

ELIZABETHJi II REGINiE

Act No.

5 5 ,1 9 6 7 .

A n A ct to make further provisions with respect to exploration for, and the exploitation of, petroleum; for this purpose to amend the Petroleum Act, 1955, as amended by subsequent A cts; and for purposes connected therewith. [Assented to, 21st N ovem ber, 1967.]

O E it enacted by the Queen’s Most Excellent Majesty, by ^ and with the advice and consent of the Legislative Council and Legislative Assembly of New South Wales in Parliament assembled, and by the authority of the same, as follows: —

1. (1) This Act may be

cited as the “Petroleum

Short title,

citation

(Amendment) Act, 1967”.

and com

mencement.

Petroleum {Amendment).

(2) The Petroleum Act, 1955, as amended by subse-

55,1967

quent Acts and by this Act, may be cited as the Petroleum	----
Act, 1955-1967.

(3) The Petroleum Act, 1955, as amended by subse

quent Acts, is in this Act referred to as the Principal Act.

(4) The several provisions of this Act shall commence upon such day or days as may be appointed in respect thereof and notified by proclamation published in the Gazette.

Part I of the Principal Act is amended—

Amendment

of Act No.

28, 1955.

(Part I—

Pre

liminary. )

(a) (i) by omitting from subsection one of section

two the matter relating to Division 3 of Part (Division

III;	into Parts.)

(ii) by inserting in the same subsection next after the matter relating to Division 4 the following new matter :—

D iv isio n

4a .—Royalties.

(b) (i) by omitting from subsection one of section

three the definition of “Bore-hole’	(Interpre
tation.)

(ii) by omitting from the same subsection the definition of “Casinghead petroleum spirit” ;

(iii) by omitting from the same subsection the definition of “Crude oil” ;

(iv) by omitting from the definition of “ ‘Drilling’ or ‘boring’ ” in the same subsection the words “or ‘boring’ ” ;

(v) by omitting from the definition of “Mining surveyor” in the same subsection the words “Surveyors Act, 1929-1946, and specially appointed under the Mining Act, 1906-1952,

Petroleum {Amendment).

No. 55, 1967

to carry out surveys under that Act” and by inserting in lieu thereof the words “Surveyors Act, 1929, as amended by subsequent Acts” ;

(vi) by omitting from the same subsection the definition of “Natural gas” ;

(vii) by omitting from the same subsection the definition of “Petroleum” and by inserting in lieu thereof the following definition :—

“Petroleum” means—

(a)	any naturally occurring hydro carbon, whether in a gaseous, liquid or solid state;
(b)	any naturally occurring mix ture of hydrocarbons, whether in a gaseous, liquid or solid state; or
(c)	any naturally occurring mixture of one or more hydrocarbons, whether in a gaseous, liquid or solid state, and one or more of the following, that is to say, hydrogen sulphide, nitrogen, helium and carbon dioxide,

and includes any substance referred to in paragraph (a), (b) or (c) of this definition that has been returned to a natural reservoir.

(viii) by omitting from the same subsection the definition of “Scout drilling” ;

(ix) by omitting from the same subsection the definition of “Shut off” ;

Petroleum {Amendment).

(x) by omitting from the same subsection the no. 55, 1957

definition of “Test well” ;

----

(xi) by inserting in the same subsection after the definition of “Under Secretary” the following definition : —

“Well” means a hole made by drilling in connection with exploration for petroleum or operations for the recovery of petroleum, but does not include a seismic shot hole.

<c)	(i) by omitting from subsection one of section four the words “Mining Act, 1906-1952” and by	Sec. 4.
(Officers appointed

inserting in lieu thereof the words “Mining

under certain

Act, 1906, as amended by subsequent Acts” ; (ii) by omitting from the same subsection the

Acts deemed

to be

officers

under this

words “Mines Inspection Act, 1901-1945”	Act.)
and by inserting in lieu thereof the words “Mines Inspection Act, 1901, as amended by subsequent Acts” ;

<d) by omitting from section five the words “, petroleum sec. 5.

prospecting licence”.	(Minister
not to be interested in licence or lease.)

3. Part II of the Principal Act is amended by omitting Further

from subsection two of section six the words “, petroleum

no"̂

prospecting licences”.

28, 1955.

(Part II—

Rights of

the Crown

as to

Petroleum

and Helium.)

Sec. 6.

(Petroleum

and helium

the pro

perty of

4 ,	the Crown.)

Petroleum {Amendment).

No. 55, 1967	m of the Principal Act is amended-
Further
amendment of Act No. 28, 1955.
(Part I l l -
Licences
and Leases
Under
This Act.)

Sec. 7.

(a) (i) by omitting from section seven the words “or

(No pros	a petroleum prospecting licence” ;
pecting or
mining for

petroleum

(ii) by omitting from paragraph (b) of the proviso

except in	to the same section the words	petroleum
pursuance

of licence	prospecting licence” wherever occurring;
or lease.)

Sec. 8.

(b) by omitting section eight;

(Protection

of rights

under

certain

agreements.)

Sec. 9.

(Licences	one of section nine the words “and petroleum
may be
or leases	prospecting licences” ;

granted.)

(ii)

by omitting from subparagraph (ii) of the same subsection the words “, petroleum pros pecting licence” ;

Sec. 10.	(d)	(i) by inserting at the end of subparagraph (i) of
of applica

(Lodgment	paragraph (a) of subsection two of section ten
tions.)	the word “and” ;

(ii) by omitting subparagraph (ii) of the same paragraph;

' (iii) by inserting in paragraph (a) of subsection four of the same section after the word “Act” where firstly occurring the words and every request referred to in section fifteen of this Act,” ;

(iv) by inserting in the same subsection after the word “applicant” wherever occurring the words “or person nominated by the applicant” ;

(e)

Petroleum (Amendment).

(e)

by omitting from paragraph (b) of section No. 55, 1967

seventeen the words “one thousand” and by

^7”

inserting in lieu thereof the word “twenty-five” ;

(Areaof

petroleum exploration licence.)

(f)

by omitting from subsection two of section eighteen Sec. 18.

the words

and subject to section forty-three of f̂j.o“ um

this Act” ;

exploration licence and renewal.)

( g )

by omitting section twenty;

Sec. 20.

(Drilling other than scout drill ing pro

hibited.)

(h)	(i)	by omitting from paragraph (b) of subsection sec. 21. two of section twenty-one the words “the (Holder to scout” and by inserting in lieu thereof the furnish	^	exploration
word of ;	scheme.)

(ii) by omitting from paragraph (c) of the same subsection the word “seout” ;

(iii) by inserting next after the same subsection the following new subsections :—

(2 a ) The Minister may, on an application in writing made to him by the holder of a petroleum exploration licence, exempt the holder from eomplianee with the requirement of this section that he furnish to the Minister a proposed seheme providing for a geologieal survey or other survey of the land comprised in the licence to be carried out if the Minister is satisfied that an adequate geological survey or other survey of the land has been carried out and that further such surveys are not necessary.

(2 b ) The holder of a petroleum explora tion licence who has been so exempted shall, notwithstanding any other provision of this section, not be liable to comply with any requirement from which he has been so exempted.

(iv)

Petroleum (Amendment).

No. 55, 1967	(iv) by omitting from paragraphs (a), (b) and (c) of subsection six of the same section the word “scout” wherever occurring;
New secs.

21A-21D.

(i) by inserting next after section twenty-one the following new sections :—

Work to be	2 1 a . The holder of a petroleum exploration
carried out

by holder of	licence shall, as from the commencement by him
pkroleum
exploration	of prospecting operations on the land comprised
licence.	in the licence, diligently and continuously carry on those operations in a workmanlike manner and in accordance with—

(a) good oilfield practice;

(b)	the terms and conditions subject to which the licence was granted; and
(c)	any directions relating to the carrying on of those operations given to him by the Minister.

Discovery	2 1 b . (1) Where petroleum is discovered in
of petro

leum to be	land comprised in a petroleum exploration licence,,
notified.	the holder of the licence—

(a)	shall forthwith inform the Minister of the discovery; and
(b)	shall, within a period of three days after the date of the discovery, furnish to the Minister particulars in writing of the discovery.

(2) Where petroleum is discovered in land comprised in a petroleum exploration licence, the Minister may, from time to time, by instrument in writing served on the holder of the licence, direct the holder to furnish to him, within the period specified in the instrument, particulars in writing of any one or more of the following :—

(a)	the chemical composition and the physical properties of the petroleum;

(b)

Petroleum {Amendment).

(b)	the nature of the stratum in which the No. 55,1967 petroleum occurs; and
(c)	any other matters relating to the discovery that are specified by the Minister in the instrument.

21c. Where petroleum is discovered in land Directions

comprised in a petroleum exploration licence, the

Minister may, by instrument in writing served on of

the holder of the licence, direct the holder to do, petroleum,

within the period specified in the instrument, such

things as the Minister thinks necessary and specifies

in the instrument to determine the chemical com

position and physical properties of that petroleum

and to determine the quantity of petroleum in the

petroleum deposit to which the discovery relates or,

if part only of that petroleum deposit is within the

land comprised in the petroleum exploration

licence, in such part of that petroleum deposit as is

within that land.

2 I d . (1) Where petroleum is discovered in land Direction

comprised in a petroleum exploration licence the to holder of Minister may, by instrument in writing, direct the ^piora'tfon holder of the licence to apply, within such period licence to

as may be specified in the direction, for a petroleum mining lease of so much of that land as is so specified.

(2)	If the holder of a petroleum explora

tion licence does not apply for a lease in accordance with directions given to him under subsection one of this section the Minister may cancel the licence.

<j) by omitting Division 3;

Part III,

Division 3.

(Petroleum

Prospecting

Licences.)

(k) by omitting from section twenty-eight the words

o r Sec. 28.

(Grant of

a petroleum prospecting licence” ;

petroleum

/IX	mining
V*/	lease.)

Petroleum {Amendment).

No. 55, 1967

(1) by omitting from paragraph (a) of section twenty-

Sec. 29.

nine the words “one hundred” and by inserting in

(Area of

lieu thereof the word “twenty-five” ;

petroleum

mining

lease.)

Sec. 30.

(m) by inserting in subsection two of section thirty

(Term of	after the word “Act” the words “in respect of
petroleum
mining	leases, other than renewals of leases,” ;
lease and renewal.)

Sec. 32.

(n) by omitting section thirty-two;

(Royalty on

petroleum,

etc.)

New

(o) by inserting next after section thirty-four the

Division 4a.

following new Division :—

D iv isio n

4 a .—Royalties.

Interpre

3 4 a .

In this Division “royalty period”, in relation

tation.

to a petroleum exploration licence or a petroleum

mining lease, means—

(a)	the period from and including the date of the licence or lease to the end of the month of the year during which that date occurs; and

(b) each month of the year thereafter.

Royalty.

3 4 b . ( 1 ) The conditions subject to which a

petroleum exploration licence or petroleum mining lease is granted shall include a condition that the holder of the licence or lease shall pay to the Minister a royalty at the prescribed rate in respect of all petroleum recovered under the licence or lease.

(2)	The prescribed rate in respect of

petroleum—

(a)	recovered under a petroleum exploration licence is such percentage, not exceeding ten per centum of the value at the well-head of

the

Petroleum (Amendment).

writing served on the holder of the licence;

the petroleum as may be determined by the No. 5s, 1967

(b)	recovered under a petroleum mining lease, not being a renewal of a petroleum mining lease, is the rate of ten per centum of the value at the well-head of the petroleum;
(c)	recovered under a petroleum mining lease, being a renewal of such a lease, is such rate as may be approved by the Governor under paragraph (b) of subsection two of section thirty of this A ct; or
(d)	recovered under a petroleum mining lease, as deemed to be extended by section 3 0 a of this Act, is the rate as varied under that section.

34c. (1) Royalty under this Act—

Royalty not

fa) is not payable in respect of petroleum that

the Minister is satisfied was unavoidably cases,

lost before the quantity of that petroleum

was ascertained;

<b) is not payable in respect of petroleum that is used by the holder of the petroleum exploration licence or the petroleum mining lease, as approved by the Minister, for the purposes of operations authorised by the licence or lease, as the case may be; and

<c) is not payable in respect of petroleum that, with the approval of the Minister, is flared or vented in connection with operations for the recovery of petroleum.

(2) Where petroleum that has been recovered by the holder of a petroleum exploration licence or petroleum mining lease is, with the approval of the Minister, returned to a natural reservoir, royalty under this Act is not payable in

respect

Petroleum (Amendment).

No. 55, 1967	respect of that petroleum by reason of that recovery but this subsection does not affect the liability of that or any other holder of a petroleum exploration licence or petroleum mining lease tO' pay royalty in respect of petroleum that is recovered from that natural reservoir.
Ascertain
ment of	3 4 d . For the purposes of this Act, the well-head,, in relation to any petroleum, is such equipment used for the recovery of the petroleum as is agreed between the holder of the exploration licence or petroleum mining lease and the Minister, or, in default of agreement within such period as the Minister allows, is such equipment used for the recovery of petroleum by that holder as is deter mined by the Minister as being that well-head.
well-head.
Ascertain	3 4 e . For the purposes of this Act, the value at the well-head of any petroleum is such amount as is agreed between the holder of the petroleura exploration licence or petroleum mining lease and the Minister, or, in default of agreement within such period as the Minister allows, as is determined by the Minister as being that value.
ment of
value.

Ascertain	3 4 f . For the purposes of this Act, the quantity
ment of

quantity of	of petroleum recovered by the holder of a
petroleum	petroleum exploration licence or petroleum mining
recovered.	lease during a period shall be taken to be—

(a)	the quantity measured during that period by a measuring device approved by the Minister and installed at the well-head or at such other place as the Minister approves; or
(b)	where no such measuring device is so installed, or the Minister is not satisfied that the quantity of petroleum recovered by the

holder

Petroleum {Amendment).

holder of the licence or lease has been No. ss, 1967

properly or accurately measured by such a

measuring device— the quantity determined

by the Minister as being the quantity

recovered by the holder of the licence or

lease during that period.

3 4 g . (1) Royalty under this Act in respect of Payment

petroleum recovered during a royalty period is royalty,

payable not later than the last day of the next

succeeding royalty period.

(2) Where an amount of royalty under this Act is not paid as provided by subsection one of this section, there is payable to the Minister by the holder of the petroleum exploration licence or the petroleum mining lease an additional amount calculated at the rate of one-third of one per centum per day upon the amount of royalty from time to time remaining unpaid, to be computed from the time when the royalty became payable until it is paid.

(3) An additional amount is not payable under subsection two of this section in respect of any period before the expiration of seven days after the value of the petroleum was agreed or deter mined under section 3 4 e of this Act.

3 4 h . Royalty under section 3 4 b of this Act and Royalty

an amount payable under section 34 g of this Act

are debts due by the holder of the petroleum due to *

exploration licence or petroleum mining lease to

Crown,

the Crown and are recoverable in a court of

competent jurisdiction.

(P)

Petroleum {Amendment).

No. 55, 1967

(p) by omitting section thirty-eight and by inserting in

Subst.	lieu thereof the following section ;—
sec. 38.

Registra

38. (1) Every licence or lease under this Act

tion.	shall be registered with the Registrar, Department
cf. Act No.
49,1906,	of Mines, Sydney.
s. 109.
(2) Every transfer or assignment (except an assignment by operation of law) of, and every instrument (whether a sublease, tribute agreement, option contract, mortgage, deed of trust, partnership agreement, working agreement, or any other instrument) affecting, any licence or lease under this Act, together with a copy of every such instrument certified by any two persons to be a true copy of the original, shall be lodged within the time and in the manner prescribed for the concurrence of the Minister and for registration by the Registrar, Department of Mines, Sydney, under the provisions of this section.
The Minister may refuse such concurrence or may grant it absolutely or subject to such amend ments, modifications, stipulations or conditions as he may think necessary in the public interest to make or impose.
Any person who neglects or fails to comply with any such amendment, modification, stipulation or condition so imposed upon him shall be liable to a penalty not exceeding one hundred dollars and to a further penalty not exceeding ten dollars for each and every day such neglect or failure continues.
Any transfer, assignment or other instrument required to be lodged for registration under this subsection, which is not lodged within the time and in the manner prescribed, shall not be registered unless the Minister so approves.

Petroleum (Amendment).

(3) Every transfer, assignment or instru- No. 55,1967

ment which by this section is required to be lodged for registration shall be lodged by such person as may be prescribed.

Any person so prescribed who neglects or fails to lodge any transfer, assignment or instrument in accordance with the requirements of subsection two of this section shall be liable upon conviction to a penalty not exceeding one hundred dollars and to a further penalty not exceeding ten dollars for each and every day such neglect or failure continues.

(4) (a) No transfer or assignment (except an assignment by operation of law) of, and no instrument (whether a sublease, tribute agreement, option contract, mortgage, deed of trust, partner ship agreement, working agreement or any other instrument) affecting, any licence or lease under this Act shall have any force or effect unless it is in writing and is signed by the parties thereto.

Nothing in this paragraph applies to any transfer or assignment or instrument made before the com mencement of this section.

(b) Any transfer, assignment or other instrument required to be lodged for registration under subsection two of this section shall not have any force or effect until it is registered under the provisions of this section.

Nothing in this paragraph applies to any transfer, assignment or other instrument made before the commencement of this section.

(5)	Any person claiming interest in any

licence or lease under this Act may, before the registration of any instrument required by sub section one or two of this section to be registered, lodge with the Minister a caveat in the prescribed

form.

Petroleum (Amendment).

No. 55, 1967	form, and accompanied by the prescribed fee, against such registration. On receipt of such caveat the Minister shall stay registration for twenty-eight days, unless the caveat is sooner withdrawn, but may then register the instrument, unless the person lodging the caveat has obtained and served upon him an order of some competent court forbidding such registration.
(6) Every licence or lease or transfer, assignment or instrument registered, or submitted for registration, and every caveat lodged, under and in accordance with this section as in force before the substitution of this section by the Petroleum (Amendment) Act, 1967, shall be deemed to have been registered, or lodged for registration, or lodged, as the case may be, under and in accord ance with this section as so substituted.
(7) Any amendments, modifications, stipu lations or conditions made or imposed by the Minister at the time of his granting his concurrence or sanction under this section as in force before the substitution of this section by the Petroleum (Amendment) Act, 1967, shall be deemed to be amendments, modifications, stipulations or condi tions imposed by the Minister under this section as so substituted.
(8) Subject to subsection four of this section this section shall apply to licences, leases, transfers, assignments and instruments executed or made before the substitution of this section by the Petroleum (Amendment) Act, 1967, except instruments not required to be registered under this section before such substitution.

(9)	The functions of the Registrar under

this section may be performed by the Deputy

Registrar, Department of Mines, Sydney.

(q)

Petroleum (Amendment)^

(q)

(i)

by omitting from paragraph (a) of subsection No. 55, 1967 one of section forty-one the words “Mining „

Act,	1 9 0 6 -1 9 5 2 ” and by inserting in lieu (disputes

thereof the words “Mining Act, 1906 , as between

amended by subsequent Acts” ;

Scenes or

leases

(ii)

by omitting from paragraph (d) of the same and other

subsection the word

“minerals,”

and

by c a ^ i 'n g on

inserting in lieu thereof the words “minerals; operations

>»,

on land

under

licence

(iii) by inserting next after the same paragraph the or lease.) following new paragraph :—

(e)	the provisions of the State Coal Mines Act, 1912, as amended by subsequent Acts,

(r)	by omitting from paragraph (a) of subsection two sec.42. of section forty-two the word “bore-holes” and by (Suspension

of condi

inserting in lieu thereof the word “wells” ;

tions of

licence or

lease.)

(s)

by inserting next after section forty-two tlie Ng^sec.

following new section ; —

42a.

,, :	42a. (1) The holder of a licence or lease Drilling

,, , under this Act who has commenced drilling opera- operations

•

.,1.

to be carried

tions on the land comprised in the licence oroncon-

demised by the lease shall not, without the consent tinuously.

of the Minister, cease those operations or remove

any drilling rig from the site of those operations.

(2)	A holder of a licence or lease under

this Act who contravenes any of the provisions of subsection one of this section is guilty of an offence against this Act.

(3) A consent given by the Minister under this section may be subject to such conditions and requirements as are specified in the consent.

(4)

p861 15—22

Petroleum {Amendment).

No. 55, 1967

(4)

The holder of a licence or lease under

this Act who fails to comply with, or contravenes, any condition or requirement subject to which a consent was given to him under this section is guilty of an offence against this Act.

Sec. 43.

(t)

by omitting section forty-three;

(Power of

Minister on

application

for re

newal.)

Sec. 45.	(u) (i) by inserting in section forty-five after the
(Saving of

powers to	word “lease” where firstly occurring the words
dispose of	“, or in any easement or right of way,” ;

land.)

(ii)

by inserting in the same section after the word “lease” where fourthly occurring the words “, or any easement or right of way,” ;

Sec. 47.	(v) (i) by inserting in section forty-seven after the
(Operations

on private

word “lease” where firstly occurring the

land.)

words “, or the subject of an easement or

right of way,” ;

(ii) by inserting in the same section after the word “conducted” the words “, and the easement or right of way shall be used,” ;

Sec. 48.	(w) (i) by inserting in section forty-eight after the
(Liability to

compensate	word “lease” where firstly occurring the words
owner or	“, or a person to whom an easement or right of
occupier.)	way has been granted,” ;

(ii) by inserting in the same section after the word “lease” where secondly occurring the words “, or the subject of the easement or right of way,” ;

(iii) by omitting from the same section the words “scout drilling,” ;

(iv) by inserting in the same section after the word “holder” where lastly occurring the words “or by reason of the use of the easement or right of way” ;

(x)

Petroleum (Amendment).

( x )

(i) by omitting from subsection one of section No. 55, 1967

fifty-one the words “scout drilling or” wherever § (̂,7 7“

, •

occurring;

(Compensa

tion before

(ii) by inserting in the same subsection after the ^mmence- word “operations” where secondly occurring ™outdriii-

̂	the words “notify the owner and occupier, if ;°g or driii-

■

any, of the private lands of his intention to p”fvate land

carry out the operations and” ;

HcencO*̂ ^

(y)	(i)	three after the word “lease” where firstly (Compensa-
by inserting in subsection one of section fifty- sec. 53. easement or right of way has been granted,” ;

,	(ii) by inserting in the same subsection after the

,	word “holder” where secondly occurring the

words “or person, as the case may be,” ;

(iii) by inserting in the same subsection after the word “lease” where secondly occurring the words “or such easement or right of way” ;

(iv) by inserting next after the same subsection the following new subsection :—

;

( 1 a )

The holder of a licence or lease under

this Act shall be liable to compensate in accordance with this Act any other holder of a licence or lease whose operations under the licence or lease are detrimentally affected by the grant under this Act of an easement or right of way through, upon or in the land comprised in the licence, or demised by the lease, held by that other holder or by the use of any such easement or right of way.

(v) by omitting from subsection two of the same section the word “Compensation” and by inserting in lieu thereof the words “Subject to

subsection (1a) of this section, compensa

tion” ;

; v''

(vi)

Petroleum (Amendment).

No. 55, 1967

(vi) by inserting in the same subsection after the word “lease” the words or a person to whom an easement or right of way has been granted,” ;

(vii)

by inserting in the same subsection after the word “holder” where secondly occurring the words “or person, as the case may be,” ;

Sec. 55.	(z) by inserting next after paragraph (b) of subsection
(Measure of

compensa	one of section fifty-five the following new (bi) any loss occasioned to the holder of a licence or lease by reason of that holder’s operations under the licence or lease being detrimentally affected by the grant under this Act, to the holder of another licence or lease, of an easement or right of way through, upon or in the land comprised in
tion.)	paragraph :—

/	the licence, or demised by the lease, held by that firstmentioned holder, or by the use of any such easement or right of way;

(aa)	(i) by omitting from subsection one of section

Sec. 56.

(How com	fifty-six the words “Mining Act, 1906-1952”
pensation
assessed.)	and by inserting in lieu thereof the words

“Mining Act, 1906, as amended by sub

sequent Acts” ;

........

(ii) by inserting in subsection three of the same section after the word “lease” the words “, or by the person to whom the easement or right of way has been granted,” ;

(iii) by inserting in subsection four of the same section after the word “holder” the words “, or the easement or right of way granted to the person,” ;

(iv) by inserting in the same subsection after the word “cancelled” the words “or revoked, as the case may be” ;

(V)

Petroleum (Amendment).

(v)

by inserting in subsection five of the same No. 55, 1967 the revocation of an easement or right of way,” ;

(ab) by omitting from section fifty-seven the words Sec. 57.

“Mining Act, 1906-1952” and by inserting in lieu

thereof the words “Mining Act, 1906, as amended provisions

of Act No.

by subsequent Acts’

49, 1906.)

(ac) by omitting subsection three of section sixty-one; gee.61.

(Drilling of

wells with

respect to

wells on

other land.)

(ad) by omitting section sixty-three and by inserting in subst.

lieu thereof the following section :—

sec. 63.

63. (1) The holder of a petroleum exploration Abandon-

licence or a petroleum mining lease shall before n>e>it of

•

n r v l lS *

abandoning a well—

(a)	give to the Minister or an inspector under this Act at least twenty-four hours’ notice of his intention to abandon the well and shall specify in the notice particulars of the method proposed to be used, and the works proposed to be carried out, by the holder in connection with the abandonment of the well; and
(b)	comply with any directions given to him by the Minister or an inspector with respect to the abandonment of the well.

(2 ) Forthwith after the receipt of any such notice the Minister or inspector shall cause particulars thereof to be transmitted to the Sec retary of the Water Conservation and Irrigation Commission.

(3)

Petroleum {Amendment).

No. 55, 1967

(3)

Any such holder shall not, without the

prior consent of the Minister and except in accordance with any directions given to him by the Minister, withdraw or cause to be withdrawn any casing from a well.

Sec. 67.	(ae) by omitting from subsection three of section sixty-
(A^eements

for joint	seven the words “sections twenty-seven and” and
drilling	by inserting in lieu thereof the word “section” ;
of wells.)

Subst.

(af) by omitting section sixty-eight and by inserting in

sec. 68.

lieu thereof the following section ; —

Unit	68. (1 ) In this section, “unit development”, in
develop

ment.

relation to a petroleum deposit, means the co ordination of operations for the recovery of petroleum being carried on or to be carried on in land demised by a lease under this Act in which there is part of that deposit with other operations for the recovery of petroleum being carried on or to be carried on in any other area, whether within the State of New South Wales or not, in which there is part of that deposit.

(2 ) The holder of a lease under this Act may from time to time enter into an agreement in writing for or in relation to the unit development of a petroleum deposit.

(3 ) The Minister, of his own motion or on

application made to him in writing by—

(a)	the holder of a lease under this Act where there is part of a particular petroleum deposit in the land demised by the lease held by that lessee; or
(b)	a person who is lawfully entitled to carry on operations for the recovery of petroleum in an area outside the State of New South Wales that includes part of a particular petroleum deposit that extends into the State of New South Wales,

may,

Petroleum {Amendment).

may, for the purpose of securing the more effective No. ss, 1967

recovery of petroleum from the petroleum deposit, direct the holder of any lease under this Act of land that includes part of the petroleum deposit to enter into an agreement in writing, within the period specified in the instrument, for or in relation to the unit development of the petroleum deposit and to lodge the agreement with him forthwith in accord ance with section thirty-eight of this Act.

(4) Where—

(a)	the holder of a lease under this Act who is directed under subsection three of this section to enter into an agreement for or in relation to the unit development of a petroleum deposit does not enter into such an agreement within the specified period;

(b)

the holder of a lease under this Act enters into such an agreement but the agreement is not lodged for the concurrence of the Minister and for registration in accordance with subsection three of this section or, if so lodged, does not receive the Minister’s concurrence under section thirty-eight of this Act,

the Minister may, by instrument in writing served on the holder of the lease, direct that holder to submit to him, within the period specified in the instrument, a scheme for or in relation to the unit development of the petroleum deposit.

(5)	At any time after the expiration of the

period within which a scheme for or in relation to the unit development of a petroleum deposit is to be submitted by the holder of a lease under this Act under subsection four of this section the Minister may, by instrument in writing served on

the

Petroleum {Amendment).

No. 55, 1967	the holder of the lease, give to the holder such directions as the Minister thinks necessary for the purpose of securing the more effective recovery of petroleum from the petroleum deposit.
(6) Where there is part of a particular petroleum deposit in lands demised by two or more leases imder this Act held by the same person, the Minister may, after consultation with the holder of the leases, by instrument in writing served on the holder, give to the holder such directions as the Minister thinks necessary for the purpose of secur ing the more effective recovery of petroleum from the petroleum deposit.
(7) Where an agreement under this section is in force or the Minister has given directions under subsection five or six of this section, the Minister may, having regard to additional information that has become available, and after consultation with the holder of the lease or the holders of the leases concerned, by instrument in writing served on the holder or holders, give to the holder or holders such directions, or further directions as the case may be, as he thinks necessary for the purpose of securing the more effective recovery of petroleum from the petroleum deposit.
(8) Directions under subsection five, six or seven of this section may include directions as to the rate at which petroleum is to be recovered.
(9) An agreement under this section is an instrument to which section thirty-eight of this Act applies.

Sec. 69.

(ag) by omitting from section sixty-nine the word “bore

(Notification	hole” wherever occurring and by inserting in lieu
of intention
to drill.)	thereof the word “well” ;

(ah)

Petroleum (^Amendment).

(ah) (i) by omitting from subsection one of section No. 55,1967

seventy-two the words “bore cores” wherever occurring and by inserting in lieu thereof the word “cores” ;

of strata,

petroleum

(ii)

by omitting from paragraph (a) of the same and water.) occurring and by inserting in lieu thereof the word “weU”.

Part IV of the Principal Act is amended—

Further

amendment

of Act No.

28, 1955.

(P artly —

Inspection

and

Control.)

(a) (i) by inserting in section seventy-four after the Sec. 74.

word “lease” where firstly occurring the words (Authority

or the subject of an easement or right of onlarfd.)

way.” ;

(ii) by inserting in the same section after the word “lease” where secondly occurring the words “or easement or right of way” ;

(b)

by omitting from subsection one of section seventy- sec. 75.

five the words “scout drilling or” ;

(Appoint

ment of

manager.)

(c)

by inserting in paragraph (a) of section seventy-5gg 75

six after the word “lease” the words

or on any (Health

land the subject of an easement or right of way “ i*

granted to him under this Act,” ;

sa e y.

(d) (i) by inserting in subsection one of section Sec. 77. seventy-seven after the word “lease” where (Notice firstly occurring the words “, or with the use

of any easement or right of way” ;

cause of danger.)

(ii) by inserting in the same section after the word “manager” the words “or to the person to whom the easement or right of way was

granted” ;

(e)

Petroleum {Amendment).

No. 55, 1967

(e) (i) by inserting in subsection one of section

Sec. 78.	seventy-eight after the word “lease” where
(Accidents.)	secondly occurring the words or with the use of an easement or right of way under this Act” ;

(ii) by inserting in the same subsection after the word “holder” where secondly occurring the words “or the person to whom the easement or right of way was granted” ;

(iii) by inserting in subsection two of the same section after the word “manager” the words “and the person to whom any easement or right of way was granted” ;

(iv) by inserting in the same subsection after the word “aforesaid” the words “or with the use of the easement or right of way” ;

Sec. 79.

(f) (i) by inserting next after subsection one of

(Power of	section	seventy-nine	the	following	new
Minister to

do works	subsection :—
required by

this Act.)

( 1 a ) If a person to whom an easement or

right of way has been granted under this Act fails or refuses to comply with any lawful instruction or direction given to him under this Act or to carry out any operations or do any act in accordance with the requirements of any provision of this Act applicable to him, the Minister may by his workmen or agents enter on the land the subject of the easement or right of way and carry out any works specified in the instructions or direction, or carry out those operations or do that act, at the expense of that person.

(ii) by inserting in subsection two of the same section after the word “one” the word and symbols “or (1a) ” ;

(iii)

Petroleum (Amendment).

(iii)

by omitting from the same subsection the No. 55, 1967 thereof the words “the person to whom the instructions were or the direction was given”.

6 .

Part V of the Principal Act is amended—

Further

amendment

of Act No.

28.1955.

(Part V—

Miscel

laneous.)

(a)

by omitting from subsection one of section eighty-gee. si.

one the word

royalties” wherever occurring;

(Fees,etc.,

(b)

by omitting from subsection two of the same section duêda'teô the word “, royalty”.

APPROPRIATION