Petroleum Regulations 1992 (Vic)

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Version No. 011

Petroleum Regulations 1992

S.R. No. 120/1992

Version incorporating amendments as at 27 April 1998

TABLE OF PROVISIONS

Regulation Page

PART 1—PRELIMINARY 1

101. Title 1
102. Commencement 1
103. Objectives 1
104. Authorising provisions 1
105. Revocation 1
106. Definitions 2

PART 2—GENERAL 9

201. Information to be provided about an operator 9
202. Certificate of competence 9
203. Personnel qualifications and performance 9
204. Tests 10
205. General duties and responsibilities of title holders, operators and

contractors 10

206. Responsibility for contractors 10
207. Availability of information 10
208. Protection of the environment 11
209. Powers of inspectors 14
210. Procedures manual 15
211. Emergency response procedures 15
212. Updating of the procedures manual and emergency response

procedures 16

213. Person-in-charge 16
214. Communications 16

PART 3—TITLES AND FEES 17

301. Application for permit 17
302. Bond 17
303. Transfer of interest 17
304. Prescribed fee for transfer of interest 17

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305. Extension of permit 17
306. Form of permit 18
307. Application for lease 18
308. Publishing of notice 18
309. Objection to grant of lease 18
310. Inquiry into objection 19
311. Adjournment of inquiry 19
312. Hearing of parties 19
313. Record of absence of parties 20
314. Copy may be made of evidence 20
315. Finding of inquiry 20
316. Further inquiry 20
317. Form of lease 20
318. Fees 20
319. Prescribed time 21
PART 4—REPORTS, RETURNS AND DATA SUBMISSION

REQUIREMENTS 22
Division 1—General 22

401. Annual reports 22
402. Reporting of death and serious injury 22
403. Written records of death and injury 23
404. Reporting serious damage 23
405. Reporting potentially hazardous event 24
406. Reporting damage less than $50 000 25
407. Reporting escape or ignition of petroleum and other material 25
408. Reporting of emergencies 26
409. Reporting radiation monitoring 26

Division 2—Geophysical and Geochemical Activities 27

410. Weekly reports 27
411. Data preservation 27
412. Basic data submission 27
413. Final reports on geophysical or geochemical surveys 30

Division 3—Drilling and Workover 31

414. Discovery of petroleum and estimate of petroleum in-place 31
415. Daily report of drilling or workover operations 32
416. Report on modification, abandonment or suspension of well 32
417. Final report on wells 32
418. Special studies 34

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Division 5—Petroleum Production 35

419. Program of work 35
420. Estimate of recoverable and in-place petroleum 35
421. Monthly production return 36
422. Measurement relating to commingled production 37
423. Underground storage return 37
424. Royalty return 38
425. Production facility maintenance reports 38
426. Records of periodic inspections 39
427. Reports on wireline surveys and sub-surface safety valves 39
428. Reports on an Approved Scheme 40
429. Reservoir Data 40

PART 5—ELECTRICAL 41

501. Application 41
502. Wiring Rules 41
503. Protection of circuits 41
504. Electricians and inspection of electrical equipment 41
505. Earthing and lightning protection 42
506. Control of static electricity 43
507. Welding 43
508. Electrical shock 43

PART 6—GEOPHYSICAL AND GEOCHEMICAL SURVEYS 44

601. Method of application 44
602. Authorisation 44
603. Modification of survey 45
604. Consent of land owner 45
605. Energy source 45
606. Prevention of damage to property 45
607. Pipeline Crossed by a Seismic Line 46
608. Marking Seismic Lines 46

PART 7—DRILLING AND WORKOVER 47

701. Approval to drill 47
702. Equipment standards 48
703. Location surveys 48
704. Prohibited drilling areas 49
705. Casing 49
706. Cementing of casing 50
707. Blow-out prevention control 51
708. Pressure testing blow-out prevention equipment 52
709. Mud monitoring system 52

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710. Penetration rate recorder 52
711. Accumulators 53
712. Blow-out prevention drill 53
713. Formation integrity testing 53
714. Drilling fluid 53
715. Deviation surveys 54
716. Directional drilling 54
717. Conversion of a well into a water well 54
718. Oil or gas lost or used during repair operations 54
719. Evaluation of an occurrence of petroleum 55
720. Cores, cuttings and fluid samples 55
721. Reports on analysis of cores and cuttings 55
722. Age dating of samples 55
723. Fluid samples 56
724. Well evaluation logs 56
725. Formation and water shut-off test 57
726. Protection of aquifers 57
727. Production or drill stem tests on exploration or production wells 57
728. Flammable vapours 58
729. Approval to abandon or suspend a well 58
730. Well completion 60
731. Disposal of produced oil and gas 60
732. Disposal of waste fluids 60
733. Replacement of well site fencing 61
734. Restoration of site 61
735. Special services 61

PART 8—PETROLEUM PRODUCTION 62

801. Consent for recovery of petroleum 62
802. Other operations 62
803. Equipment to comply with good oilfield practice 62
804. Construction approval 63
805. Siting of production equipment 63
806. Progress report of construction and installation 63
807. Initial production tests 63
808. Reservoir Management Plan 65
809. Evaluation of potential for retrograde condensation 66
810. Rate of recovery of petroleum 67
811. Monitors and control mechanisms 67
812. Production tests on producing wells 67
813. Gas reservoir and well performance monitoring 68
814. Oil reservoir pressure build-up surveys 69
815. Production measurement 70
816. Measurement of production to determine royalties 71
817. Concurrent production 71
818. Pressure below bubble point 72

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819. Surface connections 72
820. Production from more than one reservoir from one well 72
821. Production from more than one reservoir from more than one

well 72

822. Segregation of zones 73
823. Prevention of cross flow 74
824. Evaluation of the potential of an oil reservoir to respond to

enhanced recovery 825. Waste or contamination

74
75
826. Waste liquid 76
827. Disposition of gas 76
828. Approval to vent or flare 76
829. Control of quality of discharge water 76
830. Subsurface safety devices 77
831. Workover of wells 77
832. Wireline operations in wells 78
833. Sampling petroleum streams 78
834. Meter proving 78
835. Protection of completed wells 79
836. Plugging of wells 79
837. Application for consent for gathering lines 79
838. Underground storage of petroleum 80
839. Removal of facilities 80
840. Restoration of lands 81

PART 9—TRANSITIONAL PROVISIONS 82

901. Continuity of title 82
902. Continuity of title conditions 82
903. Continuity of application 82
904. Continuity of consent or approval 82

__________________

SCHEDULES 83
SCHEDULE 1—Regulations Revoked 83
SCHEDULE 2—Forms 85
Form 1—Application for Petroleum Exploration Permit 85
Form 2—Bond in respect of Petroleum Exploration Permit/Petroleum

Lease 87

Form 3—Transfer of Petroleum Exploration Permit/Petroleum Lease 88
Form 4—Petroleum Exploration Permit 89
Form 5—Application for Petroleum Lease 90

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Form 6—Notice of Application for Petroleum Lease 91
Form 7—Petroleum Lease 92

═══════════════

NOTES 94
1. General Information 94
2. Table of Amendments 95
3. Explanatory Details 96

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Version No. 011

Petroleum Regulations 1992

S.R. No. 120/1992

Version incorporating amendments as at 27 April 1998

PART 1—PRELIMINARY

101. Title
These Regulations may be cited as the Petroleum
Regulations 1992.

102. Commencement
These Regulations come into operation on 1 July
1992.

103. Objectives
The objectives of these Regulations are to—

(a) ensure the development of effectively managed petroleum operations with a minimum adverse impact on individuals, the
environment and public amenity; and

(b)

maximise petroleum exploration and production with minimum loss of the petroleum resource; and

(c)

prescribe forms, fees and other matters necessary for the administration of the Act.

104. Authorising provisions
These Regulations are made under sections 28, 29, 30, 32, 33, 33A, 34, 41, 44, 45, 47, 48, 49, 51, 52, 56, 59, 64, 67, 70, 75, 76, 79 and 82 of the
Petroleum Act 1958.

105. Revocation

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The Regulations listed in Schedule 1 are revoked.
106. Definitions
In these Regulations—
"Act" means the Petroleum Act 1958;
"approved" means approved by the Minister
under any relevant provision of the Act;

"basic data" means all data acquired in the field

or laboratory including physical and
chemical measurements conducted as part of
the analysis of fluid or core and cutting
samples;

"circulation" means the passing of fluid down

the drill pipe, casing or tubing in a well and
back up to the surface, or the passing of fluid
in the reverse direction;

"completion" means a flowpath in a well that
allows—
(a) the production of fluids from a discrete
formation interval through the well; or
(b) the injection of fluids into a discrete
formation interval through the well—

and includes the equipment necessary for
that production or injection independent of
other flowpaths in the well;

"conductor casing string" means a pipe installed

to cover unconsolidated surface formations,
and which may provide a means for return of
drilling fluid from the well before surface
casing is installed;

"contractor" means a person engaged to perform

work for an operator or titleholder under
contract (not being a contract of
employment);

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"datum" in relation to reservoir pressure means

the depth to which all pressure
measurements are converted for comparison
with each other;

"development well" means a well drilled within

the expected limits or boundary of a
petroleum accumulation that is already
proved and that is drilled principally to
produce, or to facilitate the production of,
the petroleum reserves from that
accumulation;

"directional drilling" in relation to drilling a

well, means drilling that involves intentional
changes in the direction of drilling;

"document" for the purposes of regulation 318
means an assignment, assumption or transfer and insofar as they affect the transfer of title a joint venture operating agreement,
hydrocarbons sale agreement, override
royalty agreement, registration of mortgage
and letter of intent;

"drilling rig" includes a workover or well-

service rig, but does not include a shot hole
drilling rig;

"enhanced recovery" means increasing the
recovery of petroleum from a reservoir so that it produces a quantity greater than the quantity that would have been achieved by the action of natural reservoir energy on the
naturally occurring reservoir fluids, but does
not include fracture stimulation, localised
wash treatments, or artificial lift;

"exploration well" means a well drilled to search for natural accumulations of oil or gas;

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"flowing well" means a well from which oil, gas

or water is produced without the use of
artificial lifting equipment;

"fluid interface" means the surface of the meeting of any two fluids;
"gathering line" means a pipeline as described in section 30(10) of the Act;
"geochemical survey" means a method for the

detection of abnormal concentrations of
hydrocarbons in soil;

"geophysical survey" means an operation used in

the study of the subsurface by seismic,
gravimetric, magnetic, electrical or
radioactive methods;

"good oilfield practice" means all those things

that are generally accepted as good and safe
in the carrying on of explorations for
petroleum, or in operations for the recovery
of petroleum as the case may be;

"inspector" means a person authorised by the
Minister under sections 41, 49, 51 or 70 of the Act to enter upon land which is the subject of any title under the Act to obtain information and undertake examinations and inspections for the purposes of determining whether the requirements of the Act, these Regulations and the title are being observed;

"multiple completion well" means a well that has more than one completion;
"operation" or "petroleum operation" means

any activity relating to exploration for, or the
production, processing or transportation of,
petroleum under the Act;

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"operator" means the person appointed by the titleholder to be responsible for the overall management and control of operations for the purposes of these Regulations;
"person-in-charge" means a person appointed by

an operator or titleholder to provide on-site
management and control of any specified
operation in the title area;

"plant" means—
(a) any building, structure, works,
machinery (whether fixed or mobile),
equipment, vehicle, implement, tool or
article used in, or in connection with,
an operation; or

(b) any tank, vessel, pit or dump used in, or in connection with, an operation; or
(c) any pipeline or gathering line;

"procedures manual" means a manual adopted
by the titleholder and operator which contains approved work practices and procedures to ensure a proper working environment;

"process vessel" means a vessel used to process

fluids or solids by mechanical, fluid
mechanical, chemical, thermal or other
means;

"production facility" means a system (other than
a short-term or temporary system) made up of plant (other than pipelines) that is used in a production, processing or transportation
operation, or in an operation to treat or
dispose of waste materials that result from
petroleum production;

"production potential" means the capacity of a
well to produce oil, gas or water, calculated

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or measured in accordance with approved
procedures;
"reservoir" means any hydraulically continuous porous and permeable rock that is capable of storing fluids and yielding them to a well;
"reservoir management plan" means a plan

prepared using scientific principles during
the development of oil and gas reservoirs to
obtain the maximum economic recovery of
petroleum;

"reservoir measurements" means measurements

of reservoir pressure and temperature, and
measurements of the movement of fluids and
fluid interfaces within a reservoir;

"reservoir pressure" means the static or

stabilized pressure that exists, or that is
presumed to exist, in a reservoir at a given
datum;

"retrograde condensation" means the
condensation of petroleum fractions in a well
which occurs as a result of a pressure
reduction at constant temperature;

"seismic source" means an energy source used to

create shock waves in the earth so that the
reflections may be recorded when
investigating subsurface strata;

"shot hole" means a hole drilled for the purpose

of generating a sound pulse from an
explosive charge or other energy source;

"special services" include well logging,

perforating, testing, cementing or portable
laboratory services, power-tong services,
wireline services, coiled tubing operations,
acidizing, fracturing artificial lift or similar
services carried out at a well location;

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"spud" means to commence drilling an oil well;
"title" means a current lease or permit;
"title area" means the area that is the subject of a

title granted under the Act;

"titleholder" means the person which holds a

title issued under the Act or the persons
which jointly hold a title issued under the
Act;

"well" means a hole in the ground that is made for the purpose of—
(a) searching for, or producing, petroleum;
or

(b) underground petroleum storage; or (c) injecting fluid into an underground
petroleum reservoir; or

(d) disposing of waste fluids that result
from production operations—

and includes any casing or down hole
equipment used in conjunction with the well
and any wellhead that is installed in or on the
hole from time to time, but does not include
a water bore or a seismic shot hole;

"wellhead" means the casing head and includes

any casing hanger or spool, or tubing hanger,
and any flow control equipment up to and
including the wing valves;

"well logging" means recording one or more

physical properties, formation characteristics
or reservoir measurements as a function of
depth of a well;

"workover of a well" or "workover operation"

means maintenance work carried out on a
production or injection well in order to

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improve productivity or to remedy some
defect;
"worksite" means any area covered by a title where work is being done.

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PART 2—GENERAL

201. Information to be provided about an operator
(1) The titleholder must prior to the commencement

of any operations nominate an operator and
provide to the Minister evidence of—

(a)

the technical qualifications of the operator and the operator's advisers; and

(b)

the operator's ability to comply with the conditions of the title and the provisions of the Act and Regulations.
(2) The titleholder must immediately advise the
Minister of any change in operator and provide the information specified in sub-regulation (1) for the new operator.
(3) A titleholder which holds a title in full or part may be nominated as the operator.
(4) If a titleholder does not nominate an operator then

the titleholder will be responsible for ensuring
compliance with those provisions of these
Regulations which refer to an operator.

202. Certificate of competence
The titleholder must ensure that where a person carries out an activity for which that person is required to have a certificate of competence, an authorization or a qualification by a law of the State such person must have such certificate, authorization or qualification.

203. Personnel qualifications and performance
For the purposes of ensuring that any operations undertaken in the title area are carried out in a good and workmanlike manner and by safe and satisfactory methods, an inspector may require a titleholder to give any information the inspector

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reasonably considers necessary to enable him or

her to determine if a person is competent to be
engaged on any activity or work carried out in
performance of operations in the title area.

204. Tests
The titleholder must ensure that in addition to any other requirements specified in these Regulations any test required under these Regulations is
carried out in accordance with good oilfield
practice.
205. General duties and responsibilities of title holders, operators and contractors
(1) Where an operator or contractor has been engaged to perform work under the title, the operator or contractor must provide, install and maintain such plant as is necessary to ensure compliance with these Regulations.
(2) The titleholder must, so far as is reasonably
practicable employ or engage persons who are suitably qualified in relation to the work being performed.
(3) Any contractor must, so far as is reasonably
practicable employ or engage persons who are suitably qualified in relation to the work being performed.

206. Responsibility for contractors
The provisions of these Regulations regarding employees apply to the operator's contractors and the contractors employees working in the title area as if those contractors and their employees are employees of the operator.

207. Availability of information
(1) The titleholder must take all reasonable steps to ensure that a copy of the following is readily

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available at all times to every person working in
the title area for which the titleholder is
responsible—
(a) these Regulations; and

(b) a copy of the Code of Environmental Practice approved under these Regulations; and
(c) the procedures manual referred to in regulation 210; and
(d) the emergency response procedures referred to in regulation 211.

(2) The titleholder must ensure that, so far as is practicable, each employee is aware of and understands the requirements of the documents
specified in sub-regulation (1) including any
approved amendments to them, as applicable to
the employees area of responsibility.
(3) The operator must take reasonable steps to ensure that every supervisor of a worksite or of a portion of a worksite must, on changing shift, inform the next supervisor, orally or in writing, of the state of
the operation, plant and equipment in the part of
the worksite for which that person is immediately
responsible.
208. Protection of the environment
(1) The titleholder must take reasonable steps to
ensure operations are carried out in a manner that minimises any adverse impact on the environment or property.
(2) A titleholder must take reasonable steps to ensure that all operations and the activities of employees and contractors comply with the approved Code
of Environmental Practice required by sub-
regulation (3).

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(3) The titleholder must submit for the approval of the
Minister an Environmental Code of Practice and an Environmental Report at least 6 weeks before the commencement of—
(a) geophysical or geochemical operations; or
(b) drilling operations; or
(c) the construction of a production facility.

(4) Despite sub-regulation (3) in the event of

unforeseen circumstances that justify the making
of a late application, the Minister may, at the
titleholder's request, permit an application to be
submitted less than 6 weeks before the proposed
commencement of activities.

(5) The Environmental Code of Practice must contain, where relevant, procedures that are proposed—

(a) to protect wildlife, livestock, flora and sites of natural significance; and
(b)
to protect all Reserves, geological areas including but not limited to land that—
(i) has a declaration in force under the Aboriginal and Torres Strait Islander Heritage Protection Act 1984; or

(ii)
Archaeological and Aboriginal Relics
Preservation Act 1972 or contains
is an archaeological area under the registered under section 10(a) of that Act.

(c)

to minimize disturbance of the land surface; and

(d)

to clean up and rehabilitate any areas disturbed by the operation.

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(6) An Environmental Report must contain where relevant the following information—
(a) name and type of activity; and
(b) crew size and equipment to be used; and

(c) description of natural environment with particular reference to the physical and biological environments and present land
use; and

(d) a list of the areas and items referred to in sub-regulation (5)(b) within or immediately adjacent to the activity area; and
(e) the area of any Crown land or internal waters involved and the name of the Minister or other person or body responsible for the management of the land under any statute in respect of the area; and
(f) details of any discussion or liaison carried out with any bodies or groups with an interest in environmental issues; and
(g) a concise evaluation of the environmental effects, and the measures proposed to avoid or minimise environmental effects; and
(h) any procedures proposed to monitor the impact on the environment; and
(i) any reference material necessary to understand the above information.

(7) In the case of ongoing operations, the Code and Report must be—

(a) reviewed by the titleholder every 3 years; and

(b) resubmitted to the Minister for approval. (8) Despite sub-regulation (7) in the event of

unforeseen circumstances that justify an

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extension, the Minister may, on the request of the
titleholder, grant an extension of time not
exceeding one year in which to resubmit the Code
and Report as required by sub-regulation (7).

209. Powers of inspectors

(1) Where an inspector is of the opinion—

(a) that work being carried out under a title—

(i)
these Regulations, the approved
is contravening a provision of the Act, Code of Environmental Practice; or

(ii) is dangerous; or

(iii) is not in accordance with good oilfield practice—
the inspector may, by a notice in writing, refer the
matter to the relevant titleholder.
(2) The notice must specify a day by which the

titleholder must report to an inspector on the
action taken in relation to the notice.

(3) The Minister may on the advice of an inspector—

(a)

by notice direct that no further work may be carried out until the matter referred to in the notice is remedied; and

(b)

by further notice give directions as to the measures to be taken to remedy the matter referred to in the notice, including—
(i) that plant be repaired or replaced; and
(ii) that any part of the environment be restored or rehabilitated.

(4) When the Minister is satisfied that the matters

referred to in the notice issued under sub-
regulation (3) have been remedied, the Minister

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may issue a notice permitting the resumption of
work.
(5) A person must not prevent an inspector from entering any area in a title area.
210. Procedures manual
The titleholder must ensure that the work is in accordance with the procedures specified in an approved Procedures Manual.

211. Emergency response procedures

(1) A titleholder must ensure that operations are not
is responsible unless there are approved

carried out on a worksite for which the titleholder the procedures to be followed and actions to be taken, and identifies the persons to be responsible for following these procedures and taking these actions, in the event of an emergency arising during the operations by reason of—
(a) the escape or ignition of petroleum; or
(b) serious injury to a person; or

(c) any other emergency associated with the operations.

(2) In the event of an emergency of a kind identified in sub-regulation (1) arising, the titleholder must take reasonable steps to ensure that operations are,
where applicable, carried out in accordance with the emergency response procedures referred to in sub-regulation (1).
(3) This regulation does not prevent or restrict a

person taking emergency action to protect any
person or property, although if emergency action
is taken, the titleholder must provide a report to
the Minister as soon as practical after the event.

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212. Updating of the procedures manual and emergency response procedures
(1) The titleholder must update the procedures manual and emergency response procedures as required by changed circumstances or as required by the Minister to accord with good oilfield practice.
(2) The titleholder must submit any update of the procedures manual and emergency response procedures to the Minister for approval.

213. Person-in-charge
(1) The titleholder must ensure that the name of the

person-in-charge of any operation is clearly
displayed on the site of that operation.

(2) The person-in-charge must ensure to the best of his or her ability that all personnel in his or her charge know and comply with all relevant
Regulations and safety procedures applicable to the operations under his or her control.
214. Communications
(1) The titleholder must ensure that radio or telephone
communication facilities are established at each main operational location, main tank farm, main pumping station, main compressor station and at any location where there is well drilling or well servicing operations.
(2) The titleholder must ensure that all
communication equipment is maintained in good
working condition.

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PART 3—TITLES AND FEES

301. Application for permit
The prescribed form of application for a
petroleum exploration permit is Form 1 in
Schedule 2.

302. Bond
For the purposes of section 44 and 64(6) of the
Act the prescribed form of bond is Form 2 in
Schedule 2.

303. Transfer of interest
The form for approval of a transfer of a
titleholder's interest in a title is Form 3 in
Schedule 2.

304. Prescribed fee for transfer of interest
(1) An application for consent to transfer or for
devolution of title lodged by the titleholder must be accompanied by the appropriate fee set out in regulation 318.
(2) At least 2 copies of all documents lodged for

consent to transfer must be included in the
application.

305. Extension of permit
(1) An application for the extension of a permit must state whether the applicant desires the extension for the whole or part of the land comprised in the permit.
(2) If extension in respect of part only is applied for,

such area must be defined in accordance with
section 64(4) of the Act.

(3) An application under sub-regulation (1) must be lodged 30 days before the permit expires.

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306. Form of permit
A petroleum exploration permit must be in the form of Form No. 4 in Schedule 2.

307. Application for lease
An application by a titleholder for a lease made on or after the commencement of these Regulations must be in the form of Form 5 in Schedule 2.

308. Publishing of notice
(1) The applicant must as soon as practicable publish a notice that the applicant has made an application to the Minister in the form of Form 6 in
Schedule 2—
(a) in the Government Gazette;

(b) in a Wednesday edition of a daily newspaper circulating generally in Victoria; and
(c) in a local newspaper, if there is a local newspaper which circulates in the locality of the area of the lease application.

(2) The applicant must as soon as practicable provide

written advice to the owners and occupiers of all
land within the area of the application that the
applicant has made an application to the Minister
in the form of Form 6 in Schedule 2.

309. Objection to grant of lease
A person desiring to object to the grant of a lease must lodge with the Minister within 30 days of the publication of the notices referred to in regulation 308, written notification stating the particulars of his or her objection.

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310. Inquiry into objection
(1) If an objection to an application is lodged, the
Minister may require an inquiry to be held or give a ruling without an inquiry.
(2) If an inquiry is to be held under sub-regulation (1)

the Minister, or the person appointed by the
Minister to conduct the inquiry, must—

(a)

as soon as practicable give the applicant and the objector at least 5 clear days notice, and hold an inquiry; and

(b)

request information from the applicant and objector as to any matter connected with the application he or she may think proper; and

(c)

mark for identification all documentary evidence produced, and take possession of it, or of certified copies of it; and

(d)

where the inquiry is conducted by a person other than the Minister, forward to the Minister the evidence (written and documentary) with his or her observations and opinion.
311. Adjournment of inquiry
An inquiry may be adjourned from time to time by the Minister or person conducting the inquiry.

312. Hearing of parties
(1) The applicant and the objector must be given an

opportunity to be heard at the inquiry or any
further inquiry.

(2) The applicant and the objector may be heard at the

inquiry or any further inquiry personally or by
counsel or solicitor or agent.

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313. Record of absence of parties
The Minister or person conducting the inquiry must cause to be noted in the record of evidence the absence of any party and any reason offered for the absence.

314. Copy may be made of evidence
The applicant or the objector may make a copy of any evidence given before an inquiry held under these Regulations.

315. Finding of inquiry
The Minister must give written notice of the decision of the inquiry to the applicant and objector.

316. Further inquiry
The Minister may, as often as he or she considers necessary hold any further inquiry, and the provisions of regulations 310 to 315 inclusive apply to any further inquiry.

317. Form of lease
A lease granted by the Governor in Council on or after the commencement of these Regulations must be in the form of Form 7 in Schedule 2.

Reg. 318

318. Fees amended by
S.R. No.

The fees payable under the Act are— 176/1995
reg. 4(a)–(c).

Permit processing fee $3150

Application for consent to transfer permit

$525 per document
Application for consent to register an $63
amendment to the holder of a permit or lease
occurring by devolution of title whether
transfer occurs by operation of law or
otherwise

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r. 319

S.R. No. 120/1992

Lease processing fee $3150

Application for consent to transfer lease

$525 per document
319. Prescribed time
For the purposes of section 59(2) of the Act the prescribed time is 14 days.

_______________

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S.R. No. 120/1992 r. 401

PART 4—REPORTS, RETURNS AND DATA SUBMISSION

REQUIREMENTS

Division 1—General

401. Annual reports
(1) An annual report must be made available to the
Minister not later than 90 days after the expiration of the period to which it relates.
(2) The annual report must include—

(a) a general discussion of permit status and operations carried out (including office studies);
(b) technical conclusions derived from the year's operations; discussion on delineated possible prospects and leads and detailed discussion
on the hydrocarbon prospectivity of the
permit;
(c) a list of reports submitted during the year; (d) an outline of work plans for the next year;

(e) current and appropriately scaled
interpretation maps;
(f) survey statistics;
(g) a summary of annual expenditure;

(h)

any other relevant information relating to the operation as the Minister directs.

402. Reporting of death and serious injury
(1) In this regulation and regulations 403 and 404 a
"serious injury" means an injury which requires
immediate attention by a medical practitioner.

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r. 403

S.R. No. 120/1992

(2) The titleholder must ensure that where a person dies or suffers a serious injury—

(a)

a report of the death or injury is immediately made to an inspector; and

(b)

a report in writing giving full particulars of the death or injury and all related circumstances is transmitted to the Minister within 5 days after the occurrence of the death or injury.

403. Written records of death and injury
(1) The titleholder must ensure that a record is kept of

each death and injury, whether or not a serious
injury, suffered by a person including—

(a) particulars of the death or injury; and

(b) the circumstances leading to the occurrence of the death or injury; and
(c) the treatment (if any) given to the injured person and the name of each medical practitioner (if any) consulted in relation to the injury.
(2) The titleholder must ensure that a copy of the records, referred to in sub-regulation (1), are submitted to the Minister not later than the 21st
day of each month covering injuries that occurred during the previous calendar month together with such statistical analyses and injury indices as the Minister determines.

404. Reporting serious damage
(1) In this regulation and regulations 405 and 406
"serious damage to property" means—

(a)

the loss or destruction of property with a value exceeding $50 000; or

23
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S.R. No. 120/1992 r. 405

(b) damage to property, the repair of which damage would cost an amount exceeding $50 000; or
(c) the loss or destruction of any property, or any damage to property, by reason of which any person dies or suffers serious injury.
(2) The titleholder must ensure that where serious damage to property occurs—

(a) a report of each occurrence is immediately made to an inspector; and
(b) a report in writing of each occurrence is submitted to the Minister within 5 days of the incident occurring, specifying—
(i) the date, time and place of the occurrence;

(ii) particulars of the damage;
(iii)  the events so far as they are known or suspected that caused or contributed to the occurrence;
(iv)  particulars of repairs carried out or proposed to be carried out to damaged property;
(v)  measures taken, or to be taken, to prevent a possible recurrence.

405. Reporting potentially hazardous event
The titleholder must ensure that where an event occurs which is not in the normal or ordinary course of a particular operation and which is professionally considered to be likely to cause injury to a person or serious damage to property, but such event does not cause injury or serious damage—

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S.R. No. 120/1992

(a)

a report of the event is immediately made to an inspector; and

(b)

a report in writing of the event is submitted to the Minister not later than the 21st day of the month following the month in which the event occurred specifying measures taken or to be taken to prevent a possible recurrence.
406. Reporting damage less than $50 000
The titleholder must ensure that where damage to property occurs which is not serious damage to property but which results in a significant loss of structural integrity or load bearing capacity in the property damaged or results in some other significant unsafe condition—

(a) a report of the damage is immediately made to an inspector; and
(b) a report in writing of the event is submitted to the Minister within 5 days of the event specifying measures taken or to be taken to prevent a possible recurrence.

407. Reporting escape or ignition of petroleum and other material
(1) The titleholder must ensure that a report is immediately made to an inspector upon the occurrence of—

(a) a spillage of hydrocarbons which in areas of inland waters is in excess of 80 litres and in other areas in excess of 500 litres; or
(b) an escape of petroleum in a gaseous form in excess of 500m3; or
(c)
petroleum or any other flammable or
any uncontrolled escape or ignition of hazardous situation.

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Petroleum Regulations 1992

S.R. No. 120/1992 r. 408
(2) The titleholder must ensure that a report in writing of any occurrence referred to in sub-regulation (1) is submitted to the Minister within 5 days
specifying—

(a)

the date, time and place of the occurrence; and

(b)

the quantity or approximate quantity of liquid that escaped or burned; and

(c)

particulars of damage caused by the escape or ignition; and

(d)

the events so far as they are known or suspected that caused or contributed to the escape or ignition; and

(e)

particulars of methods used to control the escape or ignition; and

(f)

particulars of methods used or proposed to be used to repair property damaged by the escape or ignition; and

(g)

measures taken, or to be taken, to prevent a possible recurrence of the escape or ignition.

408. Reporting of emergencies
Any emergency must be reported immediately to an inspector and a written report must be sent to the Minister within 5 days.

409. Reporting radiation monitoring
Where by any legislation relevant to radiation control a report is prepared in respect of the monitoring of radiation in connection with petroleum operations, a copy of that report must be sent to the Minister within 5 days.

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r. 410

S.R. No. 120/1992

Division 2—Geophysical and Geochemical Activities

410. Weekly reports
(1) The titleholder must ensure that a weekly report is

sent to the Minister stating progress of a
geophysical or geochemical survey.

(2) When a survey has been completed, a summary

stating the start and completion dates and the
number of kilometres or samples acquired
(including geochemical samples) must also be
sent.

411. Data preservation
For the purposes of section 70 of the Act the titleholder must ensure that where a geophysical or geochemical survey has been carried out, all basic data pertinent to the survey and all original records obtained in the field as a result of the survey are properly stored and maintained so as to prevent undue deterioration.

412. Basic data submission

(1) The titleholder must ensure that when a

geophysical or geochemical survey has been
carried out the relevant information set out in sub-
regulations (2), (3) or (4) is made available as
soon as practicable, but in any event within 90
days of completion of processing of data, or not
less than 90 days prior to the last day of the
current term of the title, whichever period is less.
(2) Where a gravity or magnetic survey has been
carried out in accordance with sub-regulation (1), there must be made available where applicable—

(a)

one copy of processed magnetic tapes of both located and gridded data accompanied by an explanation of their format that enables their processing;

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Petroleum Regulations 1992

S.R. No. 120/1992 r. 412

(b) one stable base transparent copy of Bouguer gravity, free air gravity, total magnetic intensity and, if prepared, vertical gradient and residual contour maps;
(c) one stable base transparent copy of computer generated profile data;
(d) one copy of analog monitor records, diurnal records and altimeter records;
(e) any relevant maps or profiles which if made available under this regulation must annotate line position, line number, registration marks and processing parameters.
(3) Where a seismic survey has been carried out there must be made available—

(a) one copy of field tapes accompanied by observer's logs with an explanation of the recording format to enable their processing; and
(b) one stable base transparent copy of both a single survey and composite shotpoint location map together with one copy of magnetic tapes or other digital media of shotpoint co-ordinates and elevations; and
(c) one stable base transparent copy of final processed sections having a vertical scale of 10 cm/sec, and, if prepared, migrated sections.

(4) Where a 3 dimensional seismic survey has been carried out there must be made available where applicable—
(i) data submissions as specified in sub- regulation (3); and

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S.R. No. 120/1992

(ii)  one copy of final stacked migrated tapes, in a format suitable for loading onto interactive work stations for interpretation.
(5) All records lodged must be clearly labelled with all necessary information for identification.
(6) The titleholder must ensure that where seismic reprocessing, or an analysis, study (including a geological study) or operation not covered in sub-
regulation (1) is undertaken to satisfy the work commitments of the title, a written report of the activity and interpretation of the results is
forwarded to the Minister as soon as possible. (7) The titleholder must ensure that all field and
stacked seismic tapes are submitted to the from the time of relinquishment or expiry of the petroleum title.
(8) The titleholder must ensure that where a wireline survey has been carried out the following is made available as soon as practicable, but in any event within one month of completion of processing of data, and distributed as directed by the Minister—

(i)
one copy of all available digital form log in an edited format that permits their processing; and
(ii)  one stable base transparent copy and one paper print of each log at each scale run in the survey; and
(iii)  one stable base transparent copy and one paper print of computer processed interpretation logs.

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S.R. No. 120/1992 r. 413

413. Final reports on geophysical or geochemical surveys

(1) The titleholder must ensure that where a

geophysical survey or geochemical survey has been completed one copy of a written report, in accordance with this regulation is sent to the
Minister within 4 months after the completion of the survey.
(2) Despite sub-regulation (1) in the event of

unforeseen circumstances that justify an
extension, the Minister may, on the request of the
titleholder, grant an extension of time not
exceeding 2 months in which to submit the report.

(3) A report under this regulation must include—
(a) name and location of the survey; and
(b) dates of start and finish of the survey; and

(c)

names of the contractors used to carry out the survey; and

(d)

data acquisition report detailing the operations carried out; and

(e)

system and equipment used in surveying; and

(f)

geological or geophysical techniques and equipment used; and
(g) data processing report; and

(h) summary of the costs of the study or survey; and
(i) list of magnetic tapes with index of contents and format; and

(j)

interpretations, including maps made as a result of the survey.

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r. 414

S.R. No. 120/1992

Division 3—Drilling and Workover

414. Discovery of petroleum and estimate of petroleum in-place
(1) The titleholder must ensure that in addition to fulfilling the requirements of the Act with respect to a discovery of petroleum, the results of the discovery including written estimates of petroleum in-place are sent to the Minister within 3 months of the date of discovery.
(2) Despite sub-regulation (1) in the event of unforeseen circumstances that justify an extension, the Minister may, on the request of the titleholder, grant an extension of time not exceeding one month in which to submit the written estimates.
(3) The titleholder must ensure that in the month of September or such other month as the Minister may nominate in each year 2 copies of a current
estimate of the amount of in-place and if possible
recoverable petroleum in a petroleum pool in a
title area are sent to the Minister.
(4) The titleholder must ensure that an estimate
referred to in sub-regulation (3) includes—
(a) the location of the petroleum pool; and

(b) the amount of in-place and if possible, recoverable petroleum in the pool; and
(c) the data upon which the estimate is based; and
(d) is accompanied by any specific reports produced during the period.

(5) The titleholder must ensure that when a field

study resulting in a revised estimate of the amount
of
in-place and recoverable petroleum in the pool has

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S.R. No. 120/1992 r. 415
been carried out, 2 copies of a report of the study and the revised estimate are sent to the Minister.

415. Daily report of drilling or workover operations
The titleholder must ensure that each day before midday a daily report containing particulars including any particulars which the Minister may direct of drilling or workover operations for the previous 24 hours is sent to the Minister.
416. Report on modification, abandonment or suspension of well
The titleholder must ensure that a report providing details of any repair, modification, recompletion, production test, abandonment or suspension of a well is sent as soon as practicable to the Minister.

417. Final report on wells
(1) The titleholder must ensure that where a well has

been plugged and abandoned, suspended or
completed as a producer, one copy of a written
report, in accordance with this regulation is sent to
the Minister as soon as practicable but within 6
months after such completion.

(2) A report in accordance with this regulation

relating to the making of a well must include, but
not necessarily be limited to—

(a) the name and location of the well; (b) the elevation of the well location;

(c) the depth of the well measured by its along hole length and the vertical depth measured by the distance below the rotary kelly
bushings;
(d) the depth of the various marker horizons;

(e)

the depth of the perforations in the petroleum reservoir (if any);

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S.R. No. 120/1992

(f)

the dates of the start and finish of the making of well;
(g) the drilling rig used to make the well;
(h) a statement whether the well has been—
(i) completed as a producing well;
(ii) suspended as a potential producing well; or

(iii) abandoned;
(i)  particulars of the results of formation-fluid sample tests and production tests (if any) carried out on the well;

(j)

particulars of equipment installed in or on the well;

(k)

particulars of cementing operations carried out in or on the well;

(l)

particulars of locations in the well at which samples were obtained;
(m) particulars of all surveys made in the well;

(n) particulars of the casing and equipment installed in or on the well complete with schematics showing major dimensions with
features of such casing and equipment;

(o)

in the case of a development well that has been deviated or drilled from a central location—
(i) the surveyed path of the well;
(ii)  the position of the various marker horizons;
(iii)  the position of the perforations in the petroleum reservoir;

(p)

particulars of the geological interpretation of the observations made as a result of drilling

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Petroleum Regulations 1992

S.R. No. 120/1992 r. 418
the well, which, in the case of an exploration
well, must be accompanied by geological
maps and sections drawn on the basis of the
interpretations made;

(q)

where appropriate a discussion of the relevance of the findings of the well to the evaluation of the hydrocarbon potential of the area around the well and of the basin containing it;

(r)

the depths and descriptions of geological samples such as cuttings, sidewall and conventional cores;

(s)

all surveys and measurements made in the well, including any detailed interpretations if made;

(t)

the geological interpretation of the observations made;

(u)

where available interpretations of all wireline log data;
(v) where available all fluid sample analyses;

(w) reports on cores and cuttings required by this regulation; and
(x) a summary of costs of drilling of well, subsequent tests and sampling.

418. Special studies
Where for any reason they are not included in the final well report, the titleholder must ensure that reports of technical studies on samples and cores obtained from wells (including palaeontology, permeability, porosity, fluid saturations, relative permeability, capillary pressure and fluid analysis and geochemical analysis) are sent to the Minister as soon as they become available.

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r. 419

S.R. No. 120/1992

Division 5—Petroleum Production

419. Program of work
A titleholder must before 30 September, or such other date as the Minister nominates, in each year submit to the Minister a program of work proposed to be carried out in the lease area by the titleholder during the period of the next 12 months commencing on 1 January or 3 months after that nominated date.

420. Estimate of recoverable and in-place petroleum
(1) In the month of September or such other month as the Minister nominates in each year a titleholder must send to the Minister 2 copies of a return in accordance with this regulation in respect of the amount of recoverable and in-place petroleum in a

petroleum pool in the lease area.

(2) The titleholder must ensure that the return referred to in sub-regulation (1)—
(a) specifies the location of the petroleum pool;

(b)
specifies the estimated amount of or in-place petroleum in a currently non- commercial pool; and

(c)

specifies the data upon which the estimates used in the return are based; and

(d)

is accompanied by any specific returns made during the previous year in connection with reservoir performance and production optimisation.

(3) The titleholder must ensure that when a field
study resulting in a revised estimate of the amount of recoverable or in-place petroleum in a pool has been carried out, 2 copies of a return of that study and the revised estimate are sent to the Minister.

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S.R. No. 120/1992 r. 421
421. Monthly production return
The titleholder must ensure that not later than the 21st day of each month 2 copies of a monthly production return in respect of each field in a lease area relating to the previous calendar month and containing the following information is sent to the Minister—
(a) the total quantities of—
(i) liquid and gaseous petroleum; and water produced; and

(ii) liquid and gaseous petroleum used; and (iii) gaseous petroleum flared or vented; and

(iv)
liquid and gaseous petroleum and water and
(v) liquid petroleum stored at the beginning and the end of the month; and
(vi) liquid and gaseous petroleum delivered from the area; and

(vii)
gaseous petroleum, and water,
the cumulative quantities of liquid and month; and

(b) for each well—
(i) its identification name and number; and
(ii) a summary of all work performed on each well in the lease area during the previous month; and

(iii)
required by regulation 812, including
the result of the production test separation pressures observed during the test; and

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r. 422

S.R. No. 120/1992

(iv) its status at the end of the month; and (v) the number of days of production; and
(vi) the total estimated quantities of liquid and gaseous petroleum, and water, produced or injected during the month and the cumulative quantities of liquid and gaseous petroleum, and water produced or injected as at the end of the month.

422. Measurement relating to commingled production

(1) Where oil, gas or water from 2 or more wells is

commingled before it is measured, the titleholder
may apply to the Minister for approval to keep
records and provide returns of combined
production, provided the production from each
individual well is estimated in a manner that
enables, so far as may be practicable, the actual
production from each well to be determined.

(2) If the Minister grants approval under sub-

regulation (1) these regulations apply as if the
production estimated was the amount produced
from each well.

423. Underground storage return
(1) The titleholder must ensure that not later than the 21st day of each month 2 copies of a monthly return in accordance with this regulation with respect to the amount of petroleum or prescribed
petroleum product injected into or recovered from an underground storage reservoir in the lease area during the previous month are sent to the
Minister.

(2) A return in accordance with the Act must

include—
(a) the location of the underground storage; and

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S.R. No. 120/1992 r. 424

(b)

the amount and composition of petroleum or prescribed petroleum product injected into the underground storage during the previous month; and

(c)

the amount and composition of petroleum or prescribed petroleum product recovered from the underground storage during the previous month; and

(d)

the nett total amount and composition of petroleum or prescribed petroleum product remaining in the underground storage at the end of the previous month.

424. Royalty return
The titleholder must within 10 days following
30 June and 31 December send to the Minister a
return in accordance with these Regulations with
respect to the gross value of petroleum products
from the leased land, the associated operating
costs and nett value for the preceding 6 months.

425. Production facility maintenance reports
(1) The titleholder must ensure that reports on the

following are sent to the Minister as soon as
practicable after they occur—

(a) mechanical damage, erosion or corrosion that could affect the safety or integrity of a production facility; and
(b)
any non-routine corrosion investigation pigging, acoustic emission testing and pipe examinations.
(2) A report under sub-regulation (1) must include, or be followed by, a report on the repairs carried out as a result of any matter identified under sub-
regulation (1).

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r. 426

r. 427

S.R. No. 120/1992

(3) The titleholder must ensure that where a pressure
facility, a report on the results of the test, and any
interpretation of those results, is sent to the

test is carried out on a section of a production the test.
(4) In addition to the other requirements of this
regulation, the titleholder must within 2 months after the end of each year send to the Minister a report—

(a)

summarising the routine corrosion and other surveys carried out on a production facility during the year; and

(b)

assessing the condition of the production facility as at the end of that year.

426. Records of periodic inspections
(1) The titleholder must ensure that accurate records are maintained of periodic inspections of facility equipment and piping.
(2) The titleholder must ensure that records include

the particulars of the inspections, testing or
proving of—

(a) meters; and
(b) control valves.
(3) The titleholder must ensure that records of

inspections for corrosion are maintained for the
production facility, equipment and piping.

427. Reports on wireline surveys and sub-surface safety valves
(1) The titleholder must ensure that where a survey using wireline techniques is conducted in a well during any month, one copy of a report of the
survey, together with any records made for the
purpose of the survey, are submitted to the

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S.R. No. 120/1992 r. 429
Minister not later than the 21st day of the next month.
(2) The titleholder must ensure that where operations involving subsurface safety valves are carried out during any month, a report of these operations is
submitted to the Minister not later than the 21st
day of the next month.

428. Reports on an Approved Scheme
Where approval has been given to a titleholder—
(a) to carry out enhanced recovery; or

(b)

to produce from a reservoir susceptible to retrograde condensation; or

(c)

to produce from an oil reservoir below the bubble point; or
(d) to carry out concurrent production—

the titleholder must send to the Minister reports on
the progress of the operation at intervals of not
less than 6 months.

429. Reservoir Data
(1) The titleholder must ensure that whenever

reservoir measurements are carried out, the results
are sent to the Minister as soon as practicable.

(2) The titleholder must ensure that all available
laboratory analyses, and the studies and
interpretation of any such data, are sent to the

reservoir and field data reports, the results of all available.

_______________

40
Petroleum Regulations 1992

r. 501

S.R. No. 120/1992

PART 5—ELECTRICAL

501. Application
Regulations 502, 503 and 504 only apply on sites
where electricity is not supplied by the State
Electricity Commission of Victoria.

502. Wiring Rules
(1) The titleholder must ensure that subject to the requirements of any Act, all electrical wiring, earthing and installations used in petroleum
exploration or production operations comply with
any regulations under the State Electricity
Commission Act 1958 relating to wiring.
(2) The titleholder must ensure that makeshift wiring,

components or installations are not used in, or in
connection with, any portable electrical equipment
or cable.

503. Protection of circuits
(1) The titleholder must ensure that an electrical circuit is protected against overload and short circuit.
(2) The titleholder must ensure that a circuit above

extra-low voltage is protected against the leakage
of current to earth by an approved earth leakage
circuit breaker.

504. Electricians and inspection of electrical equipment

(1) Unless a person is an electrical mechanic licenced

under the State Electricity Commission Act
1958 that person must not—

(a) install any electrical apparatus or circuit; or

(b)

carry out maintenance work on any electrical apparatus or cables (including any automatic or other protective device).

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S.R. No. 120/1992 r. 505
(2) Sub-regulation (1) does not apply to apparatus

carrying voltages not exceeding extra low voltage,
or apparatus in, and ancillary to, wireline logging
units, mud logging units and electronically
equipped production control and gauging
installations.

(3) The titleholder must ensure that the following

tests and examinations of electrical installations
are carried out by an electrical mechanic—

(a) in the case of drilling rigs, prior to spudding in each well, and then at intervals not exceeding 2 months; or
(b) in the case of temporary installations at intervals not exceeding 2 months; or
(c) in the case of permanent installations at intervals not exceeding one year.
(4) The titleholder must ensure that the results of a test or examination are recorded by the person who carried out the test or examination on the tour
report or in a log book, and are countersigned by
the person supervising work on the particular site.
(5) The Minister may require that other, or additional,

tests or examinations for soundness of electrical
equipment be carried out.

505. Earthing and lightning protection
(1) The titleholder must ensure that the structure of a permanent facility for handling flammable liquids is protected against lightning by the installation of approved equipment.
(2) The structure of a drilling rig need not be so
protected against lightning if it is earthed so that the maximum resistance to earth does not exceed 10 ohms.

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r. 506

S.R. No. 120/1992

506. Control of static electricity
The titleholder must ensure that approved measures are taken to prevent the ignition of flammable materials by static electricity.

507. Welding
The titleholder must ensure that electrical welding return conductors are connected directly to the equipment being welded, as well as to the earthing system of the rig or other plant.

508. Electrical shock
The titleholder must ensure that instructions on
the procedure and treatment to be followed in case
of electric shock are kept prominently displayed
on the rig floor or in the driller's doghouse and in
any generator house and at any other worksite
where electricity is used.

_______________

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S.R. No. 120/1992 r. 601

PART 6—GEOPHYSICAL AND GEOCHEMICAL SURVEYS

601. Method of application
(1) An application for approval to carry out a

geophysical or geochemical survey must be made
not less than one month before the proposed
commencement of the survey.

(2) Despite sub-regulation (1), in the event of

unforeseen circumstances that justify the making
of a late application, the Minister may, at the
titleholder's request, permit an application to be
submitted less than one month before the
proposed commencement of the survey.

(3) An application must include—

(a)

the proposed date of commencement, the contractor, the estimated duration and cost of the survey; and

(b)

a plan to an appropriate scale showing the location of the proposed survey; and

(c)

in the case of a seismic, gravity or magnetic survey, details of the equipment to be used, and a plan showing the proposed survey
stations and traverses, a description of
operations and procedures, particularly of
positioning and acquisition systems, and
indicating in the case of airborne surveys, the
proposed flying altitude; and

(d)

any proposal to carry out a seismic operation within 300m of a mine or quarry.

602. Authorisation

(1) The titleholder must not carry out a geophysical or

geochemical survey without receiving the conditions stipulated in the approval.

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r. 603

S.R. No. 120/1992

(2) The titleholder must ensure that a survey does not
commence unless at least 48 hours notice of the date and time of commencement are advised to the Minister or an inspector nominated by the
Minister.
603. Modification of survey
The titleholder must ensure that no modification which constitutes a significant change to the area or duration of a survey previously approved, is
made without prior approval of the Minister.

604. Consent of land owner
(1) Prior to the commencement of a geophysical or geochemical survey, the titleholder must obtain the permission of the landowner or person
occupying the land to enter the survey area on his
or her property.
(2) The titleholder must ensure that where the survey
is proposed to be carried out over any Crown Lands or internal waters the permission of the Minister or other person or body responsible for
the management of the land under any statute in
respect of the area is obtained prior to the
commencement of the survey.

605. Energy source
(1) The titleholder must ensure that explosives are not

used for a seismic survey without the approval of
the Minister.

(2) The titleholder must ensure that all energy sources
used in a seismic survey are operated in accordance with good oilfield practice.
606. Prevention of damage to property
(1) The titleholder must take reasonable steps to ensure that significant damage to any road or track

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S.R. No. 120/1992 r. 607
is not caused in the performance of any
geophysical operation.

(2) The titleholder must ensure that where a

geophysical survey is to be carried out in the
vicinity of a building or public utility, all
reasonable steps are taken to ensure that the
operation does not cause any damage, or
inconvenience to any person.
(3) The titleholder must ensure that a geophysical
survey using a vibratory or other surface seismic source does not take place within 20m of a well, production facility, pipeline, public utility or the items or areas specified in sub-regulation 208(5).
607. Pipeline Crossed by a Seismic Line
(1) The titleholder must ensure that reasonable notice of a proposed crossing is given to the owner of the pipeline.
(2) The titleholder must ensure that the pipeline

owner is given a reasonable opportunity to inspect
the site and to consider the implications of the
proposed crossing.

(3) The titleholder must ensure that heavy vehicles do

not cross any pipeline in such a manner as may
damage the pipeline.

608. Marking Seismic Lines
The titleholder must ensure that a permanent marker is set in place as near as practicable to—
(a) the intersections of survey lines; and

(b)

at the intersection of a survey line and a road that has been formed or graded; and

(c)

at intervals on each survey line of not more than 5 kilometres.

_______________

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PART 7—DRILLING AND WORKOVER

701. Approval to drill
(1) An application for approval for drilling under section 33A or section 70(2) of the Act must include a drilling program.
(2) The titleholder must ensure that the drilling

program of a new exploration or development
well, or a workover program of an existing
exploration, development or producing well is
submitted—

(a) in duplicate; and

(b) if the operation concerns an environmentally sensitive area, not less than 3 months before the commencement of the proposed
operation; and

(c)

in any other case not less than one month before the commencement of the proposed operation.
(3) The drilling program must include the following
details—
(a) proposed well name and number; and

(b) location, elevation and co-ordinates of the well site; and
(c)
includes well objectives and for exploration
wells, play definition(s) (source, seal,
geological prognosis of the area which by a time or depth map of near target horizon(s) and seismic sections where possible; and
(d) programmed depth; and (e) estimated spud date; and

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(f) estimated drilling time; and
(g) name and address of drilling contractor; and

(h) type of rig and blow-out prevention equipment, including description of equipment and method of operations; and
(i)  names and addresses of other contractors involved in the operations and the nature of the services they will perform; and

(j)
particulars of coring, casing, casing logging and mud logging; and

(k) name of person responsible for communications with the Department; and
(l) proposed well paths (if the well is to be other than vertical); and
(m) drilling procedures manual; and (n) pollution control measures; and (o) a current map showing—
(i)  the existing land tenure including reserves and private property; and
(ii)  the location of any other wells and public utilities; and
(iii)  any other structure within 150 metres of the proposed well location.
(4) An approval for drilling under section 33A of the Act may be requested orally or in writing.

702. Equipment standards
The titleholder must ensure that materials and equipment used in drilling and workover operations are in accordance with good oilfield practice.

703. Location surveys

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(1) As soon as practicable after the location of a well

is established, but in any event not later than 2
months after the drilling rig is released and prior
to site restoration the titleholder must determine
the location and elevation of the well in
accordance with good oilfield practice.

(2) Despite sub-regulation (1) in the event of

unforeseen circumstances that justify an
extension, the Minister may, on the request of the
titleholder, grant an extension of time not
exceeding one month in which to complete the
location survey specied in sub-regulation (1).

704. Prohibited drilling areas
If a titleholder has drilled in an unapproved area the titleholder must plug or close the well within a time specified by the Minister unless the Minister approves further drilling under section 33A or 70(2) of the Act.

705. Casing
(1) The titleholder must ensure that a well is lined

with casing in accordance with good oilfield
practice.

(2) The titleholder must ensure that the design,

placement and cementing of casing strings is in
accordance with good oilfield practice.

(3) The titleholder must ensure that casing recovered from a well is not re-used in another well unless it has first been inspected in accordance with good
oilfield practice.
(4) The titleholder must ensure that conductor pipe is

installed in a well to protect the well and
equipment against surface formation instability
and to enable the circulation of drilling fluid from
the well before surface casing is installed.

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(5) The titleholder must ensure that surface casing is designed and set in accordance with good oilfield practice.
(6) The titleholder must ensure that after cementing—

(a) all casing strings, except the conductor casing string, are pressure tested to an approved pressure before drilling out of the
casing shoe; and

(b) the production casing string is pressure tested to an approved pressure before proceeding with operations to complete or test the well; and
(c) the pressure test specified in paragraphs (a) and (b) is held for as long as is necessary to ascertain that there is no continuous pressure
drop; and

(d)

the result of the pressure test is recorded in the driller's log.

(7) The titleholder must ensure that drilling

operations or operations to complete or test the
well do not commence until a satisfactory result in
a pressure test under sub-regulation (6) has been
obtained.
(8) The titleholder must ensure that a well (other than a plugged and abandoned well) is equipped so that the pressure in each annulus may be measured.
706. Cementing of casing
(1) The titleholder must ensure that casing strings are

cemented in accordance with good oilfield
practice.

(2) The titleholder must ensure that details of all

cementing operations are recorded in the driller's
log.

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(3) If there is any reason to suspect a faulty

cementing operation, the titleholder must ensure
that the Minister is notified as soon as practicable.

(4) The titleholder must ensure that after the

cementing of casing strings, drilling is not
commenced until a time lapse of—
(a) 24 hours; or

(b) 8 hours under pressure for the surface casing string and 10 hours under pressure for all other casing strings.

(5) For the purpose of sub-regulation (4)(b) the cement is considered to be under pressure if during the time lapse referred to in that sub- regulation the cement after placing is restrained
from movement by the use of float valves or other
equipment approved under section 33 of the Act.
(6) The titleholder must ensure that if the cementing

requirements of this regulation have not been
achieved by primary cementing operations, re-
cementing or remedial cementing to achieve
compliance with the regulation is undertaken.

707. Blow-out prevention control
(1) The titleholder must ensure that blow-out

preventers and related well control equipment are
installed, operated, maintained and tested in
accordance with good oilfield practice.

(2) The results of all tests conducted on the above
equipment must be recorded in the driller's log.
(3) The titleholder must ensure that during operations

there is a control panel located on the drill floor
for operating blow-out preventers, and another
located at such a distance from the drill floor as to
ensure safe and ready access in time of
emergency.

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(4) The titleholder must ensure that each choke

manifold has the following equipment clearly
visible to the choke operator when standing in the
normal operating position for either the remotely
or hand adjustable chokes—

(a)

a pressure gauge which indicates the drill pipe pressure at the drill floor; and

(b)

a pressure gauge which indicates the casing string/drill string annulus pressure at a known point upstream of the choke.
708. Pressure testing blow-out prevention equipment
(1) The titleholder must ensure that the blow-out

preventer equipment is tested in accordance with
good oilfield practice.

(2) The titleholder must ensure that each blow-out preventer test is recorded in the driller's log.
709. Mud monitoring system
The titleholder must ensure that a mud monitoring system with drill floor indicators is installed and used in accordance with good oilfield practice during all drilling operations after setting and cementing the conductor casing string.

710. Penetration rate recorder
The titleholder must ensure that drilling
operations are not commenced or continued unless
the drilling rig is equipped with a penetration rate
recorder that—

(a)

will give a clear indication of a change in formation; and

(b)

can be used as a guide to warn against approaching areas of abnormal pressure; and

(c)

is maintained in good working order and in continuous operation while drilling.

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711. Accumulators
The titleholder must ensure that accumulators are located, assembled and operated in accordance with good oilfield practice.

712. Blow-out prevention drill
(1) The titleholder must ensure that blow-out

prevention drills are conducted weekly for each
drilling crew to ensure that all equipment is
operating and that crews are properly trained to
carry out emergency duties.

(2) The titleholder must ensure that all blow-out

prevention drills and response times are recorded
in the driller's log.

(3) The titleholder must ensure that a notice is

displayed on the rig floor providing details of the
well control procedures to be followed in the
event that indications of a well kick are observed
and all drilling crews are trained in those
procedures.

(4) The titleholder must not permit any on-site

personnel holding the position of driller, or a more
senior position, to continue to work in drilling
operations unless they have received a certificate
of proficiency in well control from a well control
school in the last 24 months.

713. Formation integrity testing
The titleholder must ensure that a formation integrity test is conducted in accordance with good oilfield practice.

714. Drilling fluid
(1) The titleholder must ensure that the characteristics

and use of the drilling fluid provide adequate
control of any sub-surface pressures likely to be

reservoir management practices and compatible
with optimum long-term recovery.

811. Monitors and control mechanisms
The titleholder must ensure that approved monitors and control mechanisms are used to control the rate of recovery of petroleum or water from a well.

812. Production tests on producing wells

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The titleholder must ensure that unless the rate of recovery of petroleum from the well is monitored continuously a production test to estimate the rate of recovery of petroleum from the well, is carried out on each producing well at a frequency in
accordance with good oilfield practice.
813. Gas reservoir and well performance monitoring
(1) The titleholder must ensure that—

(a) bottom hole pressure build-up surveys are conducted on each gas completion at intervals of production not exceeding 10% of the currently estimated original recoverable reserves of the reservoir, in accordance with a program approved by the Minister; and
(b) each producing gas completion is tested, at intervals not exceeding 4 years, to determine changes in the flow characteristics of the well; and
(c) full well stream gas analysis is determined in conjunction with each test carried out under paragraph (b), and at such other times as the Minister may direct under section 47 of the Act; and
(d) each gas completion that is capable of production is tested to determine water production in an approved manner and in
accordance with a time table supplied to the months.

(2) Despite sub-regulation (1) the Minister may, on

application from the titleholder, approve the
monitoring of gas reservoir and well performance
using alternative methods to that required by sub-
regulation (1) provided the Minister is satisfied

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that the alternative methods will not lead to undue
waste of petroleum.
(3) Despite sub-regulation (1) in the event of

unforeseen circumstances that justify an
extension, the Minister may, on the request of the
titleholder, grant an extension of time not
exceeding 2 years in which to complete the test
required by sub-regulation (1).

(4) The titleholder must ensure that a properly

calibrated subsurface pressure gauge is used to
test a gas completion under sub-regulation (1)(a)
and (b).

(5) The titleholder must ensure that while a gas completion is being cleaned up or tested, the amount of gas flared is kept to a minimum in accordance with good oilfield practice.
(6) The titleholder must ensure that the results of a test carried out under sub-regulation (1)(d) are provided to the Minister within one month after
the end of the month in which the test is carried
out.
(7) The titleholder must ensure that if a test under

sub-regulation (1)(d) indicates the production of
formation water that had not been previously
identified—

(a) a full separator test is carried out; and

(b)

if the Minister so requires, a chemical analysis of the produced water is carried out; and

(c)

further separator tests are then carried out at approved intervals.
814. Oil reservoir pressure build-up surveys
The titleholder must ensure that bottom hole pressure build-up surveys are conducted, where

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downhole equipment permits, on each well completed in a pool from which oil is being produced, at intervals not greater than—
(a) one year; or

(b)

the time required to produce 10% of the currently estimated original recoverable reserves of the reservoir—

whichever is greater, in accordance with a
program consistent with good oilfield practice.

815. Production measurement
(1) The titleholder must ensure that facilities are in

place by the commencement of production to
permit the measurement of the quantity of any oil,
gas or water that flows from each completion.

(2) The titleholder must ensure that where
commingling of production from separate
completions occurs prior to measurement, the
production of oil, gas and water from each
completion is determined by testing at intervals in
accordance with good oilfield practice.
(3) The titleholder must ensure that petroleum is not

flared, vented, disposed of, or used in recovery
operations unless equipment and procedures are
used in accordance with good oilfield practice
which enable both the quantity and composition of
such petroleum to be determined.

(4) The titleholder must ensure that water is not

recovered from a petroleum reservoir and
disposed of unless equipment and procedures are
used in accordance with good oilfield practice that
enables both the quantity and composition of the
water to be determined.

(5) The equipment and procedures used to determine the quantity and composition of petroleum and

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water as specified in sub-regulations (3) and (4)
must be approved.
(6) The titleholder must ensure that any metering

device used on or in an oil or gas well, gathering
system, production facility or pumping station
conforms with good oilfield practice.

(7) The titleholder must ensure that a meter or other device used to measure the production of oil, gas or water is proved and certified as to its accuracy in a manner and at a frequency consistent with
good oilfield practice.

816. Measurement of production to determine royalties

(1) The Minister may, for the purposes of the royalty payable in relation to an operation, select and seal a valve or meter installed at a well or production
facility, or on a pipeline, tank or other receptacle
that is used for the storage or transportation of oil,
gas or other fluids produced from a well.
(2) Except in an emergency, a seal fixed under sub-

regulation (1) must not be tampered with or
removed by a person without the written
permission of the Minister.

817. Concurrent production
If the Minister gives written notice to the titleholder that in the Minister's opinion a reservoir is, or could be, commercially productive
of oil the titleholder must ensure that a completion
is not produced as a gas completion except in
accordance with a scheme for the concurrent
production of gas and oil from the reservoir which
is not detrimental to the ultimate recovery of
hydrocarbons from the reservoir.

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818. Pressure below bubble point
(1) The titleholder must ensure that an oil completion is not produced so that the bottom hole pressure is below the bubble point pressure.
(2) Despite sub-regulation (1) the Minister may, on
application from the titleholder, approve production of an oil completion using an alternative method to that required by sub-
regulation (1) provided the Minister is satisfied
that the alternative method will not lead to undue
waste of petroleum.

819. Surface connections
The titleholder must ensure that each well from which petroleum is recovered is provided with such surface connections and equipment as are necessary to prevent the injection of petroleum or
water into the well from another well or from
production equipment.
820. Production from more than one reservoir from one well
The titleholder must ensure that petroleum is not recovered simultaneously from more than one reservoir in a well unless provision is made to maintain separation of petroleum and water recovered from each reservoir until the petroleum and water pass a point where the quantity and composition of petroleum and water from each reservoir is determined in accordance with regulation 815.
821. Production from more than one reservoir from more than one well
The titleholder must ensure that petroleum recovered from different reservoirs and from more than one well is not commingled until the petroleum and water pass a point where the

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quantity and composition of petroleum and water from each well and from each reservoir in which these wells are completed are determined in
accordance with regulation 815.
822. Segregation of zones
(1) A titleholder must, in relation to each multiple

completion well, demonstrate to the Minister that
segregation between the completions has been
achieved and maintained—

(a) after the initial well completion; and

(b)

after any change of subsurface equipment; and

(c)

after any other operation that may disturb, or exert abnormal differential pressures on, subsurface equipment; and
(d) at least once in a year.

(2) A titleholder must, within one month after
requirements of sub-regulation (1), provide the
completing a test carried out to meet the all relevant data obtained from the test, and an analysis and interpretation of the results of the test to prove or confirm segregation.
(3) The titleholder must ensure that if a test carried

out to meet the requirements of this Regulation or
the production characteristics of a well indicate
that segregation between the completions is
ineffective, the Minister must be immediately
informed.

(4) The titleholder must ensure that all reasonable

steps are promptly taken to re-establish
segregation and, if those steps are not successful,
the Minister may order that one or more of the
completions be sealed off.

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(5) If a titleholder fails to demonstrate to the Minister in accordance with this regulation that segregation between completions has been achieved, the
Minister may require that the well be shut-in. (6) A titleholder must give the Minister at least 3 days
notice of an intention to carry out a test for the
purpose of this regulation.

823. Prevention of cross flow
If a completion is shut-in for an extended period (other than in an emergency), the titleholder must ensure that the completion is left in a condition that will prevent deleterious cross flow between zones.
824. Evaluation of the potential of an oil reservoir to respond to enhanced recovery
(1) Before production from an oil reservoir is
commenced, the titleholder must carry out an evaluation of the potential of the reservoir to respond to enhanced recovery processes, and of
the desirability of such processes.
(2) The titleholder must ensure that if it is not

practicable to comply with sub-regulation (1)
before production is commenced, a program of
work to carry out such an evaluation during the
course of production is submitted for approval
before production is commenced.

(3) The titleholder must ensure that where, on the

commencement of these Regulations, a reservoir
is already in production, an evaluation of the
potential of the reservoir to respond to enhanced
recovery processes is carried out and the results of
the evaluation submitted to the Minister within
one year after the commencement of these
Regulations.

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(4) Despite sub-regulation (3) in the event of

unforeseen circumstances that justify an
extension, the Minister may, on the request of the
titleholder, grant an extension of time not
exceeding 4 months in which to submit the results
required by sub-regulation (3).

(5) The titleholder must ensure that the result of each
evaluation carried out under these Regulations is
submitted to the Minister as soon as practicable.
825. Waste or contamination
(1) Where there is a reasonable possibility that—
(a) oil, gas or water is being wasted; or
(b) oil, gas or water is being contaminated—

the Minister may require the titleholder to carry
out specified tests to determine if waste or
contamination is occurring.
(2) A titleholder must carry out the tests required
under sub-regulation (1) within the time directed by the Minister and if, as a result of those tests, it is established that waste or contamination is
occurring, the titleholder must take such steps as may be necessary to remedy or prevent the waste or contamination.
(3) If steps must be taken under sub-regulation (2), the Minister may then require the titleholder to carry out further tests to determine the
effectiveness of those steps in remedying or preventing the waste or contamination if the Minister considers that the tests required by sub-
regulation (2) have been insufficient or
ineffective.
(4) The titleholder must ensure that the results of any test carried out under this regulation are provided to the Minister as soon as practicable.

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826. Waste liquid
The titleholder must ensure that all formation water, and other waste fluids produced from a well, are disposed of in accordance with good oilfield practice, and in no case is the disposal of
formation water, drilling fluid, waste petroleum or
refuse from tanks or wells allowed to constitute a
risk to public health or safety, or to contaminate
water or land not specifically designated for waste
disposal.

827. Disposition of gas
(1) The titleholder must ensure that subject to these
Regulations, gas under the titleholder's control in the title area is not used or produced for any purpose other than—

(a) for the recovery of petroleum from naturally occurring reservoirs; or
(b) as a fuel, once details have been provided to the Minister, that the proposed use or consumption is not wasteful.

(2) In any case to which sub-regulation (1) applies, the Minister may, by written notice, require the titleholder to take specified measures to minimise
the waste of gas.
(3) A person to whom a notice under sub-regulation (2) relates must comply with the notice.

828. Approval to vent or flare
The titleholder must ensure that except in an emergency the flaring or venting of petroleum is not carried out without approval.

829. Control of quality of discharge water

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(1) The titleholder must provide details to the

Minister of the means by which the quality of water discharged will be controlled to ensure compliance with the Environment Protection
Act 1970.
(2) The titleholder must ensure that a record is maintained of the quality of water discharged.
830. Subsurface safety devices
The Minister may require the titleholder to ensure that a well that is capable of producing petroleum by natural flow is equipped with an approved
subsurface safety device, which—

(a) is designed so that it automatically closes off the flow of petroleum or water from the well if the wellhead or production equipment is
damaged in such a way that would allow the escape of petroleum or water from the well; and
(b) is located in an approved position; and

(c)

is operated and tested at intervals specified by the Minister being not less than once every 3 months and not more than 6 months; and

(d)

where a test indicates that it may not operate correctly, is repaired or replaced immediately.

831. Workover of wells
(1) The titleholder, in order to operate the title area

with due diligence, must ensure that a well is not
worked over without prior approval.

(2) An application for approval to work over a well must include particulars of—

(a)

the zone in the well proposed to be abandoned (if any); and

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(b)

the zone in the well proposed to be developed (if any); and

(c)

proposed modification and changes of the equipment in the well; and

(d)

proposed changes (if any) in the wellhead and production equipment; and
(e) procedures proposed to be used.
(3) The titleholder must ensure that where a well is to be worked over for gas lift operations, an approved pressure test, that will prove the integrity of the well production casing, tubing and
associated equipment is carried out within 12 months prior to the commencement of gas lift operations.

(4) Despite sub-regulation (3) in the event of

unforeseen circumstances that justify doing so, the permit the test required by sub-regulation (3) to be carried out not more than 15 months before the workover of the well.

832. Wireline operations in wells
The titleholder must ensure that except in an emergency, notice is given of an intention to conduct a non-routine wireline operation in a well
or to move an item of subsurface equipment in a
well.

833. Sampling petroleum streams
The titleholder must ensure that notice is given to the Minister of an intention to sample a petroleum stream for royalty purposes.

834. Meter proving
The titleholder must ensure that notice is given to the Minister of an intention to prove a petroleum meter for royalty purposes.

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835. Protection of completed wells
(1) The titleholder must ensure that reasonable steps are taken to protect a completed well and a notice warning persons of the danger that exists in
relation to the well is kept on display in the
vicinity of the well.
(2) The titleholder must cause to be inspected a well

that has not been plugged and abandoned at
intervals not exceeding 6 months.

(3) The titleholder must ensure that on an inspection under sub-regulation (2)—
(a) all annulus pressures are measured; and

(b)

any evidence of communication is evaluated; and

(c)

the extent of any necessary repairs or maintenance is determined.

(4) A titleholder must, within one month of an

inspection of a well, provide the Minister with a report on the wells visited, and the work carried out on those wells.
836. Plugging of wells
Unless excused by the Minister under section 49(1) of the Act the titleholder must ensure that within one year of completion of production activities and prior to the surrender of a production lease, all wells are plugged and abandoned in accordance with these Regulations and the Act.

837. Application for consent for gathering lines
An application to the Minister for consent under section 30 of the Act must include—

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(a) design specifications and construction,
testing, operating and maintenance
procedures; and

(b)

the anticipated dates for commencement and completion of construction; and

(c)

a brief description of the route of the pipeline including a map of the pipeline route drawn to a scale of not less than 1:25 000.

838. Underground storage of petroleum
An application for a lease for the underground storage of petroleum or a prescribed petroleum product must include—

(a)

the location of all wells previously drilled in the area covered by the application; and

(b)

details of the depths of the wells and their casing and cementing programs and their plugging and abandonment programs; and

(c)

subsurface formation contour maps and geological cross sections of the area; and

(d)

proposals for the further structural exploration and testing of the area for ascertaining the location and suitability of any structures and formations for the underground storage of petroleum.

839. Removal of facilities
(1) The titleholder must ensure that within 2 years of completion of production activities or prior to the surrender of a production lease, every production facility is dismantled and removed or abandoned in accordance with good oilfield practice.
(2) Despite sub-regulation (1) in the event of

unforeseen circumstances that justify an
extension, the Minister may, on the request of the
titleholder, grant an extension of time not

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exceeding 6 months in which to complete the
work required by sub-regulation (1).
840. Restoration of lands
The titleholder must ensure that within 2 years of the completion of production activities or prior to the surrender of a production lease, the land
surrounding or affected by production facilities and wells is restored as far as practicable to its original condition.

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PART 9—TRANSITIONAL PROVISIONS

901. Continuity of title
A title issued in accordance with the revoked issued in accordance with these Regulations.

902. Continuity of title conditions
If a provision of the Act applies to operations under a title issued before the commencement of these Regulations, any of these Regulations applying for the purposes of that provision apply to operations under the title carried out on or after the commencement of these Regulations.

903. Continuity of application
An application for a grant or extension or renewal of a title made—

(a) under the Act in accordance with the revoked Regulations; and
(b)
before the commencement of these commencement—

has effect as if it were an application made in
accordance with these Regulations.

904. Continuity of consent or approval
A consent or approval in respect of a matter given by the Minister in accordance with the revoked Regulations has effect as if it were a consent or approval in respect of the corresponding matter given in accordance with these Regulations.

__________________

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Sch. 1	S.	R. No. 120/1992
SCHEDULES
SCHEDULE 1

Title S.R. No.
Petroleum Regulations 1979 130/79
Petroleum (Fees) Regulations 1981 299/81
Petroleum (Fees) Regulations 1983 218/83
Petroleum (Fees) Regulations 1985 117/85
Petroleum (Fees) Regulations 1986 247/86
Petroleum (Fees) Regulations 1987 403/87
Petroleum (Fees) Regulations 1988 511/88
Petroleum (Fees) Regulations 1989 321/89
Petroleum (Fees) Regulations 1990 374/90
Petroleum (Fees) Regulations 1991 319/91

_______________

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S. R. No. 120/1992
SCHEDULE 2

Form 1

Petroleum Act 1958

Form 1

PETROLEUM REGULATIONS 1992

Regulation 301

APPLICATION FOR PETROLEUM EXPLORATION PERMIT

To—The Minister administering the Petroleum Act 1958:
I/We apply for a permit in respect of certain land described below and shown on the attached plan.
Name (in full), address and occupation of each applicant.
Area (Maximum 12 500 sq km)
Full description and precise locality of the land. (Plan showing area applied for must accompany each application).
Brief particulars of applicant's previous experience in oil prospecting or oilfield development work.
Names and qualifications of technical experts or advisers.
Amount of capital—
(a) at present available
(b) which applicant can make available and the source
Details of the applicant's proposals for the exploration of sheet.
the area for petroleum.

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S.R. No. 120/1992

Signature of each applicant
....................................................... ACN or ARBN .............................1.
....................................................... ACN or ARBN .............................1.
....................................................... ACN or ARBN .............................1.
Date / /
NOTE: 1 Australian Companies Number (ACN) or Australian Registered

Body Number (ARBN) must be quoted by all parties.

_______________

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Form 2

Petroleum Act 1958

Form 2

PETROLEUM REGULATIONS 1992

Regulation 302
BOND IN RESPECT OF PETROLEUM EXPLORATION
PERMIT/PETROLEUM LEASE

We security to the sum of .............................. lodged with this bond on the condition that we comply with the conditions of the permit and the provisions of the Act and the Regulations and of any instrument given under the Act, provided that, after the termination of the permit, if the Minister is satisfied that all such requirements have been fulfilled, then this obligation is discharged.
....................................................................................................................
of..................................................................................................................
in consideration of the grant to us by the Minister administering the
Petroleum Act 1958 of Petroleum Exploration Permit No. 1/Petroleum Lease
(To be signed under seal by the permittee).
NOTE: 1Cross out where not applicable.

_______________

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Form 3

Petroleum Act 1958

Form 3

PETROLEUM REGULATIONS 1992

Regulation 303
TRANSFER OF PETROLEUM EXPLORATION PERMIT1/PETROLEUM

LEASE1

In consideration of ...............................................................................I
transfer to ...............................................................................................
of............................................................................all my right, title and
interest in and to Petroleum Exploration Permit1/Petroleum Lease1
No........................
Dated: ...............................
Signed ...............................
ACN or ARBN ................. 2
Witness .............................
I accept the transfer
Signed ...............................
ACN or ARBN ................. 2
Witness .............................

NOTES: 1Cross out where not applicable
2Australian Companies Number (ACN) or Australian
Registered Body Number (ARBN) must be quoted by all parties to the transfer.

_______________

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Form 4

Petroleum Act 1958

Form 4

PETROLEUM REGULATIONS 1992

Regulation 306

PETROLEUM EXPLORATION PERMIT

Pursuant to the provisions of the Petroleum Act 1958,
I ................................ Minister administering the Petroleum Act 1958 for the
State of Victoria, grant to.....................................................................
of ................................................................................................................
a permit to explore for petroleum upon and under the area described below,
subject to the Petroleum Act 1958, to the Regulations made and directions
given under that Act and to the terms and conditions set out below, to have
effect for a period of 4 years from ................................................................
DESCRIPTION OF AREA:
TERMS AND CONDITIONS:
Dated:...................................................
MINISTER

_______________

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Form 5

Petroleum Act 1958

Form 5

PETROLEUM REGULATIONS 1992

Regulation 307

APPLICATION FOR PETROLEUM LEASE

To—The Minister administering the Petroleum Act 1958:
I/We apply for a lease in respect of certain land described below and shown on the attached plan.
Name (in full), address and occupation of each applicant.
Area (Maximum 250 sq km)
Full description and precise locality of the land. (Plan showing area applied for must accompany each application).
Brief particulars of applicant's previous experience in petroleum drilling and production work.
Details of the applicants proposal for the exploitation of petroleum from the area.
Names and qualifications of technical experts or advisers.
Amount of capital—
(a) at present available
(b) which applicant can make available and the source
Signature of each applicant
....................................................... ACN or ARBN .............................1.
....................................................... ACN or ARBN .............................1.
....................................................... ACN or ARBN .............................1.
Date / /

NOTE: 1Australian Companies Number (ACN) or Australian Registered
Body Number (ARBN) must be quoted by all parties.

_______________

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Form 6

Petroleum Act 1958

Form 6

PETROLEUM REGULATIONS 1992

Regulation 308
NOTICE OF APPLICATION FOR PETROLEUM LEASE

I/We have applied to the Minister administering the Petroleum Act 1958 for a Petroleum Lease the particulars of which are set out below.
Name of each applicant
Address of each applicant
Area of proposed lease
Full description and precise locality of land
Plan of proposed lease area showing main roads, rivers, creeks, Crown lands and property boundaries
Nature of proposed lease—
indicate whether for petroleum production,
underground storage, etc.
Estimated term of lease
Name of applicant ..................1 ACN or ARBN ......................2
Date / /

_______________

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Form 7

Petroleum Act 1958

Form 7
PETROLEUM REGULATIONS 1992

PETROLEUM LEASE
1. Parties to lease
This lease is made on (insert date) between:
(a) the Governor in Council for and on behalf of the State of Victoria ("the
lessor")
and

(b) .................(insert name and address)
in the State of Victoria ("the lessee") Regulations and directions made under the Act and the terms and conditions contained in this lease, the lessor grants a lease of the land described on the plan in the Schedule to this lease to the lessee.
2. Consideration for lease
In consideration of the rents and royalties payable by the lessee under the
3. Terms and conditions of the lease

3.1 The lease is for ............. years from the date of signing.
3.2 Subject to the terms and conditions set out below, in the Act or in
the Regulations and directions under the Act, the lessee has the
exclusive right to—

(a)

drill for, mine, extract, remove and dispose of all petroleum in or under the leased land; and

(b)

inject and store petroleum or a prescribed petroleum product in a natural reservoir in or under the leased land and to remove the same from the reservoir; and

(c)

construct, maintain and operate on the leased land all works, buildings, plant, waterways, roads, pipelines, reservoirs, tanks, pumping stations and other structures if they are, or are of a class approved in writing by the Minister and if they are necessary for the lessee to exercise its exclusive rights under the lease.

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S.R. No. 120/1992 Sch. 2

3.3 This lease is subject to a reservation of power to authorise mining
on the leased land under the Mineral Resources Development Act
1990.
3.4 The lessee agrees to comply with the following conditions and
covenants—

(a) the conditions and covenants prescribed by Regulations made under the Act;
(b) to pay royalty upon petroleum produced or obtained from the land (other than petroleum, not being a prescribed petroleum product, in respect of which the Minister is satisfied that a
royalty has already been paid upon the crude petroleum from
which that product was derived) at the rate of and in
accordance with the proper scale prescribed by the Act;
(c) to work the land in accordance with the Regulations made under the Act and to the satisfaction of the Minister, unless the lessee is exempted from performance of this covenant in accordance with the Regulations;
(d) to refine, in Victoria or in some other part of Australia, approved of for that purpose by the Minister, all crude petroleum produced or obtained from the land or injected into
and stored in a natural reservoir on the land and recovered
from it;
(e) if the lessee is authorised by this lease to inject petroleum or a prescribed petroleum product into and to store it in and recover it from a natural reservoir on the land-to do all acts and things
as are prescribed by the Regulations made under the Act or by
that Act or as the Minister may from time to time direct in
writing to be done in relation to the injection, storage or
recovery of the petroleum or prescribed petroleum product;
(f) not to ship or export any crude petroleum produced or obtained from the land or injected into and stored in a natural reservoir on the land and recovered from it to any place out of Australia without the consent of the Minister;
(g) to pay rent of the amount, in the manner and at the times provided for in the Act or the Regulations;
(h) to use the land continuously and bona fide exclusively for the purposes for which it is leased and in accordance with the Act and the Regulations;
(i) not to assign or let or part with the possession of the land or any part of it without the previous consent in writing of the Minister; and

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(j) to comply with the Act and the Regulations.

3.5 This lease is also subject to the following additional terms and
conditions:
[Insert any additional terms and conditions]
4. Termination of lease

4.1 If the lessee breaches any covenant, term or condition of this lease,
the lease is forfeit.
4.2 The lessee may surrender or terminate the lease in accordance with
the Act with the consent in writing of the lessor.

NOTE: Sections 38 and 39 of the Act also apply to this lease. They
contain extra conditions relating to the transfer and termination of
it.
Schedule: Plan of leased land
Given under my hand and the seal of Victoria on
Governor

By His Excellency's Command
Clerk of the Executive Council
Minister

Signed sealed and delivered
by..........................(the lessee)
in the presence of...................

═══════════════

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Petroleum Regulations 1992

S.R. No. 120/1992 Notes

NOTES

1. General Information
The Petroleum Regulations 1992, S.R. No. 120/1992, were made on 23 June 1992 by the Governor in Council under sections 28, 29, 30, 32, 33, 33A, 34, 41, 44, 45, 47, 48, 49, 51, 52, 56, 59, 64, 67, 70, 75, 76, 79 and 82 of the

Petroleum Act 1958, No. 6334/1958 and came into operation on 1 July
1992: reg. 102.

The Petroleum Regulations 1992 will sunset 10 years after the day of making on 23 June 2002 (see section 5 of the Subordinate Legislation Act 1994).

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Petroleum Regulations 1992

Notes

S.R. No. 120/1992

2. Table of Amendments

This Version incorporates amendments made to the Petroleum Regulations
1992 by statutory rules, subordinate instruments and Acts.
–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
Petroleum (Fees) Regulations 1995, S.R. No. 176/1995

Date of Making: 19.12.95
Date of Commencement: 1.1.96: reg. 3

–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––

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Petroleum Regulations 1992

S.R. No. 120/1992 Notes

3. Explanatory Details
No entries at date of publication.

96

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Petroleum Regulations 1992 (Vic)

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Regulation	Page
PART 1—PRELIMINARY	1
101. Title	1
102. Commencement	1
103. Objectives	1
104. Authorising provisions	1
105. Revocation	1
106. Definitions	2
PART 2—GENERAL	9
201. Information to be provided about an operator	9
202. Certificate of competence	9
203. Personnel qualifications and performance	9
204. Tests	10

206. Responsibility for contractors	10
207. Availability of information	10
208. Protection of the environment	11
209. Powers of inspectors	14
210. Procedures manual	15
211. Emergency response procedures	15

213. Person-in-charge	16
214. Communications	16
PART 3—TITLES AND FEES	17
301. Application for permit	17
302. Bond	17
303. Transfer of interest	17
304. Prescribed fee for transfer of interest	17

Regulation	Page
305. Extension of permit	17
306. Form of permit	18
307. Application for lease	18
308. Publishing of notice	18
309. Objection to grant of lease	18
310. Inquiry into objection	19
311. Adjournment of inquiry	19
312. Hearing of parties	19
313. Record of absence of parties	20
314. Copy may be made of evidence	20
315. Finding of inquiry	20
316. Further inquiry	20
317. Form of lease	20
318. Fees	20
319. Prescribed time	21

REQUIREMENTS	22
Division 1—General	22
401. Annual reports	22
402. Reporting of death and serious injury	22
403. Written records of death and injury	23
404. Reporting serious damage	23
405. Reporting potentially hazardous event	24
406. Reporting damage less than $50 000	25
407. Reporting escape or ignition of petroleum and other material	25
408. Reporting of emergencies	26
409. Reporting radiation monitoring	26
Division 2—Geophysical and Geochemical Activities	27
410. Weekly reports	27
411. Data preservation	27
412. Basic data submission	27
413. Final reports on geophysical or geochemical surveys	30
Division 3—Drilling and Workover	31
414. Discovery of petroleum and estimate of petroleum in-place	31
415. Daily report of drilling or workover operations	32
416. Report on modification, abandonment or suspension of well	32
417. Final report on wells	32
418. Special studies	34

Regulation	Page
710. Penetration rate recorder	52
711. Accumulators	53
712. Blow-out prevention drill	53
713. Formation integrity testing	53
714. Drilling fluid	53
715. Deviation surveys	54
716. Directional drilling	54
717. Conversion of a well into a water well	54
718. Oil or gas lost or used during repair operations	54
719. Evaluation of an occurrence of petroleum	55
720. Cores, cuttings and fluid samples	55
721. Reports on analysis of cores and cuttings	55
722. Age dating of samples	55
723. Fluid samples	56
724. Well evaluation logs	56
725. Formation and water shut-off test	57
726. Protection of aquifers	57
727. Production or drill stem tests on exploration or production wells	57
728. Flammable vapours	58
729. Approval to abandon or suspend a well	58
730. Well completion	60
731. Disposal of produced oil and gas	60
732. Disposal of waste fluids	60
733. Replacement of well site fencing	61
734. Restoration of site	61
735. Special services	61
PART 8—PETROLEUM PRODUCTION	62
801. Consent for recovery of petroleum	62
802. Other operations	62
803. Equipment to comply with good oilfield practice	62
804. Construction approval	63
805. Siting of production equipment	63
806. Progress report of construction and installation	63
807. Initial production tests	63
808. Reservoir Management Plan	65
809. Evaluation of potential for retrograde condensation	66
810. Rate of recovery of petroleum	67
811. Monitors and control mechanisms	67
812. Production tests on producing wells	67
813. Gas reservoir and well performance monitoring	68
814. Oil reservoir pressure build-up surveys	69
815. Production measurement	70
816. Measurement of production to determine royalties	71
817. Concurrent production	71
818. Pressure below bubble point	72

Regulation	Page
819. Surface connections	72
820. Production from more than one reservoir from one well	72

enhanced recovery 825. Waste or contamination	74
75
826. Waste liquid	76
827. Disposition of gas	76
828. Approval to vent or flare	76
829. Control of quality of discharge water	76
830. Subsurface safety devices	77
831. Workover of wells	77
832. Wireline operations in wells	78
833. Sampling petroleum streams	78
834. Meter proving	78
835. Protection of completed wells	79
836. Plugging of wells	79
837. Application for consent for gathering lines	79
838. Underground storage of petroleum	80
839. Removal of facilities	80
840. Restoration of lands	81
PART 9—TRANSITIONAL PROVISIONS	82
901. Continuity of title	82
902. Continuity of title conditions	82
903. Continuity of application	82
904. Continuity of consent or approval	82

SCHEDULES	83
SCHEDULE 1—Regulations Revoked	83
SCHEDULE 2—Forms	85
Form 1—Application for Petroleum Exploration Permit	85
Form 2—Bond in respect of Petroleum Exploration Permit/Petroleum

Form 3—Transfer of Petroleum Exploration Permit/Petroleum Lease	88
Form 4—Petroleum Exploration Permit	89
Form 5—Application for Petroleum Lease	90

Regulation	Page
Form 6—Notice of Application for Petroleum Lease	91
Form 7—Petroleum Lease	92

NOTES	94
1. General Information	94
2. Table of Amendments	95
3. Explanatory Details	96

(b)	maximise petroleum exploration and production with minimum loss of the petroleum resource; and
(c)	prescribe forms, fees and other matters necessary for the administration of the Act.

(a)	the technical qualifications of the operator and the operator's advisers; and
(b)	the operator's ability to comply with the conditions of the title and the provisions of the Act and Regulations.

(b)	a copy of the Code of Environmental Practice approved under these Regulations; and
(c)	the procedures manual referred to in regulation 210; and
(d)	the emergency response procedures referred to in regulation 211.

(a)	to protect wildlife, livestock, flora and sites of natural significance; and
(b)

(c)	to minimize disturbance of the land surface; and
(d)	to clean up and rehabilitate any areas disturbed by the operation.

(d)	a list of the areas and items referred to in sub-regulation (5)(b) within or immediately adjacent to the activity area; and
(e)	the area of any Crown land or internal waters involved and the name of the Minister or other person or body responsible for the management of the land under any statute in respect of the area; and
(f)	details of any discussion or liaison carried out with any bodies or groups with an interest in environmental issues; and
(g)	a concise evaluation of the environmental effects, and the measures proposed to avoid or minimise environmental effects; and
(h)	any procedures proposed to monitor the impact on the environment; and

(a)	by notice direct that no further work may be carried out until the matter referred to in the notice is remedied; and
(b)	by further notice give directions as to the measures to be taken to remedy the matter referred to in the notice, including—

(b)	in a Wednesday edition of a daily newspaper circulating generally in Victoria; and
(c)	in a local newspaper, if there is a local newspaper which circulates in the locality of the area of the lease application.

(a)	as soon as practicable give the applicant and the objector at least 5 clear days notice, and hold an inquiry; and
(b)	request information from the applicant and objector as to any matter connected with the application he or she may think proper; and
(c)	mark for identification all documentary evidence produced, and take possession of it, or of certified copies of it; and
(d)	where the inquiry is conducted by a person other than the Minister, forward to the Minister the evidence (written and documentary) with his or her observations and opinion.

The fees payable under the Act are—	176/1995 reg. 4(a)–(c).
Permit processing fee	$3150
Application for consent to transfer permit	$525 per document
Application for consent to register an	$63
amendment to the holder of a permit or lease occurring by devolution of title whether transfer occurs by operation of law or otherwise

Lease processing fee	$3150
Application for consent to transfer lease	$525 per document

(a)	a general discussion of permit status and operations carried out (including office studies);
(b)	technical conclusions derived from the year's operations; discussion on delineated possible prospects and leads and detailed discussion
on the hydrocarbon prospectivity of the permit;

(a)	a report of the death or injury is immediately made to an inspector; and
(b)	a report in writing giving full particulars of the death or injury and all related circumstances is transmitted to the Minister within 5 days after the occurrence of the death or injury.

(b)	the circumstances leading to the occurrence of the death or injury; and
(c)	the treatment (if any) given to the injured person and the name of each medical practitioner (if any) consulted in relation to the injury.

(b)	damage to property, the repair of which damage would cost an amount exceeding $50 000; or
(c)	the loss or destruction of any property, or any damage to property, by reason of which any person dies or suffers serious injury.

(a)	a report of each occurrence is immediately made to an inspector; and
(b)	a report in writing of each occurrence is submitted to the Minister within 5 days of the incident occurring, specifying—

(a)	a report of the event is immediately made to an inspector; and
(b)	a report in writing of the event is submitted to the Minister not later than the 21st day of the month following the month in which the event occurred specifying measures taken or to be taken to prevent a possible recurrence.

(a)	a report of the damage is immediately made to an inspector; and
(b)	a report in writing of the event is submitted to the Minister within 5 days of the event specifying measures taken or to be taken to prevent a possible recurrence.