Petroleum Search Subsidy Act 1969 (Cth)

Petroleum Search Subsidy

No. 38 of 1969

An Act to amend the Petroleum Search Subsidy Act 1959-1967.

[Assented to 14 June 1969]

BE it enacted by the Queen’s Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia, as follows:—

Short title and citation.

1.—(1.) This Act may be cited as the Petroleum Search Subsidy Act 1969.

(2.) The Petroleum Search Subsidy Act 1959-1967 is in this Act referred to as the Principal Act.

(3.) The Principal Act, as amended by this Act, may be cited as the Petroleum Search Subsidy Act 1959-1969.

Commencement.

2.This Act shall come into operation on the day on which this Act receives the Royal Assent.

Title.

3.The title of the Principal Act is repealed and the following title inserted in its stead:—

“An Act to Encourage the Search for Petroleum by Subsidizing Exploration Drilling Operations and Geophysical Surveys.”.

Interpretation.

4. Section 3 of the Principal Act is amended—

(a) by omitting from sub-section (1.) the definition of “assessment drilling”;

(b)by omitting from sub-section (1.) the definition of “drilling operation” and inserting in its stead the following definition:—

“ ‘exploration drilling operation’ means—

(a)an undertaking in connexion with the search for petroleum in Australia or in a submarine area, consisting of—

(i) the drilling of a hole where the purpose of the drilling is, or is to a substantial extent, the obtaining of stratigraphic information; or

(ii) the drilling of a hole in a known rock sequence for the purpose of determining the presence or absence of petroleum; or

(b) a part of an undertaking referred to in the last preceding paragraph,

 

but does not include an undertaking consisting of drilling for the purpose of determining the limits of a pool of petroleum or a part of such an undertaking;”;

(c) by inserting in the definition of “geophysical survey” in sub-section (1.), after the word “Australia”, the words “or in a submarine area”;

(d) by omitting from the definition of “operation” in sub-section (1.) the words “a drilling operation” and inserting in their stead the words “an exploration drilling operation”;

(e) by omitting from sub-section (1.) the definition of “stratigraphic drilling” and inserting in its stead the following definition:—

“‘submarine area’ means a submarine area in the vicinity of Australia and beyond the mean low water mark (other than a submarine area beneath internal waters of Australia), and includes the waters and airspace above such an area;”;

(f) by omitting from sub-section (1.) the definition of “test drilling”; and

(g) by omitting sub-section (2.).

Approval of operations.

5. Section 7 of the Principal Act is amended—

(a)by inserting in sub-section (1.), after the word “Australia”, the words “or in a submarine area”;

(b) by omitting sub-section (2a);

(c) by inserting in paragraph (b)of sub-section (3.), after the word “Australia”, the words “or in submarine areas”; and

(d) by inserting after sub-section (4.) the following sub-section:—

“(4a.) A proposed operation that is to be carried out in connexion with the search for petroleum in a submarine area is not eligible for approval under the last preceding sub-section unless the Minister is satisfied that natural persons ordinarily resident in Australia—

(a)are to pay, in whole or in part, the costs incurred in or in. connexion with the operation; or

(b)are beneficially interested, directly or indirectly, in the capital of a corporation that is to pay, in whole or in part, those costs.”.

Amount of subsidy.

6. Section 9 of the Principal Act is amended—

(a) by inserting after sub-section (1.) the following sub-section:—

“(1a.) An agreement in respect of an approved operation that is to be carried out in connexion with the search for petroleum in a submarine area may provide that the subsidy shall be an amount equal to such specified part (not exceeding the part that would, but for this sub-section, be applicable) of the costs

 

referred to in the last preceding sub-section as the Minister thinks fit having regard to—

(a) if natural persons not ordinarily resident in Australia are to pay those costs in whole or in part—the extent to which it appears to the Minister that such persons are to pay those costs; and

(b)if natural persons not ordinarily resident in Australia are beneficially interested, directly or indirectly, in the capital of a corporation that is to pay those costs in whole or in part—the extent to which it appears to the Minister that such persons are or may be so interested, and the extent to which the corporation is to pay those costs.”; and

(b)by omitting from sub-section (2.) the words “the last preceding sub-section” and inserting in their stead the words “the preceding provisions of this section”.

Repeal of section 9a.

7. Section 9a of the Principal Act is repealed.

Terms and conditions of agreement.

8. Section 10 of the Principal Act is amended—

(a) by omitting from sub-paragraph (iii) of paragraph (c) of sub-section (1.) the words “a drilling operation” and inserting in their stead the words “an exploration drilling operation”;

(b) by omitting from paragraph (f) of sub-section (1.) the words “a drilling operation” and inserting in their stead the words “an exploration drilling operation”; and

(c) by omitting sub-section (2.).

Operation to be carried out within specified period.

9. Section 11 of the Principal Act is amended by omitting the word “sixty-nine” and inserting in its stead the word “seventy-four”.

Regulations.

10. Section 13 of the Principal Act is amended—

(a)by omitting from sub-section (1.) all the words after the words “this Act” (third occurring); and

(b) by omitting sub-section (2.).

Transitional provisions.

11.—(1.) The amendments made by sections 4, 6, 7 and 8 of this Act, and any amendments of the regulations that were, immediately before the commencement of this Act, in force for the purposes of section 9 of the Principal Act, do not apply in relation to an agreement that specifies a period ending not later than the thirtieth day of September, One thousand nine hundred and sixty-nine, as the period within which the approved operation to which the agreement relates is, unless otherwise approved by the Minister, to be completed.

(2.) The amendments made by section 5 of this Act do not apply in relation to an application made before the thirtieth day of September, One thousand nine hundred and sixty-nine, for approval of a proposed

 

operation where the application states that it is intended to complete the operation not later than that date.

(3.) Notwithstanding the amendments made by section 10 of this Act, the regulations in force immediately before the commencement of this Act for the purposes of section 9a of the Principal Act continue in force in relation to agreements referred to in sub-section (1.) of this section.