Petroleum (Submerged Lands) Act of 1967 (Qld)

251 (Queenslunit ANNO SEXTO DECIMO ELIZABETHAE SECUNDAE REGINAE No. 36 of 1967 An Act to Make Provision with respect to the Exploration for, and the Exploitation of, the Petroleum Resources, and certain other Resources of certain Submerged Lands adjacent to the Coasts of the State and for other purposes [ASSENTED TO 6TH DECEMBER, 1967] Preamble. Whereas in accordance with international law Australia as a coastal state has sovereign rights over the continental shelf beyond the limits of Australian territorial waters for the purpose of exploring it and exploiting its natural resources: And whereas Australia is a party to the Convention on the Continental Shelf signed at Geneva on the twenty-ninth day of April, One thousand nine hundred and fifty-eight, in which those rights are defined: And whereas the exploration for and the exploitation of the petroleum resources of submerged lands adjacent to the Australian coast would be encouraged by the adoption of legislative measures applying uniformly to the continental shelf and to the sea-bed and subsoil beneath territorial waters:

252 Petroleum ( Submerged Lands) Act of 1967, No. 36 And whereas the Governments of the Commonwealth and of the States have decided, in the national interest, that, without raising questions concerning and without derogating from their respective constitutional powers, they should co-operate for the purpose of ensuring the legal effectiveness of authorities to explore for or to exploit the petroleum resources of those submerged lands: And whereas the Governments of the Commonwealth and of the States have accordingly agreed to submit to their respective Parliaments legislation relating both to the continental shelf and to the sea-bed and subsoil beneath territorial waters and have also agreed to co-operate in the administration of that legislation: Be it therefore enacted by the Queen's Most Excellent Majesty, by and with the advice and consent of the Legislative Assembly of Queensland in Parliament assembled and by the authority of the same, as follows:- PART I-PRELIMINARY 1. Short title . This Act may be cited as " The Petroleum (Submerged Lands) Act of 1967." 2. Commencement . The several provisions of this Act shall come into operation on a day or the respective days to be fixed by Proclamation or successive Proclamations of the Governor in Council published in the Gazette. 3. Parts. This Act is divided into Parts, as follows:- PART I-PRELIMINARY (SS. 1-13); Part Il-APPLICATION OF LAWS (ss. 14-15); PART Ill-MINING FOR PETROLEUM; Division 1-Preliminary (ss. 16-18); Division 2-Exploration Permits for Petroleum (ss, 19-38); Division 3-Production Licences for Petroleum (ss. 39-59); Division 4-Pipeline Licences (ss. 60-75); Division 5-Registration of Instruments (ss. 76-92); Division 6-General (ss. 93-137); Division 7-Transitional Provisions (ss. 138-144); Division 8-Fees and Royalties (ss. 145-158); PART IV-MISCELLANEOUS (SS. 159-160). 4. Interpretation . (1) In this Act, unless the contrary intention appears- " Access authority " means an access authority under Part III; " Application for a primary licence " means an application under subsection (1) or (2) of section 40 of this Act and " primary licence " means a licence granted on such an application; " Application for a secondary licence " means an application under subsection (3) of section 40 of this Act and " secondary licence " means a licence granted on such an application; " Approved " means approved by the Designated Authority; " Block " means a block constituted as provided by section 17 or 144 of this Act:

Petroleum (Submerged Lands) Act of 1967, No. 36 253 " Construct " includes " place " and " construction " has a corresponding meaning; " Corresponding law " means an Act of another State or a law in force in a Territory of the Commonwealth giving effect to the agreement between the Governments of the Commonwealth and of the States referred to in the preamble to this Act; " Document " includes any map, book , record or writing; " Good oil-field practice " means all those things that are generally accepted as good and safe in the carrying on of exploration for petroleum, or in operations for the recovery of petroleum, as the case may be; " Graticular section " means a section referred to in section 17 of this Act; " Inspector " means a person appointed under section 125 of this Act; " Licence " means a production licence for petroleum under Part III; ".Licence area " means the area constituted by the blocks that are the subject of a licence; Licensee " means the registered holder of a licence; "Location" means a block or blocks in respect of which a declaration under section 37 of this Act is in force; " Minister " means the Minister for Mines and Main Roads or other Minister of the Crown for the time being charged with the administration of this Act: The term includes a Minister of the Crown temporarily performing the duties of the Minister administering the Act; " Natural resources " has the same meaning as in the Convention; " Part " means Part of this Act; " Partly cancelled " means- (a) in relation to a permit or licence-cancelled as to one or more but not all of the blocks the subject of the permit or licence; and (b) in relation to a pipeline licence-cancelled as to a part of the pipeline the subject of the licence; " Partly determined ", in relation to a permit , means determined as to one or more but not all of the blocks the subject of the permit; "Permit " means an exploration permit for petroleum under Part 111; " Permit area " means the area constituted by the blocks that are the subject of a permit; " Permittee " means the registered holder of a permit; " Petroleum " means- (a) any naturally occurring hydrocarbon , whether in a gaseous, liquid or solid state; (b) any naturally occurring mixture of hydrocarbons, whether in a gaseous , liquid or solid state; or

254 Petroleum ( Submerged Lands) Act of 1967, No. 36 (c) any naturally occurring mixture of one or more hydrocarbons, whether in a gaseous, liquid or solid state , and one or more of the following, that is to say, hydrogen sulphide, nitrogen, helium and carbon dioxide, and includes any petroleum as defined by paragraph ( a), (b) or (c) of this definition that has been returned to a natural reservoir in the adjacent area; " Petroleum pool " means a naturally occurring discrete accumulation of petroleum; " Pipeline " means a pipe or system of pipes in the adjacent area for conveying petroleum but does not include a pipe or system of pipes- (a) for returning petroleum to a natural reservoir; (b) for conveying petroleum for use for the purposes of petroleum exploration operations or operations for the recovery of petroleum; (c) for conveying petroleum that is to be flared or vented; or (ci) for conveying petroleum from a well to a terminal station without passing through another terminal station , whether the terminal station to which the petroleum is conveyed is in the adjacent area or not; " Pipeline licence " means a licence under Part III to construct and operate a pipeline; " Pipeline licensee " means the registered holder of a pipeline licence; " Primary entitlement ", in relation to a permittee , means the number of blocks forming part of a location in the permit area in respect of which that permittee may make an application under subsection (1) of section 40 of this Act; " Pumping station " means equipment for pumping petroleum or water and includes any structure associated with that equipment; " Register " means the Register kept by the Designated Authority in pursuance of Division 5 of Part III; " Registered holder ", in relation to a permit , licence, pipeline licence or access authority , means the person whose name is for the time being shown in the Register as being the holder of the permit , licence, pipeline licence or access authority; " Royalty period ", in relation to a permit or licence , means- (a) the period from and including the date from which the permit or licence has effect to the end of the month of the year during which that date occurs; and (b) each month thereafter; " Secondary line " means a pipe or system of pipes for any purpose referred to in paragraphs ( a), (b), (c) and ( d) of the definition of " pipeline "; " Special prospecting authority " means a special prospecting authority under Part III; " Tank station " means a tank or system of tanks for holding or storing petroleum and includes any structure associated with that tank or system of tanks;

Petroleum (Submerged Lands) Act of 1967, No. 36 255 " Terminal station " means a pumping station, a tank station or a valve station declared to be a terminal station under section 63 of this Act or under a corresponding law; " The adjacent area " means the area specified in the Second Schedule to this Act as being adjacent to the State of Queensland; " The applied provisions " means the provisions applied in accordance with section 14 of this Act; " The Commonwealth Act" means the Act or Acts of the Parliament of the Commonwealth passed to give effect to the agreement between the Governments of the Commonwealth and of the States referred to in the Preamble to this Act and includes that Act or those Acts as amended from time to time; " The continental shelf " means the continental shelf, within the meaning of the Convention, adjacent to the coast of Australia or of a Territory not forming part of the Commonwealth; " The Convention " means the Convention entitled " Convention on the Continental Shelf " signed at Geneva on the twenty- ninth"day of April, One thousand nine hundred and fifty-eight, being the Convention a copy of which in the English language is set out in the First Schedule to this Act; " The relinquished area " means- (a) in relation to a permit or licence that has expired-the area constituted by the blocks in respect of which the permit or licence was in force but has not been renewed; (b) in relation to a permit that has been wholly determined or partly determined-the area constituted by the blocks as to which the permit was so determined; (c) in relation to a permit or licence that has been wholly cancelled or partly cancelled-the area constituted by the blocks as to which the permit or licence was so cancelled: (d) in relation to a pipeline licence that is no longer in force- the part of the adjacent area in which the pipeline was constructed; (e) in relation to a pipeline licence that has been wholly cancelled or partly cancelled-the part of the adjacent area in which the pipeline or the part of the pipeline, as the case may be, was constructed; and (f) in relation to a special prospecting authority or access authority that has been surrendered or cancelled, or has expired-the area constituted by the blocks in respect of which that authority was in force; " Valve station " means equipment for regulating the flow of petroleum and includes any structure associated with that equipment; " Vessel " means a vessel used in navigation, other than air navigation, and includes a barge, lighter or other floating vessel; " Water line " means a pipe or system of pipes for conveying water in connexion with petroleum exploration operations or operations for the recovery of petroleum;

256 Petroleum (Submerged Lands) Act of 1967, No. 36 " Well " means a hole in the sea -bed or subsoil made by drilling, boring or any other means in connexion with exploration for petroleum or operations for the recovery of petroleum, but does not include a seismic shot hole; " Wholly cancelled ", in relation to a permit, licence or pipeline licence, means cancelled as to all the blocks , or as to the whole of the pipeline, the subject of the permit, licence or pipeline licence; " Wholly determined ", in relation to a permit, means determined as to all the blocks the subject of the permit. (2) In this Act, a reference to the term of a permit , licence, pipeline licence, special prospecting authority or access authority is a reference to the period during which the permit, licence, pipeline licence , special prospecting authority or access authority remains in force and a reference to the date of expiration of a permit, licence , pipeline licence, special prospecting authority or access authority is a reference to the day on which the permit , licence, pipeline licence , special prospecting authority or access authority ceases to have effect. (3) In this Act a reference to a year of the term of a permit, licence or pipeline licence is a reference to a period of one year commencing on the date from and including which the permit , licence or pipeline licence, as the. case may be, has effect or on any anniversary of that date. (4) In this Act , a reference to the renewal , or to the grant of a renewal, of a permit is a reference to the grant of a permit in respect of all or some of the blocks specified in the first - mentioned permit to commence on the day after the date of expiration of the first-mentioned permit or on the day after the date of expiration of the permit granted upon a previous renewal of the first-mentioned permit. (5) In this Act , a reference to the renewal , or to the grant of a renewal, of a licence in respect of the blocks specified in the licence is a reference to the grant of a licence in respect of those blocks to commence on the day after the date of expiration of the first - mentioned licence or on the day after the date of expiration of the licence granted upon a previous renewal of the first-mentioned licence. (6) In this Act , a reference to the renewal , or to the grant of a renewal, of a pipeline licence in respect of a pipeline is a reference to the grant of a pipeline licence in respect of that pipeline to commence on the day after the date of expiration of the first- mentioned pipeline licence or on the day after the date of expiration of the pipeline licence granted upon a previous renewal of the first - mentioned pipeline licence. (7) In this Act, a reference to a pipeline includes a reference to a part of a pipeline. (8) In this Act , a reference to a permit, licence , pipeline licence or access authority is a reference to the permit , licence, pipeline licence or access authority as varied for the time being under this Act. 5. Construction of Act. This Act shall be read and construed subject to the limits of the legislative powers of the State and so as not to exceed such powers,, to the intent that, where any enactment thereof, but for this provision, would be construed as being in excess of such powers, it shall nevertheless be a valid enactment to the extent to which it is not in excess of such powers.

Petroleum ( Submerged Lands ) Act of 1967, No. 36 257 6. Spaces, above and below adjacent area . For the purposes of this Act and the regulations- (a) the space above or below the adjacent area shall be deemed to be in that area; and (b) the space above or below an area that is part of the adjacent area shall be deemed to be in that part. 7. Points, & c., to be ascertained by reference to Australian Geodetic Datum . (1) Where, for the purposes of this Act or the regulations or for the purposes of an instrument under this Act or the regulations, it is necessary to determine the position on the surface of the Earth of a point, line or area, that position shall be determined by reference to a spheroid having its centre at the centre of the Earth and a major (equatorial) radius of 6,378,160 metres and a flattening of 29825 and by reference to the position of the Johnston Geodetic Station in the Northern Territory of Australia. (2) That station shall be taken to be situated at 133 degrees, 12 minutes and 30.0771 seconds of East Longitude and at 25 degrees, 56 minutes and 545515 seconds of South Latitude and to have a ground level of 571.2 metres above the spheroid referred to in the last preceding subsection. 8. Application of Act. This Act applies to all natural persons, whether Australian citizens or not, and whether resident in Queensland or not, and to all corporations, whether incorporated or carrying on business in Queensland or not. 9. Obligations and liabilities . Where an obligation or liability is imposed by or under the applied provisions, or by or under Part III or the regulations and the like obligation or liability is imposed by or under the Commonwealth Act and the obligation or liability under the Commonwealth Act is discharged, the other obligation or liability is also discharged. 10. Rights , privileges and powers. Where a right, privilege or power is conferred by or under the applied provisions or by or under Part III or the regulations and the like right, privilege or power is conferred by or under the Commonwealth Act and the right, privilege or power under the Commonwealth Act has been exercised, the other right, privilege or power is not capable of being exercised. 11. Causes of Action. Where an act or omission gives rise to a cause of action under the applied provisions or under Part Ili or the regulations and also to a cause of action under the Commonwealth Act and the cause of action under the Commonwealth Act is extinguished, the other cause of action is also extinguished. 12. Persons not liable to be convicted under two laws. Where an act or omission constitutes an offence under both the Commonwealth Act and the applied provisions, Part III or the regulations and the offender has been convicted for that offence under the Commonwealth Act he shall not be liable to be convicted for the offence under the applied provisions, Part III or the regulations. 9

258 Petroleum (Submerged Lands) Act of 1967, No. 36 13. Validation of certain Acts. Where a person or a court has done an act in the purported exercise of a power or function under the Commonwealth Act and that act could have been done by that person or court in the exercise of a power or function under the applied provisions or under Part III or the regulations that act shall be deemed to have been done by that person or court in the exercise of the power or function under those provisions, that Part or those regulations, as the case may be. PART IT-APPLICATION OF LAWS 14. Application of laws in area . adjacent to State. (1) Subject to this Act, the provisions of the laws in force in Queensland, whether written or unwritten, and as in force from time to time, and the provisions of any instrument made under any of those laws, apply in the adjacent area. (2) The provisions referred to in the last preceding subsection apply to and in relation to all acts, matters, circumstances and things touching, concerning, arising out of or connected with the exploration of the sea-bed or subsoil of the adjacent area for petroleum and the exploitation of the natural resources, being petroleum, of that sea-bed or subsoil, and not otherwise and so apply as if the adjacent area were part of the State. (3) This section does not- (a) extend to the provisions of any law or instrument- (i) in so far as they apply to or in relation to the exploration for, or operations for the recovery of, petroleum, (ii) in so far as they apply to or in relation to the construction or operation of pipelines; (iii) in so far as they are incapable of application in the adjacent area; or (iv) in so far as they are expressed not to extend to or apply in the adjacent area; or (b) operate so as to apply the provisions of any law of the Commonwealth in any part of the adjacent area in which that law applies. (4) The regulations may provide that any provisions referred to in subsection (I) of this section that are specified in the regulations do not apply by reason. of this section or apply with prescribed modifications only. (5) Regulations made for the purposes of the last preceding subsection may provide that prescribed provisions be added to or substituted for any of the provisions referred to in subsection (1) of this section. 15. Jurisdiction of State courts . (1) Subject to this section, the several courts of Queensland are invested with jurisdiction in all matters arising under the applied provisions, this Act or the regulations. (2) The jurisdiction with which courts are invested by the last preceding subsection is invested within the limits (other than limits having effect by reference to localities) of their several jurisdictions whether those limits are as to subject-matter or otherwise. (3) The jurisdiction invested in a Magistrates Court or in one or more justices of the peace by this section shall not be judicially exercised except by a Magistrates Court constituted by a Stipendiary Magistrate sitting alone or by a justice who is a stipendiary magistrate. (4) This section does not limit the jurisdiction that a court has apart from this section.

Petroleum (Submerged Lands) Act of 1967, No. 36 259 PART 111-MINING FOR PETROLEUM Diirision 1-Preliminary 16. (1) Designated Authority. The Minister is for the purposes of this Act, the Designated Authority. (2) Arrangements with Commonwealth concerning Designated Authority. The Governor in Council may make an arrangement with the Governor-General with respect to any or all of the matters with respect to which the Governor-General is authorized to make arrangements under the Commonwealth Act. (3) An arrangement made under this section may contain such incidental or supplementary provisions as the. Governor in Council and the Governor-General think necessary. (4) The Governor in Council may arrange with the Governor-General for the variation or revocation of an arrangement made under this section. (5) As to delegation of powers by Designated Authority. The Designated Authority may- (a) delegate all or any of his powers and functions under this Act or the regulations (except this power or delegation); and (h) vary or revoke a delegation given by him. (6) A power or function delegated by the Designated Authority may be exercised or performed by the delegate- (a) in accordance with the instrument of delegation; and (b) if the exercise of the power or the performance of the function is dependent upon the opinion, belief or state of mind of the Designated Authority in relation to a matter-upon the opinion, belief or state of mind of the delegate in relation to that matter. (7) A delegation under this section does not prevent the exercise of a power or the performance of a function by the Designated Authority. (8) A copy of- (a) each instrument by which an arrangement under this section is made, varied or revoked; and (b) each instrument making, varying or revoking a delegation under this section, shall be published in the Gazette. 17. Graticulation of Earth ' s surface and constitution of blocks. (1) For the purposes of this Act, the surface of the Earth shall be deemed to be divided- (a) by the meridian of Greenwich and by meridians that are at a distance from that meridian of five minutes, or a multiple of five minutes, of longitude; and (b) by the equator and by parallels of latitude that are at a distance from the equator of five minutes, or a multiple of five minutes, of latitude, into sections, each of which is bounded- (c) by portions of two of those meridians that are at a distance from each other of five minutes of longitude; and (d) by portions of two of those parallels of latitude that. are at a distance from each other of five minutes of latitude.

260 Petroleum (Submerged Lands) Act of 1967, No. 36 (2) For the purposes of this Act- (a) a graticular section that is wholly within the adjacent area constitutes a block; and (b) if a part only of a graticular section is, or parts only of a graticular section are, within the adjacent area, the area of that part, or those parts, constitutes a block. (3) In this Act- (a) a reference to a block that is constituted by a graticular section includes a reference to a block that is constituted by the area of a part.only, or by the areas of parts only, of a graticular section; and (b) a reference to a graticular section that constitutes a block includes a reference to a graticular section part only of which constitutes, or parts only of which, constitute, a block. 18. Reservation of blocks. (1) The Designated Authority may, by instrument published in the Gazette, declare that a block specified in the instrument (not being a block in respect of which a permit or licence is in force or over or in which there is a pipeline) shall not be the subject of a permit, licence, special prospecting authority or access authority and that a pipeline licence shall not be granted in respect of a pipeline over or in that block. (2) While a declaration under the last preceding subsection remains in force in respect of a block, a permit, licence, special prospecting authority or access authority shall not be granted in respect of that block and a pipeline licence shall not be granted in respect of a pipeline over or in that block. Division 2-Exploration Permits JorPetroleum 19. Exploration for petroleum. A person shall not explore for petroleum in the adjacent area- (a) except under and in pursuance of a permit; or (b) except as otherwise provided by this Part. Penalty: Two thousand dollars for each day on which the offence occurs. 20. Advertisement of blocks . (1) The Designated Authority may, by instrument published in the Gazette- (a) invite applications for the grant of a permit in respect of the block or blocks specified in the instrument; and (b) specify a period within which applications may be made. (2) The Designated Authority may, for reasons that he thinks sufficient, in an instrument under the last preceding subsection, direct that subsection (2) or (3) of the next succeeding section does not apply, or that both of those subsections do not apply, to or in relation to the applications. (3) Where an instrument is published under subsection (1) of this section and- (a) no application is made within the period specified in the instrument; or

Petroleum ( Submerged Lands ) Act of 1967, No. 36 261 (h) after consideration of the applications, a permit- (i) is not granted on any of those applications; or (ii) is granted in respect of some but not all of the blocks specified in the instrument, the Designated Authority may cause a notification accordingly to be published in the Gazette and may, at any subsequent time, receive an application for the grant of a permit in respect of some or all of the blocks specified in the instrument, not being blocks in respect of which a permit was granted. (4) The Designated Authority shall not receive an application under the last preceding subsection during any period during which an application may be made in pursuance of an invitation under subsection (1) of this section. (5) The Designated Authority may, for reasons that he thinks sufficient, upon request in writing served on him, direct that subsection (2) or (3) of the next succeeding section does not apply, or that both of those subsections do not apply, to or in relation to an application made under subsection (3) of this section. 21. Application for permit . (1) An application under the last preceding section- (a) shall be in accordance with an approved form; (b) shall be made in an approved manner; (c) shall be in respect of not more than four hundred blocks; (d) shall be accompanied by particulars of- (i) the proposals of the applicant for work and expenditure in respect of the blocks specified in the application; (ii) the technical qualifications of the applicant and of his employees; (iii) the technical advice available to the applicant; and (iv) the financial resources available to the applicant; (e) may set out any other matters that the applicant wishes the Designated Authority to consider; and (f) shall be accompanied by a fee of One thousand dollars. (2) The number of blocks specified in the application- (a) if sixteen blocks or more are available-shall not be less than sixteen; or (b) if less than sixteen blocks are available-shall be the number available. (3) The blocks specified in the application shall be blocks that are constituted by graticular sections that- (a) constitute a single area; and (b) are such that each graticular section in that area has a side in common with at least one other graticular section in that area. (4) The Designated Authority may, at any time, by instrument in writing served on the applicant, require him to furnish in writing, within the time specified in the instrument, further information in connexion with his application. (5) Where a permit is not granted, the sum of Nine hundred dollars shall be refunded to the applicant.

262 Petroleum ( Submerged Lands) Act of 1967, No. 36 22. Grant or refusal of permit in relation to application. (1) Where an application has been made under section 20 of this Act, the Designated Authority may- (a) by instrument in writing served on the applicant, inform the applicant- (i) that he is prepared to grant to the applicant a permit in respect of the block or blocks specified in the instrument; and (ii) that the applicant will be required to lodge a security for compliance with the conditions to which the permit, if granted, will from time to time be subject and with the provisions of this Part and of the regulations; or, (b) refuse to grant a permit to the applicant. (2) An instrument under the last preceding subsection shall contain- (a) a summary of the conditions subject to which the permit is to be granted; and (b) a statement to the effect 'hat the application will lapse if the applicant does not make a request under the next succeeding subsection in respect of the grant of the permit and lodge with the Designated Authority the security referred to in the instrument. (3) An applicant on whom there has been served an instrument under subsection (1) of this section may, within a period of one month after the date of service of the instrument on him, or within such further period, not exceeding one month, as the Designated Authority, on application in writing served on him before the expiration of the first- mentioned period of one month, allows- (a) by instrument in writing served on the Designated Authority, request the Designated Authority to grant to him the permit; and (b) lodge with the Designated Authority the security, referred to in the first-mentioned instrument. (4) Where an applicant on whom there has been served an instrument under subsection (1) of this section- (a) has made a request under the last preceding subsection; and (b) has lodged with the Designated Authority the security referred to in the instrument, within the period applicable under the last preceding subsection, the Designated Authority shall grant to him an exploration permit for petroleur.i in respect of the block or blocks specified in the instrument. (5) Where an applicant on whom there has been served an instrument under subsection (1) of this section- (a) has not made a request under subsection (3) of this section; or (b) has not lodged with the Designated Authority the security referred to in the instrument, within the period applicable under subsection (3) of this section, the application lapses upon the expiration of that period.

Petroleum ( Submerged Lands ) Act of 1967, No. 36 263 23. Application for permit in respect of surrendered , & c., blocks. (1) Where- (a) a licence is surrendered or cancelled as to a block or blocks; or (b) a permit is surrendered, cancelled or determined as to a block or blocks and, at the time of the surrender, cancellation or determination, the block was, or was included in, or the blocks were, or were included in, a location, the Designated Authority may, at any subsequent time, by instrument published in the Gazette, invite applications for the grant of a permit in respect of that block or such of those blocks as are specified in the instrument and specify a period within which applications may be made. (2) Where an instrument is published under the last preceding subsection and- (a) no application is made within the period specified in the instrument; or (b) after consideration of the applications, a permit is not granted, in respect of the block or blocks specified in the instrument, the Designated Authority may cause a notification accordingly to be published in the Gazette and may, at any subsequent time and without invitation under subsection (1) of section 20 of this Act or under the last preceding subsection, receive an application for the grant of a permit in respect of the block specified in the instrument or, if more than one block was specified in the instrument, in respect of one or more of the blocks so specified. (3) The Designated Authority shall not receive an application under the last preceding subsection during any period during which an application may be made in pursuance of an invitation under subsection (1) of section 20 of this Act or under subsection (1) of this section. (4) An application under this section- (a) shall be in accordance with an approved form; (b) shall be made in an approved manner; (c) shall be accompanied by the particulars referred to in paragraph (d) of subsection (1) of section 21 of this Act; (d) shall specify an amount that the applicant is prepared to pay to the Designated Authority, in addition to the fee referred to in paragraph (a) of subsection (1) of the next succeeding section, in respect of the grant of a permit to him on the application; and (e) may set out any other matters that the applicant wishes the Designated Authority to consider. (5) The Designated Authority may, at any time, by instrument in writing served on the applicant, require him to furnish, within the time specified in the instrument, further information in writing in connexion with his application. 24. Application fee, &c. (1) An application under the last preceding section shall be accompanied by- (a) a fee of One thousand dollars; and (b) a deposit of ten per centum of the amount specified in the application under paragraph (d) of subsection (4) of that section.

264 Petroleum ( Submerged Lands) Act of 1967, No. 36 (2) Where a permit is not granted on the application- (a) the sum of Nine hundred dollars; and (b) subject to the next succeeding subsection, the amount of the deposit, shall be refunded to the applicant. (3) Where an applicant on whom there has been served an instrument under the next succeeding section does not request the Designated Authority, in accordance with section 26 of this Act, to grant to him the permit referred to in the instrument, the deposit shall not, unless the Designated Authority otherwise determines, be refunded to the applicant. 25. Consideration of application . (1) Where, at the expiration of the period specified in an instrument under subsection (1) of section 23 of this Act, only one application has been made under that subsection in respect of the block or blocks specified in the instrument, the Designated Authority may reject the application or may, by instrument in writing served on the applicant, inform the applicant that he is prepared to grant to him a permit in respect of that block or those blocks. (2) Where, at the expiration of the period specified in an instrument under subsection (1) of section 23 of this Act, two or more applications have been made under that subsection in respect of the block or blocks specified in the instrument, the Designated Authority may reject any or all of the applications and, if he does not reject all of the applications, may- (a) if only one application remains unrejected-by instrument in writing served on the applicant; or (b) if two or more applications remain unrejected-by instrument in writing served on the applicant, or on one of the applicants, whose application has not been rejected and who has specified as the amount that he is prepared to pay in respect of the grant of a permit to him an amount that is not less than the amount specified by any other applicant whose application has not been rejected, inform him that he is prepared to grant to him a permit in respect of that block or those blocks. (3) Where an application is made under subsection (2) of section 23 of this Act, the Designated Authority may reject the application or may, by instrument in writing served on the applicant, inform the applicant that he is prepared to grant to him a permit in respect of the block or blocks specified in the application. (4) Where the Designated Authority serves on an applicant an instrument under this section, he shall, by the instrument, inform the applicant that he will be required to lodge a security for compliance with the conditions to which the permit, if granted, will from time to time be subject and with the provisions of this Part and of the regulations. (5) An instrument under this section shall contain- (a) a summary of the conditions subject to which the permit is to be granted; and (b) a statement to the effect that the application will lapse if the applicant does not- (i) make a request under subsection (I) of the next succeeding section;

Petroleum ( Submer g ed Lands ) Act of 1967, No. 36 265 (ii) pay the balance of the amount to be paid in respect of the grant of the permit to him or enter into an agreement under section 109 of this Act in respect of that balance; and (iii) lodge with the Designated Authority the security referred to in the instrument. 26. Request by applicant for grant of permit in respect of advertised blocks. (1) An applicant on whom there has been served an instrument under the last preceding section may, within a period of three months after the date of service of the instrument on him, or within such further period, not exceeding three months, as the Designated Authority, on application in writing served on him before the expiration of the first-mentioned period of three months,.allows- (a) by instrument in writing served on the Designated Authority, request the Designated Authority to grant to him the permit referred to in the first-mentioned instrument; (b) pay the balance of the amount to be paid in respect of the grant of the permit to him or enter into an agreement under section 109 of this Act in respect of that balance; and (c) lodge with the Designated Authority the security referred to in the first-mentioned instrument. (2) Where an applicant on whom there has been served an instrument under the last preceding section- (a) has not made a request under the last preceding subsection; (b) has not paid the balance of the amount to be paid in respect of the grant of the permit to him or entered into an agreement under section 109 of this Act in respect of that balance; or (c) has not lodged with the Designated Authority the security referred to in the instrument, within the period applicable under the last preceding subsection, the application lapses upon the expiration of that period. (3) Where the application of an applicant on whom there has been served an instrument under subsection (2) of the last preceding section lapses as provided by the last preceding subsection, subsection (2) of that section applies in respect of the application or applications, if any, then remaining unrejected. 27. Grant of permit on request. Where a person on whom there has been served an instrument under section 25 of this Act- (a) has made a request under subsection (1) of the last preceding section; (b) has paid the balance of the amount to be paid in respect of the grant of a permit to him or has entered into an agreement under section 109 of this Act in respect of that balance; and (c) has lodged with the Designated Authority the security referred to in the instrument, within the period applicable under that subsection, the Designated Authority shall grant to that person an exploration permit for petroleum in respect of the block or blocks specified in the instrument.

266 Petroleum ( Submerged Lands) Act of 1967, No. 36 28. Rights conferred by permit. A permit, while it remains in force, authorizes the permittee, subject to this Act and the regulations and in accordance with the conditions to which the permit is subject, to explore for petroleum, and to carry on such operations and execute such works as are necessary for that purpose, in the permit area. 29. Term of permit . Subject to this Part, a permit remains in force- (a) in the case of a permit granted otherwise than by way of the renewal of a permit-for a period of six years commencing on the day from which the permit has effect; and (b) in the case of a permit granted by way of the renewal of a permit-for a period of five years commencing on the day after the day on which the last previous permit in respect of blocks specified in the permit so granted ceases to have effect. 30. Application for renewal of permit. (1) Subject to the next succeeding section, a permittee may, from time to time, make an application to the Designated Authority for the renewal of the permit in respect of such of the blocks the subject of the permit as are specified in the application. (2) An application for the renewal of the permit- (a) shall be in accordance with an approved form; (h) subject to the next succeeding subsection, shall be made in an approved manner not less than three months before the date of expiration of the permit; and (c) shall be accompanied by a fee of One hundred dollars, (3) The Designated Authority may, for reasons that he thinks ,efficient, receive an application for the renewal of the permit less than three months before, but not in any case after, the date of expiration of the permit. 31. Application for renewal of permit to be in respect of reduced area. (I) The number of blocks in respect of which an application for the renewal of a permit may be made shall not exceed the number calculated as follows:- (a) where the number of blocks in respect of which the permit is in force is a number that is divisible by two without remainder- one-half of that number; or (h) where the number of blocks in respect of which the permit is in force is a number that is one less or one more than a number that is divisible by four without remainder-one-half of that last-mentioned number. (2) A block that is, or is included in, a location and in respect of which the permit is in force shall not be regarded as a block in respect of which the permit is in force for the purpose of making a calculation under the last preceding subsection. (3) The blocks specified in an application for the renewal of a permit shall be blocks that are constituted by or are within graticular sections that- (a) constitute a single area or a number of discrete areas; and (h) are such that each graticular section in the area, or in each area, has a side in common with at least one other graticular section in that area.

Petroleum (Submerged Lands ) Act of 1967, N o. 36 267 (4) Where the number of blocks in respect of which an application for the renewal of a permit may be made is sixteen or more, each area constituted by blocks in respect of which the application is made shall be constituted by not less than sixteen blocks. (5) Where, in relation to a proposed application for the renewal of a permit, the number calculated in accordance with subsection (1) of this section is less than sixteen, the Designated Authority may, by instrument in writing served on the permittee- (a) inform the permittee that the number of blocks in respect of which the application may be made is such number, not exceeding sixteen, as is specified in the instrument; and (h) give such directions as he thinks fit concerning the blocks in respect of which the application may be made. (6) The Designated Authority may, for reasons that he thinks sufficient- (a) direct that subsections (3) and (4) of this section do not apply to or in relation to a proposed application for the renewal of a permit; and (b) give such directions as he thinks fit concerning the blocks in respect of which that application may be made. 32. Grant or refusal of renewal of permit . (1) Where a permittee makes an application for the renewal of a permit, the Designated Authority- (a) shall, if the permittee has complied with the conditions to which the permit is subject and with the provisions of this Part and of the regulations; or (b) may, if the permittee has not so complied and the Designated Authority is satisfied that, although the permittee has not so complied, special circumstances exist that justify the granting of the renewal of the permit, inform the permittee, by instrument in writing served on the permittee- (c) that he is prepared to grant to him the renewal of the permit; and (d) that he will be required to lodge a security for compliance with the conditions to which the permit, if the renewal is granted, will from time to time be subject and with the provisions of this Part and of the regulations. (2) If the permittee has not complied with the conditions to which the permit is subject and with the provisions of this Part and of the regulations, and if the Designated Authority is not satisfied that special circumstances exist that justify the granting of the renewal of the permit, the Designated Authority shall, subject to the next succeeding subsection, by instrument in writing served on the permittee, refuse to grant the renewal of the permit. (3) The Designated Authority shall not refuse to grant the renewal of the permit unless- (a) he has, by instrument in writing served on the permittee, given not less than one 'month's notice of his intention to refuse to grant the renewal of the permit; (b) he has served a copy of the instrument on such other persons, if any, as he thinks fit;

268 Petroleum (Submerged Lands) Act of 1967, No. 36 (c) he has, in the instrument- (i) given particulars of the reasons for the intention; and (ii) specified a date on or before which the permittee or a person on whom a copy of the instrument is served may, by instrument in writing served on the Designated Authority, submit any matters that he wishes the Designated Authority to consider; and (d) he has taken into account any matters so submitted to him on or before the specified date by the permittee or by a person on whom a copy of the first-mentioned instrument has been served. (4) An instrument referred to in subsection (1) of this section shall contain- (a) a summary of the conditions to which the permit, on the grant of the renewal, is to be subject; and (b) a statement to the effect that the application will lapse if the permittee does not make a request under the next succeeding subsection and lodge with the Designated Authority the security referred to in the instrument. (5) A permittee on whom there has been served an instrument under subsection (1) of this section may, within a period of one month after the date of service of the instrument on him- (a) by instrument in writing served on the Designated Authority, request the Designated Authority to grant to him the renewal of the permit; and (b) lodge with the Designated Authority the security referred to in the first-mentioned instrument. (6) Where a permittee on whom there has been served an instrument under subsection (I) of this section- (a) has made a request under the last preceding subsection; and (b) has lodged with the Designated Authority the security referred to in the instrument, within the period referred to in the last preceding subsection, the Designated Authority shall grant to him the renewal of the permit. (7) Where a permittee on whom there has been served an instrument under subsection (1) of this section- (a) has not made a request under subsection (5) of this section; or (b) has not lodged with the Designated Authority the security referred to in the instrument, within the period referred to in subsection (5) of this section, the application lapses upon the expiration of that period. (8) Where- (a) an application for the renewal of a permit has been made; and (b) the permit expires- (i) before the Designated Authority grants, or refuses to grant, the renewal of the permit; or

Petroleum ( Submerged Lands ) Act of 1967, No. 36 269 (ii) before the application lapses as provided by the last preceding subsection, the permit shall be deemed to continue in force in all respects- (c) until the Designated Authority grants, or refuses to grant, the renewal of the permit; or (d) until the application so lapses, whichever first happens. 33. Conditions of permit . (1) A permit may be granted subject to such conditions as the Designated Authority thinks fit and specifies in the permit. (2) The conditions referred to in.the last preceding subsection may include a condition that, in or in relation to the permit area, the permittee will, during the term of the permit, carry out the work, and expend the amount or amounts, specified in the permit. 34. Discovery of petroleum to be notified . (1) Where petroleum is discovered in a permit area, the permittee- (a) shall forthwith inform the Designated Authority of the discovery; and (b) shall, within a period of three days after the date of the discovery, furnish to the Designated Authority, particulars in writing of the discovery. (2) Where petroleum is discovered in a permit area, the Designated Authority may, from time to time, by instrument in writing served on the permittee, direct the permittee to furnish to him, within the period specified in the instrument, particulars in writing of any one or more of the following:- (a) the chemical composition and physical properties of the petroleum; (b) the nature of the subsoil in which the petroleum occurs; and (c) any other matters relating to the discovery that are specified by the Designated Authority in the instrument. (3) A person to whom a direction is given under the last preceding subsection shall comply with the direction. Penalty: Two thousand dollars. 35. Directions by Designated Authority on discovery of petroleum. (1) Where petroleum is discovered in a permit area, the Designated Authority may, by instrument in writing served on the permittee, direct the permittee to do. within the period specified in the instrument, such things as the Designated Authority thinks necessary and specifies in the instrument to determine the chemical composition and physical properties of that petroleum and to determine the quantity of petroleum in the petroleum pool to which the discovery relates or, if part only of that petroleum pool is within the permit area, in such part of that petroleum pool as is within the permit area., (2) A person to whom a direction is given under the last preceding subsection shall comply with the direction. Penalty: Two thousand dollars.

270 Petroleum ( Submerged Lands ) Act of 1967 , No. 36 36. Nomination of block for purposes of declaring location. (1) Where a permit is in force in respect of a discovery block (not being a block that is, or is included in, a location), the permittee- (a) may; or (b) shall, if required to do so by the Designated Authority by instrument in writing served on the permittee, by instrument in writing served on the Designated Authority, nominate a block in respect of which the permit is in force for the purpose of the making of a declaration under the next succeeding section. (2) Where a permittee who has been required, by instrument in writing served on him under the last preceding subsection, to nominate a block does not, within a period of three months after the date of service of the instrument on him, or within such further period as the Designated Authority, on application in writing served on him before the expiration of that period of three months, allows, nominate the block, the Designated Authority may, by instrument in writing served on the permittee, nominate the block. (3) Where a permittee or the Designated Authority nominates a block under this section, he shall specify in the instrument of nomination a discovery block to form part of the location to be declared under the next succeeding section but this subsection does not prevent other discovery blocks in the permit area forming part of the location. (4) A block shall not be nominated under subsection (1) or (2) of this section- (a) if it is , or is included in, a location;, or (b) if it is such that, if the block were so nominated and the declaration under the next succeeding section were made, the discovery block specified in the instrument of nomination would not form part of the location. (5) Where a discovery block in a permit area immediately adjoins another discovery block and that other discovery block- (a) is a block- (i) in respect of which the permit is in force; (ii) that is, or is included in, a location; and (iii) that was specified under subsection (3) of this section in relation to the declaration of that location; or (b) is a block- (i) that was specified under subsection (3) of this section in relation to the declaration of a location; and (ii) in respect of which the permit has ceased to be in force by reason of the operation of subsection (5) of section 44 of this Act, the permittee shall not, without the consent of the Designated Authority, specify the first-mentioned discovery block under subsection (3) of this section. (6) The Designated Authority may, for reasons that he thinks sufficient, refuse to give his consent under the last preceding subsection. (7) In this section, "discovery block" means a block in which petroleum has been discovered.

Petroleum (Submerged Lands) Act of 1967, No. 36 271 37. Declaration of location. (1) Where a permittee or the Designated Authority has nominated a block under the last preceding section, the Designated Authority shall, by instrument published in the Gazette, declare- (a) that block; and (b) such of the blocks that immediately adjoin that block as are blocks in respect of which the permit is in force and are not included in a location, to be a location for the purposes of this Part. (2) Where the registered holder of a permit that is in force in respect of a block or blocks declared under the last preceding subsection to be a location, by instrument in writing served on the Designated Authority, requests that, for the reasons specified in the instrument, the declaration be revoked, the Designated Authority may, if he is of the opinion that those reasons are sufficient to justify his doing so, by instrument published in the Gazette, revoke the declaration. 38. Immediately adjoining blocks . For the purposes of the last two preceding sections, a block immediately adjoins another block if the graticular section that constitutes or includes that block and the graticular section that constitutes or includes that other block- (a) have a side in common; or (b) are joined together at one point only. Division 3-Production Licences for Petroleum 39. Recovery of petroleum in adjacent area. A person shall not carry on operations for the recovery of petroleum in the adjacent area- (a) except under and in pursuance of a licence; or (b) except as otherwise provided by this Part. Penalty: Two thousand dollars for each day on which the offence occurs. 40. Application by permittee for licence . (1) A permittee whose permit is in force in respect of a block that constitutes, or the blocks that constitute, a location may, within the application period, make an application to the Designated Authority for the grant of a licence- (a) where nine blocks constitute the location concerned-in respect of five of those blocks; (b) where eight or seven blocks constitute the location concerned- in respect of four of those blocks; (c) where six or five blocks constitute the location concerned -in respect of three of those blocks; (d) where four or three blocks constitute the location concerned. -in respect of two of those blocks; (e) where two blocks constitute the location concerned-in respect of one of those blocks; or (f) where one block constitutes the location concerned-in respect of that block.

272 Petroleum (Submerged Lands) Act of 1967, No. 36 (2) A permittee whose permit is in force in respect of blocks that constitute a location- (a) instead of making an application under the last preceding subsection in respect of his primary entitlement, may, within the application period, make an application to the Designated Authority for the grant of a licence in respect of a number of those blocks that is less than his primary entitlement; and (b) may, from time to time within that period, make an application to the Designated Authority for the variation of that licence to include in the licence area a number of those blocks that does not exceed the number, if any, by which his primary entitlement exceeds the number of blocks in respect of which that licence was granted and the number of blocks, if any, included in that licence by reason of any previous variations of that licence. (3) Where- (a) a permittee makes an application under subsection (1) of this section in respect of his primary entitlement; or (b) a permittee to whom a licence has been granted in respect of a number of blocks that is less than his primary entitlement makes an application under the last preceding subsection for a variation of that licence, and the number of blocks in respect of which that licence was granted, together with the number of blocks included, and sought to be included, in the licence area by reason of applications under that subsection, is his primary entitlement, the permittee may, within the application period, make an application to the Designated Authority for the grant of a licence in respect of any of the other blocks forming part of the location concerned. (4) The application period in respect of an application under this section by a permittee is- (a) the period of two years after the date on which the block that constitutes the location concerned was, or the blocks that constitute the location concerned were, declared to be a location; or (b) such other period, not less than two years or more than four years after that date, as the Designated Authority, on application by the permittee, in writing, served on the Designated Authority before the expiration of the first-mentioned period of two years, allows. 41. Application for licence . (1) An application under the last preceding section- (a) shall be in accordance with an approved form; (b) shall be made in an approved manner; (c) shall be accompanied by particulars of the proposals of the applicant for work and expenditure in respect of each block specified in the application; (d) may set out any other matters that the applicant wishes the Designated Authority to consider; and (e) shall in the case of an application for the grant of a licence be accompanied by a fee of Two hundred dollars.

Petroleum (Submerged Lands) Act of 1967, No. 36 273 (2) The Designated Authority may , at any time , by instrument in writing served on the applicant, require him to furnish , within the period specified in the instrument , further information in writing in connexion with his application. 42. Determination of rate of royalty. (1) Where an application for a primary licence has been made and, before or after the grant of the primary licence, the applicant makes an application for a secondary licence, the Designated Authority shall determine a rate at which royalty is to be payable in respect of petroleum recovered, whether under the primary licence or under the secondary licence, being a rate that is not less than eleven per centum nor more than twelve and one-half per centum of the value at the well-head of that petroleum. (2) The Designated Authority shall not, under the last preceding subsection, determine the rate at which royalty is to be payable unless he has given to the applicant an opportunity to confer with him concerning that rate. 43. Notification as to grant of licence . (1) Where an application for the grant of a licence has been made under section 40 of this Act and the applicant has furnished any further information required by the Designated Authority under subsection (2) of section 41 of this Act, the Designated Authority, by instrument in writing served on the applicant- (a) shall inform the applicant that he is prepared to grant to him a licence in respect of the blocks specified in the application; and (b) may inform the applicant that the applicant will be required to lodge a security for compliance with the conditions to which the licence, if granted, will from time to time be subject and with the provisions of this Part and of the regulations. (2) An instrument under the last preceding subsection shall- (a) contain a summary of the conditions subject to which the licence is to be granted; (b) if the instrument relates to an application for a secondary licence-specify the rate of royalty determined by the Designated Authority in pursuance of subsection (1) of the last preceding section; and (c) contain a statement to the effect that the application will lapse- (i) if the applicant does not make a request under subsection (1) of the next succeeding section in respect of the grant of the licence; or (ii) in a case where the Designated Authority informs the applicant that he will be required to lodge a security as mentioned in paragraph (b) of the last preceding subsection-if the applicant does not lodge that security with the Designated Authority. 44. Grant of licence. (1) An applicant on whom there has been served an instrument under subsection (1) of the last preceding section may, within a period of three months after the date of service of the instrument on him, or within such further period, not exceeding three

274 Petroleum ( Submerged Lands) Act of 1967, No. 36 months, as the Designated Authority, on application in writing served on him before the expiration of the first-mentioned period of three months, allows- (a) by instrument in writing served on the Designated Authority request the Designated Authority to grant to him the licence referred to in the first-mentioned instrument; and (b) if the Designated Authority has informed him that he will be required to lodge a security as mentioned in paragraph (b) of subsection (1) of the last preceding section , lodge that security with the Designated Authority. (2) Where an applicant on whom there has been served an instrument under subsection (1) of the last preceding section- (a) has made a request under the last preceding subsection; and (b) if the Designated Authority has informed the applicant that he will be required to lodge a security as mentioned in paragraph (b) of subsection (1) of the last preceding section, has lodged that security with the Designated Authority, within the period applicable under the last preceding subsection, the Designated Authority shall grant to the applicant a production licence for petroleum in respect of the blocks specified in the application. (3) A secondary licence shall not be granted to a permittee in respect of any one or more of the blocks that constitute a location unless- (a) a primary licence has been granted in respect of a block or blocks forming part of that location; and (b) the number of blocks in respect of which the primary licence was granted, together with the number of blocks included in that licence by reason of variations of the licence under the next succeeding section, is the permittee's primary entitlement. (4) Where an applicant on whom there has been served an instrument under subsection (1) of the last preceding section- (a) has not made a request under subsection (1) of this section; or (b) if the Designated Authority has informed the applicant that he will be required to lodge a security as mentioned in paragraph (b) of subsection (1) of the last preceding section, has not lodged that security with the Designated Authority, within the period applicable under subsection (I) of this section, the application lapses upon the expiration of that period. (5) From and including the day on which a licence granted under this section has effect, the permit in respect of the blocks in respect of which the licence was granted ceases to be in force in respect of those blocks. 45. Variation of licence area . (1) Where an application is made under subsection (2) of section 40 of this Act for a variation of a licence, the Designated Authority shall, by instrument in writing served on the licensee, vary the licence to include in the licence area the blocks specified in the application. (2) From and including the day from and including which a variation of a licence under this section has effect- (a) the blocks included in the licence area by reason of the variation are, subject to this Part, for the remainder of the term of the licence, blocks in respect of which the licence is in force; and (b) the permit that is in force in respect of the blocks so included ceases to be in force in respect of those blocks.

Petroleum (Submerged Lands) Act of 1967, No. 36 275 46. Determination of permit as to block not taken up by licensee. (1) Subject to the next succeeding subsection, where- (a) a permittee who may make an application under section 40 of this Act in respect of a block does not, within the application period, make the application; or (b) all applications made by a permittee under that section in respect of a block have lapsed, the permit is determined as to that block and the determination has effect- (c) in a case referred to in paragraph (a) of this subsection-upon the expiration of the application period; and (d) in a case referred to in paragraph (b) of this subsection- (i) upon the expiration of the application period; or (ii) upon the lapsing of the last of the applications referred to in that paragraph, whichever is the later. (2) Where a permittee makes an application for a secondary licence- (a) the permit is determined as to any blocks forming part of the location concerned that are not the subject of that application or of any application for a primary licence or for the variation of such a licence; and (b) the determination has effect upon the making of the application. (3) Where the block or blocks constituting a location are no longer the subject of a permit, the Designated Authority shall, by instrument published in the Gazette, revoke the declaration made under subsection (1) of section 37 of this Act in respect of that location. 47. Application for licence in respect of surrendered, &c., blocks. (1) Where- (a) a licence is surrendered or cancelled as to a block; or (b) a permit is surrendered, cancelled or determined as to a block- (i) that, at the time of the surrender, cancellation or determination, was, or was included in, a location; and (ii) in which, in the opinion of the Designated Authority, there is petroleum, the Designated Authority may, at any subsequent time, by instrument published in the Gazette- (s) invite applications for the grant of a licence in respect of that block; and (d) specify a period within which applications may be made. (2) The Designated Authority shall, in an instrument under the last preceding subsection, state- (a) that an applicant is required to specify an amount that he would be prepared to pay in respect of the grant of a licence to him on his application; or (b) that an applicant is required to specify a rate of royalty that he would be prepared to pay, if a licence were granted to him on his application, in respect of petroleum recovered under the licence, being a rate that exceeds ten per centum of the value at the well-head of that petroleum.

276 Petroleum ( Submerged Lands ) Act of 1967, No. 36 (3) Where the Designated Authority, in an instrument under subsection (1) of this section, states that an applicant is required to specify a rate of royalty as mentioned in paragraph (b) of the last preceding subsection, the Designated" Authority may, in that instrument, state that an applicant on whose application he is prepared to grant a licence will also be required to pay to him, in respect of the grant of the licence to the applicant, the amount specified in that behalf in that instrument.. (4) Where an instrument is published under subsection (1) of this section and- (a) no application is made within the period specified in the instrument; or (b) after consideration of the applications, a licence is not granted, in respect of the block specified in the instrument, the Designated Authority may cause a notification accordingly to be published in the Gazette and may, at any subsequent time and without invitation under subsection (1) of this section, receive an application for the grant of a licence in respect of that block. (5) The Designated Authority shall not receive an application under the last preceding subsection during any period during which an application may be made in pursuance of an invitation under subsection (1) of this section. (6) An application under this section- (a) shall be in accordance with an approved form; (b) shall be made in an approved manner; (c) shall be accompanied by the particulars referred to in paragraph (c) of subsection (1) of section 41 of this Act; (d) in the case of an application under subsection (1) of this section, shall specify, in accordance with the requirement in the instrument by which applications were invited, the amount, or the rate of royalty, that the applicant would be prepared to pay; (e) in the case of an application under subsection (4) of this section, shall specify- (i) an amount that the applicant would be prepared to pay in respect of the grant of a licence to him on the application; (ii) a rate of royalty that the applicant would be prepared to pay in respect of petroleum recovered under the licence, being a rate that exceeds ten per centum of the value at the well-head of that petroleum; or (iii) such an amount and such a rate; and (f) may set out any other matters that the applicant wishes the Designated Authority to consider. (7) The Designated Authority may, at any time, by instrument in writing served on the applicant, require him to furnish, within the period specified in the instrument, further information in connexion with his application.

Petroleum ( Submerged Lands) Act of 1967, 'No. 36 277 48. Application fee, &c. (1) An application under the last preceding section shall be accompanied by- (a) a fee of One thousand dollars; and (b) a deposit- (i) if the application is made under subsection (1) or (4) of the last preceding section and the applicant has specified an amount that he would be prepared to pay in respect of the grant of a licence to him on the application-of ten per centum of that amount; or (ii) if the application is made under subsection (1) of the last preceding section and the Designated Authority has, in the instrument by which applications were invited, stated an amount that the applicant will be required to pay in respect of the grant of a licence-of ten per centum of that amount. (2) Where a licence is not granted on the application- (a) the sum of Nine hundred dollars; and (b) subject to the next succeeding subsection, the amount of the deposit, shall be refunded to the applicant. (3) Where an applicant on whom there has been served an instrument under subsection (1) or (3) of the next succeeding section does not request the Designated Authority, under subsection (6) of that section, to grant to him the licence referred to in the instrument, the deposit shall not, unless the Designated Authority otherwise determines, be refunded to the applicant. 49. Request by applicant for grant of licence . (1) Where, at the expiration of the period specified in an instrument under subsection (1) of section 47 of this Act, only one application has been made under that subsection in respect of the block specified in the instrument, the Designated Authority may reject the application or may, by instrument in writing served on the applicant, inform him that he is prepared to grant to him a licence in respect of that block, (2) Where, at the expiration of the period specified in an instrument under subsection (1) of section 47 of this Act, two or more applications have been made under that subsection in respect of the block specified in the instrument, the Designated Authority may reject any or all of the applications and, if he does not reject all of the applications, may-- (a) if only one application remains unrejected-by instrument in writing served on the applicant; or (b) if two or more applications remain unrejected-by instrument in writing served on the applicant, or on one of the applicants, whose application has not been rejected and who has specified in his application an amount, or a rate of royalty that he would be prepared to pay that is not less than the amount, or the rate of royalty, specified in the application of any other applicant whose application has not been rejected, inform him that he is prepared to grant to him a licence in respect of that block.

278 Petroleum ( Submerged Lands) Act of 1967, No. 36 (3) Where an application is made under subsection (4) of section 47 of this Act, the Designated Authority may reject the application or may, by instrument in writing served on the applicant, inform the applicant- (a) that he is prepared to grant to him a licence in respect of that block; and (b) that the applicant will be required to pay- (i) the amount specified in the application; (ii) royalty at the rate specified in the application; or (iii) the amount, and royalty at the rate, specified in the application, as the case may be. (4) The Designated Authority may, by an instrument served on an applicant under any of the preceding provisions of this section, inform the applicant that he will be required to lodge a security for compliance with the conditions to which the licence, if granted, will from time to time be subject and with the provisions of this Part and of the regulations. (5) An instrument under any of the preceding provisions of this section shall contain- (a) a summary of the conditions subject to which the licence is to be granted; (b) a statement of the balance of the amount, if any, that the applicant will be required to pay in respect of the grant of the licence to him; and (c) a statement to the effect that the application will lapse- (i) if the applicant does not make a request under the next succeeding subsection; (ii) in a cast where the instrument contains a statement referred to in the last preceding paragraph-if the applicant does not pay the balance of the amount referred to in that statement or enter into an agreement under section 109 of this Act in respect of that balance; or (iii) in a case where the Designated Authority informs the applicant that he will be required to lodge a security as mentioned in the last preceding subsection-if the applicant does not lodge that security with the Designated Authority. (6) An applicant on whom there has been served an instrument under any of the preceding provisions of this section may, within a period of three months after the date of service of the instrument on him, or within such further period, not exceeding three months, as the Designated Authority, on application in writing served on him before the expiration of the first-mentioned period of three months, allows- (a) by instrument in writing served on the Designated Authority, request the Designated Authority to grant to him the licence; (b) if the first-mentioned instrument contains a statement of the balance of an amount that the applicant will be required to pay in respect of the grant of the licence to him-pay that balance or enter into an agreement under section 109 of this Act in respect of that balance; and (c) if the Designated Authority has informed him that he will be required to lodge a security as mentioned in subsection (4) of this section, lodge that security with the Designated Authority.

Petroleum ( Submerged Lands) Act of 1967, No. 36 279 (7) Where an applicant on whom there has been served an instrument under subsection (1), (2) or (3) of this section- (a) has not made a request under the last preceding subsection; (b) if the instrument contains a statement of the balance of an amount that the applicant will be required to pay in respect of the grant of a licence to him-has not paid that balance or entered into an agreement under section 109 of this Act in respect of that balance; or (c) if the Designated Authority has informed the applicant that he will be required to lodge a security as mentioned in subsection (4) of this section, has not lodged that security with the Designated Authority, within the period applicable under the last preceding subsection, the application lapses upon the expiration of that period. (8) Where the application of an applicant on whom there has been served an instrument under subsection (2) of this section lapses as provided by the last preceding subsection, subsection (2) of this section applies in respect of the application or applications, if any, then remaining unrejected. 50. Grant of licence on request. Where an applicant on whom there has been served an instrument under the last preceding section- (a) has made a request under subsection (6) of that section; (b) if the instrument contains a statement of the balance of an amount that the applicant will be required to pay in respect of the grant of a licence to him-has paid that balance or entered into an agreement under section 109 of this Act in respect of that balance; and (c) if the Designated Authority has informed him that he will be required to lodge a security as mentioned in subsection (4) of the last preceding section, has lodged that security with the Designated Authority, within the period applicable under subsection (6) of the last preceding section, the Designated Authority shall grant to him a production licence for petroleum in respect of the block specified in the instrument. 51. Grant of licences in respect of individual blocks. (1) Where a licence (in this section called " the original licence ") is in force in respect of two or more blocks (not being blocks that form, or form part of, a location), the licensee may make an application to the Designated Authority for the grant to him of two or more licences in respect of the blocks the subject of the original licence in exchange for the original licence. (2) An application under the last preceding subsection- (a) shall be in accordance with an approved form; (b) shall be made in an approved manner; (c) shall specify the number of licences required; (d) shall specify the block or blocks the subject of the original licence in respect of which each licence is sought; and (e) shall be accompanied by a fee of One hundred dollars.

280 Petroleum (Submerged Lands) Act of 1967, No. 36 (3) The Designated Authority may, by instrument in writing served on a licensee who has made an application under this section, require him to lodge, in respect of a licence to be granted to him under this section. a security for compliance with the conditions to which the licence is from time to time subject and with the provisions of this Part and of the regulations. (4) Where a licensee- (a) has made an application under this section; and (b) if the Designated Authority has required the licensee to lodge a security as mentioned in the last preceding subsection, has lodged that security with the Designated Authority, the Designated Authority shall grant to the licensee production licences for petroleum in accordance with the application. (5) A licence granted on an application under this section- (a) remains in force, subject to this Part, but notwithstanding section 53 of this Act, for the remainder of the term of the original licence; and (b) shall be granted subject to conditions corresponding as nearly as may be to the conditions to which the original licence was subject. (6) Where licences are granted on an application under this section- (a) the original licence is, by force of this subsection, determined; and (b) the determination has effect from and including the day on which those licences have effect. 52. Rights conferred by licence . A licence, while it remains in force, authorizes the licensee, subject to this Act and the regulations and in accordance with the conditions to which the licence is subject- (a) to carry on operations for the recovery of petroleum in the licence area; (b) to explore for petroleum in the licence area; and (c) to carry on such operations and execute such works in the licence area as are necessary for those purposes. 53. Term of licence . Subject to this Part, a licence remains in force- (a) in the case of a licence granted otherwise than by way of the renewal of a licence--for a period of twenty-one years commencing on the day from which the licence has effect; (b) in the case of a licence granted by way of the first renewal of a licence-for a period of twenty-one years commencing on the day after the day on which the previous licence ceases to have effect; and (c) in the case of a licence granted by way of the renewal, other than the first renewal, of a licence--for such period, not exceeding twenty-one years, as the Designated Authority determines and specifies in the licence, commencing on the day after the day on which the last previous licence in respect of the blocks specified in the licence so granted ceases to have effect.

Petroleum (Submerged Lands) Act of 1967, No. 36 281 54. Application for renewal of licence . (1) A licensee may, from time to time, make an application to the Designated Authority for the renewal of the licence. (2) An application for the renewal of the licence- (a) shall be in accordance with an approved form; (b) subject to the next succeeding subsection, shall be made in an approved manner not less than six months before the day on which the licence ceases to have effect; (c) shall be accompanied by particulars of the proposals of the licensee for work and expenditure in respect of the licence area; and (d) shall be accompanied by a fee of Two hundred dollars. (3) The Designated Authority may, for reasons that he thinks sufficient, receive an application for the renewal of the licence less than six months before, but not in any case after, the day on which the licence ceases to have effect. 55. Grant or refusal of renewal of licence. (1) Where a licensee who has complied with the conditions to which the licence is subject and with the provisions of this Part and,of the regulations makes an application under the last preceding section for the renewal of the licence, the Designated Authority- (a) shall, if the application is in respect of the first renewal of the licence; or (b) may, if the application is in respect of a renewal other than the first renewal of the licence, inform the licensee, by instrument in writing served on the licensee, that he is prepared to grant to him the renewal of the licence. (2) Where a licensee who has not complied with the conditions to which the licence is subject and with the provisions of this Part and of the regulations makes an application under the last preceding section for the renewal of the licence, the Designated Authority, if he is satisfied that, although the licensee has not so complied, special circumstances exist that justify the granting of the renewal of the licence, may inform the licensee, by instrument in writing served on the licensee, that he is prepared to grant to him the renewal of the licence. (3) If a licensee has not complied with the conditions to which the licence is subject and with the provisions of this Part and of the regulations, and if the Designated Authority is not satisfied that special circumstances exist that justify the granting of the renewal of the licence, the Designated Authority shall, subject to the next succeeding subsection, by instrument in writing served on the licensee, refuse to grant the renewal of the licence. (4) The Designated Authority shall not, under the last preceding subsection, refuse to grant the renewal of a licence unless- (a) he has, by instrument in writing served on the licensee, given not less than one month's notice of his intention to refuse to grant the renewal of the licence; (b) he has served a copy of the instrument on such other persons, if any, as he thinks fit;

282 Petroleum ( Submerged Lands ) Act of 1967, No. 36 (c) he has, in the instrument- (i) given particulars of the reasons for the intention; and (ii) specified a date on or before which the licensee or a person on whom a copy of the instrument is served may, by instrument in writing served on the Designated Authority, submit any matters that he wishes the Designated Authority to consider; and (d) he has taken into account any matters so submitted to him on or before the specified date by the licensee or by a person on whom a copy of the first-mentioned instrument has been served. (5) Where a licensee makes an application under the last preceding section in respect of a renewal other than the first renewal of the licence, the Designated Authority may, by instrument in writing served on the licensee, refuse' to grant the renewal of the licence. (6) The Designated Authority may, by an instrument served on a licensee under subsection (1) or (2) of this section, inform the licensee that he will be required to lodge a security for compliance with the conditions to which the licence , if the renewal is granted, will from time to time be subject and with the provisions of this Part and of the regulations. (7) An instrument under subsection (1) or (2) of this section shall contain- (a) a summary of the conditions to which the licence, on the grant of the renewal, is to be subject; and (b) a statement to the effect that the application will lapse- (i) if the licensee does not make a request under the next succeeding subsection; or (ii) in a case where the Designated Authority informs the licensee that he will be required to lodge a security as mentioned in the last preceding subsection-if the licensee does not lodge that security with the Designated Authority. (8) A licensee on whom there has been served an instrument under subsection (1) or (2) of this section may, within a period of one month after the date of service of the instrument on him- (a) by instrument in writing served on the Designated Authority, request the Designated Authority to grant to him the renewal of the licence; and (b) if the Designated Authority has informed him that he will be required to lodge a security as mentioned in subsection (6) of this section, lodge that security with the Designated Authority. (9) Where a licensee on whom there has been served an instrument under subsection (1) or (2) of this section- (a) has made a request under the last preceding subsection; and (b) if the Designated Authority has informed him that he will be required to lodge a security as mentioned in subsection (6) of this section, has lodged that security with the Designated Authority, within the period referred to in the last preceding subsection, the Designated Authority shall grant to him the renewal of the licence.

328 Petroleum ( Submerged Lands ) Act of 1967, No. 36 (b) the whole or any part of the former area and, in addition, so much of the area of any block, being a block that is constituted as provided by section 17 of this Act and is partly included in the former area, as is not included in the former area, but excluding any area- (c) in which a person other than the applicant is entitled by reason of an instrument under this Act or under the former provisions to prospect or explore for petroleum, as defined by this Act, or by the former provisions, as the case may be, or to carry on operations for the recovery of petroleum as so defined; or (d) that is not within the adjacent area. (3) The application- (a) shall be made within six months after the commencing day, or within three months after the expiration of the prescribed instrument, whichever is the earlier; and (b) shall be accompanied by a fee of One hundred dollars. (4) The Designated Authority may grant to a person by whom an application under this section is made, an exploration permit for petroleum in respect of a single area constituted by the whole or any part of the area in respect of which the application is made. (5) Where a permit is not granted on an application under this section, the applicant is not entitled to the refund of the fee, or any part of the fee, accompanying the application. (6) A permit shall not be granted under this section if the applicant does not, where so required by the Designated Authority, lodge with the Designated Authority a security for compliance with the conditions to which the permit, if granted, will from time to time be subject and with the provisions of this Part and of the regulations. (7) Upon the grant of a permit on an application made under subsection (1) of this section, the prescribed instrument held by the applicant insofar as it relates to any area within the adjacent area shall be deemed to have been surrendered by the holder of the prescribed instrument. 144. Certain portions of block to be blocks. (1) Where the area in respect of which a permit , licence or prescribed instrument is in force includes one or more portions of a block constituted as provided by section 17 of this Act, then, for the purposes of this Part (a) the area of that portion or of those portions constitutes a block; and (b) the area of the remaining portion or portions of the first-mentioned block (but not including any part of that area in respect of which a permit, licence or prescribed instrument is in force) constitutes a block. (2) Where a permit, licence or prescribed instrument ceases to be in force in respect of an area that constitutes a block as provided by paragraph (a) of the last preceding subsection, the Designated Authority may, by

Petroleum ( Submerged Lands ) Act of 1967, No. 36 329 instrument in writing, if he considers it desirable to do so, determine that that block shall be amalgamated with another block or blocks, being a block or blocks- (a) constituted as provided by this section; (b) forming part of the graticular section of which that first- mentioned block forms part; and (c) in respect of which a permit or licence is in force. (3) Where such a determination is made, then, for the purposes of this Part- (a) the blocks the subject of the determination cease to constitute blocks and the areas of those blocks together constitute a block; (b) the block constituted by reason of the determination is, subject to this Part, for the remainder of the term of the permit or licence concerned, a block in respect of which the permit or licence is in force. (4) The Designated Authority shall not make a determination under subsection (2) of this section except with the consent of the permittee or licensee concerned. Division 8-Fees and Royalties 145. Permit fees. There is payable to the Designated Authority by a permittee in respect of each year of the term of the permit- (a) a fee of One hundred dollars; or (b) a fee calculated at the rate of Five dollars for each of the blocks to which the permit relates at the commencement of that year- whichever is the greater. 146. Licence fees. There is payable to the Designated Authority by a licensee , in respect of each year of the term of the licence, a fee calculated at the rate of Three thousand dollars for each of the blocks to which the licence relates at the commencement of that year. 147. Pipeline licence fees. There is payable to the Designated Authority by a pipeline licensee, in respect of each year of the term of the pipeline licence, a fee of Twenty dollars in respect of each mile or portion of a mile of the length of the pipeline at the commencement of that year. 148. Time of payment of fees. A fee under section 145, 146 or 147 of this Act is payable within one month after- (a) in the case of the first year of the term of the permit, licence or pipeline licence-the day on which that term commenced; and (b) in the case of a year of the term of the permit, licence or pipeline licence other than the first-the anniversary of that day. 149. Penalty for late payment . Where the liability of a permittee, licensee or pipeline licensee to pay a fee under section, 145, 146 or 147 of this Act is not discharged at or before the time when the fee is payable, there is payable to the Designated Authority by the permittee, licensee or pipeline licensee an additional amount calculated at the rate of

330 Petro l eum (Submerged Lands) Act of 1967, No. 36 one-third of one per centum per day upon the amount of the fee from time to time remaining unpaid, to be computed from the time when the fee became payable until it is paid. 150. Fees and penalties, debts due to the Crown . A fee under section 145, 146 or 147 or an amount payable under the last preceding section, is a debt due by the permittee, licensee or pipeline licensee, as the case may be, to the Crown and is recoverable in a court of competent jurisdiction. 151. Royalty . (1) The conditions subject to which a permit or licence is granted shall include a condition that the permittee or licensee shall, subject to this section, pay to the Designated Authority, a royalty at the prescribed rate in respect of all petroleum recovered by the permittee or licensee in the permit area or licence area. (2) Subject to the succeeding provisions of this section, the prescribed rate in respect of petroleum recovered under a permit or licence is ten per centum of the value at the well-head of the petroleum. (3) The prescribed rate in respect of petroleum recovered under a secondary licence is the percentage determined by the Designated Authority in pursuance of subsection (I) of section 42 of this Act in respect of petroleum so recovered. (4) Where a secondary licence is granted to the holder of a primary licence, the prescribed rate in respect of petroleum recovered under the primary licence is, as from the commencement of the next royalty period after the day from which the secondary licence has effect, the same percentage as is applicable in respect of petroleum recovered under the secondary licence. (5) Where- (a) a licence is granted on an application under section 47 of this Act, and (h) the instrument served on the applicant under section 49 of this Act contains a statement that the applicant will be required to pay, in respect of petroleum recovered under that licence, royalty at the rate specified in that statement, the prescribed rate in respect of petroleum recovered under that licence is the percentage specified in that statement. (6) Where a licence is granted on an application under subsection (I) of section 51 of this Act, the prescribed rate in respect of petroleum recovered under that licence is the same percentage as was applicable in respect of petroleum recovered under the original licence as defined by subsection (1) of that section. (7) The prescribed rate in respect of petroleum recovered under a licence granted by way of renewal of a licence is the percentage applicable under the licence before renewal (or, if another percentage is fixed by the Parliament in respect of petroleum so recovered, that percentage) of the value at the well-head of the petroleum. 152. Reduction of royalty in certain cases. (1) Where the Designated Authority is satisfied that the rate of recovery of petroleum from a well has become so reduced that, having regard to the rate of royalty fixed by the last preceding section., further recovery of petroleum from that well would he uneconomic, the Designated Authority may, by instrument

Petroleum ( Submerged Lands ) Act of 1967, No. 36 331 in writing, determine that the royalty in respect of petroleum recovered from that well shall be at such rate (being a rate lower than the rate fixed by the last preceding section) as the Designated Authority specifies in respect of such period as the Designated Authority specifies. (2) The prescribed rate in respect of petroleum recovered, during the period specified in the determination, from the well to which such a determination relates is the rate so specified. 153. Royalty not payable in certain cases. (1) Royalty under this Act- (a) is not payable in respect of petroleum that the Designated Authority is satisfied was unavoidably lost before the quantity of that petroleum was ascertained; (b) is not payable in respect of petroleum that is used by the permittee or licensee, as approved by the Designated Authority, for the purposes of petroleum exploration operations or operations for the recovery of petroleum; and (c) is not payable in respect of petroleum that, with the approval of the Designated Authority, is flared or vented in connexion with operations for the recovery of petroleum. (2) Where petroleum that has been recovered by a permittee or licensee is, with the approval of the Designated Authority, returned to a natural reservoir, royalty under this Act is not payable in respect of that petroleum by reason of that recovery but this subsection does not affect the liability of that or any other permittee or licensee to pay royalty in respect of petroleum that is recovered from that natural reservoir. 154. Ascertainment of well - head . For the purposes of this Act, the well-head, in relation to any petroleum, is such valve station as is agreed between the permittee or licensee and the Designated Authority, or, in default of agreement within such period as the Designated Authority allows, is such valve station as is determined by the Designated Authority as being that well-head. 155. Ascertainment of value. For the purposes of this Act, the value at the well-head of any petroleum is such amount as is agreed between the permittee or licensee and the Designated Authority, or, in default of agreement within such period as the Designated Authority allows, is such amount as is determined by the Designated Authority as being that value. 156. Ascertainment of quantity of petroleum recovered . For the purposes of this Act, the quantity of petroleum recovered by a permittee or licensee during a period shall be taken to be- (a) the quantity measured during that period by a measuring device approved by the Designated Authority and installed at the well-head or at such other place as the Designated Authority approves; or (b) where no such measuring device is so installed, or the Designated Authority is not satisfied that the quantity of petroleum recovered by the permittee or licensee has been properly or accurately measured by such a measuring device- the quantity determined by the Designated Authority as being the quantity recovered by the permittee or licensee during that period.

332 Petroleum ( Submerged Lands) Act of 1967, No. 36 157. Payment of royalty. (1) Royalty under this Act in respect of petroleum recovered during a royalty period is payable not later than the last day of the next succeeding royalty period. (2) Where an amount of royalty under this Act is not paid as provided by the last preceding subsection, there is payable to the Designated Authority by the permittee or the licensee an additional amount calculated at the rate of one-third of one per centum per day upon the amount of royalty from time to time remaining unpaid, to be computed from the time when the royalty became payable until it is paid. (3) An additional amount is not payable under the last preceding subsection in respect of any period before the expiration of seven days after the value of the petroleum was agreed or determined under section 155 of this Act. 158. Royalty and penalties , debts due to the Crown. Royalty under section 151 of this Act or an amount payable under the last preceding section, is a debt due by the permittee or licensee to the Crown and is recoverable in a court of competent jurisdiction. PART IV-MISCELLANEOUS 159. (1) Regulations . The Governor in Council may make regulations, not inconsistent with this Act, prescribing all matters that by this Act are required or permitted to be prescribed or are necessary or convenient to be prescribed for carrying out or giving effect to this Act. (2) In particular but without limiting the generality of the last preceding subsection, the regulations may make provision for securing, regulating, controlling or restricting all or any of the following matters:- (a) the exploration for petroleum and the carrying on of operations, and the execution of works, for that purpose; (h) the recovery of petroleum and the carrying on of operations, and the execution of works, for that purpose; (c) conserving, and preventing the waste of, the natural resources, whether petroleum or otherwise, of the adjacent area; (d) the construction and operation of pipelines, water lines, secondary lines, pumping stations, tank stations or valve stations and the carrying on of operations, and the execution of works, for any of those purposes; (e) the construction, erection, maintenance, operation or use of installations or equipment; (f) the control of the flow and the prevention of the escape of petroleum or water; (g) the prevention of the escape of water or drilling fluid or a mixture of water or drilling fluid with petroleum or any other matter; (h) the prevention of damage to petroleum-bearing strata in an area, whether in the adjacent area or not in respect of which a permit or licence is not in force; (i) the keeping separate of- (i) each petroleum pool discovered in a permit area or licence area; and (ii) each source of water discovered in a permit area or licence area;

Petroleum (Submerged Lands) Act of 1967, No. 36 333 (j) the prevention of water or other matter from entering a . petroleum pool through wells; (k) the prevention of the waste or escape of petroleum or water from a pipeline, water line, secondary line, pumping station, tank station or valve station; (1) the maintaining in good condition and repair of all structures, equipment and other property in the adjacent area used or intended to be used for or in connexion with exploration for or the exploitation of petroleum in the adjacent area; (in) the removal from the adjacent area of structures, equipment and other property brought into the adjacent area for or in connexion with exploration for, or the exploitation of, petroleum that are not used or intended to be used in connexion with exploration for, or the exploitation of, petroleum in the adjacent area. (3) The regulations may prescribe, in relation to the exploration for`, and the exploitation of, the natural resources (being petroleum) of the adjacent area, matters for carrying out or giving effect to the Convention. (4) The regulations may provide, in respect of an offence against the regulations, for the imposition of- (a) a fine not exceeding Two thousand dollars; or (b) a fine not exceeding that amount for each day on which the offence occurs. (5) Publication of regulations , &c. Every regulation made under this Act shall- (a) be published in the Gazette; (b) upon its publication in the Gazette, be judicially noticed and such publication shall be conclusive evidence of the matters contained therein; (c) take effect from the date of such publication unless a later date is specified in that or any other regulation, as the case may be, for its commencement when in such event it shall take effect from that later date; and (d) be laid before the Legislative Assembly within fourteen sitting days after such publication, if the Legislative Assembly is in session, and if not, then within fourteen sitting days after the commencement of the next session. (6) If the Legislative Assembly passes a resolution of which notice has been given at any time within fourteen sitting days after any such regulation has been laid before it disallowing the same or part thereof, that regulation or part shall thereupon cease to have effect, but without prejudice to the validity of anything done in the meantime or to the making of a further regulation. 160. Effect on Act No. 26 of 1964. In so far as the provisions of " The Mineral Resources (Adjacent Submarine Areas) Act of 1964 " are inconsistent with the provisions of this Act, the provisions of this Act shall prevail.

334 Petroleum (Submerged Lands) Act of 1967, No. 36 THE SCHEDULES FIRST SCHEDULE Section 4 CONVENTION ON THE CONTINENTAL SHELF The States Parties to this Convention Have agreed as follows: ARTICLE I For the purpose of these articles, the term " continental shelf " is used as referring (a) to the seabed and subsoil of the submarine areas adjacent to the coast but outside the area of the territorial sea, to a depth of 200 metres or, beyond that limit, to where the depth of the superjacent waters admits of the exploitation of the natural resources of the said areas; (b) to the seabed and subsoil of similiar submarine areas adjacent to the coasts of islands. ARTICLE 2 1. The coastal State exercises over the continental shelf sovereign rights for the purpose of exploring it and exploiting its natural resources. 2. The rights referred to in paragraph 1 of this article are exclusive in the sense that if the coastal State does not explore the continental shelf or exploit its natural resources, no one may undertake these activities, or make a claim to the continental shelf, without the express consent of the coastal State. 3. The rights of the coastal State over the continental shelf do not depend on occupation, effective or notional, or on any express proclamation. 4. The natural resources referred to in these articles consist of the mineral and other non-living resources of the seabed and subsoil together with living organisms belonging to sedentary species, that is to say, organisms which, at the harvestable stage, either are immobile on or under the seabed or are unable to move except in constant physical contact with the seabed or the subsoil. ARTICLE 3 The rights of the coastal state over the continental shelf do not affect the legal status of the superjacent waters as high seas, or that of the airspace above those waters. ARTICLE 4 Subject to its right to take reasonable measures for the exploration of the continental shelf and the exploitation of its natural resources, the coastal state may not impede the laying or maintenance of submarine cables or pipelines on the continental shelf. ARTICLE 5 1. The exploration of the continental shelf and the exploitation of its natural resources must not result in any unjustifiable interference with navigation, fishing or the conservation of the living resources of the sea, nor result in any interference with fundamental oceanographic or other scientific research carried out with the intention of open publication.

Petroleum ( Submerged Lands ) Act of 1967, N o. 36 335 FIRST SCHEDULE - continued 2. Subject to the provisions of paragraphs I and 6 of this article, the coastal State is entitled to construct and maintain or operate on the continental shelf installations and other devices necessary for its exploration and the exploitation of its natural resources , and to establish safety zones around such installations and devices and to take in those zones measures necessary for their protection. 3. The safety zones referred to in paragraph 2 of this article may extend to a distance of 500 metres around the installations and other devices which have been erected , measured from each point of their outer edge . Ships of all nationalities must respect these safety zones. 4. Such installations and devices , though under the jurisdiction of the coastal State, do not possess the status of islands. They have no territorial sea of their own , and their presence does not affect the delimitation of the territorial sea of the coastal State. 5. Due notice must be given of the construction of any such installations , and permanent means for giving warning of their presence must be maintained . Any installations which are abandoned or disused must be entirely removed. 6. Neither the installation or devices, nor the safety zones around them , may be established where interference may be caused to the use of recognized sea lanes essential to international navigation. 7. The coastal State is obliged to undertake , in the safety zones, all appropriate measures for the protection of the living resources of the sea from harmful agents. 8. The consent of the coastal State shall be obtained in respect of any research concerning the continental shelf and undertaken there. Nevertheless the coastal State shall not normally withhold its consent if the request is submitted by a qualified institution with a view to purely scientific research into the physical or biological characteristics of the continental shelf, subject to the proviso that the coastal State shall have the right, if it so desires , to participate or to be represented in the research, and that in any event the results shall be published. ARTICLE 6 1. Where the same continental shelf is adjacent to the territories of two or more States whose coasts are opposite each other, the boundary of the continental shelf appertaining to such States shall be determined by agreement between them. In the absence of agreement, and unless another boundary line is justified by special circumstances, the boundary is the median line. every point of which is equidistant from the nearest points of the baselines from which the breadth of the territorial sea of each State is measured. 2. Where the same continental shelf is adjacent to the territories of two adjacent States, the boundary of the continental shelf shall be determined by agreement between them. In the absence of agreement, and unless another boundary line is justified by special circumstances. the boundary shall be determined by application of the principle of equidistance from the nearest points of the baselines from which the breadth of the territorial sea of each State is measured.

336 Petroleum ( Submerged Lands) Act of 1967, No. 36 FIRST SCHEDULE-continued 3. In delimiting the boundaries of the continental shelf, any lines which are drawn in accordance with the principles set out in paragraphs 1 and 2 of this article should be defined with reference to charts and geographical features as they exist at a particular date, and reference should be made to fixed permanent identifiable points on the land. ARTICLE 7 The provisions of these articles shall not prejudice the right of the coastal State to exploit the subsoil by means of tunnelling irrespective of the depth of water above the subsoil. ARTICLE 8 This Convention shall, until 31 October, 1958, be open for signature by all States Members of the United Nations or of any of the specialized agencies, and by any other State invited by the General Assembly of the United Nations to become a party to the Convention. ARTICLE 9 This Convention is subject to ratification. The instruments of ratification shall be deposited with the Secretary-General of the United Nations. ARTICLE 10 This Convention shall be open for accession by any States belonging to any of the categories mentioned in Article 8. The instruments of accession shall be deposited with the, Secretary-General of the United Nations. ARTICLE 11 1. This Convention shall come into force on the thirtieth day following the date of deposit of the twenty-second instrument of ratification or accession with the Secretary-General of the United Nations. 2. For each State ratifying or acceding to the Convention after the deposit of the twenty-second instrument of ratification or accession, the Convention shall enter into force on the thirtieth day after deposit by such state of its instrument of ratification or accession. ' ARTICLE 12 1. At the time of signature, ratification or accession, any State may make reservations to articles of the Convention other than to articles '1 to 3 inclusive. 2. Any Contracting State making a reservation in accordance with the preceding paragraph may at any time withdraw the reservation by a communication to that effect addressed to Secretary-General of the United Nations. ARTICLE 13 1. After the expiration of a period of five years from the date on which this Convention shall enter into force, a request for the revision of this Convention may be made at any time by any Contracting Party by means of a notification in writing addressed to the Secretary-General of the United Nations. 2. The General Assembly of the United Nations shall decide upon the steps, if any , to be taken in respect of such request.

Petroleum (Submerged Lands) Act of 1967, No. 36 337 FIRST SCHEDULE-Continued ARTICLE 14 The Secretary-General of the United Nations shall inform all States Members of the United Nations and the other States referred to in article 8: (a) Of signatures to this Convention and of the deposit of instruments of ratification or accession, in accordance with articles 8, 9 and 10; (b) Of the date on which this Convention will come into force, in accordance with article 11; (c) Of requests for revision in accordance with article 13; (d) Of reservations to this Convention, in accordance with article 12. ARTICLE 15 The original of this Convention, of which the Chinese, English, French, Russian and Spanish texts are equally authentic, shall be deposited with the Secretary-General of the United Nations, who shall send certified copies thereof to all States referred to in article 8. IN WITNESS WHEREOF the undersigned Plenipotentiaries, being duly authorized thereto by their respective Governments, have signed this Convention. DONE at Geneva, this twenty-ninth day of April, one thousand nine hundred and fifty-eight. (Here follow the signatures on behalf of the parties to the Agreement, including Australia.) SECOND SCHEDULE [Section 4] AREA ADJACENT TO THE STATE OF QUEENSLAND The area the boundary of which commences at a point that is the intersection of the coastline at mean low water by the boundary between the Northern Territory of Australia and the State of Queensland and runs thence north-easterly along the geodesic to a point of Latitude 15° 55' South, Longitude 138° 30' East, thence northerly along the meridian of Longitude 138° 30' East to its intersection by the parallel of Latitude 14° 30' South, thence easterly along that parallel to its intersection by the meridian of Longitude 139° 15' East, thence northerly along that meridian to its intersection by the parallel of Latitude 11° South, thence north-westerly along the geodesic to a point of Latitude 10° 51' South, Longitude 139° 12' 30" East, thence north-easterly along the geodesic to a point of Latitude 10° 11' 15" South, Longitude 140° 04' 45" East, thence north-easterly along the geodesic to a point of Latitude 10° South, Longitude 140° 21' 15" East, thence north-easterly along the geodesic to a point of Latitude 9° 52' 30" South, Longitude 140° 30' 30" East, thence north-easterly along the geodesic to a point of Latitude 9° 38' South, Longitude 141° East, thence

338 Petroleum ( Submerged Lands ) Act of 1967, No. 36 SECOND SCHEDULE-continued north-easterly along the geodesic to a point of Latitude 9° 30' South, Longitude 141° 35' 30" East, thence north-easterly along the geodesic to a point of Latitude 9° 10' 45" South, Longitude 142° 00' 15" East, thence easterly along the parallel of Latitude 9° 10' 45" South to its intersection by the meridian of Longitude 142° 04' 45" East, thence south-easterly along the geodesic to a point of Latitude 9° 1.1' 45" South, Longitude 142° 09' East, thence north-easterly along the geodesic to a point of Latitude 9° 10' 30" South, Longitude 142° 16' East, thence south. easterly along the geodesic to a point of Latitude 9° 11' 45' South, Longitude 142° 18' 30" East, thence south-easterly along the geodesic to a point of Latitude 9° 14' 45" South, Longitude 142° 21' 30" East, thence south-easterly along the geodesic to a point of Latitude 9° 21' 30" South, Longitude 142° 33' 15' East, thence north-easterly along the geodesic to a point of Latitude 9° 08' 15" South, Longitude 143° 52' 15" East, thence south-easterly along the geodesic to a point of Latitude 9° 24' 30" South, Longitude 144° 13' 45" East, thence north-easterly along the geodesic to a point of Latitude 9° South, Longitude 144° 45' East, thence easterly along the parallel of Latitude 9° South to its intersection by the meridian of Longitude 145° 13' East, thence south- easterly along the geodesic to a point of Latitude 9° 15' South, Longitude 145° 20' East, thence south-easterly along the geodesic to a point of Latitude 10° 45' South, Longitude 145° 40' East, thence south-easterly along the geodesic to a point of Latitude 12° 10' South, Longitude 146° 25' East, thence south-easterly along the geodesic to a point of Latitude 12° 50' South, Longitude 147° 40' East, thence southerly along the meridian of Longitude 147° 40' East to its intersection by the parallel of Latitude 14° South, thence westerly along that parallel to its intersection by the meridian of Longitude 146° 55' East, thence southerly along that meridian to its intersection by the parallel of Latitude 17° 05' South, thence easterly along that parallel to its intersection by the meridian of Longitude 147° 45' East, thence southerly along that meridian to its intersection by the parallel of Latitude 18° 30' South, thence easterly along that parallel to its intersection by the meridian of Longitude 150° 50' East, thence southerly along that meridian to its intersection by the parallel of Latitude 20° South, thence easterly along that parallel to its intersection by the meridian of Longitude 151° 30' East, thence southerly along that meridian to its intersection by the parallel of Latitude 20° 25' South, thence easterly along that parallel to its intersection by the meridian of Longitude 153° 05' East. thence southerly along that meridian to its intersection by the parallel of Latitude 22° 50' South, thence easterly along that parallel to its intersection by the meridian of Longitude 153° 40' East, thence southerly along that meridian to its intersection by the parallel of Latitude 23° 15' South, thence easterly along that parallel to its intersection by the meridian of Longitude 154° East, thence southerly along that meridian to its intersection by the parallel of Latitude 23° 50' South, thence easterly along that parallel to its intersection by the meridian of Longitude 155° 15' East, thence southerly along that meridian to its intersection by the parallel of Latitude 25° South, thence easterly along that^parallel to its intersection by the meridian of Longitude 158° 35' East, thence south-easterly along the geodesic to a point of Latitude 27° 30' 35" South, Longitude 160° East, thence westerly along the geodesic to a point of Latitude 27° 48' South, Longitude 154° 22' East, thence south- westerly along the geodesic to a point of Latitude 27° 58' South, Longitude 154° East, thence south-westerly along the geodesic between the last-mentioned point and the trigonometrical station known as Point

Petroleum ( Submerged Lands ) Act of 1967, No. 36 339 SECOND SCHEDULE-Continued Danger near Point Danger to its intersection by the coastline at mean low water, thence along the coastline of the State of Queensland at mean low water to the point of commencement, to the extent only that that area includes- (a) areas of territorial waters; and (b) areas of superjacent waters of the continental shelf.