Petroleum (Submerged Lands) (Royalty) Act 1967 (Cth)

Petroleum (Submerged Lands) (Royalty) Act 1967

Act No. 119 of 1967 as amended

[Note: This Act was repealed by Act No. 17 of 2006 on 1 July 2008]

This compilation was prepared on 19 October 2000

taking into account amendments up to Act No. 80 of 1991

The text of any of those amendments not in force

on that date is appended in the Notes section

The operation of amendments that have been incorporated may be

affected by application provisions that are set out in the Notes section

Prepared by the Office of Legislative Drafting and Publishing,

Attorney‑General’s Department, Canberra

      

Contents

An Act to impose a Royalty upon Petroleum recovered from Submerged Lands adjacent to the AustralianCoast or to the Coasts of certain Territories of the Commonwealth

1Short title [see Note 1]

 This Act may be cited as the Petroleum (Submerged Lands) (Royalty) Act 1967.

2Commencement [see Note 1]

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

3Incorporation

 The Petroleum (Submerged Lands) Act 1967 is incorporated and shall be read as one with this Act.

4Interpretation

 In this Act, royalty period, in relation to a permit, lease or licence, means:

• (a)

  the period from and including the date from which the permit, lease or licence comes into force to the end of the month of the year during which that date occurs; and

• (b)

  each month thereafter.

4AApplication of Act

• (1)

  This Act only applies to:

  • (a)

    the North West Shelf exploration permits; and

  • (b)

    leases that are related to the North West Shelf exploration permits; and

  • (c)

    licences that are related to the North West Shelf exploration permits.

• (2)

  For the purposes of subsection (1):

  • (a)

    North West Shelf exploration permits has the same meaning as in the Petroleum Resource Rent Tax Assessment Act 1987; and

  • (b)

    a lease or licence is related to a permit if the lease or licence is related to the permit for the purposes of the Petroleum Resource Rent Tax Assessment Act 1987.

5Royalty

• (1)

  A permittee, lessee or licensee shall, subject to this Act, pay to the Designated Authority a royalty at the prescribed rate in respect of all petroleum recovered by the permittee, lessee or licensee in the permit area, lease area or licence area in a royalty period commencing on or after the commencement of this subsection.

• (1A)

  A permittee or licensee under a permit or licence granted before the commencement of this subsection is, subject to this Act, liable to pay to the Designated Authority royalty in accordance with the conditions of the permit or licence in respect of all petroleum recovered by the permittee or licensee in the permit area or licence area in a royalty period that commenced before the commencement of this subsection, to the extent that that royalty was not paid before that commencement.

• (1B)

  Moneys paid to the Designated Authority, after the commencement of this subsection, by way of royalty in respect of a permit, lease or licence granted after the commencement of this subsection, or granted before the commencement of this subsection and continued in force under the law of the Commonwealth, shall be received by the Designated Authority on behalf of the Commonwealth.

• (2)

  Subject to the succeeding provisions of this section, the prescribed rate in respect of petroleum recovered under a permit, lease 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 in pursuance of subsection (1) of section 42 of the Petroleum (Submerged Lands) Act 1967 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 the Petroleum (Submerged Lands) Act 1967; and

  • (b)

    the instrument served on the applicant under section 49 of that 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 (1) of section 51 of the Petroleum (Submerged Lands) Act 1967, 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 in the licence area referred to in a licence granted by way of renewal of a licence is the percentage that would be the prescribed rate if the licence so granted were the continuation in force of the previous licence.

• (8)

  A reference in this section, or in a permit, lease or licence (whether granted before or after the commencement of this subsection) to royalty at the prescribed rate or royalty at the rate that is for the time being the prescribed rate shall be read as a reference to royalty at the rate that is or was the prescribed rate applicable in accordance with the provisions of this Act, as in force from time to time.

6Reduction 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 or rates of royalty applicable under the last preceding section, further recovery of petroleum from that well would be uneconomic, the Joint Authority may, by instrument in writing, determine that the royalty in respect of all or any of the petroleum recovered from that well on or after a date specified in the determination shall be at such rate (being a rate lower than the rate that would be applicable under the last preceding section) as the Joint Authority specifies.

• (2)

  The prescribed rate in respect of petroleum to which a determination under subsection (1) is applicable is the rate specified in the determination.

• (3)

  The Joint Authority may, by instrument in writing, revoke or vary a determination under subsection (1) and the revocation or variation applies to petroleum recovered on or after such date as is specified in the instrument.

7Royalty 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, lessee 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, lessee 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, lessee or licensee to pay royalty in respect of petroleum that is recovered from that natural reservoir.

8Ascertainment 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, lessee 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.

9Ascertainment 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, lessee 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.

10Ascertainment of quantity of petroleum recovered

 For the purposes of this Act, the quantity of petroleum recovered by a permittee, lessee or licensee from a well 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, lessee or licensee from that well 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, lessee or licensee from that well during that period.

10ADirections by Joint Authority

• (1)

  The Joint Authority shall give directions to the Designated Authority with respect to the manner in which the Designated Authority is to exercise his powers under sections 8, 9 and 10 and the Designated Authority shall not exercise any of those powers except in accordance with directions so given.

• (2)

  For the purposes of the application of this section in relation to section 10, paragraph (b) of that section has effect as if the reference to the Designated Authority not being satisfied included a reference to the Joint Authority not being satisfied.

11Payment 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 Commonwealth by the permittee, the lessee or 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 subsection (2) or paragraph 11B(2)(a) in respect of any period before the expiration of seven days after the value of the petroleum was agreed or determined under section 9 of this Act.

11AProvisional payment of royalty

• (1)

  Where, in relation to petroleum recovered during a royalty period, the value of the petroleum has not been agreed or determined under section 9, the Designated Authority may determine a provisional value.

• (2)

  Where:

  • (a)

    a provisional value of any petroleum has been determined under subsection (1); and

  • (b)

    the value of that petroleum has not yet been agreed or determined under section 9;

  this Act operates in relation to that petroleum as if:

  • (c)

    the provisional value of the petroleum were its value; and

  • (d)

    the determination of the provisional value were an agreement or determination under section 9.

11BAdjustment of payments of royalty

• (1)

  This section applies:

  • (a)

    where subsection 11A(2) has operated in relation to petroleum recovered during a royalty period and a value of the petroleum different to the provisional value is subsequently agreed or determined under section 9; or

  • (b)

    where an error has been made in the calculation of royalty due or in the application of a procedure by the application of which the value of the petroleum has been ascertained.

• (2)

  Where this section applies:

  • (a)

    if the determined royalty is greater than the provisional royalty, the difference is payable within 28 days; and

  • (b)

    if the determined royalty is less than the provisional royalty, the difference is deducted from any amount subsequently payable by the lessee, permittee or licensee concerned.

• (3)

  In this section:

  determined royalty means:

  • (a)

    where paragraph (1)(a) applies, the amount of royalty payable in relation to the petroleum on the basis of the value ascertained under section 9; and

  • (b)

    where paragraph (1)(b) applies, the amount of royalty payable in relation to the petroleum.

  provisional royalty means:

  • (a)

    where paragraph (1)(a) applies, the amount of royalty payable in relation to the petroleum on the basis of the provisional value; and

  • (b)

    where paragraph (1)(b) applies, the amount of royalty demanded in relation to the petroleum as a result of the erroneous calculation.

12Provisions with respect to Barracouta and Marlin Fields Production Licences

• (1)

  The following provisions of a licence referred to in section 146 of the Petroleum (Submerged Lands) Act 1967, that is to say:

  • (a)

    subclause (2) of clause 2; and

  • (b)

    clauses 5, 7, 8, 9, 11 and 12;

  shall be deemed to have effect as conditions of the licence as the licence has effect by reason of that section.

• (2)

  A reference in any provision referred to in the last preceding subsection to the Minister shall be read as a reference to the Designated Authority.

• (2A)

  The Joint Authority shall give directions to the Designated Authority with respect to the manner in which the Designated Authority is to exercise his powers under clauses 7, 8 and 12 of a licence to which this section applies and the Designated Authority shall not exercise any of those powers except in accordance with directions so given.

• (2B)

  A licence to which this section applies has effect as if it contained a provision in accordance with subsection (2A) and as if the reference in clause 12 (as affected by subsection (2) of this section) to the Designated Authority being satisfied included a reference to the Joint Authority being satisfied.

• (2C)

  Moneys paid to the Designated Authority after the commencement of this subsection by way of royalty in accordance with a licence to which this section applies shall be received by the Designated Authority on behalf of the Commonwealth.

• (3)

  Sections 2, 5, 6, 9, 10 and 11 of this Act do not have effect in relation to a licence to which this section applies.

13Royalty etc. a debt due to the Commonwealth

 The following are debts due by the permittee, lessee or licensee to the Commonwealth and are recoverable in a court of competent jurisdiction:

• (a)

  royalty under section 5 of this Act;

• (b)

  royalty payable by reason of the last preceding section;

• (ba)

  an amount payable under paragraph 11B(2)(a) of this Act;

• (c)

  an amount payable under subsection (2) of section 11 of this Act; and

• (d)

  an amount payable by reason of the last preceding section by reason of late payment of royalty referred to in paragraph (b) of this section.

Notes to the Petroleum (Submerged Lands) (Royalty) Act 1967

Note 1

The Petroleum (Submerged Lands) (Royalty) Act 1967 as shown in this compilation comprises Act No. 119, 1967 amended as indicated in the Tables below.

Table of Acts

Act	Number and year	Date of Assent	Date of commencement	Application, saving or transitional provisions
Petroleum (Submerged Lands) (Royalty) Act 1967	119, 1967	22 Nov 1967	22 Nov 1967
Petroleum (Submerged Lands) (Royalty) Amendment Act 1980	81, 1980	29 May 1980	14 Feb 1983 (see Gazette 1983, No. S29)	Ss. 4(2), 6(2) and 7(2)
Petroleum (Submerged Lands) (Royalty) Amendment Act 1985	81, 1985	6 June 1985	S. 3: 22 July 1985 (see Gazette 1985, No. S275) S. 4: 2 Dec 1985 (see s. 2(3) and Gazette 1985, No. S506) Remainder: Royal Assent	—
Petroleum Resource Rent Tax (Miscellaneous Provisions) Act 1987	145, 1987	18 Dec 1987	15 Jan 1988 (see s. 2)	—
Petroleum (Submerged Lands) (Royalty) Amendment Act 1991	76, 1991	25 June 1991	25 June 1991	S. 4(2) and (3)
Petroleum Resource Rent Legislation Amendment Act 1991	80, 1991	26 June 1991	1 July 1991	Ss. 32(1), (3), 34, 38, 39 and 42

Table of Amendments

ad. = added or inserted  am. = amended rep. = repealed rs. = repealed and substituted
Provision affected	How affected
S. 4.........................................	am. No. 81, 1985
S. 4A......................................	ad. No. 81, 1985
rs. No. 145, 1987; No. 80, 1991
S. 5.........................................	am. No. 81, 1980; No. 81, 1985
S. 6.........................................	rs. No. 81, 1980
Ss. 7–9...................................	am. No. 81, 1985
S. 10.......................................	am. No. 81, 1980; No. 81, 1985
S. 10A....................................	ad. No. 81, 1980
S. 11.......................................	am. No. 81, 1985; No. 76, 1991
Ss. 11A, 11B..........................	ad. No. 76, 1991
S. 12.......................................	am. No. 81, 1980
S. 13.......................................	am. No. 81, 1985; No. 76, 1991