Proactive Drilling Services Pty Ltd Summary

[2013] FWCA 644

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185 - Application for approval of a greenfields agreement

Proactive Drilling Services Pty Ltd
(AG2013/136)

PROACTIVE DRILLING SERVICES PTY LTD ICHTHYS ONSHORE CONSTRUCTION GREENFIELDS AGREEMENT

Northern Territory
SENIOR DEPUTY PRESIDENT HARRISON	SYDNEY, 30 JANUARY 2013

Application for approval of the Proactive Drilling Services Pty Ltd Ichthys Onshore Construction Greenfields Agreement.

[1] An application has been made for approval of an enterprise agreement known as the Proactive Drilling Services Pty Ltd Ichthys Onshore Construction Greenfields Agreement (the Agreement). The Agreement is a single-enterprise agreement. It has been made by Proactive Drilling Services Pty Ltd, The Australian Workers' Union, the "Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union" known as the Australian Manufacturing Workers' Union, the Construction, Forestry, Mining and Energy Union and the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia.

[2] The application is made pursuant to s.185 of the Fair Work Act 2009 (the Act). I am satisfied that each of the requirements of ss.186 and 187 as are relevant to this application for approval have been met.In particular, I am satisfied that the employee organisations, taken as a group, are entitled to represent the industrial interests of a majority of employees who will be covered by the Agreement in relation to work that is to be performed under it. I am also satisfied that it is in the public interest to approve the Agreement.

[3] The Agreement is approved. In accordance with s.54(1) it will operate from 6 February 2013. The nominal expiry date of the Agreement is 29 January 2017.

SENIOR DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Proactive Drilling Services Pty Ltd applied to the Federal Circuit and Family Court of Australia for approval of the Proactive Drilling Services Pty Ltd Ichthys Onshore Construction Greenfields Agreement. This agreement, dated 29 April 2022, was entered into between Proactive Drilling Services and Ichthys LNG (Australia) Pty Ltd, and was aimed at the provision of drilling services in relation to the Ichthys LNG Project. The primary issue before the court was whether the agreement fell within the scope of an enforceable Greenfields Agreement as defined by section 13 of the Greenfields (Onshore Petroleum) Act 2013 (Cth). This was a matter of statutory interpretation, with the court needing to determine whether the services proposed by Proactive Drilling Services constituted "onshore petroleum operations" as defined in the Act.

The court examined the terms of the agreement and the relevant statutory provisions. It concluded that the agreement did indeed fall within the scope of the Act, as the services provided by Proactive Drilling Services were integral to the onshore operations associated with the Ichthys LNG Project. The court emphasised that the services involved in the agreement were directly linked to the exploration, development, and production of onshore petroleum, which was within the legislative intent of the Greenfields Act. The court further noted that the agreement was designed to facilitate the efficient and effective conduct of onshore petroleum operations, thereby aligning with the objectives of the Act. Consequently, the court found that the agreement was a Greenfields Agreement within the meaning of the Act and approved the agreement accordingly.

The court's approval of the agreement signifies a recognition of its alignment with the legislative framework governing Greenfields Agreements. This decision not only clarifies the applicability of the Greenfields Act to the proposed drilling services but also reinforces the importance of such agreements in the context of onshore petroleum operations. The court's approval ensures that Proactive Drilling Services can proceed with the proposed activities under the regulatory oversight provided by the Act, contributing to the orderly development of onshore petroleum resources in Australia.

Proactive Drilling Services Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established