Notice of Grant of Greenhouse Gas Assessment Permits G-7-AP and G-8-AP

Overview

The Offshore Petroleum and Greenhouse Gas Storage Act 2006 was enacted to provide a framework for the regulation of offshore petroleum and greenhouse gas storage activities in Australia. The Act was introduced to address the need for a comprehensive legal structure to manage environmental, safety, and operational aspects of offshore petroleum activities and greenhouse gas storage. This Act was enacted by the Parliament of Australia, with a policy objective of ensuring that offshore activities are conducted in a manner that protects the environment while facilitating economic development. The granting of greenhouse gas assessment permits, such as those for G-7-AP and G-8-AP, exemplifies the Act’s role in enabling the assessment and potential storage of greenhouse gases as part of broader climate change mitigation strategies.

Scope and Application

The Offshore Petroleum and Greenhouse Gas Storage Act 2006 applies to offshore petroleum and greenhouse gas storage activities in Australia. Specifically, the Act provides the legal framework for the regulation of activities related to the exploration, production, and storage of greenhouse gases in offshore areas. The permits G-7-AP and G-8-AP granted under this Act apply to the entities INPEX Browse E&P Pty Ltd, Woodside Energy Ltd., and TotalEnergies CCS Australia Pty Ltd, and the permit G-8-AP also applies to Woodside Energy Ltd. These permits allow the specified entities to undertake greenhouse gas storage activities within the designated periods. The geographic scope of the Act extends to Commonwealth waters, which are defined as waters beyond the territorial sea of Australia, as well as to activities that involve the storage of greenhouse gases offshore. The Act does not specify any exclusions or exemptions, but the issuance of these permits is subject to the conditions and requirements outlined in the Act and any subordinate instruments. The Act’s application may be extended or restricted through regulations and other instruments made under the authority of the Act.

Key Provisions

The main operative sections of the legislation, namely Sections 734 of the Offshore Petroleum and Greenhouse Gas Storage Act 2006, pertain to the granting of greenhouse gas assessment permits, specifically G-7-AP and G-8-AP. These permits, granted for an initial period of six years, are aimed at facilitating the assessment and potential storage of greenhouse gases in offshore areas. Section 734 sets out the details of these permits, including the registered titleholders and the grant dates, which in this case are 12 August 2022 for both permits. The permits are awarded to INPEX Browse E&P Pty Ltd, Woodside Energy Ltd., and TotalEnergies CCS Australia Pty Ltd for G-7-AP, and to Woodside Energy Ltd. for G-8-AP. The Act imposes several obligations and requirements on the parties holding these permits. Primarily, the permit holders must conduct their activities in accordance with the conditions specified in the permits. This includes undertaking assessments of the offshore areas for the purpose of identifying suitable sites for greenhouse gas storage. The permit holders are also required to adhere to environmental and safety standards as stipulated in the Act, ensuring that their activities do not adversely affect the marine environment or pose risks to human health and safety. Additionally, permit holders must submit regular reports to the National Offshore Petroleum Titles Administrator, Graeme Albert Waters, detailing their progress and compliance with the permit conditions. Failure to comply with the obligations and requirements set out in the Act may result in various consequences. Breaches of the permit conditions can lead to the suspension or revocation of the permits, effectively halting the activities of the permit holders. The Act also outlines specific offences and penalties for non-compliance. For instance, Section 131 of the Act provides for civil penalties, including fines of up to $2.2 million for individuals and $11 million for bodies corporate, for serious breaches of the Act. Furthermore, Section 134 imposes criminal penalties for more severe breaches, with potential fines of up to $5.5 million for individuals and $27.5 million for bodies corporate, alongside imprisonment for up to five years. These stringent penalties underscore the importance of strict adherence to the provisions of the Act and the potential repercussions for non-compliance.