Offshore Minerals (Consequential Provisions) Act 1994

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Offshore Minerals (Consequential
Provisions) Act 1994

No. 29 of 1994

 

An Act to repeal the Minerals (Submerged Lands) Act 1981
and to make consequential amendments necessary as a
result of the transition to the Offshore Minerals Act 1994,
and for related purposes

[Assented to 25 February 1994]

The Parliament of Australia enacts:

PART 1—PRELIMINARY

Short title

1. This Act may be cited as the Offshore Minerals (Consequential Provisions) Act 1994.

Commencement

2. This Act commences immediately after the Offshore Minerals Act 1994 commences.


PART 2—REPEAL OF THE 1981 ACT

Repeal of the 1981 Act

3. The Minerals (Submerged Lands) Act 1981 is repealed.

PART 3—CONSEQUENTIAL AMENDMENTS OF OTHER ACTS

Consequential amendments of other Acts

4. The Acts specified in the Schedule are amended as set out in the Schedule.


SCHEDULE Section 4

CONSEQUENTIAL AMENDMENTS OF OTHER ACTS

Minerals (Submerged Lands) (Exploration Permit Fees) Act 1981

Title:

(a) Omit permits”, substitute exploration licences”.

(b) Omit Minerals (Submerged Lands) Act 1981 to explore for minerals in submerged lands”, substitute Offshore Minerals Act 1994”.

Section 1:

Omit Minerals (Submerged Lands) (Exploration Permit Fees)”, substitute Offshore Minerals (Exploration Licence Fees)”.

Section 3:

Repeal the section, substitute:

Interpretation

“3.(1) In this Act:

‘year’, in relation to the term of an exploration licence, means:

(a) the period of 12 months commencing on (and including) the day on which the provisional grant of the licence is properly accepted; or

(b) a period of 12 months commencing on (and including) an anniversary of that day; or

(c) a period of less than 12 months that:

(i) commences on (and includes):

(A) the day on which the provisional grant of the licence is properly accepted; or

(B) an anniversary of that day; and

(ii) ends at the end of the term of the licence.

“(2) Expressions used in this Act that are used in the Offshore Minerals Act 1994 have, unless the contrary intention appears, the same meanings as they have in that Act.”.

Section 4:

Repeal the section, substitute:

Exploration licence fees

“4.(1) An exploration licence holder must pay a fee to the Designated Authority in respect of each year of the term of the licence.


SCHEDULE—continued

“(2) Subject to subsection (3), the amount of the fee is to be calculated in accordance with the regulations.

“(3) The amount of the fee for a licence for a year is not to exceed whichever is the greater of:

(a) $2,000; or

(b) the amount obtained by multiplying $100 by the number of blocks covered by the licence at the beginning of the year.

Holder liable to pay fee

“4A.(1) The licence holder is liable to pay the fee.

“(2) If the licence has 2 or more holders, the holders are jointly and severally liable to pay the fee.

Time for payment

“4B. The fee for a year becomes payable one month after the day on which the year begins.”.

Section 5:

(a) Omit “a permittee” (first occurring), substitute “an exploration licence holder”.

(b) Omit “permittee” (second occurring), substitute “holder”.

Subsection 6(1):

Omit “permittee”, substitute “licence holder”.

Subsection 6(2):

Omit “him”, substitute “the Designated Authority”.

After section 6:

Add:

Regulations

“7. The Governor-General may make regulations prescribing matters:

(a) required or permitted by this Act to be prescribed; or

(b) necessary or convenient to be prescribed for carrying out or giving effect to this Act.”.

Minerals (Submerged Lands) (Production Licence Fees) Act 1981

Title:

(a) Before licencesinsert mining”.


SCHEDULE—continued

(b) Omit Minerals (Submerged Lands) Act 1981 to recover minerals from submerged lands”, substitute Offshore Minerals Act 1994”.

Section 1:

Omit Minerals (Submerged Lands) (Production Licence Fees)”, substitute Offshore Minerals (Mining Licence Fees)”.

Section 3:

Repeal the section, substitute:

Interpretation

“3.(1) In this Act:

‘year’, in relation to the term of a mining licence, means:

(a) the period of 12 months commencing on (and including) the day on which the provisional grant of the licence is properly accepted; or

(b) a period of 12 months commencing on (and including) an anniversary of that day; or

(c) a period of less than 12 months that:

(i) commences on (and includes):

(A) the day on which the provisional grant of the licence is properly accepted; or

(B) an anniversary of that day; and

(ii) ends at the end of the term of the licence.

“(2) Expressions used in this Act that are used in the Offshore Minerals Act 1994 have, unless the contrary intention appears, the same meanings as they have in that Act.”.

Section 4:

Repeal the section, substitute:

Licence fees

“4.(1) A mining licence holder must pay a fee to the Designated Authority in respect of each year of the term of the licence.

“(2) Subject to subsection (3), the amount of the fee is to be calculated in accordance with the regulations.

“(3) The amount of the fee for a licence for a year is not to exceed the amount obtained by multiplying $1,000 by the number of blocks covered by the licence at the beginning of the year.

Holder liable to pay fee

“4A.(1) The licence holder is liable to pay the fee.


SCHEDULE—continued

“(2) If the licence has 2 or more holders, the holders are jointly and severally liable to pay the fee.

Time for payment

“4B. The fee for a year becomes payable one month after the day on which the year begins.”.

Section 5:

(a) Omit “licensee” (first occurring), substitute “mining licence holder”.

(b) Omit “licensee” (second occurring), substitute “holder”.

Subsection 6(1):

Omit “licensee”, substitute “licence holder”.

Subsection 6(2):

Omit “him”, substitute “the Designated Authority”.

After section 6:

Add:

Regulations

“7. The Governor-General may make regulations prescribing matters:

(a) required or permitted by this Act to be prescribed; or

(b) necessary or convenient to be prescribed for carrying out or giving effect to this Act.”.

Minerals (Submerged Lands) (Registration Fees) Act 1981

Title:

Omit in respect of the registration of certain instruments under the Minerals (Submerged Lands) Act 1981”, substitute for the lodgment for registration of certain documents under the Offshore Minerals Act 1994”.

Section 1:

Omit Minerals (Submerged Lands) (Registration Fees)”, substitute Offshore Minerals (Registration Fees).

Section 3:

Omit Minerals (Submerged Lands) Act 1981”, substitute Offshore Minerals Act 1994”.


SCHEDULE—continued

Subsection 4(1):

Omit the subsection, substitute:

“(1) There is payable to the Designated Authority, in respect of a document that is lodged for registration under section 338 (a ‘section 338 document’) or 339 (a ‘section 339 document’) of the Offshore Minerals Act 1994 a fee equal to the prescribed percentage of:

(a) the value of the consideration for the document; or

(b) the value of the licence, share or interest transferred or otherwise dealt with by the document;

whichever is the greater.

“(1A) The percentage prescribed for the purposes of subsection (1) is not to exceed 10%.”.

Subsection 4(2):

(a) Omit “any memorandum”, substitute “a section 338 or section 339 document”.

(b) Omit “$300” (first occurring), substitute “the amount prescribed for the purposes of this subsection”.

(c) Omit “that memorandum”, substitute “the document”.

(d) Omit “$300” (second occurring), substitute “that prescribed amount”.

After subsection 4(2):

Insert:

“(2A) The amount prescribed for the purposes of subsection (2) is not to exceed $2,000.”.

Subsection 4(3):

(a) Omit “a memorandum of approval of an instrument by which an interest in a permit was created, assigned, affected or dealt with”, substitute “a section 338 document or a section 339 document that is lodged for registration”.

(b) Omit “the instrument”, substitute “the document”.

Paragraph 4(4)(a):

Omit “an instrument by which an interest in a permit, licence or works authority was created, assigned, affected or dealt with”, substitute “a section 338 document or a section 339 document”.


SCHEDULE—continued

Paragraph 4(4)(b):

(a) Omit “instrument is the holder of” (first occurring), substitute “transfer or other dealing to which the section 338 document or section 339 document relates holds”.

(b) Omit “instrument” (second occurring), substitute “document”.

Subsection 4(4):

(a) Omit “in respect of the memorandum of approval of that instrument” (twice occurring), substitute “for the lodgment for registration of that document”.

(b) Omit “$3,000”, substitute “the amount prescribed for the purposes of this subsection”.

After subsection 4(4):

Insert:

“(4A) The amount prescribed for the purposes of subsection (4) is not to exceed $20,000.”.

Paragraph 4(5)(a):

Omit “an instrument by which an interest in a permit, licence or works authority was created, assigned, affected or dealt with”, substitute “a transfer to which a section 338 document relates, or a dealing to which a section 339 document relates”.

Paragraph 4(5)(b):

Omit “instrument”, substitute “document”.

Subsection 4(5):

(a) Omit “in respect of the memorandum of approval of that instrument” (twice occurring), substitute “for the lodgment for registration of that document”.

(b) Omit “$3,000”, substitute “the amount prescribed for the purposes of this subsection”.

After subsection 4(5):

Insert:

“(5A) The amount prescribed for the purposes of subsection (5) is not to exceed $20,000.”.


SCHEDULE—continued

Subsection 4(6):

Omit “in respect of a memorandum of approval of an instrument (being an instrument entered into or to be entered into for the purpose of giving effect to the prior agreement)”, substitute “for the lodgment for registration of a section 338 document or a section 339 document that was entered into or is to be entered into to give effect to the prior agreement”.

Subsection 4(7):

Omit “an instrument”, substitute “a document”.

After section 4:

Add:

Regulations

“5. The Governor-General may make regulations prescribing matters:

(a) required or permitted by this Act to be prescribed; or

(b) necessary or convenient to be prescribed for carrying out or giving effect to this Act.”.

Minerals (Submerged Lands) (Works Authority Fees) Act 1981

Title:

Omit authorities under the Minerals (Submerged Lands) Act 1981”, substitute licences under the Offshore Minerals Act 1994”.

Section 1:

Omit Minerals (Submerged Lands) (Works Authority Fees)”, substitute Offshore Minerals (Works Licence Fees)”.

Section 3:

Repeal the section, substitute:

Interpretation

“3.(1) In this Act:

‘year’, in relation to the term of a works licence, means:

(a) the period of 12 months commencing on (and including) the day on which the provisional grant of the licence is properly accepted; or

(b) a period of 12 months commencing on (and including) an anniversary of that day; or

(c) a period of less than 12 months that:

(i) commences on (and includes):


SCHEDULE—continued

(A) the day on which the provisional grant of the licence is properly accepted; or

(B) an anniversary of that day; and

(ii) ends at the end of the term of the licence.

“(2) Expressions used in this Act that are used in the Offshore Minerals Act 1994 have, unless the contrary intention appears, the same meaning as they have in that Act.”.

Section 4:

Repeal the section, substitute:

Works licence fees

“4.(1) A works licence holder must pay to the Designated Authority, in respect of each year of the term of the licence, a fee calculated at the rate prescribed by the regulations for each hectare or part of a hectare of the works area.

“(2) The works area for a works licence is the area specified in the licence under paragraph 278(1)(c) of the Offshore Minerals Act 1994.

“(3) Subject to subsection (4), the amount of the fee is to be calculated at the prescribed rate for each hectare or part of a hectare of the licence area.

“(4) The prescribed rate is not to exceed $100 per hectare or part of a hectare.

Holder liable to pay fee

“4A.(1) The licence holder is liable to pay the fee.

“(2) If the licence has 2 or more holders, the holders are jointly and severally liable to pay the fee.

Time for payment

“4B. The fee for a year becomes payable one month after the day on which the year begins.”.

Section 5:

(a) Omit “registered” (twice occurring).

(b) Omit “authority”, substitute “licence”.

Subsection 6(1):

(a) Omit “registered”.

(b) Omit “authority”, substitute “licence”.


SCHEDULE—continued

Subsection 6(2):

Omit “him”, substitute “the Designated Authority”.

After section 6:

Add:

Regulations

“7. The Governor-General may make regulations prescribing matters:

(a) required or permitted by this Act to be prescribed; or

(b) necessary or convenient to be prescribed for carrying out or giving effect to this Act.”.

[Minister’s second reading speech made in

House of Representatives on 16 December 1993

Senate on 8 February 1994]

Overview

The Offshore Minerals (Consequential Provisions) Act 1994 was enacted by the Parliament of Australia to address the legislative gap arising from the transition to the Offshore Minerals Act 1994. This Act repeals the Minerals (Submerged Lands) Act 1981 and makes consequential amendments to several related Acts. The principal objective of this Act is to ensure a seamless transition and legal continuity by updating references and terminology in various legislative instruments to align with the new Offshore Minerals Act 1994. The Act includes amendments to the Minerals (Submerged Lands) (Exploration Permit Fees) Act 1981, Minerals (Submerged Lands) (Production Licence Fees) Act 1981, Minerals (Submerged Lands) (Registration Fees) Act 1981, and Minerals (Submerged Lands) (Works Authority Fees) Act 1981, replacing terms such as "permits" and "licences" with "exploration licences" and "mining licences" as appropriate. This ensures that all references are consistent with the new regulatory framework established by the Offshore Minerals Act 1994.

Scope and Application

The Offshore Minerals (Consequential Provisions) Act 1994 applies to entities and individuals engaged in the exploration, production, registration, and works related to offshore minerals in Australia. This Act specifically pertains to the transition from the Minerals (Submerged Lands) Act 1981 to the Offshore Minerals Act 1994, making necessary amendments to several other Acts to reflect the changes. The Act operates within the Commonwealth jurisdiction and impacts the offshore mineral industry across Australia. Notably, the Act repeals the Minerals (Submerged Lands) Act 1981 and amends other specified Acts to align with the new legislative framework. These amendments include changes in terminology from 'permits' and 'licences' to 'exploration licences','mining licences', and 'works licences', as well as adjustments in fee structures and payment obligations. The Act also allows for the creation of subordinate regulations to further define or modify the application of the amended Acts, providing flexibility in implementation and enforcement.

Key Provisions

The Offshore Minerals (Consequential Provisions) Act 1994 (the Act) operates primarily through its repeal of the Minerals (Submerged Lands) Act 1981 and its consequential amendments of related legislation. The repeal of the 1981 Act (section 3) signifies the transition to the new regulatory framework provided by the Offshore Minerals Act 1994, and the Act ensures that other related Acts are updated to reflect this change. Consequential amendments to the Minerals (Submerged Lands) (Exploration Permit Fees) Act 1981, Minerals (Submerged Lands) (Production Licence Fees) Act 1981, Minerals (Submerged Lands) (Registration Fees) Act 1981, and Minerals (Submerged Lands) (Works Authority Fees) Act 1981, as outlined in the Schedule, involve substituting references to the repealed 1981 Act with references to the Offshore Minerals Act 1994 and updating terminology such as "permits" to "exploration licences" and "licences" to "mining licences". These amendments ensure that the terminology and references within these Acts are consistent with the new legislative framework. The Act imposes several obligations on parties and entities governed by the repealed 1981 Act and the amended Acts. Exploration licence holders, mining licence holders, and works licence holders must pay annual fees to the Designated Authority, as specified in the amended Acts (sections 4(1), 4A(1), and 4B). The fees are calculated according to the regulations, with maximum caps specified for each type of licence. For exploration licences, the fee per year cannot exceed the greater of $2,000 or $100 per block covered by the licence at the beginning of the year. For mining licences, the fee per year cannot exceed the amount obtained by multiplying $1,000 by the number of blocks covered by the licence at the beginning of the year. For works licences, the fee per hectare or part of a hectare of the works area cannot exceed $100. The fees for each type of licence become payable one month after the beginning of the year. If there are multiple holders of a licence, they are jointly and severally liable for the fee. The Act does not explicitly state specific offences or penalties for breach of its provisions. However, it is likely that breaches of the fees payment obligations or other requirements under the amended Acts could result in civil or administrative penalties. The Offshore Minerals Act 1994 and the related Acts may contain provisions that address non-compliance and associated penalties, such as fines or cancellation of licences. The exact penalties would depend on the specific provisions of those Acts and any regulations made under them.

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