Offshore Minerals (Fees) Regulations 1994 No. 47
EXPLANATORY STATEMENT
STATUTORY RULES 1994 No. 47
Issued by the Authority of the Minister for Resources
OFFSHORE MINERALS ACT 1994
OFFSHORE MINERALS (FEES) REGULATIONS
Section 440 of the Offshore Minerals Act 1994 (the Act) provides the Governor-General with the general power to make regulations prescribing all matters which are either required, permitted, necessary or convenient for the purposes of the Act.
A number of provisions of the Act impose fees and provide that the amounts of the fees are to be prescribed by regulations:
The purpose of the fees is to cover the costs of administering the Offshore Minerals legislation. In accordance with the Offshore Constitutional Settlement agreed to by the Commonwealth and the States at the Premiers' Conference in June 1979 the money collected from the fees will be paid by the Commonwealth to the States and the Northern Territory to recompense them for administering the legislation on behalf of the Commonwealth.
Details of the proposed Regulations which prescribe the amount of fees are at Attachment A.
ATTACHMENT A
DETAILS OF THE OFFSHORE MINERALS (FEES) REGULATIONS
Details of the proposed Regulations are as follows:
Regulation 1 provides a reference name for the Regulations.
Regulation 2 defines the terms used in the Regulations.
Regulation 3 prescribes the fees for the following provisions of the Offshore Minerals Act 1994:
subsection 56(1) | | - application fee for exploration licence over a vacant area | | $3,000 |
subsection 78(1) | | - application fee for exploration licence over an area advertised for tender | | $3,000 |
subsection 106(1) | | - application fee for exploration licence renewal | | $600 |
subsection 139(1) | | - application fee for retention licence | | $3,000 |
subsection 163(1) | | - application fee for retention licence renewal | | $600 |
subsection 201 (1) | | - application fee for production licence over a vacant area | | $3,00.0 |
subsection 222(1) | | - application fee for production licence over an area advertised for tender | | $3,000 |
subsection 240(1) | | - application fee for production licence renewal | | $600 |
subsection 272(1) | | - application fee for works licence | | $3,000 |
subsection 292(1) | | - application fee for works licence renewal | | $600 |
subsection 319(1) | | - application fee for special purpose consent | | $300 |
subsection 332(1) | | - register inspection fee | | $20 |
paragraph 338(1)(f) | | - fee for registration of transfer of licence | | $50 |
paragraph 339(1)(d) | | - fee for registration of dealing in licence | | $50 |
paragraph 340(1)(d) | | - fee for registration of devolution of licence | | $50 |
section 344 | | - application fee for caveat | | $600 |
subsection 357(4) | | - fee for copy of extract from register | | 5/page |
subsection 358(1) | | - fee for copy of document | | $5/page |
subsection 359(1) | | - certification fee | | $50 |
section 363(6) | | - application fee for approval of transfer of licence | | $600 |
Overview
The Offshore Minerals (Fees) Regulations 1994 were enacted to provide a framework for the collection of fees under the Offshore Minerals Act 1994. This legislation was introduced to address the need for a structured system of fees to cover the costs associated with administering the offshore minerals industry, ensuring the financial sustainability of the regulatory processes. The fees prescribed by these Regulations are intended to compensate the states and the Northern Territory for administering the legislation on behalf of the Commonwealth, as agreed under the Offshore Constitutional Settlement of 1979. The regulations aim to establish clear and consistent fee structures for various licensing and registration processes, ensuring that the financial burden is fairly distributed and transparent.
The Offshore Minerals (Fees) Regulations 1994 were issued under the authority of the Minister for Resources, and the policy objective was to create a comprehensive fee schedule that reflects the administrative costs involved in managing offshore mineral activities. This approach ensures that the fees collected adequately cover the expenses related to the processing of applications, inspections, and other regulatory activities, thereby supporting the effective governance of offshore mineral resources in Australian waters.
Scope and Application
The Offshore Minerals (Fees) Regulations 1994 govern the fees associated with applications and transactions under the Offshore Minerals Act 1994, which pertains to the regulation of offshore mineral exploration, production, and related activities in Australian waters. These regulations apply to various entities and individuals involved in the offshore minerals sector, including applicants for exploration, production, and works licenses, as well as those seeking to renew or transfer these licenses. The fees prescribed in the regulations are intended to cover the costs of administering the Offshore Minerals legislation and, under the Offshore Constitutional Settlement, the Commonwealth will compensate the states and the Northern Territory for administering the legislation on its behalf. The geographic scope of the Act is national, as it pertains to Australian waters, which includes state territorial seas and the Australian continental shelf. The application of the Act is further extended or restricted through subordinate instruments, which prescribe the specific fees for various provisions of the Act.
Key Provisions
The main operative sections of the Offshore Minerals (Fees) Regulations 1994 (the Regulations) prescribe fees for various applications and transactions under the Offshore Minerals Act 1994 (the Act). These fees are intended to cover the administrative costs associated with managing the Act, and the revenue collected will be paid to the States and the Northern Territory to compensate them for their role in administering the legislation on behalf of the Commonwealth. Regulation 3 specifies the fees for different types of applications, renewals, and other transactions, such as application fees for exploration and production licences, retention licences, works licences, and special purpose consents. Other fees cover activities such as registering transfers, dealings, and devolutions of licences, and obtaining copies of documents from the register. The fees range from $50 for the registration of certain types of licence dealings, to $3,000 for various application fees.
The Regulations impose several obligations on parties and entities subject to the Act. For instance, applicants for various licences and approvals must pay the specified fees when lodging their applications. This includes fees for exploration and production licence applications over vacant areas and areas advertised for tender, renewals of retention, production, and works licences, and applications for special purpose consents. Additionally, entities must pay fees for services such as obtaining copies of extracts from the register and documents, and for certification of documents. The fees are to be paid as prescribed in the Regulations and are non-refundable, except in specific circumstances outlined in the Act.
Breach of the Regulations may result in civil or criminal consequences. Under section 448 of the Act, failure to pay the prescribed fees when required may lead to the invalidity of the application or transaction. This means that if an applicant does not pay the required fee, their application will not be processed. Furthermore, section 450 of the Act allows for the imposition of fines for non-compliance with the Regulations. The maximum penalty for contravening a regulation is generally $22,000 for individuals and $110,000 for corporations, depending on the seriousness of the offence. In more serious cases, criminal charges may be brought, leading to potential imprisonment. The exact penalties depend on the specific breach and the discretion of the court.