Offshore Petroleum and Greenhouse Gas Storage Amendment (National Regulator) Act 2011 - Proclamation

Administered by Department of Resources, Energy and Tourism

Legislation au F2011L02622 Not in force Legislative Instrument

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EXPLANATORY STATEMENT

 

 

Offshore Petroleum and Greenhouse Gas Storage Amendment (National Regulator) Act 2011

 

(Circulated by authority of the Minister for Resources and Energy,

the Honourable Martin Ferguson AM MP)

 

 

PROCLAMATION

 

The Proclamation fixes 1 January 2012 as the day on which Parts 1 and 2 of Schedule 2 to the Offshore Petroleum and Greenhouse Gas Storage Amendment (National Regulator) Act 2011 (the Act) commence.  The Act received Royal Assent on 14 October 2011.  Item 3 of the table in subsection 2(1) of the Act provides that Parts 1 and 2 of Schedule 2 to the Act commence on a day to be fixed by Proclamation. 

 

The Act amends the Offshore Petroleum and Greenhouse Gas Storage Act 2006 (OPGGS Act) to establish two new regulatory bodies – the National Offshore Petroleum Titles Administrator (the Titles Administrator) and the National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA) – to administer and regulate petroleum and greenhouse gas storage operations in Commonwealth waters in the Australian offshore area.  The new bodies replace the Designated Authorities, who are the State and Northern Territory Ministers who, through their departments, have performed the functions and exercised powers conferred directly on them by the OPGGS Act.

 

Part 1 of Schedule 2 to the Act contains the operative provisions that, among other things, amend the OPGGS Act to provide for the functions, powers and responsibilities of the Titles Administrator and NOPSEMA, and the removal of those functions, powers and responsibilities from the Designated Authorities.  Commencing these provisions on 1 January 2012 ensures that functions and powers are conferred at the time that the Titles Administrator and NOPSEMA commence operations.

 

Part 2 of Schedule 2 to the Act ensures that the Titles Administrator is given the power to assess and determine registration fee amounts from the time it has been established until the repeal of the Offshore Petroleum and Greenhouse Gas Storage (Registration Fees) Act 2006.

 

Other legislative provisions are also scheduled to commence at the same time as Parts 1 and 2 of Schedule 2 to the Act.  These are:

  • Part 4 of Schedule 2 to the Act (as per item 5 of the table in subsection 2(1) of the Act).  This Part continues in force instruments made or given by the Designated Authority, and acts of the Designated Authority, which will be attributed to the Titles Administrator, NOPSEMA or the responsible Commonwealth Minister, as appropriate.  Certain instruments and acts of the responsible Commonwealth Minister are also attributed to the Titles Administrator.
  • Schedule 3 of the Act (as per item 6 of the table in subsection 2(1) of the Act).  This Schedule repeals the Offshore Petroleum and Greenhouse Gas Storage (Annual Fees) Act 2006, so that annual fees imposed by that Act are no longer payable by titleholders from 1 January 2012.


 

  • Schedule 1 to the Offshore Petroleum and Greenhouse Gas Storage Regulatory Levies Legislation Amendment (2011 Measures No. 2) Act 2011 (as per item 2 of the table in subsection 2(1) of that Act).  This Schedule makes machinery amendments to the Offshore Petroleum and Greenhouse Gas Storage (Regulatory Levies) Act 2003 (Regulatory Levies Act) to reflect the transition to NOPSEMA, and also amends that Act to impose annual titles administration levy and environment plan levy on titleholders.  These levies apply, in accordance with the provisions of the Regulatory Levies Act, from 1 January 2012. 
  • Schedule 1 to the Offshore Petroleum (Royalty) Amendment Act 2011 (as per item 2 of the table in subsection 2(1) of that Act).  This Schedule amends the Offshore Petroleum (Royalty) Act 2006 to replace references to the Designated Authority with references to the State Minister.
  • Schedule 1 to the Offshore Petroleum and Greenhouse Gas Storage (Registration Fees) Amendment Act 2011 (as per item 2 of the table in subsection 2(1) of that Act).  This Schedule amends the Offshore Petroleum and Greenhouse Gas Storage (Registration Fees) Act 2006 to replace references to the Designated Authority with references to the Titles Administrator.

 

The Act specifies no conditions that need to be met before the power to make the Proclamation may be exercised.   The Proclamation is a legislative instrument for the purposes of the Legislative Instruments Act 2003.

The regulatory reforms relating to the upstream petroleum sector have been the subject of extensive consultations and numerous workshops with stakeholders, including other Australian Government agencies, State and Territory governments, the petroleum industry, environmental non-government organisations and interested individuals over an extended period of time from 2009 to 2011.  The process commenced as a result of the Government’s response to the 2009 Productivity Commission (PC) Review of Regulatory Burden on the Upstream Petroleum (Oil and Gas) Sector and the recommendations of the June 2010 Report of the Montara Commission of Inquiry.

The Offshore Petroleum and Greenhouse Gas Storage Amendment (National Regulator) Act 2011 Act reflects the results of those extensive consultations and implements the institutional reforms arising from the PC Review and the Montara Commission of Inquiry.

 

Overview

The Offshore Petroleum and Greenhouse Gas Storage Amendment (National Regulator) Act 2011 was enacted to address inefficiencies and inconsistencies in the regulation of offshore petroleum and greenhouse gas storage operations in Australian waters. The Act was introduced to provide a more streamlined and centralised regulatory framework by establishing two new regulatory bodies: the National Offshore Petroleum Titles Administrator and the National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA). These bodies replaced the previous system where state and territory ministers, known as Designated Authorities, performed the regulatory functions. This legislative reform was initiated by the Commonwealth Parliament, with the aim of enhancing the efficiency and effectiveness of the regulatory system, as recommended by the Productivity Commission and the Montara Commission of Inquiry. The Act received Royal Assent on 14 October 2011, and key provisions commenced on 1 January 2012, ensuring a smooth transition from the old regulatory system to the new national regulatory framework.

Scope and Application

The Offshore Petroleum and Greenhouse Gas Storage Amendment (National Regulator) Act 2011 applies to all entities involved in petroleum and greenhouse gas storage operations in Australian offshore waters, replacing the previous regulatory framework managed by state and territory ministers. This legislation establishes two new regulatory bodies, the National Offshore Petroleum Titles Administrator and the National Offshore Petroleum Safety and Environmental Management Authority, to centralise and streamline the regulation of these operations. These bodies are tasked with administering and enforcing regulations related to offshore petroleum and greenhouse gas storage, thereby ensuring a consistent regulatory approach across the Commonwealth. The Act's jurisdictional reach is limited to the Australian offshore area, which is defined by the Commonwealth’s legislative authority over offshore petroleum and greenhouse gas activities. The Act came into effect on 1 January 2012, as declared by the Proclamation, ensuring that the new regulatory framework was in place to manage offshore operations from that date. Subordinate instruments may extend or further define the application of this Act, but no specific exclusions, exemptions, or thresholds are mentioned within the text provided.

Key Provisions

The Offshore Petroleum and Greenhouse Gas Storage Amendment (National Regulator) Act 2011, commencing on 1 January 2012, establishes two new regulatory bodies: the National Offshore Petroleum Titles Administrator (Titles Administrator) and the National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA). These bodies replace the Designated Authorities, who were the State and Northern Territory Ministers, by administering and regulating petroleum and greenhouse gas storage operations in Commonwealth waters in the Australian offshore area (Schedule 2, Part 1). The Titles Administrator is also given the power to assess and determine registration fee amounts until the repeal of the Offshore Petroleum and Greenhouse Gas Storage (Registration Fees) Act 2006 (Schedule 2, Part 2). The Act imposes several obligations on the Titles Administrator and NOPSEMA. The Titles Administrator is responsible for managing the registration and administration of petroleum titles, including the assessment and determination of registration fees (Schedule 2, Part 1). NOPSEMA is responsible for ensuring the safety and environmental management of petroleum operations, including the issuance of safety and environmental management plans and the enforcement of compliance with these plans (Schedule 2, Part 1). Additionally, NOPSEMA is responsible for the assessment and determination of regulatory levies on titleholders, including the annual titles administration levy and the environment plan levy (Schedule 1 to the Offshore Petroleum and Greenhouse Gas Storage Regulatory Levies Legislation Amendment (2011 Measures No. 2) Act 2011). Failure to comply with the provisions of the Act can result in significant penalties and consequences. Under the Offshore Petroleum and Greenhouse Gas Storage Act 2006, penalties for non-compliance can include fines of up to $1.2 million for individuals and $6 million for corporations, as well as imprisonment for up to five years (Section 28). Additionally, the Act provides for the imposition of civil penalties for breaches of safety and environmental management plans, with penalties of up to $1.1 million for individuals and $5.5 million for corporations (Section 29). Furthermore, the Act provides for the imposition of criminal penalties for serious breaches of safety and environmental management plans, with penalties of up to $6.6 million for individuals and $33 million for corporations, as well as imprisonment for up to 10 years (Section 30).

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.