EXPLANATORY STATEMENT
Issued by the authority of the Minister for Resources and Water
Offshore Petroleum and Greenhouse Gas Storage Act 2006
Offshore Petroleum and Greenhouse Gas Storage (Compatible Cross-boundary Laws) Declaration 2021
Purpose and Operation
Section 24A of the Offshore Petroleum and Greenhouse Gas Storage Act 2006 (Commonwealth) (the ‘Cth OPGGS Act’) enables the responsible Commonwealth Minister to declare, by legislative instrument, a law of a State or the Northern Territory to be a compatible cross-boundary law for the purposes of the Cth OPGGS Act.
The provision enables the Minister to ensure that a State or the Northern Territory has in place appropriate legislation to support the cross-boundary greenhouse gas title scheme administered under the Cth OPGGS Act, prior to the initial grant of a cross-boundary greenhouse gas assessment permit that includes part of the coastal waters of that State or the Northern Territory.
If the Minister no longer considers that a State or the Northern Territory has in place appropriate supporting legislation, the Minister can revoke the declaration. A person can only apply for the grant or renewal of a cross-boundary greenhouse gas title that includes part of the coastal waters of a State or the Northern Territory if that State or the Northern Territory has a compatible cross-boundary law.
The purpose of the Offshore Petroleum and Greenhouse Gas Storage (Compatible Cross-boundary Laws) Declaration 2021 is to declare that, for the purposes of the Cth OPGGS Act, the Offshore Petroleum and Greenhouse Gas Storage Act 2010 (Vic) (the ‘Vic OPGGS Act’) is a compatible cross-boundary law.
Background
The Offshore Petroleum and Greenhouse Gas Storage Amendment (Cross-boundary Greenhouse Gas Titles and Other Measures) Act 2020 (the Cth Amendment Act) amended the Cth OPGGS Act to provide for the grant and administration of single greenhouse gas titles that are partly located in Commonwealth waters and partly located in State/Northern Territory coastal waters. Upon the grant of the title, the title area becomes Commonwealth waters for all greenhouse gas-related purposes of the Cth OPGGS Act. Cross-boundary titles are regulated under the Cth OPGGS Act in the same way as other greenhouse gas titles located in Commonwealth waters.
Decisions about the granting of cross-boundary greenhouse gas titles are made by the Cross-boundary Authority, consisting of the responsible Commonwealth Minister and the relevant State or Northern Territory Resources Minister, similar to the Joint Authority arrangements for petroleum titles in Commonwealth waters. Titles administration is undertaken by the National Offshore Petroleum Titles Administrator (NOPTA), and the National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA) has responsibility for environmental management, safety and well integrity.
On 29 June 2021, the Offshore Petroleum and Greenhouse Gas Storage (Cross-boundary Greenhouse Gas Titles and Other Matters) Amendment Act 2021 (Vic) (the ‘Vic Amendment Act’) commenced. The Vic Amendment Act amended the Vic OPGGS Act to allow the cross-boundary title regime to operate. The amendments enable the Victorian Minister to make the required decisions as a member of the Cross-boundary Authority under the Cth OPGGS Act, supported by information-sharing, delegation and administrative provisions.
Authority
Section 24A of the Cth OPGGS Act provides for the responsible Commonwealth Minister to declare, by legislative instrument, that a State or Northern Territory law is a compatible cross-boundary law for the purposes of the Cth OPGGS Act.
Consultation
In developing the policy proposal and amendments to the Cth OPGGS Act to provide for the grant of cross-boundary greenhouse gas titles to allow effective title administration and regulation of a greenhouse gas storage formation that straddles the boundary between State/Northern Territory coastal waters and Commonwealth waters, the department consulted with the Victorian Government Department of Jobs, Precincts and Regions and CarbonNet. Other State/Northern Territory governments were informed of the measure through the Upstream Petroleum Resources Working Group of the former COAG Energy Council.
The Victorian Government consulted the department on the Vic Amendment Act prior to introduction.
Regulatory Impact
The Office of Best Practice Regulation has been consulted and a regulatory impact statement is not required as the instrument is machinery in nature (OBPR Reference ID 44190).
Statement of Compatibility with Human Rights
Subsection 9(1) of the Human Rights (Parliamentary Scrutiny) Act 2011 requires the rule-maker of a legislative instrument to which section 42 (disallowance) of the Legislation Act 2003 applies to cause a statement of compatibility to be prepared in respect of that legislative instrument. A Statement of Compatibility with Human Rights has been prepared to meet that requirement and is set out at Attachment B.
ATTACHMENT A
Details of the Offshore Petroleum and Greenhouse Gas Storage (Compatible Cross-boundary Laws) Declaration 2021
Section 1 – Name
This section specifies the name of the instrument as the Offshore Petroleum and Greenhouse Gas Storage (Compatible Cross-boundary Laws) Declaration 2021.
Section 2 – Commencement
This section provides that the instrument commenced at the start of the day after registration on the Federal Register of Legislation.
Section 3 – Authority
This section sets out the provision of the Offshore Petroleum and Greenhouse Gas Storage Act 2006 under which the instrument is made.
Section 4 – Definitions
This item provides for definitions of terms used in the instrument.
Section 5 – Laws declared to be compatibly cross-boundary laws
This section declares that the Offshore Petroleum and Greenhouse Gas Storage Act 2010 (Vic) is a compatible cross-boundary law for the purposes of the Offshore Petroleum and Greenhouse Gas Storage Act 2006 (Cth).
ATTACHMENT B
Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
Offshore Petroleum and Greenhouse Gas Storage (Compatible Cross-boundary Laws) Declaration 2021
This instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.
Overview of the Legislative Instrument
The Legislative Instrument declares the Offshore Petroleum and Greenhouse Gas Storage Act 2010 (Vic) to be a compatible cross-boundary law for the purposes of the Offshore Petroleum and Greenhouse Gas Storage Act 2006 (Cth).
The declaration provides for effective cross-boundary greenhouse gas titles administration and regulation of a greenhouse gas storage formation that straddles the boundary between Victorian coastal waters and Commonwealth waters.
Human rights implications
This instrument is machinery and technical in nature and does not engage any of the applicable rights or freedoms.
Conclusion
This instrument is compatible with human rights as it does not raise any human rights issues.
The Hon Keith Pitt MP
Minister for Resources and Water