Offshore Petroleum and Greenhouse Gas Storage (Regulatory Levies) Amendment Act 2021

Administered by Department of Industry, Science and Resources

Legislation au C2021A00097 In force Act

Legislation content

 

 

 

 

 

 

Offshore Petroleum and Greenhouse Gas Storage (Regulatory Levies) Amendment Act 2021

 

No. 97, 2021

 

 

 

 

 

An Act to amend the Offshore Petroleum and Greenhouse Gas Storage (Regulatory Levies) Act 2003, and for related purposes

 

 

Contents

1 Short title

2 Commencement

3 Schedules

Schedule 1—Amendments

Offshore Petroleum and Greenhouse Gas Storage (Regulatory Levies) Act 2003

 

 

Offshore Petroleum and Greenhouse Gas Storage (Regulatory Levies) Amendment Act 2021

No. 97, 2021

 

 

 

An Act to amend the Offshore Petroleum and Greenhouse Gas Storage (Regulatory Levies) Act 2003, and for related purposes

[Assented to 3 September 2021]

The Parliament of Australia enacts:

1  Short title

  This Act is the Offshore Petroleum and Greenhouse Gas Storage (Regulatory Levies) Amendment Act 2021.

2  Commencement

 (1) Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.

 

Commencement information

Column 1

Column 2

Column 3

Provisions

Commencement

Date/Details

1.  Sections 1 to 3 and anything in this Act not elsewhere covered by this table

The day this Act receives the Royal Assent.

3 September 2021

2.  Schedule 1

The later of:

(a) the start of the day after this Act receives the Royal Assent; and

(b) immediately after the commencement of Schedule 2 to the Offshore Petroleum and Greenhouse Gas Storage Amendment (Titles Administration and Other Measures) Act 2021.

However, the provisions do not commence at all if the event mentioned in paragraph (b) does not occur.

2 March 2022

(paragraph (b) applies)

Note: This table relates only to the provisions of this Act as originally enacted. It will not be amended to deal with any later amendments of this Act.

 (2) Any information in column 3 of the table is not part of this Act. Information may be inserted in this column, or information in it may be edited, in any published version of this Act.

3  Schedules

  Legislation that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.

Schedule 1—Amendments

 

Offshore Petroleum and Greenhouse Gas Storage (Regulatory Levies) Act 2003

1  Section 3

Insert:

remedial direction means a direction under section 586, 586A, 587, 587A, 591B, 592, 594A or 595 of the Offshore Petroleum and Greenhouse Gas Storage Act 2006.

State/Territory remedial direction means a direction under a provision of a State PSLA or Territory PSLA that substantially corresponds to section 586, 586A, 587, 587A, 591B, 592, 594A or 595 of the Offshore Petroleum and Greenhouse Gas Storage Act 2006.

2  Subsection 7(1)

Repeal the subsection, substitute:

 (1) If:

 (a) a safety case is in force in relation to a facility at any time during a year; and

 (b) the facility is located, or proposed to be located, in Commonwealth waters;

levy is imposed on the safety case in respect of that year.

3  Subsection 7(3)

Repeal the subsection (not including the note), substitute:

 (3) Safety case levy imposed by subsection (1) is payable by:

 (a) unless any of the following paragraphs apply—the operator of the facility; or

 (b) if the facility is a pipeline subject to a pipeline licence and a remedial direction does not apply in relation to the pipeline at any time during the year—the licensee of the pipeline licence; or

 (c) if the facility is a pipeline subject to a pipeline licence and a remedial direction applies in relation to the pipeline at any time during the year:

 (i) the licensee of the pipeline licence; and

 (ii) if the licensee is not subject to the remedial direction—the person who is subject to the remedial direction; or

 (d) if the facility is not a pipeline that is subject to a pipeline licence but is a pipeline in relation to which a remedial direction is in force at any time during the year—the person who is subject to the remedial direction.

4  Subsection 7(5)

Repeal the subsection.

5  At the end of subsection 7(6)

Add “, circumstances or any other matter”.

6  Subsection 8(1)

Repeal the subsection, substitute:

 (1) If:

 (a) a safety case is in force in relation to a facility at any time during a year; and

 (b) the facility is located, or proposed to be located, in the designated coastal waters of a State or of the Northern Territory;

levy is imposed on the safety case in respect of that year.

7  Subsection 8(3)

Repeal the subsection (not including the note), substitute:

 (3) Safety case levy imposed by subsection (1) is payable by:

 (a) unless any of the following paragraphs apply—the operator of the facility; or

 (b) if the facility is a pipeline subject to a pipeline licence and a State/Territory remedial direction does not apply in relation to the pipeline at any time during the year—the licensee of the pipeline licence; or

 (c) if the facility is a pipeline subject to a pipeline licence and a State/Territory remedial direction applies in relation to the pipeline at any time during the year:

 (i) the licensee of the pipeline licence; and

 (ii) if the licensee is not subject to the State/Territory remedial direction—the person who is subject to the State or Territory remedial direction; or

 (d) if the facility is not a pipeline that is subject to a pipeline licence but is a pipeline in relation to which a State/Territory remedial direction is in force at any time during the year—the person who is subject to the remedial direction.

8  Subsection 8(5)

Repeal the subsection.

9  At the end of subsection 8(6)

Add “, circumstances or any other matter”.

10  Section 10C (at the end of the heading)

Add “etc.”.

11  Paragraph 10C(1)(b)

Repeal the paragraph, substitute:

 (b) the person is either:

 (i) the registered holder of an eligible title; or

 (ii) subject to a remedial direction (other than as the registered holder of an eligible title);

12  Section 10D (at the end of the heading)

Add “etc.”.

13  Paragraph 10D(1)(b)

Repeal the paragraph, substitute:

 (b) the person is either:

 (i) the registered holder of a State/Territory title; or

 (ii) subject to a State/Territory remedial direction (other than as the registered holder of a State/Territory title);

14  Section 10F (at the end of the heading)

Add “etc.”.

15  After paragraph 10F(1)(c)

Insert:

 or (d) both:

 (i) an environment plan is submitted to NOPSEMA under a prescribed provision of regulations made under the Offshore Petroleum and Greenhouse Gas Storage Act 2006; and

 (ii) the activities to which the plan relates are carried out for the purposes of complying with a remedial direction; or

 (e) both:

 (i) a proposed revision of an environment plan is submitted to NOPSEMA under a prescribed provision of regulations made under the Offshore Petroleum and Greenhouse Gas Storage Act 2006; and

 (ii) the activities to which the revised plan relates are carried out for the purposes of complying with a remedial direction;

16  At the end of subsection 10F(3)

Add:

 ; or (f) if paragraph (1)(d) or (e) applies—by the person who is subject to the remedial direction.

17  Section 10G (at the end of the heading)

Add “etc.”.

18  After paragraph 10G(1)(c)

Insert:

 ; or (d) both:

 (i) an environment plan is submitted to NOPSEMA under a regulation of a State or Territory that substantially corresponds to a prescribed provision of regulations made under the Offshore Petroleum and Greenhouse Gas Storage Act 2006; and

 (ii) the activities to which the plan relates are carried out for the purposes of complying with a State/Territory remedial direction; or

 (e) both:

 (i) a proposed revision of an environment plan is submitted to NOPSEMA under a regulation of a State or Territory that substantially corresponds to a prescribed provision of regulations made under the Offshore Petroleum and Greenhouse Gas Storage Act 2006; and

 (ii) the activities to which the revised plan relates are carried out for the purposes of complying with a State/Territory remedial direction;

19  At the end of subsection 10G(3)

Add:

 ; or (f) if paragraph (1)(d) or (e) applies—by the person who is subject to the remedial direction.

20  Application of amendments

(1) The amendments of sections 7 and 8 of the Offshore Petroleum and Greenhouse Gas Storage (Regulatory Levies) Act 2003 made by this Schedule apply in relation to the imposition of safety case levy by that Act for a year that begins on or after the commencement of those amendments.

(2) The amendments of sections 10C and 10D of the Offshore Petroleum and Greenhouse Gas Storage (Regulatory Levies) Act 2003 made by this Schedule apply in relation to the imposition of well activity levy by that Act on applications and submissions for which levy is imposed by section 10C or 10D of that Act if the application or submission is made on or after the commencement of those amendments.

(3) The amendments of sections 10F and 10G of the Offshore Petroleum and Greenhouse Gas Storage (Regulatory Levies) Act 2003 made by this Schedule apply in relation to the imposition of environment plan levy by that Act on submissions for which levy is imposed by section 10F or 10G of that Act if the submission is made on or after the commencement of those amendments.

 

[Minister’s second reading speech made in—

House of Representatives on 26 May 2021

Senate on 9 August 2021]

(54/21)

 

Overview

The Offshore Petroleum and Greenhouse Gas Storage (Regulatory Levies) Amendment Act 2021 was enacted by the Parliament of Australia to address gaps in the Offshore Petroleum and Greenhouse Gas Storage (Regulatory Levies) Act 2003. The primary objective of this legislation is to clarify and expand the scope of regulatory levies applicable to offshore petroleum and greenhouse gas storage activities. It specifically introduces amendments to the regulatory framework concerning safety case levies, well activity levies, and environment plan levies, ensuring that these levies are imposed in a manner consistent with both Commonwealth and State/Territory laws. The amendments aim to enhance the regulatory oversight of these activities by ensuring that the appropriate parties, including those subject to remedial directions, are liable for the applicable levies. The Act received Royal Assent on 3 September 2021 and is set to commence on 2 March 2022, contingent on the commencement of the Offshore Petroleum and Greenhouse Gas Storage Amendment (Titles Administration and Other Measures) Act 2021. The legislative changes introduced by this Act are designed to align the regulatory regime more closely with current industry practices and legislative requirements, thereby improving the efficiency and effectiveness of the regulatory process.

Scope and Application

The Offshore Petroleum and Greenhouse Gas Storage (Regulatory Levies) Amendment Act 2021 amends the Offshore Petroleum and Greenhouse Gas Storage (Regulatory Levies) Act 2003, extending its scope and modifying the imposition of certain levies related to offshore petroleum and greenhouse gas storage activities. This Act applies to the imposition of safety case, well activity, and environment plan levies for years beginning on or after the commencement of the amendments. The amendments apply to facilities located or proposed to be located in Commonwealth waters and the designated coastal waters of a state or the Northern Territory. The levy is payable by the operator of the facility, the licensee of the pipeline licence, or the person subject to a remedial direction, depending on the specific circumstances of the facility and the application of any remedial directions. The Act does not specify exclusions or exemptions but rather provides detailed provisions for determining who is liable for the payment of the levies. The application of these amendments is further extended through subordinate instruments, which may provide additional clarification or detail in implementing the legislative changes.

Key Provisions

The Offshore Petroleum and Greenhouse Gas Storage (Regulatory Levies) Amendment Act 2021 amends the Offshore Petroleum and Greenhouse Gas Storage (Regulatory Levies) Act 2003. This Act introduces several key amendments to the existing regulatory framework governing offshore petroleum and greenhouse gas storage activities. The principal changes are made to sections 7, 8, 10C, 10D, 10F, and 10G of the primary Act, which pertain to the imposition of various levies associated with safety cases, well activities, and environment plans. These amendments specify who is liable for the payment of these levies under different circumstances, particularly when remedial directions are in force. The Act imposes specific obligations on operators and other relevant parties involved in offshore petroleum and greenhouse gas storage activities. For example, under the revised section 7, the operator of a facility or the licensee of a pipeline licence is generally responsible for paying the safety case levy, unless a remedial direction applies, in which case the person subject to the remedial direction may also be liable. Similarly, the revised section 8 specifies the circumstances under which operators or persons subject to State or Territory remedial directions are liable for the payment of safety case levies in relation to facilities located in designated coastal waters. For well activity and environment plan levies, the Act introduces conditions under which those subject to remedial directions are liable for the payment of these levies, depending on whether an environment plan is submitted and activities are carried out in compliance with the relevant remedial directions. Failure to comply with the requirements of this Act can result in financial penalties and other legal consequences. Although the specific penalties are not detailed in the text provided, it is common for breaches of regulatory provisions to result in fines and potential legal action under the primary Act or related legislation. The severity of the penalties can vary depending on the nature and extent of the breach, and may be subject to judicial discretion. In summary, the Offshore Petroleum and Greenhouse Gas Storage (Regulatory Levies) Amendment Act 2021 introduces significant changes to the regulatory framework for offshore petroleum and greenhouse gas storage activities by clarifying the liability for various levies under different circumstances. The Act imposes specific obligations on operators and other relevant parties to ensure compliance with the amended levy provisions. Non-compliance with these obligations may result in financial penalties and other legal consequences, although the exact penalties are not specified in the provided text.

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Area of Law
Environmental Law
Instrument
Act
Concepts
Commencement Provisions
Reporting & Disclosure Obligations
Regulatory Standards

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