Offshore Petroleum and Greenhouse Gas Storage (Regulatory Levies) Amendment (Designated Coastal Waters) Act 2015

Overview

The Offshore Petroleum and Greenhouse Gas Storage (Regulatory Levies) Amendment (Designated Coastal Waters) Act 2015 was enacted by the Parliament of Australia to address a gap in the regulation of offshore petroleum activities in designated coastal waters. This Act amends the Offshore Petroleum and Greenhouse Gas Storage (Regulatory Levies) Act 2003 by introducing the concept of "designated coastal waters," which specifically refers to areas within the territorial sea of a state or territory and certain adjacent areas that were previously subject to petroleum exploration permits under the repealed Petroleum (Submerged Lands) Act 1967. The policy objective behind this amendment is to ensure that regulatory levies are appropriately applied to activities within these designated coastal waters, thereby providing a more targeted approach to the regulation of offshore petroleum and greenhouse gas storage activities. This Act commenced on the day after receiving Royal Assent, which was 19 March 2015.

Scope and Application

The Offshore Petroleum and Greenhouse Gas Storage (Regulatory Levies) Amendment (Designated Coastal Waters) Act 2015 amends the Offshore Petroleum and Greenhouse Gas Storage (Regulatory Levies) Act 2003 to refine the definition and scope of designated coastal waters for regulatory purposes. This Act applies to entities involved in offshore petroleum and greenhouse gas storage activities within the coastal waters of Australian states and territories, particularly targeting those areas that were previously subject to petroleum exploration permits under the repealed Petroleum (Submerged Lands) Act 1967. The Act's jurisdiction spans the Commonwealth level, affecting regulatory frameworks across various state and territory waters. Notably, the Act excludes areas that are no longer subject to petroleum exploration, retention leases, or production licenses, or pending applications for such permits, thereby ceasing their classification as designated coastal waters. The application and enforcement of this Act may be further detailed or extended through subordinate instruments, although the primary text does not explicitly mention any such provisions.

Key Provisions

The Offshore Petroleum and Greenhouse Gas Storage (Regulatory Levies) Amendment (Designated Coastal Waters) Act 2015 (C2015A00016) amends the Offshore Petroleum and Greenhouse Gas Storage (Regulatory Levies) Act 2003 to redefine the term "designated coastal waters" and to clarify the application of regulatory levies within these areas. Specifically, Section 3A of the amended Act provides a new definition for "designated coastal waters" (Schedule 1, item 2). It stipulates that these waters include the territorial sea of a state or the Northern Territory and any areas within the scheduled area that were previously subject to petroleum exploration permits under the repealed Petroleum (Submerged Lands) Act 1967 (Schedule 1, item 3A(1)). Furthermore, it incorporates the assumption that the breadth of the territorial sea is 3 nautical miles (Schedule 1, item 3A(2)). The Act also specifies that areas within the designated coastal waters will cease to be so designated if they are not subject to a petroleum exploration permit, retention lease, or production licence, or pending applications for such permits or leases (Schedule 1, item 3A(4)). Under the amended Act, several obligations and requirements are imposed on the parties and entities it governs. Firstly, the new definition of "designated coastal waters" imposes a requirement on relevant states and the Northern Territory to delineate and manage these areas accordingly (Schedule 1, item 3A). This includes ensuring that any regulatory activities or levies are appropriately applied within these waters. Additionally, the Act requires continuous monitoring to determine whether areas within the designated coastal waters remain subject to relevant petroleum activities or applications, as failure to do so will result in those areas ceasing to be designated (Schedule 1, item 3A(4)). This necessitates ongoing assessment and record-keeping by the relevant authorities to ensure compliance with the Act's provisions. The Act does not explicitly state any new offences, penalties, or consequences for breach. However, non-compliance with the Act's provisions, such as failing to correctly identify and manage designated coastal waters or not updating the status of areas within these waters, could potentially lead to legal challenges or enforcement actions. The Offshore Petroleum and Greenhouse Gas Storage (Regulatory Levies) Act 2003, which the amended Act seeks to modify, may contain provisions for penalties or enforcement mechanisms that would apply in the event of non-compliance with the new definitions and requirements set out in the 2015 Amendment Act. Therefore, entities and parties governed by the Act should ensure strict adherence to its provisions to avoid any potential legal repercussions.