Offshore Petroleum (Royalty) Amendment Act 2011

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Legislation au C2011A00110 In force Act

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Offshore Petroleum (Royalty) Amendment Act 2011

No.110, 2011

Compilation No. 1

Compilation date: 14 October 2011

Includes amendments: Act No. 136, 2012

About this compilation

This compilation

This is a compilation of the Offshore Petroleum (Royalty) Amendment Act 2011 that shows the text of the law as amended and in force on 14 October 2011 (the compilation date).

The notes at the end of this compilation (the endnotes) include information about amending laws and the amendment history of provisions of the compiled law.

Uncommenced amendments

The effect of uncommenced amendments is not shown in the text of the compiled law. Any uncommenced amendments affecting the law are accessible on the Register (www.legislation.gov.au). The details of amendments made up to, but not commenced at, the compilation date are underlined in the endnotes. For more information on any uncommenced amendments, see the Register for the compiled law.

Application, saving and transitional provisions for provisions and amendments

If the operation of a provision or amendment of the compiled law is affected by an application, saving or transitional provision that is not included in this compilation, details are included in the endnotes.

Editorial changes

For more information about any editorial changes made in this compilation, see the endnotes.

Modifications

If the compiled law is modified by another law, the compiled law operates as modified but the modification does not amend the text of the law. Accordingly, this compilation does not show the text of the compiled law as modified. For more information on any modifications, see the Register for the compiled law.

Selfrepealing provisions

If a provision of the compiled law has been repealed in accordance with a provision of the law, details are included in the endnotes.

 

 

 

Contents

1 Short title

2 Commencement

3 Schedule(s)

Schedule 1—Amendments

Offshore Petroleum (Royalty) Act 2006

Endnotes

Endnote 1—About the endnotes

Endnote 2—Abbreviation key

Endnote 3—Legislation history

Endnote 4—Amendment history

 

An Act to amend the Offshore Petroleum (Royalty) Act 2006, and for related purposes

1  Short title

  This Act may be cited as the Offshore Petroleum (Royalty) Amendment Act 2011.

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

Provision(s)

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.

14 October 2011

2.  Schedule 1

At the same time as Part 1 of Schedule 2 to the Offshore Petroleum and Greenhouse Gas Storage Amendment (National Regulator) Act 2011 commences.

1 January 2012

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  Schedule(s)

  Each Act 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 (Royalty) Act 2006

1A  Section 4

Insert:

State Minister means the responsible State Minister of Western Australia.

1  Paragraphs 6(4)(a) and (b)

Omit “Designated Authority”, substitute “State Minister”.

2  Paragraph 6(4)(c)

Omit “Designated Authority’s”, substitute “State Minister’s”.

3  Subsection 9(1)

Omit “Designated Authority”, substitute “State Minister”.

3A  Paragraph 10(1)(a)

Omit “Designated Authority”, substitute “State Minister”.

3B  Paragraphs 10(1)(b) and (c)

Repeal the paragraphs, substitute:

 (b) is not payable in relation to petroleum if:

 (i) the State Minister is satisfied that the petroleum was used by the registered holder of the petroleum exploration permit, petroleum retention lease or petroleum production licence for the purposes of petroleum exploration operations or operations for the recovery of petroleum; and

 (ii) the use did not contravene the Offshore Petroleum and Greenhouse Gas Storage Act 2006 or regulations under that Act; and

 (c) is not payable in relation to petroleum if:

 (i) the State Minister is satisfied that the petroleum has been flared or vented in connection with operations for the recovery of petroleum; and

 (ii) the flaring or venting did not contravene the Offshore Petroleum and Greenhouse Gas Storage Act 2006 or regulations under that Act.

3C  Subsection 10(2)

Repeal the subsection, substitute:

 (2) If petroleum has been recovered by the registered holder of:

 (a) a petroleum exploration permit; or

 (b) a petroleum retention lease; or

 (c) a petroleum production licence;

royalty under this Act is not payable in relation to the petroleum because of that recovery if:

 (d) the State Minister is satisfied that the petroleum has been returned to a natural reservoir; and

 (e) the return of the petroleum to the reservoir did not contravene the Offshore Petroleum and Greenhouse Gas Storage Act 2006 or regulations under that Act.

3D  Section 11

Omit “Designated Authority” (wherever occurring), substitute “State Minister”.

3E  Section 12

Omit “Designated Authority” (wherever occurring), substitute “State Minister”.

3F  Section 13

Omit “Designated Authority” (wherever occurring), substitute “State Minister”.

3G  Section 14

Omit “Designated Authority” (wherever occurring), substitute “State Minister”.

3H  Subsection 15(1)

Omit “Designated Authority”, substitute “State Minister”.

3J  After section 16

Insert:

16A  Delegation by State Minister

  The State Minister may, by written instrument, delegate to an employee of Western Australia any or all of the powers or functions of the State Minister under this Act.

4  Transitional—instruments

(1) This item applies to an instrument if:

 (a) the instrument was in force immediately before the commencement of this item; and

 (b) the instrument was made or given, by the Designated Authority for an offshore area, under, or for the purposes of, a particular provision of the Offshore Petroleum (Royalty) Act 2006 (other than paragraph 10(1)(b) or (c) or subsection 10(2)).

(2) The instrument has effect, after the commencement of this item, as if it had been made or given:

 (a) by the State Minister; and

 (b) under, or for the purposes of, the corresponding provision of that Act as amended by this Schedule.

5  Transitional—acts of Designated Authority to be attributed to the State Minister etc.

(1) This item applies to an act or thing (other than the making or giving of an instrument) that was done before the commencement of this item:

 (a) by, or in relation to, the Designated Authority for an offshore area; and

 (b) under, or for the purposes of, a particular provision of the Offshore Petroleum (Royalty) Act 2006 (other than paragraph 10(1)(b) or (c) or subsection 10(2)).

(2) The act or thing has effect, after the commencement of this item, as if it had been done:

 (a) by, or in relation to, the State Minister; and

 (b) under, or for the purposes of, the corresponding provision of that Act as amended by this Schedule.

6  Application of amendments—exemptions from royalty

(1) The amendments of section 10 of the Offshore Petroleum (Royalty) Act 2006 made by this Schedule, in so far as the amendments relate to a use of petroleum, apply to a use that occurs after the commencement of this item.

(2) The amendments of section 10 of the Offshore Petroleum (Royalty) Act 2006 made by this Schedule, in so far as the amendments relate to the flaring or venting of petroleum, apply to flaring or venting that occurs after the commencement of this item.

(3) The amendments of section 10 of the Offshore Petroleum (Royalty) Act 2006 made by this Schedule, in so far as the amendments relate to the return of petroleum to a natural reservoir, apply to a return that occurs after the commencement of this item.

 

Endnotes

Endnote 1—About the endnotes

The endnotes provide information about this compilation and the compiled law.

The following endnotes are included in every compilation:

Endnote 1—About the endnotes

Endnote 2—Abbreviation key

Endnote 3—Legislation history

Endnote 4—Amendment history

Abbreviation key—Endnote 2

The abbreviation key sets out abbreviations that may be used in the endnotes.

Legislation history and amendment history—Endnotes 3 and 4

Amending laws are annotated in the legislation history and amendment history.

The legislation history in endnote 3 provides information about each law that has amended (or will amend) the compiled law. The information includes commencement details for amending laws and details of any application, saving or transitional provisions that are not included in this compilation.

The amendment history in endnote 4 provides information about amendments at the provision (generally section or equivalent) level. It also includes information about any provision of the compiled law that has been repealed in accordance with a provision of the law.

Editorial changes

The Legislation Act 2003 authorises First Parliamentary Counsel to make editorial and presentational changes to a compiled law in preparing a compilation of the law for registration. The changes must not change the effect of the law. Editorial changes take effect from the compilation registration date.

If the compilation includes editorial changes, the endnotes include a brief outline of the changes in general terms. Full details of any changes can be obtained from the Office of Parliamentary Counsel.

Misdescribed amendments

A misdescribed amendment is an amendment that does not accurately describe how an amendment is to be made. If, despite the misdescription, the amendment can be given effect as intended, then the misdescribed amendment can be incorporated through an editorial change made under section 15V of the Legislation Act 2003.

If a misdescribed amendment cannot be given effect as intended, the amendment is not incorporated and “(md not incorp)” is added to the amendment history.

Endnote 2—Abbreviation key

ad = added or inserted

o = order(s)

am = amended

Ord = Ordinance

amdt = amendment

orig = original

c = clause(s)

par = paragraph(s)/subparagraph(s)

C[x] = Compilation No. x

/subsubparagraph(s)

Ch = Chapter(s)

pres = present

def = definition(s)

prev = previous

Dict = Dictionary

(prev…) = previously

disallowed = disallowed by Parliament

Pt = Part(s)

Div = Division(s)

r = regulation(s)/rule(s)

ed = editorial change

reloc = relocated

exp = expires/expired or ceases/ceased to have

renum = renumbered

effect

rep = repealed

F = Federal Register of Legislation

rs = repealed and substituted

gaz = gazette

s = section(s)/subsection(s)

LA = Legislation Act 2003

Sch = Schedule(s)

LIA = Legislative Instruments Act 2003

Sdiv = Subdivision(s)

(md) = misdescribed amendment can be given

SLI = Select Legislative Instrument

effect

SR = Statutory Rules

(md not incorp) = misdescribed amendment

SubCh = SubChapter(s)

cannot be given effect

SubPt = Subpart(s)

mod = modified/modification

underlining = whole or part not

No. = Number(s)

commenced or to be commenced

 

Endnote 3—Legislation history

 

Act

Number and year

Assent

Commencement

Application, saving and transitional provisions

Offshore Petroleum (Royalty) Amendment Act 2011

110, 2011

14 Oct 2011

s 1–3: 14 Oct 2011 (s 2(1) item 1)
Sch 1: 1 Jan 2012 (s 2(1) item 2)

 

Statute Law Revision Act 2012

136, 2012

22 Sept 2012

Sch 2 (item 31): 14 Oct 2011 (s 2(1) item 23)

 

Endnote 4—Amendment history

 

Provision affected

How affected

s 2.....................

am No 136, 2012

 

Overview

The Offshore Petroleum (Royalty) Amendment Act 2011 was enacted to amend the Offshore Petroleum (Royalty) Act 2006, addressing the need to update and refine the legislative framework governing royalties for offshore petroleum activities. This Act was introduced by the Parliament of Australia, aiming to ensure that the royalty regime is consistent and fair, while also reflecting the operational realities of the offshore petroleum industry. The policy objective of this amendment is to provide clarity and certainty in the administration of royalties, particularly by specifying the role of the State Minister in Western Australia regarding the assessment and exemption of royalty payments. This legislation makes several key changes, including the substitution of the term "Designated Authority" with "State Minister" throughout the Offshore Petroleum (Royalty) Act 2006, thus delineating the responsibilities and powers of the State Minister in relation to the assessment of petroleum use, flaring or venting, and the return of petroleum to natural reservoirs. Additionally, it provides the State Minister with the authority to delegate certain powers and functions, facilitating more efficient administration of the royalty regime. The amendments came into force on different dates, with some provisions commencing on the Royal Assent date of 14 October 2011 and others on 1 January 2012, as specified in the commencement schedule.

Scope and Application

The Offshore Petroleum (Royalty) Amendment Act 2011 amends the Offshore Petroleum (Royalty) Act 2006, focusing on the royalty obligations for petroleum activities in Australian offshore areas. This Act applies to petroleum activities in offshore areas of Australia, specifically affecting entities that hold permits or licenses for petroleum exploration, retention, or production. The geographic scope of the Act encompasses the offshore petroleum activities regulated under the Offshore Petroleum and Greenhouse Gas Storage Act 2006. The amendments introduced by this Act commence on different dates, with sections 1 to 3 and unspecified provisions coming into effect on 14 October 2011, and Schedule 1 taking effect on 1 January 2012. Notably, the Act replaces the term "Designated Authority" with "State Minister" in various sections, thereby assigning the royalty-related responsibilities to the State Minister of Western Australia. The amendments concerning the use, flaring, venting, and return of petroleum to natural reservoirs apply to activities occurring after the respective commencement dates specified in the Schedule. This Act does not detail any exclusions, exemptions, or thresholds, and it does not extend or restrict its application through subordinate instruments.

Key Provisions

The Offshore Petroleum (Royalty) Amendment Act 2011 amends the Offshore Petroleum (Royalty) Act 2006 by introducing a new definition for "State Minister," meaning the responsible State Minister of Western Australia, and replacing the term "Designated Authority" with "State Minister" in various sections (Section 1A, paragraphs 6(4)(a) and (b), subsection 9(1), paragraphs 10(1)(b) and (c), subsection 10(2), sections 11, 12, 13, 14, and subsection 15(1)). The State Minister is now tasked with ensuring that royalties are not payable for certain uses of petroleum, such as for petroleum exploration operations or operations for the recovery of petroleum, if the use did not contravene the Offshore Petroleum and Greenhouse Gas Storage Act 2006 or regulations under that Act (Section 3B). Additionally, the State Minister can delegate any or all of their powers or functions under this Act to an employee of Western Australia by written instrument (Section 3A). The Act imposes on the State Minister the responsibility to ensure that royalties are not payable under certain conditions concerning the use, flaring, venting, or return of petroleum, provided such activities do not contravene the Offshore Petroleum and Greenhouse Gas Storage Act 2006 or regulations under that Act. The State Minister must also ensure that any instruments or acts done by the former Designated Authority are treated as if they were done by the State Minister (Items 4 and 5). The State Minister is also responsible for ensuring that the amendments concerning exemptions from royalty apply to uses, flaring or venting, or returns that occur after the commencement of the relevant items (Items 6(1), 6(2), and 6(3)). There are no specific offences, penalties, or civil/criminal consequences mentioned in the Act. However, non-compliance with the conditions set by the State Minister for exemptions from royalty could potentially result in the imposition of royalties for activities that should have been exempt, leading to financial penalties or legal disputes. Additionally, any contravention of the Offshore Petroleum and Greenhouse Gas Storage Act 2006 or regulations under that Act could result in penalties under that Act. The precise consequences would depend on the specific nature of the non-compliance and the applicable laws.

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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.