PETROLEUM OIL SEARCH.
No. 25 of 1936.
An Act relating to the Encouragement of Drilling Operations in connexion with the search for Petroleum Oil in Australia and in the Territories of Papua and New Guinea.
[Assented to 28th May, 1936.]
Preamble.
BE it enacted by the King’s Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia, for the purpose of appropriating the grant originated in the House of Representatives, as follows :—
Short title.
1. This Act may be cited as the Petroleum Oil Search Act 1936.
Definition.
2. In this Act, unless the contrary intention appears—
“petroleum” means naturally occurring solid, liquid or gaseous hydrocarbons in a free state, but does not include any substance which may be extracted from rocks or minerals by any process of destructive distillation.
Application of Act.
3. This Act shall extend to the Territories of Papua and New Guinea.
Appropriation.
4. There shall be payable out of the Consolidated Revenue Fund, which is hereby appropriated accordingly, the sum of Two hundred and fifty thousand pounds for the purposes of this Act.
Petroleum Oil Search Trust Account.
5.—(1.) For the purposes of this Act, there shall be a Petroleum Oil Search Trust Account, which shall be a Trust Account within the meaning of section sixty-two a of the Audit Act 1901–1934.
(2.) The moneys appropriated by this Act shall be credited to that Trust Account.
(3.) Subject to this Act, the Minister may apply the moneys standing to the credit of that Trust Account—
(a) for the purpose of advances to persons engaged in drilling operations in connexion with the search for petroleum ; and
(b) in payment of the salaries, allowances and other remuneration of persons employed by the Minister under this Act.
(4.) Subject to this Act, any advances under this Act shall be made upon such conditions and subject to such terms as the Minister determines.
(5.) The Minister may, in connexion with any advances made or to be made under this Act—
(a) in the name of the Commonwealth enter into such agreements and take such securities for repayment of the advances as he thinks fit; and
(b) enforce any such agreement or security.
(6.) Out of the moneys standing to the credit of the Trust Account there shall be paid such expenditure incurred in the administration of this Act as the Minister approves.
Maximum advance.
6. The amount of the advance made to any person under this Act shall not exceed the amount expended by that person after the commencement of this Act on drilling operations in connexion with the search for petroleum.
Appointments.
7.—(1.) The Minister may employ such persons as he thinks necessary for the purposes of this Act.
(2.) Persons employed by the Minister shall not be subject to the Commonwealth Public Service Act 1922–1934, but shall be engaged for such periods and shall be subject to such conditions as the Minister thinks fit.
Annual statement of expenditure.
8. The Minister shall cause an annual statement of the expenditure incurred under this Act to be prepared and laid before both Houses of the Parliament in the month of August in each year, or, if the Parliament is not then sitting, within fourteen days after the next meeting of the Parliament.
Overview
The Petroleum Oil Search Act 1936 was enacted by the Australian Parliament with the aim of encouraging drilling operations associated with the search for petroleum in Australia and the territories of Papua and New Guinea. This legislation was introduced to support the exploration and development of petroleum resources, which were considered crucial for national economic growth and energy security at the time. The Act provides for the appropriation of funds to be held in a Petroleum Oil Search Trust Account, which the Minister can utilise to make advances to individuals or entities engaged in drilling operations for petroleum, as well as for the payment of salaries and other remuneration for personnel employed under the Act. The overarching policy objective of the Act is to foster the search for and discovery of petroleum resources within the specified territories.
Scope and Application
The Petroleum Oil Search Act 1936 applies to drilling operations in connection with the search for petroleum in the Territories of Papua and New Guinea. The Act provides for the establishment of a Petroleum Oil Search Trust Account into which the appropriated funds are credited. The Minister is authorised to use these funds for advancing money to persons engaged in drilling operations related to petroleum exploration, as well as for paying the salaries and allowances of personnel employed under the Act. The Act allows the Minister to make advances under certain conditions and terms, enter into agreements and secure repayment of advances, and enforce such agreements and securities. Personnel employed under the Act are not subject to the Commonwealth Public Service Act 1922–1934 but are hired under terms and conditions determined by the Minister. The Minister is also required to prepare and present an annual statement of expenditure incurred under the Act to both Houses of Parliament.
Key Provisions
The Petroleum Oil Search Act 1936 (sections 1 to 8) establishes the framework for encouraging drilling operations in the search for petroleum oil in Australia and the Territories of Papua and New Guinea. The Act appropriates funds for these activities and sets up the Petroleum Oil Search Trust Account (section 5) to manage these funds. The moneys appropriated by the Act are to be credited to this Trust Account, and the Minister is authorised to use these funds for advances to persons engaged in drilling operations and for the payment of salaries and other remuneration of personnel employed under the Act (section 5). The Minister has the discretion to set conditions and terms for these advances (section 5(4)) and can enter into agreements and take securities for the repayment of these advances (section 5(5)). The Act also requires the Minister to prepare an annual statement of expenditure under the Act and present it to both Houses of Parliament (section 8).
The obligations imposed by the Act include the requirement for the Minister to employ necessary personnel for the purposes of the Act (section 7(1)). These employees are not subject to the Commonwealth Public Service Act 1922-1934 but are to be engaged for periods and under conditions as the Minister determines (section 7(2)). Additionally, the Act mandates the Minister to prepare and present an annual statement of the expenditure incurred under the Act to Parliament (section 8).
The Act does not explicitly outline specific offences, penalties, or consequences for breach within the provided text. However, it does state that advances under the Act are to be made subject to conditions and terms determined by the Minister (section 5(4)), which may implicitly include terms for repayment and potential consequences for failure to comply. Further provisions regarding penalties or enforcement mechanisms would likely be found in related legislation or administrative guidelines.