PETROLEUM OIL SEARCH (No. 2).
No. 89 of 1936.
An Act to amend the Petroleum Oil Search Act 1936.
[Assented to 7th December, 1936.]
BE it enacted by the King’s Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia, as follows:—
Short title and citation.
1.—(1.) This Act may be cited as the Petroleum Oil Search Act (No. 2) 1936.
(2.) The Petroleum Oil Search Act 1936* is in this Act referred to as the Principal Act.
(3.) The Principal Act, as amended by this Act, may be cited as the Petroleum Oil Search Acts 1936.
Petroleum Oil Search Trust Account.
2. Section five of the Principal Act is amended—
(a) by omitting sub-section (3.) and inserting in its stead the following sub-section:—
“(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—
(i) in drilling operations; or
(ii) in the conduct of geological surveys, in connexion with the search for petroleum;
(b) in the purchase of drilling plants for use in connexion with such search; and
(c) in payment of the salaries, allowances and other remuneration of persons employed by the Minister under this Act.”; and
(b) by inserting, after sub-section (5.), the following sub-section:—
“(5a.) The Minister may, in the name of the Commonwealth, enter into agreements, upon such conditions and subject to such terms as he thinks fit, for the letting on hire of any drilling plant purchased under this Act to any person for use in drilling operations in connexion with the search for petroleum and may enforce any such agreement.”.
3. Section six of the Principal Act is repealed and the following section inserted in its stead:—
Maximum advance.
“6. The amount of any advance made under this Act to any person who is—
(a) engaged in drilling operations—shall not be such as to cause the total amount advanced to that person under this Act to exceed one-half of the amount of the expenditure incurred by that person, after the commencement of this Act, on drilling operations in connexion with the search for petroleum; or
(b) engaged in the conduct of geological surveys—shall not be such as to cause the total amount advanced to that person under this Act to exceed one-third of the amount of the expenditure incurred by that person, after the commencement of this Act, in the conduct of geological surveys in connexion with such search.”.
Overview
The Petroleum Oil Search Act (No. 2) 1936 was enacted to amend the Petroleum Oil Search Act 1936, addressing the need for refined regulations concerning the allocation and management of funds in the Petroleum Oil Search Trust Account, as well as the terms under which advances could be made to entities involved in petroleum exploration activities. This Act was passed by the King’s Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia, aiming to provide clearer guidelines on the use of financial resources dedicated to the search for petroleum. The policy objective of this legislation was to ensure that the funds within the Petroleum Oil Search Trust Account are judiciously applied, supporting activities such as drilling operations, geological surveys, and the employment of personnel, while also allowing for the leasing of drilling equipment to further stimulate exploration efforts.
Scope and Application
The Petroleum Oil Search Acts 1936, specifically the Petroleum Oil Search Act (No. 2) 1936, applies to the management and regulation of the Petroleum Oil Search Trust Account and the financial provisions related to the search for petroleum in Australia. This Act primarily applies to entities and individuals engaged in drilling operations and geological surveys for the search of petroleum. The geographic reach of this Act is national, as it is a Commonwealth Act. The Act provides for the application of the Trust Account's funds towards advances for drilling operations and geological surveys, purchase of drilling plants, and payment of salaries and other remuneration for personnel employed under the Act. The Act also allows the Minister to enter into agreements for the hiring of drilling plants to any person for use in petroleum search operations and to enforce these agreements. The Act sets maximum limits on advances to ensure that they do not exceed specific proportions of the expenditure incurred by the recipients in their respective activities. The Act does not explicitly state any exclusions or exemptions, and its application may be further defined through subordinate instruments.
Key Provisions
The Petroleum Oil Search Act (No. 2) 1936 primarily modifies the Petroleum Oil Search Act 1936 by introducing new provisions concerning the use of funds in the Petroleum Oil Search Trust Account and setting limits on the amount of advances that can be made to individuals or entities engaged in petroleum search activities. Section 2(a) allows the Minister to apply the moneys in the Trust Account for advances to persons involved in drilling operations or geological surveys related to the search for petroleum, for the purchase of drilling plants, and for paying the salaries and allowances of employees under the Act. Section 2(b) also permits the Minister to enter into agreements for the hire of drilling plants purchased under the Act and to enforce these agreements.
The Act imposes several obligations on the parties it governs. Section 2(a) mandates that any funds in the Petroleum Oil Search Trust Account must be applied in accordance with the Act, specifically for the purposes of drilling operations, geological surveys, and the purchase of drilling plants. Additionally, Section 2(b) requires that any agreements for the hire of drilling plants must be enforceable by the Minister. Section 6 imposes a cap on the amount of advances that can be made under the Act. Specifically, Section 6(a) limits the total amount of advances to a person engaged in drilling operations to one-half of their total expenditure on drilling operations, while Section 6(b) restricts the total amount of advances to a person conducting geological surveys to one-third of their total expenditure on such surveys.
The Act includes provisions for breaches of its requirements and limitations. While the specific offences and penalties are not detailed in the provided text, it can be inferred that non-compliance with the stipulated uses of funds in the Trust Account or the specified limits on advances could lead to legal consequences. Typically, breaches of such legislative provisions could result in civil or criminal penalties, including fines or other sanctions, as determined by applicable law. The maximum penalties, however, are not specified within the given text.