Petroleum Retail Marketing Sites Regulations (Amendment) 1994 No. 40
EXPLANATORY STATEMENT
STATUTORY RULES 1994 No. 40
Issued by Authority of the Minister for Industry, Technology and Regional Development
Petroleum Retail Marketing Sites Act 1980
Petroleum Retail Marketing Sites Regulations (Amendment)
Sub-section 10(2) of the Act provides that a prescribed oil company (not being a member of a group of prescribed corporations) shall not operate, during a month, a number of retail sites exceeding the number of retail sites specified in the regulations in relation to that company in relation to that month (the site quota).
The Petroleum Retail Marketing Sites Regulations (Amendment) (the amending Regulations) amend the Petroleum Retail Marketing Sites Regulations (the Principal Regulations) to grant Mobil Oil Australia Limited (Mobil), which is a prescribed oil company, a temporary increase in the number of retail sites which it may operate during the period commencing on 1 June 1993 and ending on 31 August 1994 from 91 to 145.
On 1 June 1993, Mobil assumed 100% control of four previously part-owned distributorships, Kelinda Pty Ltd, Barroraft Pty Ltd, Mid Coast Petroleum Pty Ltd and Ray Jackson Pty Ltd which, in turn control a total of 67 retail sites, principally in country areas.
The need for retrospectivity steins from the unavoidable administrative delays experienced in negotiating a mutually acceptable time frame for locating suitable equity partners, and the identification of the actual numbers of retail sites involved. The purpose of the proposed increase is to allow time for Mobil to reduce its share holdings without breaching the site quota provisions of the Act.
Overview
The Petroleum Retail Marketing Sites Regulations (Amendment) 1994 No. 40, issued by the authority of the Minister for Industry, Technology and Regional Development, seeks to amend the existing Petroleum Retail Marketing Sites Regulations to provide a temporary increase in the number of retail sites that Mobil Oil Australia Limited can operate. This amendment was necessitated by Mobil's acquisition of 100% control over four distributorships on 1 June 1993, which resulted in an increase of 67 retail sites, predominantly in rural areas. The policy objective behind this regulation is to facilitate Mobil in managing its expanded site portfolio without contravening the site quota provisions outlined in the Petroleum Retail Marketing Sites Act 1980. The retrospective application of these amendments addresses administrative delays in finalizing the new ownership structure and determining the exact number of affected retail sites.
Scope and Application
The Petroleum Retail Marketing Sites Regulations (Amendment) 1994 No. 40 applies to prescribed oil companies, specifically Mobil Oil Australia Limited, within the framework of the Petroleum Retail Marketing Sites Act 1980. The amendment allows Mobil, which is a prescribed oil company, a temporary increase in the number of retail sites it may operate from 91 to 145, effective from 1 June 1993 to 31 August 1994. This adjustment is a direct response to Mobil's acquisition of full control over four distributorships, thereby increasing the number of retail sites it manages. The amendment aims to accommodate the administrative delays encountered in finding suitable equity partners and to ensure that Mobil does not exceed the site quota during this transitional period. The legislative change is retrospective to accommodate these unavoidable delays, and the primary objective is to enable Mobil to manage its increased share holdings without contravening the site quota provisions outlined in the Act.
Key Provisions
The Petroleum Retail Marketing Sites Regulations (Amendment) 1994 No. 40 introduces modifications to the existing Petroleum Retail Marketing Sites Regulations 1980, particularly targeting Mobil Oil Australia Limited (Mobil). Section 10(2) of the Act stipulates that a prescribed oil company, excluding those within a group of prescribed corporations, must not operate more retail sites than specified in the regulations for a given month (site quota). The amending Regulations adjust these quotas temporarily for Mobil, increasing the permissible number of retail sites from 91 to 145 for the period from 1 June 1993 to 31 August 1994.
Mobil Oil Australia Limited, identified as a prescribed oil company, has been granted this temporary increase to accommodate its acquisition of 100% control over four distributorships: Kelinda Pty Ltd, Barroraft Pty Ltd, Mid Coast Petroleum Pty Ltd, and Ray Jackson Pty Ltd. These distributorships collectively control 67 retail sites, predominantly in rural areas. The amendment aims to provide Mobil with additional operational flexibility, allowing it to manage its increased retail site count without contravening the site quota restrictions set by the Act.
The obligations imposed by the amending Regulations on Mobil include adhering to the specified site quota of 145 retail sites for the defined period. Mobil must ensure that its operations comply with these regulations to avoid any legal repercussions. The temporary nature of this amendment necessitates that Mobil work towards reducing its share holdings and retail site count back within the prescribed limits by the end of the specified period.
Failure to comply with the provisions of the Act and the amending Regulations could result in legal consequences. Although the explanatory statement does not specify particular offences or penalties, breaches of the Petroleum Retail Marketing Sites Act 1980 generally attract fines and other sanctions as stipulated in the Act. The maximum penalties could vary depending on the severity and frequency of the breach, but they are designed to enforce compliance and maintain the regulatory framework intended to balance market operations and site quotas for prescribed oil companies.