Petroleum Retail Marketing Sites Regulations (Amendment)

Overview

The Petroleum Retail Marketing Sites Regulations (Amendment) 1991 No. 72, issued under the authority of the Minister for Industry, Technology and Commerce, amends the Petroleum Retail Marketing Sites Regulations, which were originally established under the Petroleum Retail Marketing Sites Act 1980. This legislative amendment was introduced to address the operational quota changes arising from Mobil Oil Australia Limited's acquisition of Esso Australia Limited's marketing and refining operations. As Mobil obtained Foreign Investment Review Board approval for this acquisition earlier in the year, the amendment adjusts the operational site quotas to reflect the new business structure and ensures compliance with the Act. The primary policy objective is to facilitate a smooth transition of operations while adhering to the regulatory framework governing the number of retail sites that prescribed oil companies can operate directly. The amendment removes Esso's quota of 36 directly operated sites and reallocates this quota to Mobil, which already has a quota of 57 sites. This adjustment allows Mobil to operate a total of 93 sites, effectively reflecting the new ownership structure post-acquisition. The change is made to prevent Mobil from exceeding its site quota once the temporary operation period for the acquired sites concludes, thus maintaining regulatory compliance and ensuring a seamless integration of the acquired operations.

Scope and Application

The Petroleum Retail Marketing Sites Regulations (Amendment) 1991 No. 72 applies to Mobil Oil Australia Limited and Esso Australia Limited, both of which are prescribed oil companies under the Petroleum Retail Marketing Sites Act 1980. Mobil is granted an increased number of retail sites it may operate, while Esso is removed as a prescribed oil company, thereby eliminating its quota of directly operated sites. This amendment is in response to Mobil's acquisition of Esso's marketing and refining operations, which would otherwise result in Mobil exceeding its site quota. The amendment allows for the transfer of Esso's quota to Mobil, ensuring compliance with the Act's provisions. The regulation has a national reach, applying across Australia, and its application is further extended or restricted through subordinate instruments as necessary. No specific exclusions, exemptions, or thresholds are mentioned in the provided text.

Key Provisions

The key operative sections of the Petroleum Retail Marketing Sites Regulations (Amendment) 1991 (No. 72) primarily address the transfer of retail site quotas between prescribed oil companies. Section 2 of the Amendment provides for the transfer of Esso's quota of 36 retail sites to Mobil, thereby increasing Mobil's allowable quota. Section 3 removes Esso from the list of prescribed oil companies, thereby altering the regulatory landscape for these companies under the Petroleum Retail Marketing Sites Act 1980. These sections impose several obligations on Mobil and Esso. Mobil must comply with the new quota of 93 retail sites (57 originally held plus the 36 transferred from Esso) and ensure that it does not operate more than this number of sites. Esso, having been removed from the list of prescribed oil companies, is no longer subject to the same regulatory constraints regarding site quotas. Both companies must also adhere to any additional conditions set out in the Amendment, ensuring a smooth transition and compliance with the Act. Failure to comply with the provisions of the Act or the Regulations can result in serious consequences. Section 12 of the Act provides that any person who contravenes the Act or Regulations may be liable to a penalty. While the Amendment does not specify maximum penalties, general provisions under the Act typically include fines and potential legal action. It is important for Mobil to ensure that it does not exceed the new quota, as doing so could lead to enforcement actions, penalties, and possibly the revocation of its operational licenses for the excess sites. Esso, while no longer bound by the quota, must still ensure that its operations do not inadvertently interfere with the new regulatory environment affecting Mobil.