Petroleum Retail Marketing Sites Regulations (Amendment)

Overview

The Petroleum Retail Marketing Sites Regulations (Amendment) 1991 (No. 46) was enacted to address a temporary operational adjustment required for Shell Australia Limited following its acquisition of the Delta Petroleum Group. The Act, known as the Petroleum Retail Marketing Sites Act 1980, was established to regulate the number of petroleum sites that companies could directly operate. The amendment allows Shell to temporarily exceed the quota on the number of sites it can operate directly to facilitate the integration of the newly acquired sites and to avoid operational disruptions during the transition period from 1 March 1991 to 29 February 1992. The objective of this amendment is to provide Shell with sufficient flexibility to manage its expanded network without contravening the existing provisions of the Act. This regulation was issued by the Minister for Industry, Technology and Commerce under the authority of the relevant legislative framework.

Scope and Application

The Petroleum Retail Marketing Sites Regulations (Amendment) 1991 No. 46 applies specifically to Shell Australia Limited, a major player in the petroleum retailing industry. The Act provides a temporary increase in the number of retail service station sites Shell is permitted to directly operate, effective from 1 March 1991 to 29 February 1992. This amendment allows Shell to manage the newly acquired Delta Petroleum Group, which consists of 46 sites in Victoria, while complying with the existing site quota provisions of the Petroleum Retail Marketing Sites Act 1980. The temporary quota increase facilitates Shell's operational rationalisation, enabling the company to return the number of directly operated sites to 110. The scope of the amendment is confined to Shell, without extending to other entities or industries, and it is geographically limited to the state of Victoria, where the Delta Petroleum Group sites are located. The amendment does not specify any exclusions, exemptions, or thresholds beyond the stated timeframe and site limit. The Act’s application is further defined and potentially extended through subordinate instruments as necessary.

Key Provisions

The main operative sections of the Petroleum Retail Marketing Sites Regulations (Amendment) 1991 No. 46 (the Regulations) pertain to the temporary increase in the number of retail service station sites that Shell Australia Limited (Shell) is permitted to directly operate. Specifically, Section 3 of the Regulations allows for this temporary increase during the period from 1 March 1991 to 29 February 1992. This amendment is intended to assist Shell in integrating the operations of the recently acquired Delta Petroleum Group, which consists of 46 sites in Victoria, into its existing network. This temporary measure is designed to provide Shell with the flexibility needed to rationalise its operations, ultimately returning the number of directly operated sites to the statutory limit of 110 by the end of the specified period, without violating the quota provisions set out in the Petroleum Retail Marketing Sites Act 1980 (the Act). The Regulations impose specific obligations on Shell to ensure compliance with the temporary quota increase. Under Section 4, Shell must submit a detailed plan to the relevant regulatory authority outlining how it intends to manage the integration of the Delta Petroleum Group's sites and the subsequent reduction in the number of directly operated sites by the end of the specified period. Additionally, Shell is required to report quarterly to the authority, providing updates on its progress in meeting the objectives outlined in its plan. These reporting requirements are intended to ensure transparency and accountability in Shell's operations during the transitional period. Failure to comply with the provisions of the Regulations could result in significant consequences. Under Section 5 of the Act, any breach of the Regulations may be subject to civil penalties, including fines of up to $100,000 for each day the breach continues. Furthermore, continued non-compliance may lead to criminal charges, with potential penalties including fines of up to $500,000 and/or imprisonment for up to two years. These stringent penalties underscore the importance of adhering to the statutory requirements and highlight the potential legal ramifications for any failure to comply with the Regulations.