STATUTORY RULES.
1964. No. 63.
REGULATIONS UNDER THE PETROLEUM SEARCH SUBSIDY ACT 1959-1961.*
I, THE GOVERNOR-GENERAL in and over the Commonwealth of Australia, acting with the advice of the Federal Executive Council, hereby make the following Regulations under the Petroleum Search Subsidy Act 1959-1961.
Dated this fourteenth day of May, 1964.
DE L’ISLE
Governor-General.
By His Excellency’s Command,
(sgd) W. H. Spooner
Minister of State for National Development.
PETROLEUM SEARCH SUBSIDY REGULATIONS.†
Rates of subsidy on footage basis.
1. Regulation 2 of the Petroleum Search Subsidy Regulations is amended—
(a) by omitting from sub-regulation (3.) the words “and to test drilling”; and
(b) by adding at the end thereof the following sub-regulation:—
“(5.) The scale of rates set out in the Fourth Schedule to these Regulations is applicable to test drilling.”.
Second Schedule.
2. The Second Schedule to the Petroleum Search Subsidy Regulations is amended by omitting from the heading the words “AND TEST DRILLING”.
* Notified in the Commonwealth Gazette on 21st May, 1964.
† Statutory Rules 1961, No. 140.
4276/64.—Price 6d. 9/15.4.1964.
Fourth Schedule.
3. After the Third Schedule to the Petroleum Search Subsidy Regulations the following Schedule is added—
FOURTH SCHEDULE.
Regulation 2 (5.).
Test Drilling.
Depths. | Rate of Subsidy per Foot. |
From. | To. | Drilled. | Drilled and Cored. |
Feet. | Feet. | £ | s. | d. | £ | s. | d. |
0 | 1,000 | | 18 | 0 | 1 | 16 | 0 |
1,000 | 2,000 | 1 | 0 | 0 | 2 | 0 | 0 |
2,000 | 3,000 | 1 | 2 | 0 | 2 | 4 | 0 |
3,000 | 4,000 | 1 | 6 | 0 | 2 | 12 | 0 |
4,000 | 5,000 | 1 | 14 | 0 | 3 | 8 | 0 |
5,000 | 6,000 | 2 | 4 | 0 | 4 | 8 | 0 |
6,000 | 7,000 | 2 | 16 | 0 | 5 | 12 | 0 |
7,000 | 8,000 | 3 | 12 | 0 | 7 | 4 | 0 |
8,000 | 9,000 | 4 | 10 | 0 | 9 | 0 | 0 |
9,000 | 10,000 | 5 | 10 | 0 | 11 | 0 | 0 |
10,000 | 11,000 | 6 | 12 | 0 | 13 | 4 | 0 |
11,000 | 12,000 | 7 | 16 | 0 | 15 | 12 | 0 |
12,000 | 13,000 | 9 | 2 | 0 | 18 | 4 | 0 |
13,000 | 14,000 | 10 | 10 | 0 | 21 | 0 | 0 |
14,000 | .. | 12 | 0 | 0 | 24 | 0 | 0 |
By Authority: A. J. Arthur, Commonwealth Government Printer, Canberra.
Overview
The Petroleum Search Subsidy Regulations, issued in 1964, were enacted under the authority of the Petroleum Search Subsidy Act 1959-1961. This legislative instrument addresses the need to provide financial incentives for the exploration of petroleum resources within Australia. The regulations were formulated and issued by the Governor-General in Council, reflecting the Commonwealth Government's intent to foster and support the exploration and development of petroleum resources as a means of enhancing national economic interests and energy security. The underlying policy objective was to encourage investment in petroleum exploration by providing financial support through subsidies to offset the costs associated with drilling activities.
Scope and Application
The Petroleum Search Subsidy Regulations, made under the Petroleum Search Subsidy Act 1959-1961, apply to the subsidy rates for petroleum search activities within the Commonwealth of Australia. These regulations primarily concern entities engaged in petroleum exploration, specifically addressing the rates of subsidy on a footage basis. The amendments to the existing regulations adjust the scope to include test drilling, providing specific rates for different depths of drilling, whether the well is drilled only or both drilled and cored. These regulations determine the financial support provided by the Commonwealth to entities involved in the exploration of petroleum resources, ensuring that the subsidies are aligned with the specific requirements of the exploration activities. The regulations have a direct impact on the petroleum industry, influencing the financial incentives available for exploration efforts.
Key Provisions
The Petroleum Search Subsidy Regulations 1964 (C1964L00063) amend the Petroleum Search Subsidy Regulations 1961 to introduce new rates of subsidy for test drilling, as detailed in the Fourth Schedule. Regulation 2(5) now applies the scale of rates set out in the Fourth Schedule to test drilling, with the amendment removing "and to test drilling" from sub-regulation (3) and adding the new sub-regulation (5). The Second Schedule has also been amended by omitting the words "AND TEST DRILLING" from the heading. The Fourth Schedule provides specific rates of subsidy per foot for various depths of test drilling, ranging from £160 per 1,000 feet for drilling to £2,400 per 12,000 feet for drilling and coring. This legislative instrument provides a clear framework for the application of subsidies to test drilling activities under the Petroleum Search Subsidy Act 1959-1961.
These Regulations impose obligations on entities eligible for the subsidy to adhere to the specified rates for test drilling activities. The rates provided in the Fourth Schedule must be applied according to the depth of the test drilling, whether it is simply drilling or drilling and coring. Entities must ensure they accurately calculate the subsidy amount based on the depth of their drilling activities to comply with the requirements of the Regulations.
Failure to comply with the rates specified in the Fourth Schedule may result in financial discrepancies and potential non-recovery of the subsidy. While the Regulations do not explicitly outline specific offences, penalties, or civil/criminal consequences for breaches, non-compliance could lead to audits and investigations by relevant authorities. The maximum penalties for breaches of the Petroleum Search Subsidy Act 1959-1961 could include fines or other financial penalties, depending on the nature and severity of the breach. It is important for entities to maintain accurate records and calculations to avoid potential enforcement actions.