Petroleum (Submerged Lands) Amendment Regulations 2003 (No. 1)

Administered by Department of Resources, Energy and Tourism

Legislation au F2003B00032 Regulations Not in force Legislative Instrument

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Petroleum (Submerged Lands) Amendment Regulations 2003 (No. 1) 2003 No. 23

EXPLANATORY STATEMENT

Statutory Rules 2003 No. 23

Issued by the Authority of the Minister for Industry, Tourism and Resources

Petroleum (Submerged Lands) Act 1967

Petroleum (Submerged Lands) Amendment Regulations 2003 (No. 1)

Section 157 of the Petroleum (Submerged Lands) Act 1967 (the Principal Act) states that the Governor-General may make regulations, not inconsistent with the Act, prescribing matters required or permitted by the Act to be prescribed, or necessary or convenient to be prescribed for carrying out or giving effect to the Act.

The Principal Act provides the legal framework for the exploration for, and the production of, petroleum for those parts of Australia's continental shelf and Exclusive Economic Zone which are under Commonwealth jurisdiction. The Principal Act is administered jointly by the Commonwealth, State and Northern Territory Governments and involves a large number of day-today administrative decisions relating to petroleum titles.

Sections 21, 22, 24, 30, 38, 41, 48, 51, 54, 59, 64, 71 and 111 of the Principal Act enable fees to be prescribed for applications for the grant and renewal of titles (exploration permits, retention leases, production licences, pipeline licences, infrastructure licences and special prospecting authorities) and the variation of pipeline licences.

The Principal Act also provides for the Designated Authority to keep a register of titles and special prospecting authorities granted. The register lists the names of companies holding a title and details other matters relating to the type, size, location and terms and conditions of the title and any other matters deemed to be of public interest. Under sections 79, 86 and 87 of the Principal Act, companies are required to submit applications to register changes of details pertaining to a specific title. Fees are prescribed to amend, search and receive copies of the register.

Section 118 (now repealed, but with a significant savings provision) and sections 150D, 150F and 150G of the Principal Act impose prescribed fees for the loan of documents, cores, cuttings or samples that have been made publicly available.

The Petroleum (Submerged Lands) Regulations 1985 specify the prescribed fees contained in the Principal Act. These Regulations increase the level of prescribed fees to account for rises in the costs of administering petroleum titles since the last fees increase in 1990. Since that time the consumer price index has increased by around 30 per cent.

In keeping with the Offshore Constitutional Settlement and section 129 of the Principal Act, the Commonwealth will continue to repay all fees (excluding the goods and services tax component) received for the day-to-day administration of the regime to State and Northern Territory Authorities to offset their costs.

Details of the Regulations are set out in the Attachment.

The Regulations commenced on 1 March 2003.

ATTACHMENT

Regulation 1 - Name of Regulations

This Regulation provides the title of the Regulations.

Regulation 2 - Commencement

This Regulation provides for the commencement of the Regulations on 1 March 2003.

Regulation 3 - Amendment of Petroleum (Submerged Lands) Regulations

This Regulation provides that the amendments to the Petroleum (Submerged Lands) Regulations 1985 are as set out in Schedule 1.

SCHEDULE 1 AMENDMENTS

Item 1 - Regulation 6

This item increases the prescribed fee to inspect the register of titles granted under the Act from $12 to $16.

Item 2 - Subregulation 7(1)

This item increases the prescribed fee to obtain a copy or extract from the register of titles from $2 to $3 per page.

Item 3 - Subregulation 7(2)

This item omits the prescribed fee for a certified certificate, provided by the Designated Authority, of information contained in the register of titles from $30 to $39.

Item 4 - Regulation 8

This item omits Regulation 8 which dealt with the provision of securities and provided for prescribed amounts to be submitted before the granting of a title issued under the Principal Act. This provision of the Act was repealed in 1991 (No.75) and the associated Regulation is now omitted.

Item 5 - Regulation 9

This item deals with the loan of documents, cores, cuttings or samples made publicly available under former section 118 of the Principal Act. The prescribed fee increased from $25 to $33 per day. This section of the Act was repealed in 2000 but a savings provision applies in relation to information received before 7 March 2000.

Item 6 - Regulation 10

As indicated above, section 118 has been repealed but a savings provision ensures that it remains effective for information and petroleum mining samples received before 7 March 2000. This was provided in the Petroleum (Submerged Lands) Legislation Amendment Act (No. 1) 2000. For managing information and petroleum mining samples received on and after 7 March 2000, this Act inserted into the Principal Act the set of provisions designated as Part IIIA, which includes sections 150D, 150F and 150G.

The Amendment Act stated that any regulations providing for the calculation of a fee for the purposes of section 118 not only continue in force but continue in force as if they had also been made for purposes of the corresponding provisions of Part IIIA. For this reason, until now, it has not been essential to make any regulations prescribing fees under sections 150D, 150F or 150G.

For transparency, this item introduces a new Regulation, prescribing fees under sections 150D, 150F and 150G. This covers loan, search and other costs associated with persons gaining access to documents and petroleum mining samples that have been submitted on or after 7 March 2000. This Regulation also implements the same increase in the level of the fees which specify dollar amounts for fees prescribed under section 118, i.e. from $25 to $33 per day.

Item 7 - Schedule 2 - Prescribed Fees (Regulation 5)

Paragraphs 21(1)(f), 24(1)(a), 48(1)(a), and 64(1)(f) of the Principal Act impose a prescribed fee for applications for titles (eg exploration permits, exploration permits and production licences over surrendered blocks, and pipeline licences). The prescribed fee increases from $3,000 to $3,900.

Paragraphs 22A(5)(h), 38A(2)(e), 38BB(2)(e), 41(1)(e), 59B(2)(d) of the Principal Act impose a prescribed fee for applications for cash bid permits, retention leases, production licences and infrastructure licences. The prescribed fee increases from $1,200 to $1,560.

Paragraphs 30(2)(c), 38F(2)(d) and 54(2)(d) of the Principal Act impose a prescribed fee for applications for renewal of titles. The prescribed fee increases from $1,200 to $1,560.

Paragraphs 51(2)(e), 71(2)(e) and 111(2)(d) of the Principal Act impose a prescribed fee for applications for production licences over an individual block, variations to pipeline licences and applications for special prospecting authorities. The prescribed fee increases from $600 to $780.

Section 79(2) of the Principal Act imposes a prescribed fee to register the devolution of names of titleholders. Paragraph 79(3)(b) prescribes a fee for the registration of a company name change in the titles register. The prescribed fees increases from $60 to $78.

 

Overview

The Petroleum (Submerged Lands) Amendment Regulations 2003 (No. 1), enacted in 2003, address the need to adjust the prescribed fees for various petroleum-related activities under the Petroleum (Submerged Lands) Act 1967. These regulations, issued by the Minister for Industry, Tourism and Resources, are necessary to update the fees to reflect the increased costs of administering petroleum titles since the last adjustment in 1990, which coincided with a rise in the consumer price index of approximately 30%. The primary objective is to ensure the fees remain reflective of current economic conditions while continuing to support the day-to-day administrative costs shared between the Commonwealth, State, and Northern Territory governments as per the Offshore Constitutional Settlement. The regulations aim to maintain transparency and fairness in the fees associated with activities such as inspecting the register of titles, obtaining copies or extracts from the register, and the loan of publicly available documents, cores, cuttings, or samples.

Scope and Application

The Petroleum (Submerged Lands) Amendment Regulations 2003 (No. 1) apply to entities and individuals engaged in the exploration for, and production of, petroleum within Australia's continental shelf and Exclusive Economic Zone under Commonwealth jurisdiction. These regulations primarily concern the fees associated with various petroleum-related applications and administrative processes, such as the grant, renewal, and variation of petroleum titles, as well as the registration and amendment of the register of titles. The regulations were designed to adjust the fees in line with the costs of administering petroleum titles and the increase in the consumer price index since the last adjustment in 1990. The prescribed fees for various applications, inspections, and other services have been updated to reflect current economic conditions. The regulations came into effect on 1 March 2003 and are administered in accordance with the Offshore Constitutional Settlement, with the Commonwealth repaying all fees (excluding the goods and services tax component) to State and Northern Territory authorities to offset their costs. The regulations also incorporate savings provisions for information and petroleum mining samples received before 7 March 2000, ensuring that previously established fee structures continue to apply where relevant.

Key Provisions

The main operative sections of the Petroleum (Submerged Lands) Amendment Regulations 2003 (No. 1) (the Regulations) are primarily concerned with adjusting prescribed fees for various activities under the Petroleum (Submerged Lands) Act 1967 (the Principal Act). Regulation 3 of the Regulations amends the Petroleum (Submerged Lands) Regulations 1985 to reflect these changes. Specifically, Section 1 of the Regulations names the document as the Petroleum (Submerged Lands) Amendment Regulations 2003 (No. 1), while Section 2 sets the commencement date as 1 March 2003. Schedule 1 lists various amendments to the existing regulations, including increases in fees for activities such as inspecting the register of titles (Regulation 6), obtaining copies from the register (Subregulation 7(1)), and loaning documents, cores, cuttings, or samples (Regulation 9). Additionally, new fees are prescribed for accessing documents and samples submitted after 7 March 2000 (Item 6). The Regulations impose several obligations and requirements on parties or entities governed by the Principal Act. Firstly, applicants for petroleum titles, such as exploration permits, production licences, and pipeline licences, must now pay higher fees as specified in the Regulations. These fees are outlined in various paragraphs of the Principal Act, such as paragraphs 21(1)(f), 24(1)(a), 48(1)(a), and 64(1)(f) for applications for titles, and paragraphs 22A(5)(h), 38A(2)(e), 38BB(2)(e), 41(1)(e), and 59B(2)(d) for applications for cash bid permits, retention leases, production licences, and infrastructure licences. Additionally, applicants for the renewal of titles must pay fees as per paragraphs 30(2)(c), 38F(2)(d), and 54(2)(d) of the Principal Act. Furthermore, the Regulations require entities to pay fees for the registration of changes to titles, such as the devolution of names of titleholders and company name changes, as per Section 79(2) and Section 79(3)(b) of the Principal Act. The Regulations establish specific offences, penalties, or civil/criminal consequences for breaches, although the text does not explicitly detail these consequences. Generally, failure to comply with the prescribed fees or other requirements under the Principal Act and the Regulations could result in administrative penalties or other enforcement actions by the relevant authorities. The maximum penalties for such breaches are not explicitly stated in the provided text, but they would typically be in line with the penalties stipulated in the Principal Act or other relevant legislation. Compliance with the prescribed fees and obligations is crucial to avoid potential legal or financial repercussions.

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