Petroleum (Submerged Lands) Amendment Regulations 2004 (No. 1)

Administered by Department of Resources, Energy and Tourism

Legislation au F2004B00375 Regulations Not in force Legislative Instrument

Legislation content

Petroleum (Submerged Lands) Amendment Regulations 2004 (No. 1) 2004 No. 326

Statutory Rules 2004 No. 326

EXPLANATORY STATEMENT

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

Petroleum (Submerged Lands) Act 1967

Petroleum (Submerged Lands) Amendment Regulations 2004 (No. 1)

Subsection 157(1) of the Petroleum (Submerged Lands) Act 1967 (the Principal Act) provides 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 in those parts of Australia's continental shelf which are under Commonwealth jurisdiction. The Principal Act, which involves a large number of administrative decisions relating to petroleum titles, is administered jointly by the Commonwealth, state and Northern Territory Governments. In the states and Northern Territory, the relevant Minister, known as the Designated Authority, is responsible for the day-to-day administration of the Principal Act.

The Principal Act provides that fees may 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 extracts of the register.

Section 118 of the Principal Act (now repealed, but with a significant savings provision) provides that fees may be prescribed for making available information in documents.

The Petroleum (Submerged Lands) Regulations 1985 specify the prescribed fees contained in the Principal Act. These Regulations increase the level of prescribed fees by 3.5% which approximates inflation from the last time these fees were set in March 2003.

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 service 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 January 2005.

Authority:       Section 157 of the Petroleum (Submerged Lands) Act 1967

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 January 2005.

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 increased from $16 to $17 the fee to inspect the register of titles, prescribed under subsection 86(1) of the Petroleum (Submerged Lands) Act 1967 (the Principal Act).

Item 2 - Subregulation 7(1)

This item increased from $3 to $3.10 per page the fee to obtain a copy or extract from the register of titles, prescribed under subsection 87(2) of the Principal Act.

Item 3 - Subregulation 7(2)

This item increased from $39 to $40 the fee for a certified certificate, provided by the Designated Authority, of information contained in the register of titles, prescribed under subsection 87(3) of the Principal Act.

Item 4 - Subregulation 9(1)

This is an editorial change to reflect the omission of subregulation 9(2) as provided by item 7.

Item 5 - Paragraphs 9(1)(a) and (b)

This item deals with costs in searching for, loaning, copying and dispatching documents, cores, cuttings or samples made publicly available under former section 118 of the Principal Act. The prescribed fee for loaning documents increased from $33 to $34 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 - Subregulation 9(1)

This item inserts a footnote clarifying that section 118 of the Act was repealed in 2000 but that a savings provision applies in relation to information received before 7 March 2000.

Item 7 - Subregulation 9(2)

This item omits subregulation 9(2) which deals with the costs associated with the loaning of cores, cuttings and mining samples under section 118 of the Principal Act before the repeal of this section in 2000 in its application to cores, cuttings and samples. Subsection 150G(2) now provides for regulations (specifically the Petroleum (Submerged Lands)(Data Management) Regulations 2004) to determine the fee payable in respect of access to cores, cuttings and samples. Subregulation 9(2) is therefore redundant and now omitted.

Item 8 - Regulation 10

This item omits regulation 10 which deals with the management of information and petroleum mining samples received on and after 7 March 2000. Sections 150D, 150F and 150G of the Principal Act were amended by the Petroleum (Submerged Lands) Amendment Act 2003 (No.118) and the new subsection 150G(2) now provides for regulations (specifically the Petroleum (Submerged Lands) (Data Management) Regulations 2004) to determine the fee payable. Regulation 10 is therefore redundant and now omitted.

Item 9 - 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 (ie exploration permits as normally awarded, exploration permits and production licences over surrendered blocks, and pipeline licences). The prescribed fee increased from $3,900 to $4,040.

Paragraphs 22A(5)(h), 38A(2)(e), 38BB(2)(e), 41(1)(e) and 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 increased from $1,560 to $1,615.

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 increased from $1,560 to $1,615.

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 increased from $780 to $810.

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 fee increased from $78 to $81.

 

Overview

The Petroleum (Submerged Lands) Amendment Regulations 2004 (No. 1) were introduced to address the need for adjustments to the fees associated with various administrative actions under the Petroleum (Submerged Lands) Act 1967. Enacted by the Parliament of Australia under the authority of the Minister for Industry, Tourism and Resources, these regulations aimed to align the fees with inflation rates, reflecting the need to cover the administrative costs associated with managing petroleum titles on Australia's continental shelf. The primary policy objective was to ensure that the fees prescribed for the application, renewal, variation, and registration of petroleum titles and related activities remained fair and reflective of the economic conditions. These amendments also ensured compliance with the Offshore Constitutional Settlement, where the Commonwealth would continue to compensate the State and Northern Territory Authorities for their administrative expenses. These regulations, which came into effect on 1 January 2005, involved a 3.5% increase in fees to account for inflation since the last revision in March 2003. Specific changes included adjustments to fees for inspecting the register of titles, obtaining copies or extracts from the register, and accessing information made publicly available. The changes were made to maintain the operational efficiency of the regulatory framework governing petroleum exploration and production on Australia's submerged lands, while also considering the need for fiscal sustainability in the administration of these activities.

Scope and Application

The Petroleum (Submerged Lands) Amendment Regulations 2004 (No. 1) are subordinate legislation enacted under the authority of the Petroleum (Submerged Lands) Act 1967, governing the exploration and production of petroleum in submerged lands under Commonwealth jurisdiction in Australia. These Regulations primarily serve to update the fees associated with various administrative processes and services related to petroleum titles, such as the grant, renewal, and variation of titles, and the registration of changes in title details. They apply to all entities involved in petroleum activities on Australia's continental shelf, including exploration and production companies, and are administered in collaboration with state and Northern Territory governments where applicable. The Regulations commenced on 1 January 2005, and they specify increased fees to reflect inflation, while also omitting redundant provisions in light of legislative changes and the introduction of new regulations pertaining to data management. Notably, these Regulations do not alter the fundamental legal framework or substantive rights and obligations under the Principal Act but focus on the administrative and financial aspects of the petroleum title regime.

Key Provisions

The Petroleum (Submerged Lands) Amendment Regulations 2004 (No. 1) (the Regulations) are a set of amendments to the Petroleum (Submerged Lands) Regulations 1985, designed to update the fees associated with various activities and documents under the Petroleum (Submerged Lands) Act 1967 (the Principal Act). These amendments, which came into effect on 1 January 2005, primarily adjust the fees in line with inflation since the last update in March 2003, as referenced in Regulation 3 and Schedule 1 of the Regulations. For instance, Regulation 6 increased the fee for inspecting the register of titles from $16 to $17, while subregulation 7(1) raised the fee for obtaining a copy or extract from the register from $3 to $3.10 per page (Items 1 and 2 of Schedule 1). These Regulations impose several obligations on parties and entities involved in petroleum activities under the Principal Act. Companies holding exploration permits, retention leases, production licences, pipeline licences, infrastructure licences, and special prospecting authorities must adhere to the new fee structures for applications, renewals, and variations. For example, applications for exploration permits, production licences over surrendered blocks, and pipeline licences now require a fee of $4,040 instead of $3,900 (Item 9, Schedule 2). Additionally, the Designated Authorities in the states and Northern Territory are required to update their records and fee schedules accordingly, ensuring that the new fees are correctly applied and collected. Furthermore, the Commonwealth must continue to reimburse the states and territories for their administrative costs, excluding the goods and services tax component, as stipulated under section 129 of the Principal Act. The Regulations also outline the consequences for non-compliance with the prescribed fees. While the Regulations themselves do not explicitly state penalties for breach, the Principal Act provides a framework for enforcement. Under section 157 of the Principal Act, failure to pay the prescribed fees could potentially result in legal action, with penalties including fines and imprisonment. Additionally, any party found to be in breach of the fee provisions could face civil consequences such as being ordered to pay the correct fees or being subject to administrative penalties. The exact penalties would depend on the specific circumstances and any relevant state or territory laws that might apply.

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