Petroleum (Submerged Lands) (Cash Bidding) Amendment Act 1985

Administered by Department of Industry, Science and Resources

Legislation au C2004A03171 Not in force Act

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No. 132 of 1985

An Act to amend the Petroleum (Submerged Lands) Act 1967 to provide for the granting of exploration permits by way of cash bidding, and for related purposes

[Assented to 22 November 1985]

BE IT ENACTED by the Queen, and the Senate and the House of Representatives of the Commonwealth of Australia, as follows:

PART I—PRELIMINARY

Short title

1. This Act may be cited as the Petroleum (Submerged Lands) (Cash Bidding) Amendment Act 1985.

Commencement

2. This Act shall come into operation on the day on which it receives the Royal Assent.

Cessation of operation of Act

3. (1) This Act shall cease to be in force at the expiration of 2 years after the commencement of this Act.

(2) When this Act ceases to be in force by virtue of sub-section (1), the relevant Acts shall have effect as if those Acts had not been amended by this Act.

(3) A permit granted under section 22b of the Petroleum (Submerged Lands) Act 1967 as amended by this Act shall continue in force after this Act ceases to be in force by virtue of sub-section (1) as if this Act had not ceased to be in force.

(4) In this section, “relevant Acts” means the Acts amended by this Act.

PART II—AMENDMENTS OF THE PETROLEUM (SUBMERGED LANDS) ACT 1967

Principal Act

4. The Petroleum (Submerged Lands) Act 19671 is in this Part referred to as the Principal Act.

Advertisement of blocks

5. Section 20 of the Principal Act is amended by inserting after sub-section (1) the following sub-section:

“(1a) A block that has been specified in an instrument under sub-section 22a (1) inviting applications for the grant of a permit in respect of the block shall not be specified in an instrument under sub-section (1) of this section at any time during the period specified in the first-mentioned instrument.”.

6. After section 22 of the Principal Act the following sections are inserted:

Application for permits by way of cash bidding

“22a. (1) The Joint Authority may, by instrument published in the Gazette, invite applications by way of cash bidding for the grant by the Joint Authority of a permit in respect of the block or blocks specified in the instrument.

“(2) A block that has been specified in an instrument under sub-section 20 (1) inviting applications for the grant of a permit in respect of the block shall not be specified in an instrument under sub-section (1) of this section at any time during the period specified in the first-mentioned instrument.

“(3) An instrument published under sub-section (1) shall—

(a) specify a period within which applications may be made;

(b) state whether the permit to be granted will be able to be renewed;

(d) specify the matters that the Joint Authority will take into account in determining whether to reject an application.

“(4) Where an instrument published under sub-section (1) specifies more than one block, those blocks shall be constituted by graticular sections that—

(a) constitute a single area; and

(b) are such that each graticular section in that area has a side in common with at least one other graticular section in that area.

“(5) An application under this section—

(a) shall be made within the period specified in the instrument published under sub-section (1);

(b) shall be in accordance with an approved form;

(d) shall, where the instrument published under sub-section (1) specifies more than one block, be an application for the grant of a permit in respect of all the blocks so specified;

(e) shall be accompanied by particulars of—

(i) the technical qualifications of the applicant and of the employees of the applicant;

(ii) the technical advice available to the applicant; and

(iii) the financial resources available to the applicant;

(f) shall specify an amount that the applicant is prepared to pay in a single payment to the Commonwealth, in addition to the fee referred to in paragraph (h), in respect of the grant of a permit to the applicant on the application;

(g) may set out any other matters that the applicant wishes to be considered; and

(h) shall be accompanied by a fee of $3,000.

“(6) The Joint Authority may, at any time, by instrument in writing served on the applicant, require the applicant to furnish, within the time specified in the instrument, further information in writing in connection with the application.

“(7) Where a permit is not granted on the application, the sum of an amount equal to 90% of the fee paid in accordance with paragraph (5) (h) shall be refunded to the applicant.

Grant or refusal of permit in relation to application

“22b. (1) Where, at the end of the period specified in an instrument published under sub-section 22a (1), only one application has been made under section 22a in respect of the block or blocks specified in the instrument, the Joint Authority may reject the application or may, by instrument in writing served on the applicant, inform the applicant that it is prepared to grant to the applicant a permit in respect of that block or those blocks.

“(2) Where, at the end of the period specified in an instrument published under sub-section 22a (1), 2 or more applications have been made under section 22a in respect of the block or blocks specified in the instrument, the Joint Authority may reject any or all of the applications and, if it does not reject all of the applications, may—

(a) if only one application remains unrejected—by instrument in writing served on the applicant; or

(b) if 2 or more applications remain unrejected—by instrument in writing served on the applicant, or on one of the applicants, whose application has not been rejected and who has specified for the purposes of paragraph 22a (5) (f) an amount that is not less than the amount so specified by any other applicant whose application has not been rejected,

inform the applicant that it is prepared to grant to the applicant a permit in respect of that block or those blocks.

“(3) An instrument served on an applicant under sub-section (1) or (2) shall contain—

(a) a summary of the conditions subject to which the permit is to be granted; and

(b) a statement to the effect that the application will lapse if the applicant does not make a request under sub-section (4) and pay to the Commonwealth the amount to be paid in respect of the grant of the permit to the applicant.

“(4) An applicant on whom there has been served an instrument under sub-section (1) or (2) may, within the period of one month after the date of service of the instrument on the applicant—

(a) by instrument in writing served on the Designated Authority, request the Joint Authority to grant to the applicant the permit referred to in the first-mentioned instrument; and

(b) pay to the Commonwealth the amount specified by the applicant for the purposes of paragraph 22a (5) (f) in respect of the grant of the permit to the applicant.

“(5) Where an applicant on whom there has been served an instrument under sub-section (1) or (2)—

(a) has made a request under paragraph (4) (a); and

(b) has paid to the Commonwealth the amount specified by the applicant for the purposes of paragraph 22a (5) (f) in respect of the grant of the permit to the applicant,

within the period of one month after the date of service of the instrument on the applicant, the Joint Authority shall, as soon as practicable after the amount referred to in paragraph (b) is paid to the Commonwealth, grant to the applicant an exploration permit for petroleum in respect of the block or blocks specified in the instrument.

“(6) Where an applicant on whom there has been served an instrument under sub-section (1) or (2)—

(a) has not made a request under paragraph (4) (a); or

(b) has not paid to the Commonwealth the amount specified by the applicant for the purposes of paragraph 22a (5) (f) in respect of the grant of the permit to the applicant,

within the period of one month after the date of service of the instrument on the applicant, the application lapses at the end of that period.

“(7) Where the application of an applicant on whom there has been served an instrument under sub-section (2) lapses as provided by sub-section (6), sub-section (2) applies in respect of the application or applications, if any, then remaining unrejected.

Permit under section 22b to continue in force in certain cases

“22c. Where—

(a) a permit granted under section 22b, being a permit—

(i) the instrument published under sub-section 22a (1) in relation to the grant of which stated that the permit was not able to be renewed; or

(ii) a renewal of which has been granted, expires; and

(b) before the expiry of the permit—

(i) the permittee or the Designated Authority had, under section 36, nominated a block in respect of which the permit was in force;

(ii) not being a case to which sub-paragraph (i) applies—the Joint Authority had, under paragraph 36 (1) (b), required the permittee to nominate, under section 36, a block in respect of which the permit was in force; or

(iii) a declaration under sub-section 37 (1) had been made in respect of a block in respect of which the permit was in force, not being a declaration that the permittee had, before that expiry, requested be revoked,

the permit shall be deemed to continue in force in all respects in respect of that block (in this sub-section referred to as the ‘discovery block’) and in respect of such of the blocks that immediately adjoin that block as are blocks in respect of which the permit was in force and are not included in a location—

(c) in a case where the Joint Authority had, under paragraph 36 (1) (b), required the permittee to nominate, under section 36, a block in respect of which the permit was in force and the permittee or the Designated Authority had not, before that expiry, so nominated that block and does not, within the period applicable under sub-section 36 (2), so nominate that block—until the expiration of that period; or

(d) in any other case, until—

(i) a declaration under sub-section 37 (1) in respect of the discovery block is revoked;

(ii) a licence is granted in respect of the discovery block; or

(iii) the application period referred to in sub-section 40 (4) in respect of that block expires without an application under section 40 for a licence in respect of the discovery block having been made by the permittee,

whichever first occurs.”.

Application for permit in respect of surrendered, &c., blocks

7. Section 23 of the Principal Act is amended by inserting in sub-sections (2) and (3) “or 22a (1)”after “20 (1)”.

Application for renewal of permit

8. Section 30 of the Principal Act is amended—

(a) by inserting in sub-section (1) “sub-section (1a) and to” after “Subject to”; and

(b) by inserting after sub-section (1) the following sub-section:

“(1a) A permittee shall not make an application for the renewal of a permit granted under section 22b if—

(a) the instrument published under sub-section 22a (1) in relation to the grant of the permit stated that the permit was not able to be renewed; or

(b) a renewal of the permit has previously been granted by the Joint Authority.”.

Application for renewal of permit to be in respect of reduced area

9. Section 31 of the Principal Act is amended—

(a) by inserting in sub-sections (4) and (5) “, in relation to a permit other than a permit granted under section 22b,” after “Where”;

(b) by omitting from sub-sections (4) and (5) “of a permit” and substituting “of the permit”;

(c) by omitting from sub-section (6) “The Designated” and substituting “In relation to a permit other than a permit granted under section 22b, the Designated”; and

(d) by omitting from paragraph (6) (a) “of a permit” and substituting “of the permit”.

Grant or refusal of renewal of permit

10. Section 32 of the Principal Act is amended—

(a) by omitting from paragraph (1) (d) “that he will” and substituting “that the permittee will, in the case of the renewal of a permit other than a permit granted under section 22b,”;

(b) by omitting paragraph (4) (b) and substituting the following paragraph:

“(b) a statement—

(i) in the case of the renewal of a permit granted under section 22b—to the effect that the application will lapse if the permittee does not make a request under sub-section (5); or

(ii) in any other case—to the effect that the application will lapse if the permittee does not make a request under sub-section (5) and lodge with the Designated Authority the security referred to in the instrument.”;

(c) by inserting in paragraph (5) (b) “in the case of the renewal of a permit other than a permit granted under section 22b—” before “lodge with”;

(d) by inserting in paragraph (6) (b) “in the case of the renewal of a permit other than a permit granted under section 22b—” before “has lodged”; and

(e) by inserting in paragraph (7) (b) “in the case of the renewal of a permit other than a permit granted under section 22b—” before “has not lodged”.

Conditions of permit

11. Section 33 of the Principal Act is amended—

(a) by omitting from sub-section (2) “The conditions” and substituting “Subject to sub-section (2a), the conditions”; and

(b) by inserting after sub-section (2) the following sub-section:

“(2a) A permit granted under section 22b shall not be granted subject to conditions requiring work to be carried out by the permittee in or in relation to the permit area or requiring the permittee to expend amounts in the carrying out of work in or in relation to the permit area.”.

Certain payments to be made by Commonwealth to States and Northern Territory

12. Section 129 of the Principal Act is amended by inserting in paragraph (1) (a) “(other than an amount payable under section 22b)” after “under this Act”.

PART III—AMENDMENT OF THE PETROLEUM (SUBMERGED LANDS) (EXPLORATION PERMIT FEES) ACT 1967

Principal Act

13. The Petroleum (Submerged Lands) (Exploration Permit Fees) Act 19671 is in this Part referred to as the Principal Act.

Permit fees

14. Section 4 of the Principal Act is amended by adding at the end the following sub-section:

“(3) Fees under this section are not payable in respect of a permit granted under section 22b of the Petroleum (Submerged Lands) Act 1967”.

NOTES

1. No. 118, 1967, as amended. For previous amendments, see No. 1, 1968; No. 36, 1973; No. 216, 1973 (as amended by No. 20, 1974); No. 57, 1974; No. 80, 1980 (as amended by No. 79, 1981); Nos. 79 and 176, 1981; No. 80, 1982; Nos. 22 and 166, 1984; and No. 80,1985.

2. No. 120, 1967, as amended. For previous amendments, see No. 83, 1980.

[Minister’s second reading speech made in—

Senate on 6 November 1985

House of Representatives on 15 November 1985]

Overview

The Petroleum (Submerged Lands) (Cash Bidding) Amendment Act 1985 was enacted to address a perceived inefficiency and lack of competitiveness in the allocation of exploration permits for petroleum in submerged lands. This Act amended the Petroleum (Submerged Lands) Act 1967, introducing a cash bidding system for the granting of exploration permits. The amendments provided a more transparent and competitive process for permit allocation by allowing applicants to bid a cash amount alongside their application, with the highest bidder receiving the permit. This legislative change was intended to better align with market principles, ensuring that the allocation of exploration rights is more efficient and responsive to industry demand. The Act was passed by the Commonwealth Parliament and received Royal Assent on 22 November 1985. It was set to cease operation two years after its commencement, unless otherwise extended. The policy objective behind this legislation was to enhance the efficiency and competitiveness of the petroleum exploration permit process, ensuring that the allocation of exploration rights is effectively managed to the benefit of all stakeholders involved.

Scope and Application

The Petroleum (Submerged Lands) (Cash Bidding) Amendment Act 1985 applies to entities and individuals seeking exploration permits for petroleum exploration in submerged lands of Australia. This Act amends the Petroleum (Submerged Lands) Act 1967 to introduce a cash bidding process for the granting of exploration permits. The Joint Authority, which administers the Act, is empowered to invite applications for permits via cash bidding, with specific details and conditions outlined in a published instrument in the Gazette. The Act's jurisdiction is federal, applying across the Commonwealth of Australia. It excludes permits granted under section 22b from certain fees and certain conditions, such as those requiring work to be carried out by the permittee or expenditures in the permit area. The Act is set to cease operation two years after its commencement unless otherwise extended by subordinate legislation. Permits granted under the amended provisions continue in force after the Act's cessation, ensuring ongoing validity and operation of these permits beyond the Act's expiry.

Key Provisions

The Petroleum (Submerged Lands) (Cash Bidding) Amendment Act 1985 introduces significant changes to the existing Petroleum (Submerged Lands) Act 1967, primarily by allowing for the granting of exploration permits through cash bidding. Under the new provisions, the Joint Authority can invite applications for permits by way of cash bidding (section 22a). This process involves the publication of an instrument in the Gazette, which specifies the period for applications, whether the permit can be renewed, and the conditions under which the permit will be granted (section 22a(3)). Applications must be made within the specified period, adhere to an approved form, and include certain details about the applicant and their resources (section 22a(5)). Notably, the applicant must also specify an amount they are willing to pay as a single payment to the Commonwealth (section 22a(5)(f)). If only one application is received by the end of the specified period, the Joint Authority may either reject the application or inform the applicant that a permit will be granted, subject to certain conditions (section 22b(1)). If multiple applications are received, the Joint Authority may reject some applications and inform the remaining applicants if they meet certain criteria (section 22b(2)). The Act imposes several obligations on applicants and the Joint Authority. Applicants must ensure their applications are made within the specified period, include all required information, and pay the specified fee. If a permit is not granted, 90% of the fee is refunded (section 22a(7)). The Joint Authority is responsible for determining whether to grant a permit, considering factors such as the amount specified by the applicant and the terms outlined in the instrument (section 22b). Additionally, permittees have specific obligations regarding the renewal of permits, particularly those granted under the new cash bidding provisions, which cannot be renewed under certain conditions (section 30(1a)). The Act also outlines consequences for non-compliance. Although specific penalties are not detailed within the text provided, the general implication is that failure to comply with the provisions regarding cash bidding, application requirements, and permit conditions could lead to the rejection of an application or the lapse of a permit. Given the legislative context, breaches of these obligations might result in administrative or legal consequences, though the exact nature of these consequences would need to be examined within the broader legal framework and any relevant case law or administrative guidelines.

Area of Law: Environmental Law; Property Law
Instrument: Act
Concepts: Commencement Provisions; Licensing & Registration; Enforcement Powers; Regulatory Standards; Offence Provisions

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.

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