Petroleum (Submerged Lands) Fees Act 1994

Overview

The Petroleum (Submerged Lands) Fees Act 1994, Act No. 81 of 1994, was enacted to address the need for a structured fee regime for various petroleum-related activities on submerged lands in Australia. The Act was introduced to ensure that fees for permits, leases, and licences under the Petroleum (Submerged Lands) Act 1967 are systematically collected, thus providing a financial basis for the regulation and administration of petroleum activities. This Act was enacted by the Australian Parliament, with its primary policy objective being to establish a transparent and enforceable framework for the payment of fees related to petroleum exploration and production on submerged lands. The Act was repealed by Act No. 17 of 2006, effective from 1 July 2008, indicating that it was subsequently updated or replaced by newer legislation.

Scope and Application

The Petroleum (Submerged Lands) Fees Act 1994 applies to holders of exploration permits (except those granted under section 22B of the Petroleum (Submerged Lands) Act 1967), retention leases, production licences, infrastructure licences, and pipeline licences in relation to submerged lands in Australian waters. The Act requires these permit, lease, and licence holders to pay an annual fee for each year of the term of their permits, leases, or licences. The fees are payable to the Designated Authority and are specified or calculated in accordance with regulations made under the Act. The Act also imposes a penalty for late payment, calculated at a rate of one-third of a percent per day on the unpaid fee amount from the time it becomes payable until it is paid. The Petroleum (Submerged Lands) Act 1967 is incorporated with this Act, meaning that the two Acts are to be read as one. The Act was repealed by the Petroleum (Submerged Lands) Charges and Other Legislation Amendment Act 2006, which took effect on 1 July 2008. The Governor-General has the authority to make regulations prescribing matters required or permitted by the Act, or necessary or convenient to carry out or give effect to the Act. The Act applies to natural and juridical persons holding the specified permits, leases, or licences in relation to petroleum activities on submerged lands within Australian jurisdiction. The geographic reach of the Act is confined to Australian waters, where submerged lands are under Commonwealth control. Notably, the Act does not apply to exploration permits granted under section 22B of the Petroleum (Submerged Lands) Act 1967 and does not impose fees if fees are already payable under other specified Acts. The application of the Act may be extended or restricted through subordinate regulations, which can prescribe matters required or permitted by the Act or necessary or convenient to carry out or give effect to the Act.

Key Provisions

The Petroleum (Submerged Lands) Fees Act 1994 (Act No. 81 of 1994) serves to regulate the payment of fees for various petroleum-related permits, leases, and licences issued under the Petroleum (Submerged Lands) Act 1967. Section 4 of the Act outlines that the holders of an exploration permit (other than one granted under section 22B of the 1967 Act), a retention lease, a production licence, an infrastructure licence, or a pipeline licence are required to pay an annual fee. The fee must be paid to the Designated Authority and is to be specified or calculated in accordance with the regulations. The first year's fee is due within a month after the commencement of the permit, lease, or licence, while subsequent annual fees are due within a month after the anniversary of the first year. Notably, no fee is required under this Act if another fee is payable for the same year under specific other Acts. The Act imposes several obligations on the parties it governs. Firstly, holders of the specified permits, leases, and licences must ensure timely payment of the annual fees as stipulated in Section 4. Failure to pay the fee by the due date results in additional penalties as per Section 5. Section 5 states that the holder must pay an additional amount, calculated at one-third of a percent per day on the unpaid fee, from the due date until the fee is paid. Moreover, Section 6 designates that any unpaid fees or penalties are debts due to the Commonwealth and are recoverable in a court of competent jurisdiction. For breaches of the Act, Section 6 establishes that the fees and additional amounts owed are debts due to the Commonwealth. These debts are recoverable in a court of competent jurisdiction. Additionally, Section 5 imposes a penalty for late payments, which is calculated as one-third of a percent per day on the unpaid fee. The maximum penalty is determined by the length of the delay and the amount of the unpaid fee. The Governor-General has the authority to make regulations necessary for the implementation and enforcement of the Act, as provided in Section 7.