Petroleum (Submerged Lands) Fees Amendment Regulations 2001 (No. 1)

Overview

The Petroleum (Submerged Lands) Fees Amendment Regulations 2001 (No. 1) were enacted to address the need to prescribe an annual fee for infrastructure licences under the Petroleum (Submerged Lands) Act 1967. These Regulations were made under the authority of the Minister for Industry, Science and Resources and pursuant to section 7 of the Petroleum (Submerged Lands) Fees Act 1994. The primary objective of these Regulations was to ensure that the fee structure for infrastructure licences aligns with that of production licences, given the comparable administrative burden on the States and the Northern Territory. By prescribing an annual fee of $18,000 for infrastructure licences, the Regulations provide a structured and equitable approach to managing the costs associated with administering these licences, mirroring the established fee for production licences. This measure was endorsed by the States and the Northern Territory, reflecting a consensus on the appropriate level of fees to cover the administrative costs.

Scope and Application

The Petroleum (Submerged Lands) Fees Amendment Regulations 2001 (No. 1) apply to holders of infrastructure licences under the Petroleum (Submerged Lands) Act 1967, which permit the construction and operation of facilities for various processing or control activities in or near an oil-field where the operator does not have a production licence over the area. The fees prescribed under the Petroleum (Submerged Lands) Fees Act 1994, and as amended by these Regulations, cover the costs incurred by the States and the Northern Territory in administering offshore petroleum titles under joint arrangements with the Commonwealth. These Regulations are applicable nationally, given the collaborative jurisdictional framework of the petroleum licensing and fee administration between the Commonwealth and the States and the Northern Territory. The prescribed annual fee of $18,000 for infrastructure licences aligns with the administrative burden and costs associated with managing such licences, similar to production licences. These Regulations do not specify any exclusions or exemptions from the application of the fee, nor do they establish any thresholds below which the fee would not apply. The Regulations extend the application of the primary Act by specifying the particular fee amount for infrastructure licences, a matter permitted under section 7 of the primary Act.

Key Provisions

The Petroleum (Submerged Lands) Fees Amendment Regulations 2001 (No. 1) primarily amend the Petroleum (Submerged Lands) Fees Regulations 1994 to set the annual fee for infrastructure licences. According to Regulation 6A inserted by the Amendment Regulations, the annual fee payable by the holder of an infrastructure licence is $18,000 (Reg. 6A). These Regulations came into effect on the date of their gazettal (Reg. 2) and amended the principal Regulations as detailed in Schedule 1 (Reg. 3). The amendments introduced by these Regulations were necessary to address the administrative costs incurred by the States and Northern Territory in managing offshore petroleum titles, aligning the fee for infrastructure licences with the administrative burden and cost of managing production licences, which also incur a minimum annual fee of $18,000. The Amendment Regulations impose specific obligations on holders of infrastructure licences under the Petroleum (Submerged Lands) Act 1967. These licence holders are required to pay an annual fee of $18,000 for each year of the licence term, as specified in Regulation 6A. This fee is intended to cover the administrative costs incurred by the States and Northern Territory in overseeing the licensing and operation of infrastructure facilities in submerged lands. The Regulations ensure that the fee structure is consistent across different types of petroleum-related activities, reflecting the similar administrative burden associated with managing infrastructure licences and production licences. Failure to comply with the fee payment requirements stipulated in the Amendment Regulations may result in legal consequences. While the Regulations themselves do not explicitly outline specific penalties for non-compliance, the underlying Petroleum (Submerged Lands) Fees Act 1994 provides a framework for enforcement. Non-payment of the prescribed fees could potentially lead to enforcement actions under the Act, which may include fines or other civil remedies. The precise penalties for non-compliance would be determined in accordance with the provisions of the Act and relevant administrative or court processes.