Petroleum (Submerged Lands) (Pipeline Licence Fees)
No. 122 of 1967
An Act to provide for the payment of Fees in respect of Licences to construct, maintain and operate Pipelines over or under Submerged Lands adjacent to the Australian Coast and to the Coasts of certain Territories of the Commonwealth.
[Assented to 22 November 1967]
BE it enacted by the Queen’s Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia, as follows:—
Short title.
1. This Act may be cited as the Petroleum (Submerged Lands) (Pipeline Licence Fees) Act 1967.
Commencement.
2. This Act shall come into operation on the day on which it receives the Royal Assent.
Incorporation.
3. The Petroleum (Submerged Lands) Act 1967 is incorporated and shall be read as one with this Act.
Pipeline licence fees.
4.—(1.) There is payable to the Designated Authority by a pipeline licensee, in respect of each year of the term of the pipeline licence, a fee of Twenty dollars in respect of each mile or portion of a mile of the length of the pipeline at the commencement of that year.
(2.) A fee referred to in the last preceding sub-section is payable within one month after—
(a) in the case of the first year of the term of the pipeline licence—the day on which that term commenced; and
(b) in the case of a year of the term of the pipeline licence other than the first—the anniversary of that day.
Penalty for late payment.
5. Where the liability of a pipeline licensee to pay a fee referred to in the last preceding section is not discharged at or before the time when the fee is payable, there is payable to the Designated Authority by the pipeline licensee an additional amount calculated at the rate of one-third of one per centum per day upon the amount of the fee from time to time remaining unpaid, to be computed from the time when the fee became payable until it is paid.
Fees and penalties debts due to the Commonwealth.
6. A fee under section 4 of this Act, or an amount payable under the last preceding section, is a debt due by the pipeline licensee to the Commonwealth and is recoverable in a court of competent jurisdiction.
Overview
The Petroleum (Submerged Lands) (Pipeline Licence Fees) Act 1967 was enacted to address the need for a systematic approach to the collection of fees for pipeline licences related to the construction, maintenance, and operation of pipelines over or under submerged lands adjacent to the Australian coast and certain territories. This Act was enacted by the Queen’s Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia and came into effect upon receiving Royal Assent. The primary policy objective behind this Act is to ensure that pipeline licensees contribute financially to the management and oversight of submerged land resources, facilitating orderly and regulated development in this sector.
Scope and Application
The Petroleum (Submerged Lands) (Pipeline Licence Fees) Act 1967 applies to pipeline licensees who are granted the rights to construct, maintain, and operate pipelines over or under submerged lands adjacent to the Australian coast and certain territorial coasts. This Act is designed to ensure that fees are paid for the use of these submerged lands, which are integral to the pipeline infrastructure facilitating petroleum operations. The Act requires the payment of a fee of Twenty dollars for each mile of pipeline at the commencement of each licence term. These fees are payable annually to the Designated Authority, with the initial fee due one month after the licence term begins, and subsequent fees due on the anniversary of the first payment date. The Act also includes provisions for penalties in the event of late payment, which are calculated at a rate of one-third of one per centum per day on the unpaid amount. Both the fees and the penalties are considered debts due to the Commonwealth and are recoverable through the courts. The Act is incorporated with the Petroleum (Submerged Lands) Act 1967, thereby integrating its provisions into the broader legislative framework governing submerged lands and pipeline activities.
Key Provisions
The Petroleum (Submerged Lands) (Pipeline Licence Fees) Act 1967 (referred to as the Act) lays out the framework for pipeline licence fees for the construction, maintenance, and operation of pipelines over or under submerged lands adjacent to the Australian coast and certain territories. Under section 4(1), a fee of Twenty dollars per mile or portion of a mile of the pipeline length is payable annually by the pipeline licensee to the Designated Authority. This fee is due at the beginning of each year of the pipeline licence term, as detailed in section 4(2), which stipulates that fees for the first year are due on the commencement day of the licence term, and for subsequent years, on the anniversary of the commencement date.
The Act imposes several obligations on pipeline licensees. Firstly, they must ensure that the annual fee is paid by the specified deadline, either at the start of the licence term or on the anniversary of that start date. Failure to comply with these payment deadlines will result in additional penalties, as outlined in section 5. This section mandates that if a pipeline licensee does not pay the fee on time, they must pay an additional amount calculated at the rate of one-third of one per centum per day on the outstanding fee until it is paid.
The Act also delineates the consequences of non-compliance with the financial obligations it imposes. Section 6 states that any unpaid fees or penalties become debts due by the pipeline licensee to the Commonwealth and can be recovered in a court of competent jurisdiction. This provision ensures that the Designated Authority has the legal recourse to enforce payment of the owed fees and penalties.