Petroleum (Submerged Lands) (Production Licence Fees)
No. 121 of 1967
An Act to provide for the payment of Fees in respect of Licences to recover Petroleum from 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) (Production 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.
Licence fees.
4.—(1.) There is payable to the Designated Authority by a licensee, in respect of each year of the term of the licence, a fee calculated at the rate of Three thousand dollars for each of the blocks to which the licence relates 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 licence—the day on which that term commenced; and
(b) in the case of a year of the term of the licence other than the first—the anniversary of that day.
Penalty for late payment.
5. Where the liability of a 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 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.
Provisions with respect to Barracouta and Marlin Fields Production Licences.
6.—(1.) The following provisions of a licence referred to in section 146 of the Petroleum (Submerged Lands) Act 1967 that is to say, clauses 3 and 4, shall be deemed to have effect as conditions of the licence as the licence has effect by reason of that section.
(2.) A reference in any provision referred to in the last preceding sub-section to the Minister shall be read as a reference to the Designated Authority.
(3.) Sections 4 and 5 of this Act do not have effect in relation to a licence to which this section applies.
Fees and penalties debts due to the Commonwealth.
7. The following are debts due by the licensee to the Commonwealth and are recoverable in a court of competent jurisdiction:—
(a) a fee under section 4 of this Act;
(b) a fee payable by reason of the last preceding section;
(c) an amount payable under section 5 of this Act; and
(d) an amount payable by reason of the last preceding section by reason of late payment of a fee referred to in paragraph (b) of this section.
Overview
The Petroleum (Submerged Lands) (Production Licence Fees) Act 1967 was enacted to regulate the payment of fees associated with the production of petroleum from submerged lands adjacent to the Australian coast and certain territories of the Commonwealth. This Act was introduced to ensure that the Commonwealth received appropriate compensation for the use of its submerged lands for petroleum production. The Act was enacted by the Queen’s Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia, and it commenced on the day of Royal Assent, which was 22 November 1967. The primary policy objective of the Act is to establish a structured fee payment system for petroleum production licences, ensuring timely and adequate compensation for the use of submerged lands. The Act incorporates the Petroleum (Submerged Lands) Act 1967, and it delineates the fee calculation, payment deadlines, and penalties for late payments.
Scope and Application
The Petroleum (Submerged Lands) (Production Licence Fees) Act 1967 applies to individuals and entities holding a production licence for the recovery of petroleum from submerged lands adjacent to the Australian coast and certain territories of the Commonwealth. The Act stipulates that a fee is payable annually to the Designated Authority by each licensee, calculated at a rate of three thousand dollars for each block associated with the licence at the commencement of each year. The payment is required within one month following the commencement of the licence term or the anniversary of that commencement for subsequent years. Additionally, the Act imposes a penalty for late payments, amounting to one-third of one per centum per day on the outstanding fee. This Act incorporates the Petroleum (Submerged Lands) Act 1967 and is enforceable under the laws of the Commonwealth. The Act does not apply to certain specific licences mentioned in section 146 of the 1967 Act, where different conditions apply, as detailed in section 6 of this Act. Any unpaid fees and penalties become debts due to the Commonwealth and are recoverable in a court of competent jurisdiction.
Key Provisions
The Petroleum (Submerged Lands) (Production Licence Fees) Act 1967 primarily concerns the payment of fees for petroleum production licences on submerged lands adjacent to the Australian coast and certain territories. Section 4(1) mandates that a licensee must pay an annual fee of $3,000 for each block covered by the licence at the start of each year of the licence term. This fee is due within one month after the licence commences or by the anniversary of its commencement for subsequent years (subsection 4(2)).
The Act imposes specific obligations on the licensees to ensure timely payment of these fees. Failure to pay the fees by the stipulated time results in additional penalties. Section 5 stipulates that if a licensee does not pay the required fee, they must pay an additional amount calculated at the rate of one-third of one per centum per day on the outstanding fee, from the time it becomes payable until it is paid.
The Act also specifies the conditions for certain licences, namely those related to the Barracouta and Marlin Fields, as outlined in section 6. Clauses 3 and 4 of these licences are deemed conditions, and references to the Minister in these clauses are interpreted as references to the Designated Authority. Notably, sections 4 and 5 do not apply to these specific licences.
Under section 7, any fees or penalties due under this Act are considered debts owed by the licensee to the Commonwealth and are recoverable in a court of competent jurisdiction. This includes fees under section 4, fees payable due to late payment, and amounts payable under section 5 as a result of late fee payment.