Revocation of a Petroleum Safety Zone - Notice A643073

Overview

The Offshore Petroleum and Greenhouse Gas Storage Act 2006 was enacted to address the need for comprehensive regulation of offshore petroleum activities and greenhouse gas storage in Australian waters. This Act was introduced to ensure the safety and environmental management of offshore petroleum operations, as well as the regulation of greenhouse gas storage projects, to mitigate the risks associated with these activities. The Act was made under the authority of the Parliament of the Commonwealth of Australia and its primary policy objective is to safeguard human health and safety, as well as to protect the marine environment from potential hazards arising from offshore petroleum and greenhouse gas storage operations. In exercising its powers, the National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA) has the responsibility of managing and enforcing compliance with the Act, including the revocation of safety zones when deemed necessary to ensure public and environmental safety. On 14 May 2020, NOPSEMA, represented by Percy Dhanbhoora, revoked Notice A604295 which had appeared in the Commonwealth of Australia Government Gazette on 23 April 2018. This revocation pertains to the prohibition of entry into a safety zone associated with the Baldfish-1 and Hairtail-1 exploration wells. This action was taken under the authority granted by the Offshore Petroleum and Greenhouse Gas Storage Act 2006 and reflects the ongoing commitment of NOPSEMA to manage and mitigate risks related to offshore petroleum activities, ensuring compliance with the legislative framework designed to protect both human health and the marine environment.

Scope and Application

The Offshore Petroleum and Greenhouse Gas Storage Act 2006 applies to entities and individuals involved in offshore petroleum activities and greenhouse gas storage within Australian waters. The Act encompasses the regulation of petroleum exploration, production, and related activities conducted by companies and individuals who are authorised to undertake such activities. It also includes provisions for the environmental management and safety standards necessary to protect the marine environment and ensure the safety of personnel engaged in offshore operations. The jurisdictional reach of the Act extends to the Commonwealth waters of Australia, which include the territorial sea, the continental shelf, and the Exclusive Economic Zone (EEZ) of Australia. The Act provides authority to the National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA) to issue regulations and safety standards, enforce compliance, and revoke safety zones when necessary. The Act does not apply to onshore petroleum activities, which are governed by state and territory legislation. The application of the Act can be extended or restricted through subordinate instruments, which are authorised under the Act to provide detailed regulatory requirements and safety measures specific to offshore petroleum operations.

Key Provisions

The main sections of the Offshore Petroleum and Greenhouse Gas Storage Act 2006 that are relevant to this revocation notice are sections 24, 26, and 27 (subsections 24(1) and 26(1)). Section 24 allows the National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA) to establish safety zones around offshore petroleum and greenhouse gas storage activities to ensure safety and environmental protection. Section 26 provides for the prohibition of entry into these safety zones unless authorised, and Section 27 specifies the revocation of these safety zones when the conditions that warranted their establishment no longer exist. The Act imposes several obligations on the parties or entities it governs. Firstly, it mandates that NOPSEMA must establish safety zones around offshore petroleum and greenhouse gas storage activities to protect human life, the marine environment, and property (section 24(1)). Additionally, it requires NOPSEMA to ensure that all relevant parties are notified of the establishment, modification, or revocation of these safety zones (section 26(1)). Furthermore, the Act obligates NOPSEMA to periodically review the necessity for these safety zones and revoke them when the conditions that justified their creation no longer exist (section 27). In this case, the revocation notice indicates that the conditions warranting the safety zone around the Baldfish-1 and Hairtail-1 exploration wells are no longer applicable. The Act also outlines specific offences, penalties, and consequences for non-compliance with its provisions. Section 52(1) of the Act provides that any person who contravenes a provision of the Act, including entering a safety zone without authorisation, commits an offence. Such offences may be subject to criminal penalties, including fines and imprisonment. The maximum penalty for an individual is a fine of up to $1.2 million or imprisonment for up to 10 years, or both, as outlined in section 127 of the Act. For corporations, the maximum penalty is a fine of up to $6 million, as stipulated in section 127(2). These penalties underscore the seriousness with which the Act regards compliance with its safety and environmental protection measures.