Offshore Petroleum Amendment (Greenhouse Gas Storage) Act 2008 (117 of 2008)
Schedule 1 Amendments relating to greenhouse gas storage etc.
Offshore Petroleum Act 2006
109 After section 15
Insert:
15A Potential greenhouse gas storage formation
(1) For the purposes of this Act, a Potential greenhouse gas storage formation Is a part of a geological formation, where that part is suitable, with or without engineering enhancements, for the permanent storage of a greenhouse gas substance injected into that part.
(2) For the purposes of subsection (1), it is not necessary to identify the greenhouse gas substance.
(3) For the purposes of subsection (1), in determining whether a part of a geological formation is suitable, with or without engineering enhancements, for the permanent storage of a greenhouse gas substance injected into that part, regard may be had to reasonably foreseeable technological developments.
15B Eligible greenhouse gas storage formation
(1) For the purposes of this Act, an eligible greenhouse gas storage formation Is a part of a geological formation, where that part:
(a) is suitable, without engineering enhancements, for the permanent storage of a particular amount of a particular greenhouse gas substance injected at a particular point or points into that part over a particular period; or
(b) is suitable, with engineering enhancements, for the permanent storage of a particular amount of a particular greenhouse gas substance injected at a particular point or points into that part over a particular period.
(2) An amount referred to in paragraph (1)(a) or (b) must be at least 100,000 tonnes.
Spatial extent
(3) For the purposes of this Act, the Spatial extent Of an eligible greenhouse gas storage formation is the expected migration pathway or pathways, over the period:
(a) beginning at the start of the particular period referred to in whichever of paragraph (1)(a) or (b) is applicable; and
(b) ending at the notional site closing certificate time;
Of the particular amount of the particular greenhouse gas substance injected as mentioned in whichever of paragraph (1)(a) or (b) is applicable.
(3A) In determining the spatial extent of an eligible greenhouse gas storage formation, regard must be had to:
(a) the fundamental suitability determinants; and
(b) such other matters as are relevant.
(4) The regulations may provide that the expected migration pathway or pathways are to be ascertained on the basis of:
(a) one or more assumptions (if any) specified in the regulations; and
(b) a level of probability specified in the regulations; and
(c) a methodology (if any) specified in the regulations.
notional site closing certificate time
(6) For the purposes of the application of this section to a part of a geological formation covered by paragraph (1)(a), the notional site closing certificate time Is worked out as follows:
(a) assume that the particular amount of the particular greenhouse gas substance referred to in that paragraph was injected at the particular point or points referred to in that paragraph over the particular period referred to in that paragraph;
(b) assume that, throughout that period, that part was an identified greenhouse gas storage formation;
(c) assume that, throughout that period, operations for the injection of the greenhouse gas substance into that part:
(i) were authorised by a greenhouse gas injection licence; and
(ii) complied with the requirements of this Act and the regulations;
(d) assume that, at the end of that period, operations for the injection of the greenhouse gas substance into that part ceased;
(e) estimate the earliest time after the end of that period when the responsible Commonwealth Minister would be in a position to issue a site closing certificate in relation to the identified greenhouse gas storage formation;
(f) that time is the notional site closing certificate time .
(7) For the purposes of the application of this section to a part of a geological formation covered by paragraph (1)(b), the notional site closing certificate time Is worked out as follows:
(a) assume that the engineering enhancements referred to in that paragraph had been made;
(b) assume that the particular amount of the particular greenhouse gas substance referred to in that paragraph was injected at the particular point or points referred to in that paragraph over the particular period referred to in that paragraph;
(c) assume that, throughout that period, that part was an identified greenhouse gas storage formation;
(d) assume that, throughout that period, operations for the injection of the greenhouse gas substance into that part:
(i) were authorised by a greenhouse gas injection licence; and
(ii) complied with the requirements of this Act and the regulations;
(e) assume that, at the end of that period, operations for the injection of the greenhouse gas substance into that part ceased;
(f) estimate the earliest time after the end of that period when the responsible Commonwealth Minister would be in a position to issue a site closing certificate in relation to the identified greenhouse gas storage formation;
(g) that time is the notional site closing certificate time .
fundamental suitability determinants
(8) For the purposes of this Act, the following are the fundamental suitability determinants Of an eligible greenhouse gas storage formation:
(a) the particular amount referred to in whichever of paragraph (1)(a) or (b) is applicable;
(b) the particular greenhouse gas substance referred to in whichever of paragraph (1)(a) or (b) is applicable;
(c) the particular point or points referred to in whichever of paragraph (1)(a) or (b) is applicable;
(d) the particular period referred to in whichever of paragraph (1)(a) or (b) is applicable;
(e) if paragraph (1)(b) is applicable - the engineering enhancements referred to in that paragraph;
(f) the effective sealing feature, attribute or mechanism that enables the permanent storage referred to in whichever of paragraph (1)(a) or (b) is applicable.
15C Potential greenhouse gas injection site
For the purposes of this Act, a Potential greenhouse gas injection site Is a place that:
(a) is a suitable place to make a well or wells to inject a greenhouse gas substance into a part of a geological formation; and
(b) is wholly situated in one or more offshore areas.
15D Incidental greenhouse gas-related substance
Scope
(1) This section applies if either or both of the following substances ( Primary greenhouse gas substances ) are captured from a particular source material:
(a) carbon dioxide;
(b) one or more prescribed greenhouse gases.
Incidental greenhouse gas-related substance
(2) For the purposes of this Act, the following are Incidental greenhouse gas-related substances In relation to a primary greenhouse gas substance:
(a) any substance that is incidentally derived from the source material;
(b) any substance that is incidentally derived from the capture;
(c) if the primary greenhouse gas substance, whether in a pure form or in a mixture with other substances, is transported - any substance that is incidentally derived from the transportation;
(d) if the primary greenhouse gas substance, whether in a pure form or in a mixture with other substances, is injected into a part of a geological formation - any substance that is incidentally derived from the injection;
(e) if the primary greenhouse gas substance, whether in a pure form or in a mixture with other substances, is stored in a part of a geological formation - any substance that is incidentally derived from the storage.
15E Site plan - identified greenhouse gas storage formation
For the purposes of this Act, a Site plan , in relation to an identified greenhouse gas storage formation, is a document that:
(a) relates to the identified greenhouse gas storage formation; and
(b) complies with such requirements as are specified in the regulations; and
(c) is divided into the following parts:
(i) Part A, which sets out predictions for the behaviour of a greenhouse gas substance stored in the identified greenhouse gas storage formation;
(ii) Part B, which deals with other matters.
15F Significant risk of a significant adverse impact - approval of key petroleum operations
(1) For the purposes of sections 79A, 79B, 114A, 114B, 138A and 138B and paragraph 435B(2)(a), the question of whether there is a significant risk that a key petroleum operation will have a significant adverse impact on:
(a) operations for the injection of a greenhouse gas substance; or
(b) operations for the storage of a greenhouse gas substance;
Is to be determined in a manner ascertained in accordance with the regulations.
(2) A manner ascertained in accordance with regulations made for the purposes of subsection (1) must take into account:
(a) the probability, or range of probabilities, of the occurrence of the adverse impact; and
(b) the economic consequences of the adverse impact; and
(c) the economic consequences of the adverse impact relative to the potential economic value of the operations referred to in whichever of paragraph (1)(a) or (b) is applicable.
(3) Subsection (2) does not limit the matters that may be taken into account.
(4) Subsections (1) and (2) have effect subject to subsections (5) and (6).
(5) For the purposes of sections 79A, 79B, 114A, 114B, 138A and 138B and paragraph 435B(2)(a), a key petroleum operation will have an adverse impact on:
(a) operations for the injection of a greenhouse gas substance; or
(b) operations for the storage of a greenhouse gas substance;
(the relevant greenhouse gas operations ) if, and only if, the key petroleum operation will result in:
(c) an increase in the capital costs (other than prescribed costs) of the relevant greenhouse gas operations; or
(d) an increase in the operating costs (other than prescribed costs) of the relevant greenhouse gas operations; or
(e) a reduction in the rate of injection of the greenhouse gas substance; or
(f) a reduction in the quantity of the greenhouse gas substance that will be able to be stored.
(6) For the purposes of sections 79A, 79B, 114A, 114B, 138A and 138B and paragraph 435B(2)(a), if there is a risk that a key petroleum operation will have an adverse impact on:
(a) operations for the injection of a greenhouse gas substance; or
(b) operations for the storage of a greenhouse gas substance;
Then that risk is not to be treated as significant, and that adverse impact is not to be treated as significant, if the amount that, under the regulations, is taken to be the probability-weighted impact cost of the key petroleum operation is less than the amount that, under the regulations, is taken to be the threshold amount.
15FA Significant risk of a significant adverse impact - grant of production licence
(1) For the purposes of sections 145 and 146, the question of whether there is a significant risk that any of the operations that could be carried on under a production licence will have a significant adverse impact on operations that are being, or could be, carried on under:
(a) a greenhouse gas assessment permit; or
(b) a greenhouse gas holding lease; or
(c) a greenhouse gas injection licence;
Is to be determined in a manner ascertained in accordance with the regulations.
(2) A manner ascertained in accordance with regulations made for the purposes of subsection (1) must take into account:
(a) the probability, or range of probabilities, of the occurrence of the adverse impact; and
(b) the economic consequences of the adverse impact; and
(c) the economic consequences of the adverse impact relative to the potential economic value of the operations that are being, or could be, carried on under the permit, lease or licence referred to in whichever of paragraph (1)(a), (b) or (c) is applicable.
(3) Subsection (2) does not limit the matters that may be taken into account.
(4) Subsections (1) and (2) have effect subject to subsections (5) and (6).
(5) For the purposes of sections 145 and 146, an operation that could be carried on under a production licence (the Production licence operation ) will have an adverse impact on operations (the relevant greenhouse gas operations ) that are being, or could be, carried on under:
(a) a greenhouse gas assessment permit; or
(b) a greenhouse gas holding lease; or
(c) a greenhouse gas injection licence;
If, and only if, the production licence operation will result in:
(d) an increase in the capital costs (other than prescribed costs) of the relevant greenhouse gas operations; or
(e) an increase in the operating costs (other than prescribed costs) of the relevant greenhouse gas operations; or
(f) a reduction in the rate of injection of the greenhouse gas substance; or
(g) a reduction in the quantity of the greenhouse gas substance that will be able to be stored.
(6) For the purposes of sections 145 and 146, if there is a risk that an operation that could be carried on under a production licence (the Production licence operation ) will have an adverse impact on operations that are being, or could be, carried on under:
(a) a greenhouse gas assessment permit; or
(b) a greenhouse gas holding lease; or
(c) a greenhouse gas injection licence;
Then that risk is not to be treated as significant, and that adverse impact is not to be treated as significant, if the amount that, under the regulations, is taken to be the probability-weighted impact cost of the production licence operation is less than the amount that, under the regulations, is taken to be the threshold amount.
15FB Significant risk of a significant adverse impact - approval of key greenhouse gas operations
(1) For the purposes of sections 249AF and 249BD and paragraph 435B(2)(b), the question of whether there is a significant risk that a key greenhouse gas operation will have a significant adverse impact on petroleum exploration operations, or petroleum recovery operations, that are being, or could be, carried on under:
(a) an existing exploration permit; or
(b) an existing retention lease; or
(c) an existing production licence; or
(d) a future exploration permit; or
(e) a future retention lease; or
(f) a future production licence;
Is to be determined in a manner ascertained in accordance with the regulations.
(2) A manner ascertained in accordance with regulations made for the purposes of subsection (1) must take into account:
(a) the probability, or range of probabilities, of the occurrence of the adverse impact; and
(b) the economic consequences of the adverse impact; and
(c) the economic consequences of the adverse impact relative to the potential economic value of the petroleum exploration operations, or petroleum recovery operations, that are being, or could be, carried on under the permit, lease or licence referred to in whichever of paragraph (1)(a), (b), (c), (d), (e) or (f) is applicable.
(3) Subsection (2) does not limit the matters that may be taken into account.
(4) Subsections (1) and (2) have effect subject to subsections (5) and (6).
(5) For the purposes of sections 249AF and 249BD and paragraph 435B(2)(b), a key greenhouse gas operation will have an adverse impact on petroleum exploration operations, or petroleum recovery operations, that are being, or could be, carried on under:
(a) an existing exploration permit; or
(b) an existing retention lease; or
(c) an existing production licence; or
(d) a future exploration permit; or
(e) a future retention lease; or
(f) a future production licence;
If, and only if, the key greenhouse gas operation will result in:
(g) an increase in the capital costs (other than prescribed costs) of the petroleum exploration operations or petroleum recovery operations; or
(h) an increase in the operating costs (other than prescribed costs) of the petroleum exploration operations or petroleum recovery operations; or
(i) a reduction in the rate of recovery of the petroleum; or
(j) a reduction in the quantity of the petroleum that will be able to be recovered.
(6) For the purposes of sections 249AF and 249BD and paragraph 435B(2)(b), if there is a risk that a key greenhouse gas operation will have an adverse impact on petroleum exploration operations, or petroleum recovery operations, that are being, or could be, carried on under:
(a) an existing exploration permit; or
(b) an existing retention lease; or
(c) an existing production licence; or
(d) a future exploration permit; or
(e) a future retention lease; or
(f) a future production licence;
Then that risk is not to be treated as significant, and that adverse impact is not to be treated as significant, if the amount that, under the regulations, is taken to be the probability-weighted impact cost of the key greenhouse gas operation is less than the amount that, under the regulations, is taken to be the threshold amount.
15FC Significant risk of a significant adverse impact - grant of greenhouse gas injection licence
(1) For the purposes of sections 249CI and 249CR and paragraph 435B(2)(c), the question of whether there is a significant risk that any of the operations that could be carried on under a greenhouse gas injection licence will have a significant adverse impact on operations that are being, or could be, carried on under:
(a) an existing exploration permit; or
(b) an existing retention lease; or
(c) an existing production licence; or
(d) a future exploration permit; or
(e) a future retention lease; or
(f) a future production licence;
Is to be determined in a manner ascertained in accordance with the regulations.
(2) A manner ascertained in accordance with regulations made for the purposes of subsection (1) must take into account:
(a) the probability, or range of probabilities, of the occurrence of the adverse impact; and
(b) the economic consequences of the adverse impact; and
(c) the economic consequences of the adverse impact relative to the potential economic value of the operations that are being, or could be, carried on under the permit, lease or licence referred to in whichever of paragraph (1)(a), (b), (c), (d), (e) or (f) is applicable.
(3) Subsection (2) does not limit the matters that may be taken into account.
(4) Subsections (1) and (2) have effect subject to subsections (5) and (6).
(5) For the purposes of sections 249CI and 249CR and paragraph 435B(2)(c), an operation that could be carried on under a greenhouse gas injection licence (the Injection licence operation ) will have an adverse impact on operations (the relevant petroleum operations ) that are being, or could be, carried on under:
(a) an existing exploration permit; or
(b) an existing retention lease; or
(c) an existing production licence; or
(d) a future exploration permit; or
(e) a future retention lease; or
(f) a future production licence;
If, and only if, the injection licence operation will result in:
(g) an increase in the capital costs (other than prescribed costs) of the relevant petroleum operations; or
(h) an increase in the operating costs (other than prescribed costs) of the relevant petroleum operations; or
(i) a reduction in the rate of recovery of the petroleum; or
(j) a reduction in the quantity of the petroleum that will be able to be recovered.
(6) For the purposes of sections 249CI and 249CR and paragraph 435B(2)(c), if there is a risk that an operation that could be carried on under a greenhouse gas injection licence (the Injection licence operation ) will have an adverse impact on operations that are being, or could be, carried on under:
(a) an existing exploration permit; or
(b) an existing retention lease; or
(c) an existing production licence; or
(d) a future exploration permit; or
(e) a future retention lease; or
(f) a future production licence;
Then that risk is not to be treated as significant, and that adverse impact is not to be treated as significant, if the amount that, under the regulations, is taken to be the probability-weighted impact cost of the injection licence operation is less than the amount that, under the regulations, is taken to be the threshold amount.
15FD Significant risk of a significant adverse impact - power of responsible Commonwealth Minister to protect petroleum
(1) For the purposes of section 249CZC and paragraph 435B(2)(d), the question of whether there is a significant risk that any of the operations that are being, or could be, carried on under a greenhouse gas injection licence will have a significant adverse impact on:
(a) operations to recover petroleum; or
(b) the commercial viability of the recovery of petroleum;
Is to be determined in a manner ascertained in accordance with the regulations.
(2) A manner ascertained in accordance with regulations made for the purposes of subsection (1) must take into account:
(a) the probability, or range of probabilities, of the occurrence of the adverse impact; and
(b) the economic consequences of the adverse impact; and
(c) the economic consequences of the adverse impact relative to the potential economic value of the operations or recovery referred to in whichever of paragraph (1)(a) or (b) is applicable.
(3) Subsection (2) does not limit the matters that may be taken into account.
(4) Subsections (1) and (2) have effect subject to subsections (5) and (6).
(5) For the purposes of section 249CZC and paragraph 435B(2)(d), an operation that could be carried on under a greenhouse gas injection licence (the Injection licence operation ) will have an adverse impact on:
(a) operations to recover petroleum; or
(b) the commercial viability of the recovery of petroleum;
If, and only if, the injection licence operation will result in:
(c) an increase in the capital costs (other than prescribed costs) of the recovery of the petroleum; or
(d) an increase in the operating costs (other than prescribed costs) of the recovery of the petroleum; or
(e) a reduction in the rate of recovery of the petroleum; or
(f) a reduction in the quantity of the petroleum that will be able to be recovered.
(6) For the purposes of section 249CZC and paragraph 435B(2)(d), if there is a risk that an operation that is being, or could be, carried on under a greenhouse gas injection licence (the Injection licence operation ) will have an adverse impact on:
(a) operations to recover petroleum; or
(b) the commercial viability of the recovery of petroleum;
Then that risk is not to be treated as significant, and that adverse impact is not to be treated as significant, if the amount that, under the regulations, is taken to be the probability-weighted impact cost of the injection licence operation is less than the amount that, under the regulations, is taken to be the threshold amount.
15G Direction given by the responsible Commonwealth Minister
A reference in this Act to a direction given by the responsible Commonwealth Minister does not include a reference to a direction given by the responsible Commonwealth Minister:
(a) in his or her capacity as, or as a member of, the Joint Authority for an offshore area; or
(b) in his or her capacity as the Designated Authority for an offshore area.
15H Securities
greenhouse gas titles
(1) For the purposes of this Act, if:
(a) a greenhouse gas assessment permit, greenhouse gas holding lease or greenhouse gas injection licence is in force; and
(b) either:
(i) the successful applicant for the permit, lease or licence lodged a security with the responsible Commonwealth Minister in response to the offer document for the permit, lease or licence; or
(ii) the registered holder, or a former registered holder, of the permit, lease or licence lodged a security with the responsible Commonwealth Minister in response to a notice under section 249NCA; and
(c) the security has not been wholly discharged;
The security is taken to be in force in relation to the permit, lease or licence.
Site closing certificate
(2) For the purposes of this Act, if:
(a) a site closing certificate is in force; and
(b) the successful applicant for the certificate lodged a security with the responsible Commonwealth Minister in response to the pre-certificate notice for the site closing certificate; and
(c) the security has not been wholly discharged;
The security is taken to be in force in relation to the site closing certificate.
Note: For Pre-certificate notice , see section 249CZF.
15J Designated agreements
For the purposes of this Act, a Designated agreement Is an agreement of the kind referred to in any of the following provisions:
(a) paragraph 79A(5)(f);
(b) paragraph 79A(6)(d);
(c) subsection 79A(10);
(d) paragraph 114A(5)(f);
(e) paragraph 114A(6)(d);
(f) subsection 114A(10);
(g) paragraph 138A(5)(f);
(h) paragraph 138A(6)(d);
(i) subsection 138A(10);
(j) paragraph 249AF(5)(d);
(k) paragraph 249AF(6)(d);
(l) subsection 249AF(11);
(m) subsection 249AF(12);
(n) paragraph 249BD(5)(d);
(o) paragraph 249BD(6)(d);
(p) subsection 249BD(11);
(q) subsection 249BD(12);
(r) subparagraph 249CI(1)(d)(iii);
(s) subparagraph 249CI(1)(e)(iii);
(t) subparagraph 249CI(2)(d)(iii);
(u) subparagraph 249CI(2)(e)(iii);
(v) paragraph 249CI(3)(a);
(w) subparagraph 249CR(d)(v);
(x) paragraph 249CR(e);
(y) paragraph 249CR(f);
(z) paragraph 249CR(g);
(za) paragraph 249CZC(1)(e).