Offshore Petroleum Amendment (Greenhouse Gas Storage) Act 2008 (117 of 2008)

Schedule 1   Amendments relating to greenhouse gas storage etc.

Offshore Petroleum Act 2006

207   At the end of Part 4.3

Add:

Division 2 - Greenhouse gas

316-310 Simplified outline

The following is a simplified outline of this Division:

* The responsible Commonwealth Minister may give remedial directions to greenhouse gas titleholders or former greenhouse gas titleholders about the following matters:

(a) the removal of property;

(b) the plugging or closing off of wells;

(c) the conservation and protection of natural resources;

(d) the making good of damage to the seabed or subsoil.

* The responsible Commonwealth Minister may give site closing directions to greenhouse gas injection licensees.

* If there is a breach of a direction, the responsible Commonwealth Minister may do anything required by the direction to be done.

* If property has not been removed in accordance with a direction, the responsible Commonwealth Minister may direct the owner to remove or dispose of the property.

316-311 Remedial directions to current holders of permits, leases and licences

Scope

(1) This section applies to:

(a) a greenhouse gas assessment permit; or

(b) a greenhouse gas holding lease; or

(c) a greenhouse gas injection licence, if no operations for the injection of a greenhouse gas substance into an identified greenhouse gas storage formation have been carried on under the licence.

Direction to registered holder

(2) The responsible Commonwealth Minister may, by written notice given to the registered holder of the permit, lease or licence, direct the holder to do any or all of the following things on or before the applicable date:

(a) to:

(i) remove, or cause to be removed, from the title area all property brought into that area by any person engaged or concerned in the operations authorised by the permit, lease or licence; or

(ii) make arrangements that are satisfactory to the responsible Commonwealth Minister in relation to that property;

(b) to plug or close off, to the satisfaction of the responsible Commonwealth Minister, all wells made in the title area by any person engaged or concerned in those operations;

(c) to provide, to the satisfaction of the responsible Commonwealth Minister, for the conservation and protection of the natural resources in the title area;

(d) to make good, to the satisfaction of the responsible Commonwealth Minister, any damage to the seabed or subsoil in the title area caused by any person engaged or concerned in those operations.

Note 1: For applicable date and title area , see subsection (6).

Note 2: For variation and revocation, see subsection 33(3) of the Acts Interpretation Act 1901.

(3) Paragraph (2)(c) has effect subject to:

(a) Chapter 2A; and

(b) this Chapter; and

(c) the regulations.

(4) In attaining a state of satisfaction for the purposes of paragraph (2)(b), the responsible Commonwealth Minister must have regard to the principle that plugging or closing off wells should be carried out in a way that minimises damage to the petroleum-bearing qualities of geological formations.

Offence

(5) A person commits an offence if:

(a) the person is subject to a direction under subsection (2); and

(b) the person omits to do an act; and

(c) the omission breaches the direction.

Penalty: 100 penalty units.

Applicable date and title area

(6) For the purposes of this section, the table has effect:

(7) A notice under subsection (2) need not identify the applicable date as a particular calendar date.

316-311A Site closing directions to current holders of greenhouse gas injection licences

Scope

(1) This section applies if:

(a) an identified greenhouse gas storage formation is specified in a greenhouse gas injection licence; and

(b) operations for the injection of a greenhouse gas substance into the identified greenhouse gas storage formation have been carried on under the licence; and

(c) the responsible Commonwealth Minister is satisfied that operations for the injection of a greenhouse gas substance into the identified greenhouse gas storage formation have ceased; and

(d) any of the following conditions is satisfied:

(i) an application has been made for a site closing certificate in relation to the identified greenhouse gas storage formation;

(ii) the licensee has breached the requirement imposed by subsection 249CZE(3) to make an application for a site closing certificate in relation to the identified greenhouse gas storage formation;

(iii) the licensee has breached a direction under subsection 249CZE(8) to make an application for a site closing certificate in relation to the identified greenhouse gas storage formation.

Direction to registered holder

(2) The responsible Commonwealth Minister may, by written notice given to the registered holder of the licence, direct the holder to do any or all of the following things within the period specified in the notice:

(a) to:

(i) remove, or cause to be removed, from the licence area all property brought into that area by any person engaged or concerned in the operations authorised by the licence; or

(ii) make arrangements that are satisfactory to the responsible Commonwealth Minister in relation to that property;

(b) to plug or close off, to the satisfaction of the responsible Commonwealth Minister, all wells made in the licence area, whether or not those wells were made by a person engaged or concerned in those operations;

(c) to provide, to the satisfaction of the responsible Commonwealth Minister, for the conservation and protection of the natural resources in the licence area;

(d) to make good, to the satisfaction of the responsible Commonwealth Minister, any damage to the seabed or subsoil in the licence area (whether or not caused by any person engaged or concerned in those operations);

(e) to carry out such operations as are specified in the notice for the monitoring of the behaviour of a greenhouse gas substance stored in the identified greenhouse gas storage formation concerned;

(f) to undertake such activities as are specified in the notice for the purpose of:

(i) eliminating; or

(ii) mitigating; or

(iii) managing; or

(iv) remediating;

the risk that a greenhouse gas substance injected into the identified greenhouse gas storage formation will have a significant adverse impact on:

(v) navigation; or

(vi) fishing; or

(vii) any activities being lawfully carried on, or that could be lawfully carried on, by way of the construction or operation of a pipeline; or

(viii) the enjoyment of native title rights (within the meaning of the Native Title Act 1993); or

(ix) the conservation or exploitation of natural resources (whether in an offshore area or elsewhere); or

(x) the geotechnical integrity of the whole or a part of a geological formation or geological structure; or

(xi) the environment; or

(xii) human health or safety;

(g) to undertake such activities as are specified in the notice for the purpose of:

(i) ensuring; or

(ii) increasing the likelihood;

that a greenhouse gas substance injected into the identified greenhouse gas storage formation will behave as predicted in Part A of the approved site plan for the identified greenhouse gas storage formation.

Note: For variation and revocation, see subsection 33(3) of the Acts Interpretation Act 1901.

(3) The period specified in the notice must be reasonable.

(4) Paragraph (2)(c) has effect subject to:

(a) Chapter 2A; and

(b) this Chapter; and

(c) the regulations.

(5) Paragraphs (2)(a), (b), (c), (d) and (e) do not limit paragraph (2)(f) or (g).

(6) In attaining a state of satisfaction for the purposes of paragraph (2)(b), the responsible Commonwealth Minister must have regard to the principle that plugging or closing off wells should be carried out in a way that minimises damage to the petroleum-bearing qualities of geological formations.

(7) A paragraph (2)(f) or (g) direction may require the registered holder of the licence to do something:

(a) in the licence area; or

(b) in an offshore area but outside the licence area.

Offence

(8) A person commits an offence if:

(a) the person is subject to a direction under subsection (2); and

(b) the person omits to do an act; and

(c) the omission breaches the direction.

Penalty: 100 penalty units.

Section does not limit other powers

(9) To avoid doubt, the powers conferred on the responsible Commonwealth Minister by this section do not limit the powers conferred on the responsible Commonwealth Minister by any other provision of this Act.

316-311B Consultation - directions to do something outside the licence area

Scope

(1) This section applies if:

(a) the responsible Commonwealth Minister proposes to give a direction under section 316-311A to a greenhouse gas injection licensee; and

(b) the direction requires the licensee to do something in an area (the action area ) in an offshore area but outside the licence area; and

(c) the action area is, to any extent, the subject of:

(i) a greenhouse gas assessment permit; or

(ii) a greenhouse gas holding lease; or

(iii) a greenhouse gas injection licence; or

(iv) a greenhouse gas search authority; or

(v) an exploration permit; or

(vi) a retention lease; or

(vii) a production licence; or

(viii) a special prospecting authority; and

(d) the licensee mentioned in paragraph (a) is not the registered holder of the permit, lease, licence or authority mentioned in paragraph (c); and

(e) the registered holder of the permit, lease, licence or authority mentioned in paragraph (c) has not given written consent to the giving of the direction.

Consultation

(2) Before giving the direction, the responsible Commonwealth Minister must:

(a) by written notice given to the registered holder of the permit, lease, licence or authority mentioned in paragraph (1)(c), give at least 30 days notice of the responsible Commonwealth Minister's intention to give the direction; and

(b) give a copy of the notice to such other persons (if any) as the responsible Commonwealth Minister thinks fit.

(3) The notice must:

(a) set out details of the direction that is proposed to be given; and

(b) invite a person to whom the notice, or a copy of the notice, has been given to make a written submission to the responsible Commonwealth Minister about the proposal; and

(c) specify a time limit for making that submission.

(4) In deciding whether to give the direction, the responsible Commonwealth Minister must take into account any submissions made in accordance with the notice.

Emergencies

(5) However, if the responsible Commonwealth Minister is satisfied that the direction is required to deal with an emergency:

(a) subsections (2), (3) and (4) do not apply to the direction; and

(b) as soon as practicable after the direction is given, the responsible Commonwealth Minister must give a copy of the direction to the registered holder of the permit, lease, licence or authority mentioned in paragraph (1)(c).

316-312 Remedial directions to former holders of permits, leases, licences and authorities etc.

Scope

(1) This section applies if an event specified in the table has happened:

Direction

(2) The responsible Commonwealth Minister may, by written notice given to the person who was, or is, as the case may be, the registered holder of the permit, lease, licence or authority, direct the person to do any or all of the following things within the period specified in the notice:

(a) to:

(i) remove, or cause to be removed, from the vacated area all property brought into that area by any person engaged or concerned in the operations authorised by the permit, lease, licence or authority; or

(ii) make arrangements that are satisfactory to the responsible Commonwealth Minister in relation to that property;

(b) to plug or close off, to the satisfaction of the responsible Commonwealth Minister, all wells made in the vacated area by any person engaged or concerned in those operations;

(c) to provide, to the satisfaction of the responsible Commonwealth Minister, for the conservation and protection of the natural resources in the vacated area;

(d) to make good, to the satisfaction of the responsible Commonwealth Minister, any damage to the seabed or subsoil in the vacated area caused by any person engaged or concerned in those operations.

(3) The period specified in the notice must be reasonable.

(4) Paragraph (2)(c) has effect subject to:

(a) Chapter 2A; and

(b) this Chapter; and

(c) the regulations.

(5) In attaining a state of satisfaction for the purposes of paragraph (2)(b), the responsible Commonwealth Minister must have regard to the principle that plugging or closing off wells should be carried out in a way that minimises damage to the petroleum-bearing qualities of geological formations.

Offence

(6) A person commits an offence if:

(a) the person is subject to a direction under subsection (2); and

(b) the person omits to do an act; and

(c) the omission breaches the direction.

Penalty for contravention of this subsection: 100 penalty units.

316-313 Responsible Commonwealth Minister may take action if a direction has been breached

Scope

(1) This section applies if a direction is given under section 316-311A or 316-312.

Responsible Commonwealth Minister may take action

(2) If:

(a) a direction under section 316-311A has been breached; or

(b) an arrangement under section 316-311A has not been carried out in relation to the licence area; or

(c) a direction under section 316-312 has been breached in relation to the vacated area; or

(d) an arrangement under section 316-312 has not been carried out in relation to the vacated area;

the responsible Commonwealth Minister may do any or all of the things required by the direction or arrangement to be done.

Direction to remove property

(3) If:

(a) a direction is given under section 316-311A; and

(b) any property brought into the licence area by any person engaged or concerned in the operations authorised by the licence has not been removed in accordance with:

(i) the direction; or

(ii) an arrangement under section 316-311A in relation to the licence area;

the responsible Commonwealth Minister may, by written notice published in the Gazette, direct the owner or owners of that property to:

(c) remove the property from the licence area; or

(d) dispose of the property to the satisfaction of the responsible Commonwealth Minister;

within the period specified in the notice.

Note: For sanctions, see section 316-314.

(4) If:

(a) a direction is given under section 316-312; and

(b) any property brought into the vacated area by any person engaged or concerned in the operations authorised by the permit, lease, licence or authority has not been removed in accordance with:

(i) a direction under section 316-312 in relation to the vacated area; or

(ii) an arrangement under section 316-312 in relation to the vacated area;

the responsible Commonwealth Minister may, by written notice published in the Gazette, direct the owner or owners of that property to:

(c) remove the property from the vacated area; or

(d) dispose of the property to the satisfaction of the responsible Commonwealth Minister;

within the period specified in the notice.

Note: For sanctions, see section 316-314.

(5) The period specified in the notice must be reasonable.

(6) If a direction is given under subsection (3) or (4) in relation to property, the responsible Commonwealth Minister must give a copy of the notice to each person whom the responsible Commonwealth Minister believes to be an owner of the property or of any part of the property.

316-314 Removal, disposal or sale of property by responsible Commonwealth Minister - breach of direction

Power to remove, dispose of or sell property

(1) If a direction under subsection 316-313(3) or (4) has been breached in relation to property, the responsible Commonwealth Minister may do any or all of the following things:

(a) in the case of a direction under subsection 316-313(3) - remove, in such manner as the responsible Commonwealth Minister thinks fit, any or all of that property from the licence area concerned;

(b) in the case of a direction under subsection 316-313(4) - remove, in such manner as the responsible Commonwealth Minister thinks fit, any or all of that property from the vacated area concerned;

(c) dispose of, in such manner as the responsible Commonwealth Minister thinks fit, any or all of that property;

(d) if, under subsection 316-313(6), a person was given a copy of the notice of the direction - sell, by public auction or otherwise, as the responsible Commonwealth Minister thinks fit, any or all of that property that belongs, or that the responsible Commonwealth Minister believes to belong, to that person.

Deduction of costs and expenses etc. from proceeds of sale

(2) The responsible Commonwealth Minister may deduct, from the proceeds of a sale under subsection (1) of property that belongs (or that the responsible Commonwealth Minister believes to belong) to a particular person, the whole or a part of:

(a) any costs and expenses incurred by the responsible Commonwealth Minister under that subsection in relation to that property; and

(b) any costs and expenses incurred by the responsible Commonwealth Minister in relation to the doing of any thing required by a direction under section 316-311A or 316-312 to be done by that person; and

(c) any fees or amounts payable by that person under this Act, so long as the fee or amount concerned is due and payable; and

(d) any amounts payable by that person under the Annual Fees Act, so long as the amount concerned is due and payable.

Balance of proceeds of sale to be paid to owner of property

(3) The proceeds of a sale of property under subsection (1), less any deductions under subsection (2), are to be paid to the owner of the property.

Recovery of costs and expenses - removal, disposal or sale of property

(4) If the responsible Commonwealth Minister incurs any costs or expenses under subsection (1) in relation to the removal, disposal or sale of property, the costs or expenses:

(a) are a debt due by the owner of the property to the Commonwealth; and

(b) to the extent to which they are not recovered under subsection (2) - are recoverable in a court of competent jurisdiction.

Recovery of costs and expenses - breach of direction

(5) If the responsible Commonwealth Minister incurs costs or expenses in relation to the doing of anything required by a direction under section 316-311A or 316-312 to be done by a person who is or was the registered holder of a greenhouse gas assessment permit, greenhouse gas holding lease, greenhouse gas injection licence, greenhouse gas search authority or greenhouse gas special authority, the costs or expenses:

(a) are a debt due by the person to the Commonwealth; and

(b) to the extent to which they are not recovered under subsection (2) - are recoverable in a court of competent jurisdiction.

316-315 Removal, disposal or sale of property - limitation of action etc.

Limitation of action etc.

(1) Except as provided by subsection 316-314(4) or section 442D, no action, suit or proceeding lies in relation to the removal, disposal or sale, or the purported removal, disposal or sale, of property under section 316-314.

(2) Section 436 does not apply to an act or matter to the extent to which subsection (1) of this section applies to the act or matter.

Judicial review

(3) This section does not affect:

(a) any rights conferred on a person by the Administrative Decisions (Judicial Review) Act 1977 to apply to a court in relation to:

(i) a decision; or

(ii) conduct engaged in for the purpose of making a decision; or

(iii) a failure to make a decision; or

(b) any other rights that a person has to seek a review by a court or tribunal in relation to:

(i) a decision; or

(ii) conduct engaged in for the purpose of making a decision; or

(iii) a failure to make a decision.

(4) An expression used in subsection (3) has the same meaning as in section 10 of the Administrative Decisions (Judicial Review) Act 1977.