Martin Ferguson (Batman, Australian Labor Party, Minister for Resources and Energy) Share this | Hansard source

by leave—I present a supplementary explanatory memorandum and move government amendments (1) to (93):

(1)    Clause 2, page 1 (line 8) to page 8 (line 3), omit subclause (1), substitute:

        (1)    Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.

Commencement information
Column 1	Column 2
Provision(s)	Commencement
1.  Sections 1 to 3 and anything in this Act not elsewhere covered by this table	The day on which this Act receives the Royal Assent.
2.  Schedule 1	The day after this Act receives the Royal Assent.
3.  Schedule 2	Immediately after the commencement of the provision(s) covered by table item 2.
4.  Schedule 3	The day after this Act receives the Royal Assent.
5.  Schedule 4, Part 1	Immediately after the commencement of the provision(s) covered by table item 3.
6.  Schedule 4, Part 2	Immediately after the commencement of the provision(s) covered by table item 4.
7.  Schedule 4, Part 3	Immediately after the commencement of the provision(s) covered by table item 3.

Note:       This table relates only to the provisions of this Act as originally passed by both Houses of the Parliament and assented to. It will not be expanded to deal with provisions inserted in this Act after assent.

(2)   Schedule 1, page 9 (after line 15), after item 2, insert:

2A  After section 2

Insert:

2A  Object

                 The object of this Act is to provide an effective regulatory framework for:

             (a)    petroleum exploration and recovery; and

             (b)    the injection and storage of greenhouse gas substances;

in offshore areas.

(3)   Schedule 1, page 13 (after line 11), after item 14, insert:

14A  Section 6

Insert:

designated agreement has the meaning given by section 15J.

(4)    Schedule 1, page 13 (after line 25), after item 15A, insert:

15B  Section 6

Insert:

expert advisory committee means a committee established under section 435A.

15C  Section 6

Insert:

expert advisory committee member means a member of an expert advisory committee, and includes the Chair of an expert advisory committee.

(5)    Schedule 1, page 21 (after line 16), after item 49, insert:

49A  Section 6

Insert:

original greenhouse gas assessment permit means a greenhouse gas assessmentpermit that was granted otherwise than by way of renewal.

(6)    Schedule 1, item 79, page 27 (line 12), after “in relation to a”, insert “greenhouse gas assessment permit or”.

(7)    Schedule 1, item 81, page 27 (line 20), omit “15E”, substitute “15F”.

(8)    Schedule 1, page 27 (after line 28), after item 83, insert:

83A  Section 6

Insert:

spatial extent of an eligible greenhouse gas storage formation has the meaning given by subsection 15B(3).

(9)    Schedule 1, page 28 (after line 21), after item 87, insert:

87A  Section 6

Insert:

tied, in relation to a greenhouse gas holding lease or greenhouse gas injection licence, has the meaning given by section 11A.

(10)  Schedule 1, item 98, page 31 (line 6), omit “holding lease”, substitute “titles”.

(11)  Schedule 1, item 98, page 31 (before table item 1), insert:

1A

the renewal, or the grant of a renewal, of a greenhouse gas assessment permit

the grant of a greenhouse gas assessment permit over all of the blocks in relation to which the permit mentioned in column 1 was in force, to begin on the day after the expiry date of the permit mentioned in column 1.

(12) Schedule 1, page 32 (after line 5), after item 100, insert:

100A  After section 11

Insert:

11A  Tied titles

Scope

        (1)    This section applies if a greenhouse gas holding lease (the greenhouse gas lease) is granted under section 249BSI to the registered holder of a retention lease (the petroleum lease).

Tied titles

        (2)    For the purposes of this Act, each of the following:

             (a)    the greenhouse gas lease;

             (b)    a greenhouse gas holding lease granted by way of renewal of the greenhouse gas lease;

             (c)    a greenhouse gas injection licence derived from a lease referred to in paragraph (a) or (b);

is tied to each of the following:

             (d)    the petroleum lease;

             (e)    a retention lease granted by way of renewal of the petroleum lease;

              (f)    a production licence derived from a lease referred to in paragraph (d) or (e).

(13)  Schedule 1, item 101, page 32 (table item 11), after “was in force”, insert “but has not been renewed”.

(14)  Schedule 1, item 109, page 36 (line 27) to page 37 (line 1), omit subsection 15B(3), substitute:

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.

(15)  Schedule 1, item 109, page 37 (lines 8 to 11), omit subsection 15B(5).

(16)  Schedule 1, item 109, page 37 (line 13), omit “subsection (5)”, substitute “this section”.

(17)  Schedule 1, item 109, page 38 (line 1), omit “subsection (5)”, substitute “this section”.

(18)  Schedule 1, item 109, page 40 (lines 17 to 23), omit section 15F, substitute:

15F  Significant risk of a significant adverse impact

Impact of 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)    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.

Impact of greenhouse gas operations

        (3)    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.

        (4)    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.

        (5)    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.

(19)  Schedule 1, item 109, page 41 (after line 27), after section 15H, insert:

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).

(20)  Schedule 1, page 41 (before line 28), before item 110, insert:

109A  Section 21

Insert:

greenhouse gas title means:

             (a)    a greenhouse gas assessment permit; or

             (b)    a greenhouse gas holding lease; or

             (c)    a greenhouse gas injection licence; or

             (d)    a greenhouse gas search authority; or

             (e)    a greenhouse gas special authority.

109B  Section 21

Insert:

petroleum title means:

             (a)    an exploration permit; or

             (b)    a retention lease; or

             (c)    a production licence; or

             (d)    an infrastructure licence; or

             (e)    a pipeline licence; or

              (f)    a special prospecting authority; or

             (g)    an access authority.

109C  Section 21 (definition of title)

Repeal the definition, substitute:

title means:

             (a)    a greenhouse gas title; or

             (b)    a petroleum title.

(21)  Schedule 1, page 43 (after line 23), after item 117, insert:

117A  After subsection 78(1)

Insert:

     (1A)    Express references in this Act to the injection or storage of a substance do not imply that subsection (1) does not operate so as to authorise the permittee:

             (a)    to carry on operations to inject a substance into the seabed or subsoil of an offshore area; or

             (b)    to carry on operations to store (whether on a permanent basis or otherwise) a substance in the seabed or subsoil of an offshore area.

      (1B)    The regulations may provide that an exploration permit authorises the permittee, in accordance with the conditions (if any) to which the permit is subject:

             (a)    to explore in the permit area for a potential greenhouse gas storage formation; and

             (b)    to explore in the permit area for a potential greenhouse gas injection site; and

             (c)    to carry on such operations, and execute such works, in the permit area as are necessary for those purposes.

117B  Subsection 78(2)

Omit “subsection (1)”, substitute “or under subsection (1) or (1B)”.

(22)  Schedule 1, page 49 (after line 15), after item 120, insert:

120A  After subsection 113(1)

Insert:

     (1A)    Express references in this Act to the injection or storage of a substance do not imply that subsection (1) does not operate so as to authorise the lessee:

             (a)    to carry on operations to inject a substance into the seabed or subsoil of an offshore area; or

             (b)    to carry on operations to store (whether on a permanent basis or otherwise) a substance in the seabed or subsoil of an offshore area.

      (1B)    The regulations may provide that a retention lease authorises the lessee, in accordance with the conditions (if any) to which the lease is subject:

             (a)    to explore in the lease area for a potential greenhouse gas storage formation; and

             (b)    to explore in the lease area for a potential greenhouse gas injection site; and

             (c)    to carry on such operations, and execute such works, in the lease area as are necessary for those purposes.

120B  Subsection 113(2)

Omit “subsection (1)”, substitute “or under subsection (1) or (1B)”.

(23)  Schedule 1, item 125, page 54 (line 30) to page 55 (line 2), omit the item, substitute:

125  After subsection 137(1)

Insert:

     (1A)    Express references in this Act to the injection or storage of a substance do not imply that subsection (1) does not operate so as to authorise the licensee:

             (a)    to carry on operations to inject a substance into the seabed or subsoil of an offshore area; or

             (b)    to carry on operations to store (whether on a permanent basis or otherwise) a substance in the seabed or subsoil of an offshore area.

      (1B)    The regulations may provide that a production licence authorises the licensee, in accordance with the conditions (if any) to which the licence is subject:

             (a)    to explore in the licence area for a potential greenhouse gas storage formation; and

             (b)    to explore in the licence area for a potential greenhouse gas injection site; and

             (c)    to carry on such operations, and execute such works, in the licence area as are necessary for those purposes.

      (1C)    The regulations may provide that, if:

             (a)    petroleum is recovered in the licence area of a production licence (the first licence); and

             (b)    operations for the recovery or processing of the petroleum are carried on using a facility located in the licence area of another production licence (the second licence); and

             (c)    a prescribed substance (which may be a hydrocarbon) is recovered as an incidental consequence of the recovery of the petroleum;

the second licence authorises the licensee of the second licence, in accordance with the conditions (if any) to which the second licence is subject:

             (d)    to inject the substance into the seabed or subsoil of the licence area of the second licence; and

             (e)    to store (whether on a permanent basis or otherwise) the substance in the seabed or subsoil of the licence area of the second licence; and

              (f)    to carry on such operations, and execute such works, in the licence area of the second licence as are necessary for those purposes.

     (1D)    Subsections (1B) and (1C) do not limit subsection (1).

125A  Subsection 137(2)

Omit “subsection (1)”, substitute “or under subsection (1), (1B) or (1C)”.

(24)  Schedule 1, page 87 (before line 8), before item 165A, insert:

165AA  At the end of Part 2.10

Add:

226A  Responsible Commonwealth Minister may require information about negotiations for a designated agreement

Scope

        (1)    This section applies to the following applications:

             (a)    an application under subsection 79A(1) for approval to carry on one or more key petroleum operations under a declared exploration permit;

             (b)    an application under section 114A for approval to carry on one or more key petroleum operations under a declared retention lease;

             (c)    an application under subsection 138A(1) for approval to carry on one or more key petroleum operations under a declared production licence;

where either or both of the following are relevant to the responsible Commonwealth Minister’s decision on the application:

             (d)    the existence or non-existence of a designated agreement;

             (e)    the terms of a designated agreement.

Report about negotiations

        (2)    The responsible Commonwealth Minister may, by written notice given to the applicant, require the applicant to give to the responsible Commonwealth Minister, within the period specified in the notice, a written report about negotiations, or attempts at negotiations, relating to:

             (a)    the entering into of the designated agreement; and

             (b)    the terms of the designated agreement.

Consequences of breach of requirement

        (3)    If the applicant breaches the requirement, the responsible Commonwealth Minister may, by written notice given to the applicant:

             (a)    refuse to consider the application; or

             (b)    refuse to take any action, or any further action, in relation to the application.

        (4)    Subsection (3) has effect despite any provision of this Act that requires the responsible Commonwealth Minister to:

             (a)    consider the application; or

             (b)    take any particular action in relation

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