Senate debates

Tuesday, 28 February 2006

Offshore Petroleum Bill 2005; Offshore Petroleum (Annual Fees) Bill 2005; Offshore Petroleum (Registration Fees) Bill 2005; Offshore Petroleum (Repeals and Consequential Amendments) Bill 2005; Offshore Petroleum (Royalty) Bill 2005; Offshore Petroleum (Safety Levies) Amendment Bill 2005

In Committee

6:46 pm

Photo of Christine MilneChristine Milne (Tasmania, Australian Greens) Share this | Hansard source

by leave—I move:

(1)    Page 2 (after line 12), after clause 2, insert:

2A Object

The object of this Act is to ensure that any offshore activities relating to petroleum exploration, recovery, storage and transport are carried out in a way that is consistent with the principles of ecologically sustainable development, especially in relation to the conservation of marine resources.

(2)    Clause 6, page 15 (line 20), after “safe”, insert “and in accordance with the principles of ecologically sustainable development”.

(3)    Clause 6, page 19 (after line 12), after the definition of petroleum, insert:

Petroleum activity means operations carried out under a permit, lease, licence, authority or consent under the Act or the regulations and, in particular, any of the following operations:

             (a)    seismic or other surveys;

             (b)    drilling;

             (c)    construction and installation of a facility;

             (d)    operation of a facility;

             (e)    significant modification of a facility;

              (f)    decommissioning, dismantling or removing a facility;

             (g)    construction and installation of a pipeline;

             (h)    operation of a pipeline;

              (i)    significant modification of a pipeline;

              (j)    decommissioning, dismantling or removing a pipeline;

             (k)    storage, processing or transport of petroleum;

(4)    Clause 6, page 19 (after line 32), after the definition of pipeline provisions, insert:

principles of ecologically sustainable development means but is not limited to the following:

             (a)    decision-making processes should effectively integrate both long-term and short-term economic, environmental, social and equitable considerations;

             (b)    if there are threats of serious or irreversible environmental damage, lack of full scientific certainty should not be used as a reason for postponing measures to prevent environmental degradation;

             (c)    the principle of inter-generational equity—that the present generation should ensure that the health, diversity and productivity of the environment is maintained or enhanced for the benefit of future generations;

             (d)    the conservation of biological diversity and ecological integrity should be a fundamental consideration in decision-making;

             (e)    improved valuation, pricing and incentive mechanisms should be promoted.

(5)    Page 251 (after line 7), after clause 243, insert:

243A Approved environment plan required for a petroleum activity

        (1)    A person must not carry out a petroleum activity unless there is an environment plan approved by the designated authority in force for the activity.

Penalty:                100 penalty units.

        (2)    The contents of an environment plan must be in accordance with the regulations.

(6)    Page 251 (after line 7), after clause 243, insert:

243B Activities must comply with approved environment plan

A person carrying out a petroleum activity for which there is an approved environment plan in force must not carry out the activity in a way that is contrary to the environment plan.

Penalty:   100 penalty units.

(7)    Page 251 (after line 7), after clause 243, insert:

243C Operations must not continue where new environmental risk identified

A person carrying out a petroleum activity for which there is an approved environment plan must not carry out the activity after the identification of:

             (a)    any significant new environmental effect or risk; or

             (b)    a significant increase in an existing environmental effect or risk arising from the activity;

unless the new or increased effect or risk is provided for in the environment plan.

Penalty:   100 penalty units.

Interestingly, we have a 600-page act which has no object. It is unbelievable! I thought I would assist the Senate by providing an object for this act. I move that the object of this act be to ensure that any offshore activities relating to petroleum exploration, recovery, storage and transport are carried out in a way that is consistent with the principles of ecologically sustainable development, especially in relation to the conservation of marine resources. I cannot see that there could be any objection to that, because I then go on to define what the principles of ecologically sustainable development are. Furthermore—and I will get to this in a minute—I move for the incorporation of the precautionary principle.

The reason I argue that it is essential that we put in an object and a definition of ecologically sustainable development is that the subordinate regulations do provide specifically for ecologically sustainable development but this is not provided for in the act, and it ought to be. The reason that it ought to be in the act is that, at the moment, whereas the regulations state that the object is to ensure that any petroleum activity in an adjacent area is carried out in a way that is consistent with the principles of ecologically sustainable development, there is absolutely no obligation on the designated authority when assessing environmental plans to consider ecologically sustainable development. There is no point in having it in the regulations if there is no obligation on the designated authority when you are assessing the environment plans to consider ecologically sustainable development, so let us put it in the act as well as in the regulations. I think that it is imperative that we move to do that.

Secondly, with regard to the precautionary principle, I would like some clarification from Senator Colbeck. I said yesterday that, when a permit or licence is given, a company can potentially hold it for 26 years. That is as I see it, and I would like some clarification as to whether that is the case. I will explain the logic for that. If an exploration permit lasts six years and a renewal of an exploration permit lasts for another five years, with the option for a retention lease for another 15 years if the area is not economically viable in current circumstances, it does seem possible for a company to have a commercial interest in an area for up to 26 years before production occurs.

Progress reported.

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