Kim Carr (Victoria, Australian Labor Party, Shadow Minister Assisting the Leader for Science) Share this | Hansard source

I rise to speak in support of this bill. The opposition are supporting this legislation so that the petroleum exploration industry does not suffer from uncertainty brought about by an oversight in failing to require appropriate sign-offs under the Environment Protection and Biodiversity Conservation Act 1999. We have acted quickly to respond to the government's need to ensure completeness in the approvals. The Offshore Petroleum and Greenhouse Gas Storage Amendment Bill 2016 will amend the Offshore Petroleum and Greenhouse Gas Storage Act 2006 to validate past joint authority decisions to grant renewals or extensions to petroleum titles which have prior usage rights.

Urgent action is now required to avoid exploration title uncertainty. Legal advice from the Australian Government Solicitor indicates there is a high risk that petroleum title renewal and extension decisions made without the environment minister's consent are at risk. Importantly, this is a technical issue that has not had an impact on the environmental requirements associated with the titles or work programs consistent with the terms of the titles. Joint authorities generally comprise state, territory and Commonwealth ministers responsible for energy and resources with many decisions made by departmental officials under formal delegation arrangements.

Subsection 359(3) of the Environment Protection and Biodiversity Conservation Act 1999, known as the EPBC Act, requires that a title—that is, a permit, lease or licence—that is a 'prior usage right' must have the written consent of the Commonwealth environment minister or the appropriate delegate before the right can be renewed or extended. A petroleum title is a 'prior usage right' under the EPBC Act if the title was in force on the date of the proclamation of a Commonwealth marine reserve that overlaps the title area. Titles that are a 'prior usage right' are exempt from having to comply with the provisions of the EPBC Act and regulations that relate to a Commonwealth reserve. They are also exempt from having to comply with any management plan for the reserve.

There have been three relevant Commonwealth marine reserve proclamations that have led to petroleum titles becoming prior-usage rights. There was the proclamation of the South-east Commonwealth Marine Reserves Network, in 2007. There was the proclamation of the Commonwealth marine reserves in the South-west, North-west, North, Coral Sea and Temperate East marine regions, November 2012. There was the re-proclamation of the Commonwealth marine reserve South-east, North-west, North, Temperate East and Coral Sea marine regions, in December 2013. It has become apparent that since 2008 an administrative oversight has led to petroleum titles that carry prior-usage rights being renewed and extended by the joint authorities without environment minister's consent, as required under the EPBC Act. The consent of the Minister for the Environment, pursuant to subsection 359(3) of the EPBC Act, was not sought as required for a number of prior-usage rights within the areas over which petroleum titles were granted, due to an administrative oversight.

The administrative error applies to the renewal or the extension of 42 petroleum titles with prior-usage rights, including 33 that are still active. The titles for all companies operating in the Great Australian Bight have not been affected by this administrative error and therefore are still valid. A company wanting to undertake offshore petroleum activities must obtain approval from the independent expert regulator, the National Offshore Petroleum Safety and Environmental Management Authority. This includes those who seek to undertake activity in the Great Australian Bight, such as BP. Notwithstanding the administrative oversight, all petroleum activities have continued to be subject to robust regulatory assessment by the National Offshore Petroleum Safety and Environmental Management Authority against stringent safety, integrity and environmental management requirements that were set out under the Offshore Petroleum and Greenhouse Gas Storage Act 2006 and the various associated regulations.

Affected titleholders that have undertaken offshore petroleum activities have obtained approval from the National Offshore Petroleum Safety and Environmental Management Authority in accordance with the requirements of the environmental, safety and well-integrity regime. All current offshore activities continue uninterrupted and are regulated. The amendments made by this bill will validate past joint authority decisions to grant renewals or extensions of prior-usage-rights titles where the consent of the Minister for the Environment was neither sought nor given under subsection 359(3) of the EPBC Act. Amendments to validate affected decisions are the only way to satisfactorily eliminate the risk that affected decisions pose for titleholders. The Commonwealth minister has advised affected titleholders, together with all state and territory ministers, of the flaw and this particular remedy. I commend the bill to the Senate.