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2010-2011
THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA
SENATE
OFFSHORE PETROLEUM AND GREENHOUSE GAS STORAGE AMENDMENT (NATIONAL
REGULATOR) BILL 2011
REVISED EXPLANATORY MEMORANDUM
(Circulated by authority of the Minister for Resources and Energy,
the Honourable Martin Ferguson AM, MP)
THIS EXPLANATORY MEMORANDUM TAKES ACCOUNT OF AMENDMENTS MADE BY THE HOUSE
OF REPRESENTATIVES TO THE BILL AS INTRODUCED
OFFSHORE PETROLEUM AND GREENHOUSE GAS STORAGE AMENDMENT (NATIONAL
REGULATOR) BILL 2011
GENERAL OUTLINE
The Offshore Petroleum and Greenhouse Gas Storage Amendment (National
Regulator) Bill 2011 ('National Regulator Bill') will amend the Offshore
Petroleum and Greenhouse Gas Storage Act 2006. It will establish two new
regulatory bodies to administer and regulate petroleum and greenhouse gas
storage operations in Commonwealth waters in the Australian offshore area.
The new bodies will replace the Designated Authorities, who are State and
Northern Territories Ministers who, through their departments, have
performed functions and exercised powers conferred directly on them by the
Offshore Petroleum and Greenhouse Gas Storage Act 2006 and its predecessor
Act the Petroleum (Submerged Lands) Act 1967.
There will be no change to the Joint Authority arrangement with respect to
petroleum titles that has been in place since 1980. The Joint Authority
for each State and the Northern Territory comprises the 'responsible
Commonwealth Minister' (currently the Minister for Resources and Energy)
and the relevant State or Northern Territory Minister. The Joint
Authorities make the major decisions under the Act concerning the granting
of petroleum titles, the imposition of title conditions and the cancelling
of titles, as well as core decisions about resource management and resource
security.
In the case of greenhouse gas titles, the corresponding decision-maker will
continue to be the 'responsible Commonwealth Minister'.
The two new regulatory bodies are the National Offshore Petroleum Safety
and Environmental Management Authority ('NOPSEMA') and the National
Offshore Petroleum Titles Administrator ('Titles Administrator').
NOPSEMA will be an expanded version of the National Offshore Petroleum
Safety Authority ('NOPSA'). NOPSA, which is a body corporate, will be
continued in existence under the new name and will have an extended range
of functions in relation to petroleum and greenhouse gas operations. Its
principal functions will be: occupational health and safety; structural
integrity of facilities, wells and well-related equipment; environmental
management; and regulation of day-to-day petroleum operations. NOPSEMA
will appoint and deploy OHS inspectors and petroleum (and greenhouse gas)
project inspectors. NOPSEMA, like NOPSA, will be fully funded by cost-
recovery levies and fees, managed by means of a Special Account under the
Financial Management and Accountability Act 1997.
The Titles Administrator will be the holder of an APS office within the
Department of Resources, Energy and Tourism and will be assisted
principally by APS employees within the Department. The Titles
Administrator's principal functions will be to provide information,
assessments, analysis, reports, advice and recommendations to members of
the Joint Authorities and the 'responsible Commonwealth Minister' in
relation to the performance of those Ministers' functions and the exercise
of their powers, the collection, management and release of data, titles
administration, approval and registration of transfers and dealings, and
the keeping of the registers of petroleum and greenhouse gas titles.
NOPSEMA and the Titles Administrator will each have an express function of
cooperating with the other in matters relating to the administration and
enforcement of the Act and regulations. While it is an important aspect of
the new regime that the two bodies will act entirely independently of each
other in their decision-making and regulatory practices, a level of
administrative coordination between the agencies will assist in minimising
any potential impact on the industry of having offshore operations
regulated by two different entities.
BACKGROUND
Following a High Court decision in 1975 that confirmed that the
Commonwealth had jurisdiction and the right to explore for and exploit
seabed resources of the territorial sea and continental shelf (i.e. in all
offshore waters), in June 1979 the Commonwealth and the States agreed to a
division of offshore rights, powers and responsibilities known collectively
as the Offshore Constitutional Settlement (OCS). Pursuant to the OCS, the
Commonwealth Parliament enacted the Coastal Waters (State Title) Act 1980
and the Coastal Waters (State Powers) Act 1980, and equivalent Acts for the
Northern Territory, by which the Commonwealth conferred on the States and
the Northern Territory the same title to the sea and seabed of the (3
nautical mile) territorial sea and the same legislative jurisdiction as the
States and the Territory would have had if that part of the territorial sea
had been within the limits of the States or the Territory.
Following the OCS, an amendment confined the application of the then
Petroleum (Submerged Lands) Act 1967 (now the Offshore Petroleum and
Greenhouse Gas Storage Act 2006) to waters outside the three nautical mile
limit. The States and Northern Territory enacted mirror legislation
applying in waters landward of that boundary. Again as provided by the
OCS, under the Commonwealth Act, the States and Northern Territory shared
in the administration of the Commonwealth Act under the Joint Authority and
Designated Authority arrangements described in the Outline.
Post-OCS, the most significant legislative development has been the
establishment of the National Offshore Petroleum Safety Authority. This
followed the 2001 Commonwealth Government report on offshore safety: Future
Arrangements for the Regulation of Offshore Petroleum Safety. The primary
conclusion of this Report
was "that the Australian legal and administrative framework, and the day to
day application of this framework, for regulation of health, safety and
environment in the offshore petroleum industry is complicated and
insufficient to ensure appropriate,
effective and cost efficient regulation of the offshore petroleum industry.
Much would require improvement for the regime to deliver world-class
safety practice."
Since 1 January 2005, NOPSA has been the regulator of occupational health
and safety in Commonwealth waters under the Commonwealth Act and in State
and Northern Territory coastal waters under the State and Northern
Territory Petroleum (Submerged Lands) Acts.
The current reform process
The Productivity Commission (PC) Review of Regulatory Burden on the
Upstream Petroleum (Oil & Gas) Sector (April 2009) identified significant
unnecessary regulatory burden on the sector and made 30 recommendations
including the establishment of a national offshore petroleum regulator in
Commonwealth waters and the implementation of regulatory best practice.
The Varanus Island gas pipeline explosion in 2008 and the uncontrolled
release of oil and gas from the Montara Wellhead Platform in 2009 also
highlighted inadequacies in the offshore petroleum regulatory regime. Of
particular concern was a shortage of technical staff in the Designated
Authorities' Departments with the necessary qualifications, skills and
experience. There was also a perceived lack of independence of staff with
responsibility for regulatory oversight of well integrity and environmental
management, located as they were in the State and Northern Territory
Departments that were responsible for resource development.
The June 2010 Report of the Montara Commission of Inquiry recommended that
the PC's proposal to establish a national offshore petroleum regulator
should be pursued at a minimum. The Montara Commission recommended that a
single, independent regulatory body should be created, looking after safety
as a primary objective, along with well integrity and environmental
approvals. Industry policy and resource development and promotion
activities should continue to reside in government departments and not with
the independent regulatory agency.
The amendments in the National Regulator Bill reflect extensive
consultation with jurisdictions, industry and NOPSA and will implement the
institutional reforms arising from the PC Review and the Montara Commission
of Inquiry. Should these reforms not be progressed, Australia will miss an
opportunity to strengthen the regulation of offshore petroleum activities
and reduce unnecessary regulatory burden and will forgo significant
potential national income benefits. Reform of the sector is a priority of
the Council of Australian Governments (COAG)'s National Partnership
Agreement to Deliver a Seamless National Economy.
Jurisdictional areas in which NOPSEMA and the Titles Administrator will or
may operate:
a) Commonwealth waters - these are the waters covered by the Commonwealth
Offshore Petroleum and Greenhouse Gas Storage Act 2006, i.e. waters of
the territorial sea between 3 and 12 nautical miles as well as the
continental shelf, and the offshore areas of external Territories (such
as Ashmore and Cartier Islands). NOPSEMA and the Titles Administrator
will function in all Commonwealth waters.
b) Designated coastal waters of each State and the Northern Territory -
these are the waters covered by the State and Northern Territory
Petroleum (Submerged Lands) Acts, i.e. the first 3 nautical miles of the
territorial sea adjacent to each State and the Northern Territory, plus
(in the case of Western Australia) some historic petroleum title areas
landward of the (3-mile) territorial sea baseline but external to the
State. In designated coastal waters, functions and powers may be
conferred on NOPSEMA by the relevant State's or the Northern Territory's
Petroleum (Submerged Lands) Act and regulations. Functions and powers
may also be conferred on the Titles Administrator.
c) Eligible coastal waters (WA only) - these are waters landward of the (3-
mile) territorial sea baseline that are external to the State. Only
Western Australia has any offshore resources activity in waters in this
category. WA is able to confer functions and powers on NOPSEMA on the
same basis as in designated coastal waters.
d) Any State/NT waters or onshore - A State or the Northern Territory may
contract with NOPSEMA for the provision of regulatory services. In
relation to the provision of services onshore, constitutional
restrictions apply.
FINANCIAL IMPACT STATEMENT
Nil financial impact on the Australian Government Budget. This Bill will
enable the Commonwealth to retain amounts received under the Offshore
Petroleum and Greenhouse Gas Storage (Registration Fees) Act 2006
(Registration Fees Act), which are currently required to be paid to the
States and the Northern Territory, in order to fund the establishment of
NOPTA and expansion of NOPSA to NOPSEMA.
After these costs have been funded, this Bill will repeal the Registration
Fees Act. The Bill also repeals the Offshore Petroleum and Greenhouse Gas
Storage (Annual Fees) Act 2006. NOPTA and NOPSEMA will operate on a cost-
recovery basis with levies raised by the offshore petroleum industry,
imposed by the Offshore Petroleum and Greenhouse Gas Storage (Regulatory
Levies) Act 2003.
REGULATORY IMPACT STATEMENT
This Bill does not impose any new regulatory burden on the offshore
petroleum industry. As discussed in the General Outline, the amendments in
this Bill reflect extensive consultation with jurisdictions, industry and
NOPSA, and implement measures to reduce unnecessary regulatory burden on
the offshore petroleum industry.
NOTES ON INDIVIDUAL CLAUSES
Clause 1 - Short title
Clause 1 is a formal provision specifying the short title of the Act.
Clause 2 - Commencement
Clause 2 of the Bill specifies the time of commencement for the provisions
of the Offshore Petroleum and Greenhouse Gas Storage Amendment (National
Regulator) Act 2011 (National Regulator Amendment Act).
Sections 1 to 3 of the National Regulator Amendment Act will commence on
the day the Act receives Royal Assent.
Schedule 1 will commence on the later of 1 July 2011 and the first day of
the month following the month in which the National Regulator Amendment Act
receives Royal Assent. This will ensure that payments to the States and
the Northern Territory (NT) of amounts received by the Commonwealth under
the Offshore Petroleum and Greenhouse Gas Storage (Registration Fees) Act
2006 (Registration Fees Act) will not cease until the amendments to the
Offshore Petroleum and Greenhouse Gas Storage Act 2006 (OPGGS Act) to
establish the National Offshore Petroleum Titles Administrator (NOPTA) and
the National Offshore Petroleum Safety and Environmental Management
Authority (NOPSEMA) have been passed by Parliament and approved by the
Governor-General. Following the commencement of this Schedule, the
Commonwealth will retain these amounts to fund the establishment of NOPTA
and expansion of NOPSA to NOPSEMA. In the interim period, the States and
NT will continue to receive these amounts to fund administration of the
OPGGS Act.
Part 1 of Schedule 2 will commence on a day to be fixed by Proclamation.
This will ensure that the provisions relating to the functions, powers and
obligations of NOPTA and NOPSEMA, and removing the functions, powers and
obligations on the Designated Authority (DA), will not commence until NOPTA
and NOPSEMA have been established.
However, if any of the provisions of this Part do not commence within 12
months of the day on which the National Regulator Amendment Act received
Royal Assent, the provisions will commence on the day after the end of the
12 month period. A 12 month period has been set to ensure adequate time to
establish NOPTA and NOPSEMA before the commencement of this Part. There is
a higher risk that setting a shorter period before automatic commencement,
such as 6 months, will not enable sufficient time for necessary work to
establish NOPTA and NOPSEMA prior to the commencement of this Part.
Part 2 of Schedule 2 will commence on the same day as Part 1 of Schedule 2.
However, if Schedule 4 (repeal of the Registration Fees Act) commences on
or before that time, the provisions in this Part will not commence at all.
This ensures that NOPTA is given the power to assess and determine
registration fee amounts from the time it has been established until the
repeal of the Registration Fees Act.
Part 3 of Schedule 2 will commence on the day the National Regulator
Amendment Act receives Royal Assent. This will ensure the continuity of the
appointments of the CEO of the National Offshore Petroleum Safety Authority
(NOPSA) and members of the NOPSA Board (subject to the power of the
responsible Commonwealth Minister to terminate an appointment prior to the
commencement of Part 1 of Schedule 2).
Part 4 of Schedule 2 will commence at the same time as the commencement of
Part 1 of Schedule 2 to the Bill. This will ensure that transitional
provisions relating to acts of the DA and the continuity of Registers of
titles commence at the same time as the functions and powers of the DA are
transferred to NOPTA, NOPSEMA or the Joint Authority (JA) (as applicable),
as provided for in Part 1 of Schedule 2.
Schedule 3 will commence at the same time as the commencement of Part 1 of
Schedule 2 to the Bill. This will ensure that annual fees imposed by the
Offshore Petroleum and Greenhouse Gas Storage (Annual Fees) Act 2006 are no
longer imposed once NOPTA and NOPSEMA, which will operate on a cost-
recovery basis with levies raised by the offshore petroleum industry under
the Offshore Petroleum and Greenhouse Gas Storage (Regulatory Levies) Act
2003, commence operations.
Schedule 4, which repeals the Registration Fees Act, will commence on the
later of the following:
. 24 months after the commencement of Schedule 1 (which enables the
Commonwealth to retain registration fees), and
. the 15th day of the month following the month in which the total
amounts retained by the Commonwealth under the Registration Fees Act
reach the lesser of $30.6 million (the estimated cost for the
establishment of NOPTA and expansion to NOPSEMA), or the actual total
costs to establish NOPTA and expand to NOPSEMA. In the latter case,
when the amount of the total costs are known, the amount will be
announced by Ministerial declaration.
This commencement timing for Schedule 4 will ensure that the Registration
Fees Act is repealed, and no further registration fees imposed on offshore
petroleum and greenhouse gas titleholders, after the costs of establishing
NOPTA and expanding NOPSA to NOPSEMA have been funded by the continued
collection of the registration fees.
Schedule 5 has retrospective operation with a commencement date of 9
October 2009. The reason for retrospectivity is that the provision in this
Schedule effects a technical amendment by correcting a drafting error in
the Offshore Petroleum and Greenhouse Gas Storage Legislation Amendment Act
2009 (2009 Legislation Amendment Act). The commencement date of 9 October
2009 reflects the date that the provision would have commenced had it been
included correctly in the 2009 Legislation Amendment Act.
Schedule 6 will commence on the day after the Act receives Royal Assent.
Clause 3 - Schedule(s)
This clause gives effect to the provisions in the Schedules to this Bill.
Schedule 1 - Amendments relating to payments to the States and the Northern
Territory
Offshore Petroleum and Greenhouse Gas Storage Act 2006
Item 1 - Subparagraph 76(1)(a)(ii)
This item omits the word "or" at the end of subparagraph 76(1)(a)(ii).
Item 2 - Subparagraph 76(1)(a)(iii)
This item repeals subparagraph 76(1)(a)(iii), removing the requirement for
the Commonwealth to pay to the States and the NT amounts equal to the
amounts received by the Commonwealth under the Registration Fees Act in
respect of the offshore area of that State or NT. The Commonwealth will
retain these amounts to fund the establishment of NOPTA and expansion of
NOPSA to NOPSEMA. After these costs have been funded, the Registration
Fees Act will be repealed. See Item 1 of Part 1 of Schedule 4.
Item 3 - Application of amendments
This item applies the amendments made by Schedule 1 to amounts received by
the Commonwealth under the Registration Fees Act after the commencement of
this item. Any amounts received prior to the commencement of this item
must continue to be paid to the States/NT.
Schedule 2 - General amendments
Part 1 - General Amendments
Offshore Petroleum and Greenhouse Gas Storage Act 2006
Item 1 - Section 4
This item omits the content of the existing simplified outline of the OPGGS
Act that describes the allocation of responsibilities for the
administration of the Act (including references to the DA), and replaces it
with new content for the simplified outline to reflect the new allocation
of responsibilities for administration of the Act as a result of the
amendments made by this Bill.
Item 2 - Section 7 (subparagraphs (a)(ii) and (iii) of the definition of
approved)
This item repeals the subparagraphs.
Item 3 - Section 7 (paragraph (b) of the definition of approved)
This item substitutes the term "Designated Authority" with "Titles
Administrator".
Item 4 - Section 7 (definition of approved)
This item omits the words "to the expression approved site plan", and
replaces them with the words:
"to:
(c) the expression approved site plan; or
(d) section 286A; or
(e) section 650; or
(f) section 695B(3); or
(g) section 695F; or
(h) section 774."
Item 5 - Section 7 (definition of constitutional corporation)
This item defines the term "constitutional corporation" to mean a
corporation to which paragraph 51(xx) of the Constitution applies.
Item 6 - Section 7 (definition of Designated Authority)
This item provides a new definition for the term "Designated Authority", to
reflect that the term is now used only in provisions dealing with
historical matters relating to DAs.
Item 7 - Section 7 (definition of non-OHS structural integrity)
This item omits the definition of "non-OHS structural integrity" from the
OPGGS Act. As all aspects of structural integrity will be regulated by
NOPSEMA, there is not a need to differentiate between non-OHS and OHS-
related structural integrity.
Item 8 - Section 7 (definition of non-OHS structural integrity law)
This item omits the definition of "non-OHS structural integrity law". See
item 5 of Part 1 of Schedule 2.
Item 9 - Section 7
This item defines the term "NOPSEMA" as the National Offshore Petroleum
Safety and Environmental Management Authority.
Item 10 - Section 7 (definition of referable title)
This item repeals the definition of "referable title". The concept related
to petroleum titles that overlap a greenhouse gas title area and was part
of the regime for registration of transfers and dealings in Chapter 4.
There was a process for the Designated Authority to refer to the
responsible Commonwealth Minister any application for registration of a
transfer of, or a dealing in, a referable title. The process is made
unnecessary by the abolition of the Designated Authorities, and the
transfer to the Titles Administrator of the function of registering
transfers and dealings in relation to both petroleum and greenhouse gas
titles.
Item 11 - Section 7
This item defines the term "Regulatory Levies Act" as the Offshore
Petroleum and Greenhouse Gas Storage (Regulatory Levies) Act 2003.
Item 12 - Section 7 (paragraph (a) of the definition of responsible
Northern Territory Minister)
This item revises the definition of the term "responsible Northern
Territory Minister" to reflect the drafting of the provisions of the
Northern Territory Petroleum (Submerged Lands) Act that authorise the
Northern Territory Minister to act as a member of the Joint Authority for
the NT offshore area.
Item 13 - Section 7 (paragraph (a) of the definition of responsible State
Minister)
This item revises the definition of the term "responsible State Minister"
to reflect the drafting of the provisions of the Petroleum (Submerged
Lands) Act of each of the States that authorise the State Minister to act
as a member of the Joint Authority for the State offshore area.
Item 14 - Section 7 (definition of Safety Authority)
This item repeals the definition of "Safety Authority", to reflect the
transition from the Safety Authority to NOPSEMA.
Item 15 - Section 7
This item defines the term "Secretary" as the Secretary of the Department.
Item 16 - Section 7 (paragraph (e) of the definition of structural
integrity)
Item 16 repeals paragraph (e) of the definition of structural integrity and
substitutes new paragraphs (e) to (n). One of the main effects of the
change is to add 'systems integrity' to the categories of integrity to
which the definition extends, with 'systems integrity' including integrity
of electrical, electronic, hydraulic, chemical, dynamic positioning and
other systems. The other main effect is that the definition extends only
to integrity in connection with:
i) the containment of petroleum, greenhouse gas or another
substance; or
ii) occupational health and safety.
Structural integrity that is not related to containment of substances or
OHS is excluded from the definition, as it is not within the range of risks
that are regulated by NOPSEMA.
Item 17 - Section 7 (definition of structural integrity law)
This item revises the definition of the term "structural integrity law" to
include the provisions of the OPGGS Act that relate to structural integrity
of facilities, wells and well-related equipment, in addition to provisions
of the regulations that relate to those matters.
Item 18 - Section 7 (paragraph (d) of the definition of title)
This item omits paragraph (d) of the definition of "title", which refers to
section 76. Section 76 is repealed by this Bill.
Item 19 - Section 7 (after paragraph (h) of the definition of title)
This item inserts a new paragraph (ha), to refer to the definition of
"title" in the new subsection 574A(1). See item 333 of Part 1 of Schedule
2.
Item 20 - Section 7 (at the end of the definition of title area)
This item inserts a new alternate paragraph (d), in relation to use of the
term "title area" in the new section 586A, to refer to the definition of
"applicable date and title area" in the new subsection 586A(7). See item
354 of Part 1 of Schedule 2.
Item 21 - Section 7
This item defines the term "Titles Administrator" as the National Offshore
Petroleum Titles Administrator.
Item 22 - Subsection 16(1)
This item omits the term "Designated Authority" and replaces it with term
"Titles Administrator", to provide NOPTA with the powers previously
exercisable by the DA under this subsection.
Item 23 - Section 30
This item omits the reference to a direction given by the responsible
Commonwealth Minister in his or her capacity as the DA for an offshore area
to reflect the abolishment of the DAs and therefore the role of the
responsible Commonwealth Minister as a member of the JA only.
Items 24 and 25 - Subsection 44(1) (heading to table column headed "The
Designated Authority may issue an instrument varying..."); Subsection 45(1)
These items omit the term "Designated Authority" and replace it with the
term "Titles Administrator", to provide NOPTA with the powers previously
exercisable by the DA under these subsections.
Item 26 - Part 1.3 (heading)
This item repeals the heading of Part 1.3 and substitutes a new heading for
this Part titled "Joint Authorities".
Item 27 - Subsection 61(1)
This item omits the term "Designated Authority" and replaces it with the
term "Titles Administrator", to make the Titles Administrator responsible
for keeping records of decisions of Joint Authorities under this section.
Item 28 - Subsection 61(1)
This item omits "the Joint Authority for a State or the Northern Territory"
and replaces it with the words "a Joint Authority". The effect of this
change is to bring decisions of the Joint Authority for the offshore area
of an external Territory within the scope of the section.
Item 29 - Subsection 61(2)
This item inserts the words "in relation to the Joint Authority for a State
or the Northern Territory". This leaves the other Joint Authorities to be
dealt with under the new subsection 61(2A).
Item 30 - After subsection 61(2)
This item inserts a new subsection 61(2A) that makes the same provision in
relation to the Joint Authorities for
(a) the Eastern Greater Sunrise Offshore area; and
(b) an external Territory;
as subsection 61(2) does in relation to the Joint Authorities for the
States and Northern Territory.
The combined effect of items 28-30 is that, in relation to all Joint
Authorities, a record kept by the Titles Administrator is prima facie
evidence that the decision was duly made as recorded, if the record is
signed by a person who was, or was a member of, the Joint Authority at the
time when the decision was made. It is important that the record be signed
by a person who was, or was a member of, the Joint Authority, in order to
underpin the provision in section 62 for the Titles Administrator to sign
documents on behalf of the Joint Authority.
Items 31 and 32 - Subsection 62(1)
Item 31 omits the term "Designated Authority" and replaces it with the term
"Titles Administrator". Item 32 omits "the Joint Authority for a State or
the Northern Territory" and replaces it with "a Joint Authority". Taken
together, these items amend subsection 62(1) so that it provides that if a
document is signed by the Titles Administrator on behalf of a Joint
Authority, the document is taken to have been duly executed by the Joint
Authority. While the Titles Administrator will not personally have been
the Joint Authority, or a member of the Joint Authority, that made the
actual decision, the Titles Administrator's record of the decision will
have been signed by such a person, so the integrity of the process is
preserved.
Item 33 - Section 63
This item omits "the Joint Authority for a State or the Northern Territory"
and replaces it with the words "a Joint Authority". This brings all of the
Joint Authorities within the scope of section 63.
Item 34 - Section 63
This item omits the term "Designated Authority" and replaces it with the
term "Titles Administrator". As amended by items 33 and 34, section 63 now
provides that all communications to or by any Joint Authority are to be
made through the Titles Administrator.
Item 35 - Subsection 65(1)
This item omits "the Joint Authority for a State or the Northern Territory"
and replaces it with the words "a Joint Authority".
Item 36 - Section 65
This item omits the term "Designated Authority" and replaces it with the
term "Titles Administrator". Taken together, items 35 and 36 amend
subsection 65(1) so that it enables the Titles Administrator to execute or
issue an instrument (including a title), give a notice or communicate a
matter on behalf of any Joint Authority, in accordance with a decision of
the Joint Authority. The requirement in subsection 61(2) that the Titles
Administrator's record of the decision of a Joint Authority be signed
personally by the Joint Authority or a member of the Joint Authority is
important to underpin this arrangement.
Item 37 - Division 2 of Part 1.3
This item reflects the abolition of the DAs in that it repeals the whole of
Division 2 which establishes the DAs and confers their functions and
powers.
Item 38 - Sections 76 and 77
This item repeals sections 76 and 77 which require that the Commonwealth
pay various amounts, including those collected under the OPGGS Act, the
Annual Fees Act and the Registration Fees Act, to the States and Northern
Territory.
Items 39 and 40 - Paragraph 103(1)(b); Subsection 104(3) (note 3)
These items omit the term "Designated Authority" and replace it with the
term "Titles Administrator".
Item 41 - Subsection 110(6) (note 3)
This item omits the term "Designated Authority" and replaces it with the
term "Titles Administrator".
Item 42 - Subsection 115(4) (note 3)
This item omits the term "Designated Authority" and replaces it with the
term "Titles Administrator".
Item 43 - Section 119
This item omits the term "Designated Authority", wherever occurring in this
section, and replaces it with the term "Titles Administrator".
Items 44 to 51 - Subsection 136(5); Subsection 136(6); Subsection 136(7);
Paragraph 140(1)(b); Subsection 141(1); Subsection 141(2) (note 3);
Paragraph 141(3)(b); Subsection 141(4)
These items omit the term "Designated Authority (or "The Designated
Authority" in subsections 136(6) and 141(4)), wherever occurring, and
replace it with the term "Titles Administrator" (or "The Titles
Administrator" in subsections 136(6) and 141(4)).
Item 52 - After section 143
Item 52 inserts new section 143A which imposes a time limit for the making
by the Joint Authority of a decision in relation to the grant, or refusal
to grant, a retention lease. The decision must be made within the period
that begins when the application is made and (subject to agreement with the
applicant) runs for a prescribed number of days. The applicant and the
Joint Authority may enter into an agreement specifying a different number
of days, with the agreement able to be varied or terminated by the parties.
The Joint Authority is not required to comply with the time limit until a
period is prescribed for this category of decision under the regulations.
The intention here is to allow regulators a 'period of grace' at the
commencement of the new regulatory arrangements, because the consideration
of applications may require knowledge of the prior history of the title or
of the applicant's record of compliance and other relevant material, which
requires access to the former Designated Authorities' records. These
records have been collected, stored and managed by the Designated
Authorities since 1980, in paper file form. The transfer of custody of
these records will be a major exercise, and it is possible that it will not
be complete by the time the Titles Administrator commences operations.
This would require the Titles Administrator to arrange for access to
material still in the hands of the Designated Authorities' departments.
There is a 'stop-the-clock' mechanism that commences whenever further
information is sought from the applicant and ceases when the information is
provided.
A failure by the decision-maker to comply with the time limit does not
affect the validity of the decision. This is stated expressly in the
section in order to ensure that an administrative failure does not affect
the validity of instruments issued, such as titles. A risk of invalidity
would severely penalise the applicant, which is not the intent of the
provision, and would cast doubt on the integrity of the system of titles.
The decision to prescribe time limit periods in regulations rather than
stating them in the Act was made for similar reasons to those set out
above. If the periods were stated in the Act, it would be necessary to
provide excessively long periods to allow for the possibility of
unavoidable delays in particular cases, where reference needed to be made
to records either not yet transferred or very recently transferred from the
Designated Authorities' departments. Having the periods prescribed by
regulations enables the periods to keep pace with improvements in
administrative efficiency as the new Titles Administrator's processes
become established.
Section 286C requires that, if a Joint Authority contravenes a time limit
requirement during a financial year, the Titles Administrator must, within
60 days after the end of the financial year, prepare a report describing
the contravention and give the report to the responsible Commonwealth
Minister. The Minister must table the report in each House of the
Parliament within 15 days after receiving it.
Items 53 and 54 - Subsection 147(1); Subsection 147(2) (note 3)
These items omit the term "Designated Authority" and replace it with the
term "Titles Administrator".
Item 55 - After section 149
Item 55 inserts new section 149A which imposes a time limit for the making
by the Joint Authority of a decision in relation to the grant of a
petroleum retention lease. The decision must be made within the period that
begins when the application is made and (subject to agreement with the
applicant) runs for a prescribed number of days. The applicant and the
Joint Authority may enter into an agreement specifying a different number
of days, with the agreement able to be varied or terminated by the parties.
The Joint Authority is not required to comply with the time limit until a
period is prescribed for this category of decision under the regulations.
The intention here is to allow regulators a 'period of grace' at the
commencement of the new regulatory arrangements, because the consideration
of applications may require knowledge of the prior history of the title or
of the applicant's record of compliance and other relevant material, which
requires access to the former Designated Authorities' records. These
records have been collected, stored and managed by the Designated
Authorities since 1980, in paper file form. The transfer of custody of
these records will be a major exercise, and it is possible that it will not
be complete by the time the Titles Administrator commences operations.
This would require the Titles Administrator to arrange for access to
material still in the hands of the Designated Authorities' departments.
There is a 'stop-the-clock' mechanism that commences whenever further
information is sought from the applicant and ceases when the information is
provided.
A failure by the decision-maker to comply with the time limit does not
affect the validity of the decision. This is stated expressly in the
section in order to ensure that an administrative failure does not affect
the validity of instruments issued, such as titles. A risk of invalidity
would severely penalise the applicant, which is not the intent of the
provision, and would cast doubt on the integrity of the system of titles.
The decision to prescribe time limit periods in regulations rather than
stating them in the Act was made for similar reasons to those set out
above. If the periods were stated in the Act, it would be necessary to
provide excessively long periods to allow for the possibility of
unavoidable delays in particular cases, where reference needed to be made
to records either not yet transferred or very recently transferred from the
Designated Authorities' departments. Having the periods prescribed by
regulations enables the periods to keep pace with improvements in
administrative efficiency as the new Titles Administrator's processes
become established.
Section 286C requires that, if a Joint Authority contravenes a time limit
requirement during a financial year, the Titles Administrator must, within
60 days after the end of the financial year, prepare a report describing
the contravention and give the report to the responsible Commonwealth
Minister. The Minister must table the report in each House of the
Parliament within 15 days after receiving it.
Items 56 and 57 - Subsections 153(1) and (3); Subsection 153(4) (note 3)
These items omit the term "Designated Authority" and replace it with the
term "Titles Administrator".
Item 58 - After section 155
Item 58 inserts new section 155A which imposes a time limit for the making
by the Joint Authority of a decision in relation to the grant, or refusal
to grant, a petroleum retention lease. The decision must be made within the
period that begins when the application is made and (subject to agreement
with the applicant) runs for a prescribed number of days. The applicant
and the Joint Authority may enter into an agreement specifying a different
number of days, with the agreement able to be varied or terminated by the
parties.
The Joint Authority is not required to comply with the time limit until a
period is prescribed for this category of decision under the regulations.
The intention here is to allow regulators a 'period of grace' at the
commencement of the new regulatory arrangements, because the consideration
of applications may require knowledge of the prior history of the title or
of the applicant's record of compliance and other relevant material, which
requires access to the former Designated Authorities' records. These
records have been collected, stored and managed by the Designated
Authorities since 1980, in paper file form. The transfer of custody of
these records will be a major exercise, and it is possible that it will not
be complete by the time the Titles Administrator commences operations.
This would require the Titles Administrator to arrange for access to
material still in the hands of the Designated Authorities' departments.
There is a 'stop-the-clock' mechanism that commences whenever further
information is sought from the applicant and ceases when the information is
provided.
A failure by the decision-maker to comply with the time limit does not
affect the validity of the decision. This is stated expressly in the
section in order to ensure that an administrative failure does not affect
the validity of instruments issued, such as titles. A risk of invalidity
would severely penalise the applicant, which is not the intent of the
provision, and would cast doubt on the integrity of the system of titles.
The decision to prescribe time limit periods in regulations rather than
stating them in the Act was made for similar reasons to those set out
above. If the periods were stated in the Act, it would be necessary to
provide excessively long periods to allow for the possibility of
unavoidable delays in particular cases, where reference needed to be made
to records either not yet transferred or very recently transferred from the
Designated Authorities' departments. Having the periods prescribed by
regulations enables the periods to keep pace with improvements in
administrative efficiency as the new Titles Administrator's processes
become established.
Section 286C requires that, if a Joint Authority contravenes a time limit
requirement during a financial year, the Titles Administrator must, within
60 days after the end of the financial year, prepare a report describing
the contravention and give the report to the responsible Commonwealth
Minister. The Minister must table the report in each House of the
Parliament within 15 days after receiving it.
Item 59 - Paragraph 157(1)(b)
This item omits the words "the Designated Authority" and replaces it with
the words "the Titles Administrator".
Item 60 - Subsection 157(2) (note)
This item omits the term "Designated Authority" and replaces it with the
term "Titles Administrator", to reflect that section 63 has been amended to
require all communications to the JA to be made through NOPTA. See items
33 and 34 of Part 1 of Schedule 2.
Item 61 - Subsection 166(2) (at the end of the note)
This item adds the words "or 587A" to reflect the addition of a new section
587A dealing with remedial directions following termination.
Items 62 to 67 - Subsection 166(6) (note); Subsections 168(2) and (3);
Subsection 168(7) (note 3); Subsections 169(1) and (2); Subsection 170(2);
Subsection 170(4) (note 3)
These items omit the term "Designated Authority" and replace it with the
term "Titles Administrator".
Item 68 - After section 173
Item 68 inserts new section 173A which imposes a time limit for the making
by the Joint Authority of a decision in relation to the grant, or refusal
to grant, a production licence. The decision must be made within the
period that begins when the application is made and (subject to agreement
with the applicant) runs for a prescribed number of days. The applicant
and the Joint Authority may enter into an agreement specifying a different
number of days, with the agreement able to be varied or terminated by the
parties.
Subsection 173A(3) makes special provision for cases where section 174
applies in relation to the application for a petroleum production licence.
Section 174 applies to the application where there is a pending application
for a greenhouse gas assessment permit and certain other circumstances
apply. The section requires the Joint Authority to delay making a decision
on the petroleum production licence application until the application for
the greenhouse gas permit is resolved. Subsection 173A(3) provides that if
a deferral occurs under section 174, the period applicable under
section 173A is extended by one day for each day of the deferral.
The Joint Authority is not required to comply with the time limit until a
period is prescribed for this category of decision under the regulations.
The intention here is to allow regulators a 'period of grace' at the
commencement of the new regulatory arrangements, because the consideration
of applications may require knowledge of the prior history of the title or
of the applicant's record of compliance and other relevant material, which
requires access to the former Designated Authorities' records. These
records have been collected, stored and managed by the Designated
Authorities since 1980, in paper file form. The transfer of custody of
these records will be a major exercise, and it is possible that it will not
be complete by the time the Titles Administrator commences operations.
This would require the Titles Administrator to arrange for access to
material still in the hands of the Designated Authorities' departments.
There is a 'stop-the-clock' mechanism that commences whenever further
information is sought from the applicant and ceases when the information is
provided.
A failure by the decision-maker to comply with the time limit does not
affect the validity of the decision. This is stated expressly in the
section in order to ensure that an administrative failure does not affect
the validity of instruments issued, such as titles. A risk of invalidity
would severely penalise the applicant, which is not the intent of the
provision, and would cast doubt on the integrity of the system of titles.
The decision to prescribe time limit periods in regulations rather than
stating them in the Act was made for similar reasons to those set out
above. If the periods were stated in the Act, it would be necessary to
provide excessively long periods to allow for the possibility of
unavoidable delays in particular cases, where reference needed to be made
to records either not yet transferred or very recently transferred from the
Designated Authorities' departments. Having the periods prescribed by
regulations enables the periods to keep pace with improvements in
administrative efficiency as the new Titles Administrator's processes
become established.
Section 286C requires that, if a Joint Authority contravenes a time limit
requirement during a financial year, the Titles Administrator must, within
60 days after the end of the financial year, prepare a report describing
the contravention and give the report to the responsible Commonwealth
Minister. The Minister must table the report in each House of the
Parliament within 15 days after receiving it.
Item 69 - Subsection 178(3) (note 3)
This item omits the term "Designated Authority" and replaces it with the
term "Titles Administrator".
Item 70 - At the end of section 183
Item 70 inserts new subsections at the end of section 183 which impose a
time limit for the making by the Joint Authority of a decision in relation
to the grant of petroleum production licences over individual blocks. The
decision must be made within the period that begins when the application is
made and (subject to agreement with the applicant) runs for a prescribed
number of days. The applicant and the Joint Authority may enter into an
agreement specifying a different number of days, with the agreement able to
be varied or terminated by the parties.
The Joint Authority is not required to comply with the time limit until a
period is prescribed for this category of decision under the regulations.
The intention here is to allow regulators a 'period of grace' at the
commencement of the new regulatory arrangements, because the consideration
of applications may require knowledge of the prior history of the title or
other relevant material, which requires access to the former Designated
Authorities' records. These records have been collected, stored and
managed by the Designated Authorities since 1980, in paper file form. The
transfer of custody of these records will be a major exercise, and it is
possible that it will not be complete by the time the Titles Administrator
commences operations. This would require the Titles Administrator to
arrange for access to material still in the hands of the Designated
Authorities' departments.
A failure by the decision-maker to comply with the time limit does not
affect the validity of the decision. This is stated expressly in the
section in order to ensure that an administrative failure does not affect
the validity of instruments issued, such as titles. A risk of invalidity
would severely penalise the applicant, which is not the intent of the
provision, and would cast doubt on the integrity of the system of titles.
The decision to prescribe time limit periods in regulations rather than
stating them in the Act was made for similar reasons to those set out
above. If the periods were stated in the Act, it would be necessary to
provide excessively long periods to allow for the possibility of
unavoidable delays in particular cases, where reference needed to be made
to records either not yet transferred or very recently transferred from the
Designated Authorities' departments. Having the periods prescribed by
regulations enables the periods to keep pace with improvements in
administrative efficiency as the new Titles Administrator's processes
become established.
Section 286C requires that, if a Joint Authority contravenes a time limit
requirement during a financial year, the Titles Administrator must, within
60 days after the end of the financial year, prepare a report describing
the contravention and give the report to the responsible Commonwealth
Minister. The Minister must table the report in each House of the
Parliament within 15 days after receiving it.
Item 71 - Subsections 184(2) and (4)
This item omits the term "Designated Authority" and replaces it with the
term "Titles Administrator".
Item 72 - After section 186
Item 72 inserts new section 186A which imposes a time limit for the making
by the Joint Authority of a decision in relation to the grant, or refusal
to grant, a renewal of a fixed-term petroleum production licence. The
decision must be made within the period that begins when the application is
made and (subject to agreement with the applicant) runs for a prescribed
number of days. The applicant and the Joint Authority may enter into an
agreement specifying a different number of days, with the agreement able to
be varied or terminated by the parties.
The Joint Authority is not required to comply with the time limit until a
period is prescribed for this category of decision under the regulations.
The intention here is to allow regulators a 'period of grace' at the
commencement of the new regulatory arrangements, because the consideration
of applications may require knowledge of the prior history of the title or
of the applicant's record of compliance and other relevant material, which
requires access to the former Designated Authorities' records. These
records have been collected, stored and managed by the Designated
Authorities since 1980, in paper file form. The transfer of custody of
these records will be a major exercise, and it is possible that it will not
be complete by the time the Titles Administrator commences operations.
This would require the Titles Administrator to arrange for access to
material still in the hands of the Designated Authorities' departments.
A failure by the decision-maker to comply with the time limit does not
affect the validity of the decision. This is stated expressly in the
section in order to ensure that an administrative failure does not affect
the validity of instruments issued, such as titles. A risk of invalidity
would severely penalise the applicant, which is not the intent of the
provision, and would cast doubt on the integrity of the system of titles.
The decision to prescribe time limit periods in regulations rather than
stating them in the Act was made for similar reasons to those set out
above. If the periods were stated in the Act, it would be necessary to
provide excessively long periods to allow for the possibility of
unavoidable delays in particular cases, where reference needed to be made
to records either not yet transferred or very recently transferred from the
Designated Authorities' departments. Having the periods prescribed by
regulations enables the periods to keep pace with improvements in
administrative efficiency as the new Titles Administrator's processes
become established.
Section 286C requires that, if a Joint Authority contravenes a time limit
requirement during a financial year, the Titles Administrator must, within
60 days after the end of the financial year, prepare a report describing
the contravention and give the report to the responsible Commonwealth
Minister. The Minister must table the report in each House of the
Parliament within 15 days after receiving it.
Items 73 and 74 - Subparagraph 191(4)(b)(i); Subsection 191(8)
These items omit the term "Designated Authority", wherever occurring, and
replace it with the term "Titles Administrator".
Item 75 - Subsection 191(11)
This item makes technical revisions to the subsection to require NOPTA to
consult with the appropriate State or Territory about exploitation of a
petroleum pool, in the circumstances that a petroleum pool extends, or is
reasonably believed by NOPTA to extend, from the offshore area of a State
or Territory into lands to which the laws of that State or Territory, or
another State or Territory, relating to exploiting petroleum resources
apply.
Item 76 - Subsection 197(2) (at the end of the note)
This item adds the words "or 587A" to reflect the addition of a new section
587A dealing with remedial directions following termination.
Items 77 to 79 - Subsection 197(6) (note); Subsection 198(1); Subsection
198(2) (note 3)
These items omit the term "Designated Authority" and replace it with the
term "Titles Administrator".
Item 80 - After section 200
Item 80 inserts new section 200A which imposes a time limit for the making
by the Joint Authority of a decision in relation to the grant of, or
refusal to grant, an infrastructure licence. The decision must be made
within the period that begins when the application is made and (subject to
agreement with the applicant) runs for a prescribed number of days. The
applicant and the Joint Authority may enter into an agreement specifying a
different number of days, with the agreement able to be varied or
terminated by the parties.
The Joint Authority is not required to comply with the time limit until a
period is prescribed for this category of decision under the regulations.
The intention here is to allow regulators a 'period of grace' at the
commencement of the new regulatory arrangements, because the consideration
of applications may require knowledge of the prior history of the title or
of the applicant's record of compliance and other relevant material, which
requires access to the former Designated Authorities' records. These
records have been collected, stored and managed by the Designated
Authorities since 1980, in paper file form. The transfer of custody of
these records will be a major exercise, and it is possible that it will not
be complete by the time the Titles Administrator commences operations.
This would require the Titles Administrator to arrange for access to
material still in the hands of the Designated Authorities' departments.
There is a 'stop-the-clock' mechanism that commences whenever further
information is sought from the applicant and ceases when the information is
provided.
A failure by the decision-maker to comply with the time limit does not
affect the validity of the decision. This is stated expressly in the
section in order to ensure that an administrative failure does not affect
the validity of instruments issued, such as titles. A risk of invalidity
would severely penalise the applicant, which is not the intent of the
provision, and would cast doubt on the integrity of the system of titles.
The decision to prescribe time limit periods in regulations rather than
stating them in the Act was made for similar reasons to those set out
above. If the periods were stated in the Act, it would be necessary to
provide excessively long periods to allow for the possibility of
unavoidable delays in particular cases, where reference needed to be made
to records either not yet transferred or very recently transferred from the
Designated Authorities' departments. Having the periods prescribed by
regulations enables the periods to keep pace with improvements in
administrative efficiency as the new Titles Administrator's processes
become established.
In the case of the decision whether to grant or refuse an infrastructure
licence under section 199 or section 200, it will be necessary to prescribe
a period that allows time for the consultations required by section 202 to
take place.
Section 286C requires that, if a Joint Authority contravenes a time limit
requirement during a financial year, the Titles Administrator must, within
60 days after the end of the financial year, prepare a report describing
the contravention and give the report to the responsible Commonwealth
Minister. The Minister must table the report in each House of the
Parliament within 15 days after receiving it.
Items 81 to 84 - Subsection 202(3) (note); Subsection 203(3) (note);
Subsection 204(1); Subsection 204(2) (note 3)
These items omit the term "Designated Authority" and replace it with the
term "Titles Administrator".
Item 85 - At the end of section 205
Item 85 inserts new subsections (3) to (7) at the end of section 205 which
impose a time limit for the making by the Joint Authority of a decision in
relation to the variation of an infrastructure licence. The decision must
be made within the period that begins when the application is made and
(subject to agreement with the applicant) runs for a prescribed number of
days. The applicant and the Joint Authority may enter into an agreement
specifying a different number of days, with the agreement able to be varied
or terminated by the parties.
The Joint Authority is not required to comply with the time limit until a
period is prescribed for this category of decision under the regulations.
The intention here is to allow regulators a 'period of grace' at the
commencement of the new regulatory arrangements, because the consideration
of applications may require knowledge of the prior history of the title or
of the applicant's record of compliance and other relevant material, which
requires access to the former Designated Authorities' records. These
records have been collected, stored and managed by the Designated
Authorities since 1980, in paper file form. The transfer of custody of
these records will be a major exercise, and it is possible that it will not
be complete by the time the Titles Administrator commences operations.
This would require the Titles Administrator to arrange for access to
material still in the hands of the Designated Authorities' departments.
In the case of an application to vary an infrastructure licence, the
prescribed period will need to allow time to carry out the consultations
required by section 206.
There is a 'stop-the-clock' mechanism that commences whenever further
information is sought from the applicant and ceases when the information is
provided.
A failure by the decision-maker to comply with the time limit does not
affect the validity of the decision. This is stated expressly in the
section in order to ensure that an administrative failure does not affect
the validity of instruments issued, such as titles. A risk of invalidity
would severely penalise the applicant, which is not the intent of the
provision, and would cast doubt on the integrity of the system of titles.
The decision to prescribe time limit periods in regulations rather than
stating them in the Act was made for similar reasons to those set out
above. If the periods were stated in the Act, it would be necessary to
provide excessively long periods to allow for the possibility of
unavoidable delays in particular cases, where reference needed to be made
to records either not yet transferred or very recently transferred from the
Designated Authorities' departments. Having the periods prescribed by
regulations enables the periods to keep pace with improvements in
administrative efficiency as the new Titles Administrator's processes
become established.
Section 286C requires that, if a Joint Authority contravenes a time limit
requirement during a financial year, the Titles Administrator must, within
60 days after the end of the financial year, prepare a report describing
the contravention and give the report to the responsible Commonwealth
Minister. The Minister must table the report in each House of the
Parliament within 15 days after receiving it.
Items 86 and 87 - Subsection 206(3) (note); Subsection 207(3) (note)
These items omit the term "Designated Authority" and replace it with the
term "Titles Administrator", to reflect that section 63 has been amended to
require all communications to the JA to be made through NOPTA. See items
33 and 34 of Part 1 of Schedule 2.
Item 88 - Paragraph 210(7)(c)
This item omits the term "Designated Authority" and replaces it with the
words "NOPSEMA and the Titles Administrator". This will require a person
to notify both NOPSEMA and NOPTA as soon as practicable if that person
undertakes one of the activities specified in subsection 210(1) in relation
to a pipeline, without a pipeline licence, in order to avoid loss or
injury, or to maintain a pipeline in good order and repair. Both NOPSEMA
and NOPTA must be notified as they each have regulatory responsibilities
relating to pipelines.
Item 89 - Paragraph 210(7)(d)
This item omits the term "Designated Authority" and replaces it with the
words "NOPSEMA or the responsible Commonwealth Minister". NOPSEMA and the
responsible Commonwealth Minister both have powers to issue directions in
circumstances in which a person undertakes one of the activities specified
in subsection 210(1) in relation to a pipeline, without a pipeline licence,
in order to avoid loss or injury, or to maintain a pipeline in good order
and repair.
Item 90 - Subsection 215(2) (at the end of the note)
This item adds the words "or 587A" to reflect the addition of a new section
587A dealing with remedial directions following termination.
Item 91 - Subsection 215(7) (note)
This item omits the term "Designated Authority" and replaces it with the
term "Titles Administrator", to reflect that section 63 has been amended to
require all communications to the JA to be made through NOPTA. See items
33 and 34 of Part 1 of Schedule 2.
Item 92 - Subsection 216(2)
This item omits the term "The Designated Authority" and replaces it with
the term "The responsible Commonwealth Minister", including in the heading
to this subsection, to provide the responsible Commonwealth Minister with
the power to give directions that was previously exercisable by the DA
under this subsection.
Item 93 - Paragraph 216(4)(b)
This item omits the term "Designated Authority" and replaces it with the
term "Titles Administrator", to provide NOPTA with the power previously
exercisable by the DA under this paragraph.
The heading is also altered by substituting the term "Designated Authority"
with the term "Responsible Commonwealth Minister".
Item 94 - Subsection 216(4)
This item omits the term "Designated Authority", the second time it appears
in this subsection, and replaces it with the term "responsible Commonwealth
Minister", to provide the responsible Commonwealth Minister with the power
previously exercisable by the DA under this subsection.
Item 95 - Subsection 216(5)
This item omits the term "Designated Authority" and replaces it with the
term "Titles Administrator".
Item 96 - Subsection 216(6)
This item omits the term "Designated Authority" and replaces it with the
term "responsible Commonwealth Minister", to reflect the amendment to
subsection 216(4) - see item 94 of Part 1 of Schedule 2.
Items 97 to 99 - Subsection 217(1); Subsection 217(3) (note 3); Section 218
These items omit the term "Designated Authority", wherever occurring, and
replace it with the term "Titles Administrator".
Items 100 to 102 - Subsection 226(1); Subsection 226(2) (note 3);
Subsections 226(3) and (4)
These items omit the term "Designated Authority" and replace it with the
term "Titles Administrator".
Item 103 - At the end of section 226
Item 103 inserts new subsections (6) to (10) at the end of section 226
which impose a time limit for the making by the Joint Authority of a
decision in relation to the variation of a pipeline licence. The decision
must be made within the period that begins when the application is made and
(subject to agreement with the applicant) runs for a prescribed number of
days. The applicant and the Joint Authority may enter into an agreement
specifying a different number of days, with the agreement able to be varied
or terminated by the parties.
The Joint Authority is not required to comply with the time limit until a
period is prescribed for this category of decision under the regulations.
The intention here is to allow regulators a 'period of grace' at the
commencement of the new regulatory arrangements, because the consideration
of applications may require knowledge of the prior history of the title or
of the applicant's record of compliance and other relevant material, which
requires access to the former Designated Authorities' records. These
records have been collected, stored and managed by the Designated
Authorities since 1980, in paper file form. The transfer of custody of
these records will be a major exercise, and it is possible that it will not
be complete by the time the Titles Administrator commences operations.
This would require the Titles Administrator to arrange for access to
material still in the hands of the Designated Authorities' departments.
There is a 'stop-the-clock' mechanism that commences whenever further
information is sought from the applicant and ceases when the information is
provided.
In the case of a decision whether to vary a pipeline licence, it will be
necessary to prescribe a period that takes account of the gazettal and
public consultation process required by subsections 226(3) and (4).
A failure by the decision-maker to comply with the time limit does not
affect the validity of the decision. This is stated expressly in the
section in order to ensure that an administrative failure does not affect
the validity of instruments issued, such as titles. A risk of invalidity
would severely penalise the applicant, which is not the intent of the
provision, and would cast doubt on the integrity of the system of titles.
The decision to prescribe time limit periods in regulations rather than
stating them in the Act was made for similar reasons to those set out
above. If the periods were stated in the Act, it would be necessary to
provide excessively long periods to allow for the possibility of
unavoidable delays in particular cases, where reference needed to be made
to records either not yet transferred or very recently transferred from the
Designated Authorities' departments. Having the periods prescribed by
regulations enables the periods to keep pace with improvements in
administrative efficiency as the new Titles Administrator's processes
become established.
Section 286C requires that, if a Joint Authority contravenes a time limit
requirement during a financial year, the Titles Administrator must, within
60 days after the end of the financial year, prepare a report describing
the contravention and give the report to the responsible Commonwealth
Minister. The Minister must table the report in each House of the
Parliament within 15 days after receiving it.
Items 104 to 110 - Subsection 231(1); Subsection 234(1); Section 235;
Subsections 236(2) and (3); Subsection 237(3); Subsection 240(1);
Subsection 241(2)
These items omit the term "Designated Authority", wherever occurring, and
replace it with the term "Titles Administrator", to provide NOPTA with the
functions and powers previously exercisable by the DA in relation to
petroleum special prospecting authorities and petroleum access authorities.
Item 111 - Subsection 242(1) (table)
This item omits the words "the Designated Authority for that offshore
area", wherever occurring, and replaces it with the words "the Titles
Administrator".
Item 112 - Subsection 243(1)
This item makes this subsection a stand-alone section 243, due to the
repeal of subsection 243(2) - see item 114 of Part 1 of Schedule 2.
Item 113 - Subsection 243(1)
This item omits the term "Designated Authority", wherever occurring, and
replaces it with the term "Titles Administrator", to provide NOPTA with the
functions and powers previously exercisable by the DA under this
subsection.
Item 114 - Subsection 243(2)
This item repeals the subsection. The concept of an "adjoining offshore
area" is no longer applicable as a result of the amendments made by this
Bill.
Item 115 - Subsection 244(2)
This item omits the term "Designated Authority", where it first occurs, and
replaces it with the term "Titles Administrator".
Item 116 - Paragraph 244(2)(a)
This item omits the words "Designated Authority's" and replaces them with
the words "Titles Administrator's".
Items 117 and 118 - Paragraph 244(2)(b); Subsections 244(3) and (4)
These items omit the term "Designated Authority" and replace it with the
term "Titles Administrator".
Item 119 - Subsection 245(2)
This item omits the words "Designated Authority for the adjoining offshore
area" and replaces them with the term "Titles Administrator".
Item 120 - Paragraph 245(2)(a)
This item omits the words "Designated Authority's" and replaces them with
the words "Title Administrator's".
Items 121 and 122 - Paragraph 245(2)(b); Subsections 245(3) and (4)
These items omit the term "Designated Authority" and replace it with the
term "Titles Administrator".
Item 123 - Subsection 246(1)
This item makes this subsection a stand-alone section 246, due to the
repeal of subsection 246(2) - see item 125 of Part 1 of Schedule 2.
Item 124 - Subsection 246(1)
This item omits the term "Designated Authority" and replaces it with the
term "Titles Administrator", to provide NOPTA with the power previously
exercisable by the DA under this subsection.
Item 125 - Subsection 246(2)
This item repeals the subsection. The concept of an "adjoining offshore
area" is no longer applicable as a result of the amendments made by this
Bill.
Item 126 - Paragraph 247(1)(b)
This item omits the term "Designated Authority" and replaces it with the
term "Titles Administrator".
Item 127 - Subsection 247(2)
This item omits the term "Designated Authority", where it first appears in
the subsection, and replaces it with the term "Titles Administrator".
Item 128 - Paragraph 247(2)(a)
This item omits the words "Designated Authority's" and replaces them with
the words "Titles Administrator's".
Items 129 to 131 - Subparagraph 247(2)(b)(ii); Subsections 247(3) and (4);
Paragraph 248(1)(b)
These items omit the term "Designated Authority" and replace it with the
term "Titles Administrator".
Item 132 - Subsection 248(2)
This item omits the term "Designated Authority for the adjoining offshore
area" and replaces it with the term "Titles Administrator".
Item 133 - Paragraph 248(2)(a)
This item omits the words "Designated Authority's" and replaces them with
the words "Title Administrator's".
Items 134 to 142 - Subparagraph 248(2)(b)(ii); Subsections 248(3) and (4);
Section 250; Section 258; Subsection 260(1) (heading to table column 3);
Subsection 260(1) (table items 1, 3, 5, 7, 9 and 10); Subsections 260(2)
and (3); Subsection 262(3) (note); Subsection 264(1) (table item 1)
These items omit the term "Designated Authority", wherever occurring, and
including in the heading to section 258, and replace it with the term
"Titles Administrator".
Item 143 - Subsection 264(1) (table item 2)
This item omits the words "the Designated Authority or the Joint Authority"
and replaces them with the words "the Joint Authority, the responsible
Commonwealth Minister, the Titles Administrator or NOPSEMA", to reflect
that the JA, the responsible Commonwealth Minister, NOPTA and NOPSEMA are
the entities now able to give directions or consents under Chapter 2,
Chapter 6 or Part 7.1 of the OPGGS Act, or under the regulations.
Item 144 - Subsection 268(1) (table)
This item omits the term "Designated Authority", wherever occurring, and
replaces it with the term "Titles Administrator".
Item 145 - Subsection 268(1) (table item 4)
This item inserts the words "or NOPSEMA" before the word "gives", to
reflect that NOPTA or NOPSEMA are the entities now able to give a direction
or consent to the registered holder of a petroleum special prospecting
authority or a petroleum access authority under Chapter 2, Chapter 6 or
Part 7.1 of the OPGGS Act, or under the regulations.
Items 146 and 147 - Subsection 268(2); Subsection 269(1) (heading to column
headed "may apply to the Designated Authority for consent to surrender...")
These items omit the term "Designated Authority" and replace it with the
term "Titles Administrator".
Item 148 - Section 270
This item omits the words "The Designated Authority", wherever occurring,
and replaces it with the words "The Joint Authority", to provide the JA
with the powers and functions previously exercisable by the DA under this
section.
Item 149 - Paragraph 270(3)(a)
This item omits the term "Designated Authority" and replaces it with the
term "Titles Administrator".
Items 150 and 151 - Paragraph 270(3)(c); Paragraphs 270(3)(d), (e) and (f)
These items omit the words "the Designated Authority" and replace it with
the term "NOPSEMA".
Item 152 - Subsection 270(3)
This item omits the last occurring reference to "Designated Authority" in
this subsection, and replaces it with the words "Joint Authority", to
provide the JA with the powers and functions previously exercisable by the
DA under this subsection.
Item 153 - Subsection 270(5)
This item omits the words "The Designated Authority", wherever occurring,
and replaces it with the words "The Joint Authority", to provide the JA
with the powers and functions previously exercisable by the DA under this
subsection.
Item 154 - Subsection 271(1)
This item omits the term "Designated Authority" and replaces it with the
term "Joint Authority".
Items 155 and 156 - Subsection 271(2); Sections 272 and 273
These items omit the term "Designated Authority" and replace it with the
term "Titles Administrator".
Item 157 - Paragraph 274(b)
This item omits the term "Designated Authority" and replaces it with the
words "responsible Commonwealth Minister, NOPSEMA".
Item 158 - Subsection 276(2) (note)
This item omits the term "Designated Authority" and replaces it with the
term "Titles Administrator", to reflect that section 63 has been amended to
require all communications to the JA to be made through NOPTA. See items
33 and 34 of Part 1 of Schedule 2.
Item 159 - At the end of Division 1 of Part 2.13
This item requires NOPSEMA to notify NOPTA if NOPSEMA reasonably believes
that there is a ground for cancelling a petroleum exploration permit, a
petroleum retention lease, a petroleum production licence, an
infrastructure licence, or a pipeline licence.
In the course of undertaking its regulatory activities, NOPSEMA may become
aware of matters that could constitute a ground for cancellation of a
permit, lease or licence. However, it is the JA that has the power to
cancel a title, on the advice of and with regard to information provided by
NOPTA. Requiring NOPSEMA to provide information about these matters to
NOPTA will ensure that information about matters that may constitute
grounds for cancellation of a title, and that NOPTA or the JA may not
otherwise become aware of, will be brought to the attention of the
appropriate regulatory body.
Item 160 - Section 278
This item omits the term "Designated Authority" and replaces it with the
term "Titles Administrator", to provide NOPTA with the power previously
exercisable by the DA under this section to cancel a petroleum special
prospecting authority.
Item 161 - Subsection 281(1)
This item omits the words "the Designated Authority" and replaces them with
the words "NOPSEMA, the Titles Administrator".
Items 162 and 163 - Section 282; Subsection 284(2)
These items omit the term "Designated Authority", wherever occurring, and
replace it with the term "Titles Administrator".
Item 164 - At the end of Part 2.14
This item inserts a new section 286A, which places notification obligations
on registered holders of petroleum titles, and makes it an offence if a
person fails to meet their obligations.
Subsection (1) makes it a requirement for any person who is the registered
holder, or one of the registered holders, of a petroleum title at the
commencement of this item to provide NOPTA and NOPSEMA with contact
details, in the approved form, within 30 days of the commencement of this
item.
At any time after this item commences, subsection (2) requires a person who
becomes the registered holder, or one of the registered holders, of a
petroleum title to provide NOPTA and NOPSEMA with contact details, in the
approved form, within 30 days of becoming a registered holder.
Subsections (3) and (4) require notification in writing to NOPTA and
NOPSEMA when a person ceases to be a registered holder of a petroleum
title. This obligation is placed on the person who ceases to be the
registered holder of the title, except in the case of death of a
titleholder, in which case the person's legal personal representative is
the person who must notify NOPTA and NOPSEMA.
Subsection (5) requires a person to notify NOPTA and NOPSEMA when their
contact details change, and provide NOPTA and NOPSEMA with updated contact
details. This subsection applies every time a registered titleholder
changes their contact details.
All notices under subsections (1), (2) and (5) are required to be made in
the approved form. NOPTA will make the approved form publicly available by
publishing it on the Department's website, as required by this item.
Subsection (6) makes it an offence for a person who is required to notify
NOPTA or NOPSEMA under subsections (1), (2), (3), (4) or (5) to fail to
notify NOPTA and NOPSEMA as required. An offence against subsection (6) is
an offence of strict liability. The application of strict liability to an
offence means that a fault element, such as intention to do the act, or not
do the act, is not required to be proved. This is to ensure that the
legislation can be enforced more effectively, as without these changes
applying strict liability the intention to do an act or not do an act needs
to be proven.
It is important that NOPTA and NOPSEMA are provided with relevant contact
details to ensure that they can effectively undertake their regulatory
responsibilities under the OPGGS Act and the regulations, including in
relation to matters such as occupational health and safety, structural
integrity, the environment, resource management and titles administration.
The offshore petroleum industry is a high risk industry, and there may be
potentially serious consequences if the industry is not effectively
regulated. The intention of the application of strict liability is to
improve compliance in the regulatory regime.
This item also inserts new sections 286B and 286C. Section 286B requires
the JA to publish any time limits for making decisions, prescribed for the
purposes of the provisions listed in that section, on the Department's
website, to ensure that information about time limits is publicly available
to interested persons.
Section 286C will apply in the event that a JA contravenes one or more of
the provisions relating to time limits during a financial year. NOPTA is
required to prepare a report describing any such contraventions within 60
days after the end of the financial year. As soon as practicable after
completing the report, NOPTA must provide the report to the responsible
Commonwealth Minister, who is required to table the report in each House of
the Parliament within 15 sitting days of receiving the report. Requiring
preparation and tabling of a report of contraventions of time limits by the
JA will ensure that the JA is accountable for instances in which decisions
are made outside the prescribed time limits.
Item 165 - Subsection 410(2)
This item omits the term "Designated Authority" and replaces it with the
term "Titles Administrator".
Item 166 - Section 453
This item omits the words "the Designated Authority", wherever occurring,
and replaces it with the term "NOPSEMA".
Item 167 - Section 466
This item repeals the existing simplified outline of Chapter 4, and
replaces it with a new simplified outline of Chapter 4.
Item 168 - Section 467 (definition of referable title)
This item repeals the definition of "referable title" as the concept of
"referable title" will no longer be used in the OPGGS Act. See item 10 of
Part 1 of Schedule 2.
Item 169 - Section 467 (definition of Register)
This item repeals the definition of "Register" and replaces it with a new
definition that does not include references to the DA. See Item 171 of Part
1 of Schedule 2.
Item 170 - Section 467
This item inserts a definition for "relevant Register". This is a new term
that is used in the OPGGS Act as a result of the amendments in this Bill.
Under the previous arrangements, the DA for each offshore area kept a
Register of titles and petroleum special prospecting authorities for its
respective offshore area. Under the new arrangements, NOPTA will maintain
Registers of petroleum titles and petroleum special prospecting authorities
for each offshore area. The "relevant Register", in relation to a title or
special prospecting authority, is the Register for the offshore area to
which the title or special prospecting authority relates. In relation to a
notice under subsection 191(5), (6) or (7) that relates to a petroleum pool
that is wholly or partly in an offshore area, the "relevant Register" is
the Register for the offshore area.
Item 171 - Section 469
This item omits the words "Designated Authority for an offshore area" and
replaces them with "Titles Administrator". NOPTA will be required to keep
a Register of titles and petroleum special prospecting authorities for each
offshore area.
Item 172 - Section 469
This item inserts the words "for each offshore area" after the words "a
Register". See Item 171 of Part 1 of Schedule 2.
Item 173 - Subsection 470(1)
This item omits the term "Designated Authority" and replaces it with the
term "Titles Administrator".
Item 174 - Subsection 470(1)
This item omits the words "the Register" and replaces them with the words
"the relevant Register". See Item 170 of Part 1 of Schedule 2.
Item 175 - Subsection 470(2) (table item 7, column headed "the memorial
must...")
This item omits the term "Designated Authority" and replaces it with the
term "Titles Administrator".
Item 176 - Subsection 470(3)
This item omits the words "Designated Authority must enter in the Register"
and replaces it with the words "Titles Administrator must enter in the
relevant Register".
Item 177 - Subsection 470(4)
This item omits the term "Designated Authority" and replaces it with the
term "Titles Administrator".
Item 178 - Subsection 470(4)
This item omits the words "the Register" and replaces them with the words
"the relevant Register". See Item 170 of Part 1 of Schedule 2.
Item 179 - Subsection 470(5)
This item omits the term "Designated Authority" and replaces it with the
term "Titles Administrator".
Item 180 - Subsection 470(5)
This item omits the words "the Register" and replaces them with the words
"the relevant Register". See Item 170 of Part 1 of Schedule 2.
Item 181 - Section 471
This item omits the words "Designated Authority must enter in the Register"
and replaces it with the words "Titles Administrator must enter in the
relevant Register". See Item 175 of Part 1 of Schedule 2.
Item 182 - Section 471A
This item omits the words "Designated Authority may make a notation in the
Register" and replaces it with the words "Titles Administrator may make a
notation in the relevant Register". See Item 170 of Part 1 of Schedule 2.
Items 183 and 184 - Paragraph 472(a); Subsection 473(1)
These items omit the term "Designated Authority" and replace it with the
term "Titles Administrator".
Item 185 - Paragraph 474(c)
This item repeals the paragraph, as the concept of "referable title" will
no longer be used in the OPGGS Act as a result of amendments made by this
Bill. See Item 10 of Part 1 of Schedule 2.
Item 186 - Paragraph 474(d)
This item omits the words "if the title is not a referable title" and
replaces them with the words "in any case". The concept of "referable
title" will no longer be used in the OPGGS Act, as a result of amendments
made by this Bill. See Item 10 of Part 1 of Schedule 2.
Item 187 - Section 475
This item repeals the section, as the concept of "referable title" will no
longer be used in the OPGGS Act as a result of amendments made by this
Bill. See Item 10 of Part 1 of Schedule 2.
Item 188 - Section 476
This item omits the term "Designated Authority", wherever occurring, and
replaces it with the term "Titles Administrator", to provide NOPTA with the
powers previously exercisable by the DA under this section.
Item 189 - Section 477
This item omits the term "Designated Authority", where it first occurs in
the section, and replaces it with the term "Titles Administrator".
Item 190 - Paragraphs 477(a) and (b)
This item omits the words "in the Register" and replaces them with the
words "in the relevant Register". See Item 170 of Part 1 of Schedule 2.
Items 191 and 192 - Paragraph 477(b); Subsection 478(2)
These items omit the term "Designated Authority" and replace it with the
term "Titles Administrator".
Item 193 - Subsection 478(3)
This item repeals the subsection. The concept of "referable title" will no
longer used in the OPGGS Act as a result of amendments made by this Bill.
See Item 10 of Part 1 of Schedule 2.
Item 194 - Subsection 478(4)
This item omits the term "Designated Authority" and replaces it with the
term "Titles Administrator".
Item 195 - Subsection 478(4)
This item omits the words "Designated Authority's" and replaces them with
the words "Titles Administrator's".
Item 196 - Subsection 478(5)
This item omits the term "Designated Authority", wherever occurring, and
replaces it with the term "Titles Administrator".
Item 197 - Subsection 478(5)
This item omits the words "in the Register" and replaces them with the
words "in the relevant Register". See Item 170 of Part 1 of Schedule 2.
Item 198 - Subsections 478(6) to (9)
This item repeals the existing subsections 478(6) to (9). The concept of
"referable title" will no longer used in the OPGGS Act as a result of
amendments made by this Bill. See Item 10 of Part 1 of Schedule 2.
Item 199 - Subsections 479(1) to (3)
This item omits the term "Designated Authority" and replaces it with the
term "Titles Administrator".
Item 200 - Subsections 479(3) and (4)
This item omits the words "in the Register" and replaces them with the
words "in the relevant Register". See Item 170 of Part 1 of Schedule 2.
Item 201 - Subparagraph 479(5)(a)(i)
This item omits the term "Designated Authority" and replaces it with the
term "Titles Administrator".
Item 202 - Subsection 482(1)
This item omits the words "Designated Authority to have the person's name
entered in the Register" and replaces them with the words "Titles
Administrator to have the person's name entered in the relevant Register".
See Item 170 of Part 1 of Schedule 2.
Item 203 - Subsection 483(2)
This item omits the term "Designated Authority", wherever occurring, and
replaces it with the term "Titles Administrator".
Item 204 - Subsection 438(2)
This item omits the words "in the Register" and replaces them with the
words "in the relevant Register". See Item 170 of Part 1 of Schedule 2.
Item 205 - Subsection 484(1)
This item omits the term "Designated Authority" and replaces it with the
term "Titles Administrator".
Item 206 - Subsections 484(1) and 485(1)
This item omits the words "the Register" and replaces them with the words
"the relevant Register". See Item 170 of Part 1 of Schedule 2.
Item 207 - Subsection 485(2)
This item omits the term "Designated Authority", wherever occurring, and
replaces it with the term "Titles Administrator".
Item 208 - Subsection 485(2)
This item omits the words "the Register" and replaces them with the words
"the relevant Register". See Item 170 of Part 1 of Schedule 2.
Item 209 - Section 487
This item omits the term "Designated Authority", wherever occurring, and
replaces it with the term "Titles Administrator", to provide NOPTA with the
functions and powers previously exercisable by the DA under this section.
Item 210 - Paragraph 487(b)
This item omits the words "the Register" and replaces them with the words
"the relevant Register". See Item 170 of Part 1 of Schedule 2.
Items 211 and 212 - Section 488; Paragraph 489(1)(b)
These items omit the term "Designated Authority", wherever occurring, and
replace it with the term "Titles Administrator".
Item 213 - Subsection 489(4)
This item repeals the subsection. The concept of "referable title" will no
longer used in the OPGGS Act as result of amendments made by this Bill. See
Item 10 of Part 1 of Schedule 2.
Item 214 - Subsection 489(4A)
This item omits the words "If a dealing does not relate to a referable
title, an" and replaces them with the word "An". The concept of "referable
title" will no longer used in the OPGGS Act as a result of amendments made
by this Bill. See Item 10 of Part 1 of Schedule 2.
Item 215 - Section 490
This item repeals the section. The concept of "referable title" will no
longer used in the OPGGS Act as a result of amendments made by this Bill.
See Item 10 of Part 1 of Schedule 2.
Item 216 - Section 491
This item omits the term "Designated Authority", wherever occurring, and
replaces it with the term "Titles Administrator".
Item 217 - Section 492
This item omits the term "Designated Authority", where it first occurs in
the section, and replaces it with the term "Titles Administrator".
Item 218 - Paragraphs 492(a) and (b)
This item omits the words "the Register" and replaces them with the words
"the relevant Register". See Item 170 of Part 1 of Schedule 2.
Item 219 - Paragraph 492(b)
This item omits the term "Designated Authority" and replaces it with the
term "Titles Administrator".
Item 220 - Subsection 493(2)
This item omits the words "Designated Authority must" and replaces them
with the words "Titles Administrator must".
Item 221 - Subsection 493(2) (note)
This item omits the term "Designated Authority" and replaces it with the
term "Titles Administrator".
Item 222 - Subsection 493(3)
This item repeals the subsection. The concept of "referable title" will no
longer used in the OPGGS Act as a result of amendments made by this Bill.
See Item 10 of Part 1 of Schedule 2.
Item 223 - Subsection 493(4)
This item omits the term "Designated Authority" and replaces it with the
term "Titles Administrator".
Item 224 - Subsection 493(4)
This item omits the words "Designated Authority's" and replaces them with
the words "Titles Administrator's".
Item 225 - Subsection 493(5)
This item omits the term "Designated Authority", wherever occurring, and
replaces it with the term "Titles Administrator".
Item 226 - Subsection 493(5)
This item omits the words "the Register" and replaces them with the words
"the relevant Register". See Item 170 of Part 1 of Schedule 2.
Item 227 - Subsections 493(6) to (9)
This item repeals the subsections. The concept of "referable title" will
no longer used in the OPGGS Act as a result of amendments made by this
Bill. See Item 10 of Part 1 of Schedule 2.
Items 228 and 229 - Subsections 494(1) and (2); Subsection 494(3)
These items omit the term "Designated Authority" and replace it with the
term "Titles Administrator".
Item 230 - Subsection 494(3)
This item omits the words "the Register" and replaces them with the words
"the relevant Register". See Item 170 of Part 1 of Schedule 2.
Item 231 - Subsection 495(1)
This item omits the term "Designated Authority" and replaces it with the
term "Titles Administrator".
Item 232 - Subsection 495(1)
This item omits the words "the Register" and replaces them with the words
"the relevant Register". See Item 170 of Part 1 of Schedule 2.
Item 233 - Subparagraphs 495(2)(a)(i) and (3)(a)(i)
This item omits the term "Designated Authority" and replaces it with the
term "Titles Administrator".
Item 234 - Section 496
This item omits the words "the Register" and replaces them with the words
"a Register".
Items 235 and 236 - Section 498; Paragraph 499(1)(b)
These items omit the term "Designated Authority", wherever occurring, and
replace it with the term "Titles Administrator".
Item 237 - Subsection 499(4)
This item repeals the subsection. The concept of "referable title" will no
longer used in the OPGGS Act as a result of amendments made by this Bill.
See Item 10 of Part 1 of Schedule 2.
Item 238 - Subsection 499(4A)
This item omits the words "If a dealing does not relate to a referable
title, a" and replaces them with the word "A". The concept of "referable
title" will no longer used in the OPGGS Act as a result of amendments made
by this Bill. See Item 10 of Part 1 of Schedule 2.
Item 239 - Section 500
This item repeals the section. The concept of "referable title" will no
longer used in the OPGGS Act as a result of amendments made by this Bill.
See Item 10 of Part 1 of Schedule 2.
Items 240 and 241 - Section 503; Section 504
These items omit the term "Designated Authority", wherever occurring, and
replace it with the term "Titles Administrator", to provide NOPTA with the
powers previously exercisable by the DA under these sections.
Item 242 - Section 504
This item omits the words "the Register", where they first occur in the
section, and replaces them with the words "a Register".
Item 243 - Subsection 505(1)
This item omits the term "Designated Authority", where it first occurs in
the subsection, and replaces it with the term "Titles Administrator".
Item 244 - Subsection 505(1)
This item omits the words "the Register", where they first occur in the
subsection, and replaces them with the words "a Register".
Item 245 - Subsection 505(1)
This item omits the term "Designated Authority", where it secondly occurs
in the subsection, and replaces it with the term "Titles Administrator".
Item 246 - Subsection 505(2)
This item omits the term "Designated Authority", wherever occurring, in the
subsection, and replaces it with the term "Titles Administrator".
Item 247 - Paragraph 505(2)(b)
This item omits the words "Designated Authority's" and replaces them with
the words "Titles Administrator's".
Item 248 - Subsection 505(3)
This item omits the term "Designated Authority", where it first occurs in
the subsection, and replaces it with the term "Titles Administrator".
Item 249 - Subsection 505(3)
This item omits the words "the Register", where they first occur in the
subsection, and replaces them with the words "a Register".
Item 250 - Subsection 505(3)
This item omits the term "Designated Authority", where it secondly occurs
in the subsection, and replaces it with the term "Titles Administrator".
Items 251 and 252 - Paragraphs 505(3)(a) and (b); Subsection 505(5)
This item omits the term "Designated Authority" and replaces it with the
term "Titles Administrator".
Item 253 - Subsection 505(6)
This item omits the term "Designated Authority", where it first occurs in
the subsection, and replaces it with the term "Titles Administrator".
Item 254 - Subsection 505(6)
This item omits the words "the Register" and replaces it with the words "a
Register".
Item 255 - Subsection 505(6)
This item omits the term "Designated Authority", where it secondly occurs
in the subsection, and replaces it with the term "Titles Administrator".
Items 256 to 264 - Subsection 506(4); Subsections 506(5) and (6); Section
507; Section 508; Section 509; Section 510; Section 511; Subparagraph
514(1)(b)(ii); Subsection 515(1)
These items omit the term "Designated Authority", wherever occurring and
including in the headings to subsections 506(4) and (5) and sections 507,
508, 510 and 511, and replace it with the term "Titles Administrator".
Item 265 - Subsection 515(1)
This item omits the words "the Register" and replaces them with the words
"each Register".
Items 266 and 267 - Subsection 515(2); Section 516
This item omits the term "Designated Authority", wherever occurring, and
replaces it with the term "Titles Administrator".
Item 268 - Paragraph 516(2)(a)
This item omits the words "the Register" and replaces it with the words "a
Register".
Item 269 - Section 518
This item omits the existing simplified outline of Part 5.1 of Chapter 5 of
the OPGGS Act, and replaces it with a new simplified outline.
Items 270 to 282 - Section 521; Subsection 522(1); Subsection 522(2) (table
item 5, column headed "the memorial must..."); Subsection 522(3);
Subsection 522(4); Subsection 522(5); Section 523; Section 523A; Paragraph
524(a); Subsection 525(1); Section 527; Section 528; Subsections 529(2) and
(3)
These items omit the term "responsible Commonwealth Minister", wherever
occurring, and replace it with the term "Titles Administrator".
Item 283 - Paragraph 529(3)(c)
This item omits the term "Designated Authority" and replaces it with the
term "Titles Administrator".
Item 284 - Subsection 529(4)
This item omits the term "responsible Commonwealth Minister" and replaces
it with the term "Titles Administrator".
Item 285 - Paragraph 529(4)(c)
This item omits the term "Designated Authority" and replaces it with the
term "Titles Administrator".
Item 286 - Subsection 529(5)
This item omits the term "responsible Commonwealth Minister" and replaces
it with the term "Titles Administrator".
Item 287 - Subsection 529(5)
This item omits the term "responsible Commonwealth Minister's" and replaces
it with the term "Titles Administrator's".
Items 288 to 298 - Subsection 529(6); Section 530; Subsection 533(1);
Subsection 534(2); Subsection 535(1); Subsection 536(2); Section 538;
Section 539; Paragraph 540(1)(b); Section 541; Section 542
These items omit the term "responsible Commonwealth Minister", wherever
occurring, and replace it with the term "Titles Administrator".
Item 299 - Subsection 543(2)
This item omits the first occurring words "responsible Commonwealth
Minister must" and replaces it with the words "Titles Administrator must".
Items 300 to 301 - Subsection 543(2) (note); Subsection 543(3)
This item omits the term "responsible Commonwealth Minister" and replaces
it with the term "Titles Administrator".
Item 302 - Subsection 543(3)
This item omits the term "responsible Commonwealth Minister's" and replaces
it with the term "Titles Administrator's".
Items 303 to 310 - Subsection 543(4); Section 544; Section 545; Section
548; Paragraph 549(1)(b); Section 552; Section 553; Subsections 554(1) and
(2)
These items omit the term "responsible Commonwealth Minister", wherever
occurring, and replace it with the term "Titles Administrator".
Item 311 - Paragraph 554(2)(b)
This item omits the term "responsible Commonwealth Minister" and replaces
it with the term "Titles Administrator".
Item 312 - Subsections 554(3), (5) and (6)
This item omits the term "responsible Commonwealth Minister", wherever
occurring, and replaces it with the term "Titles Administrator".
Item 313 - Subsection 555(4)
This item omits the term "responsible Commonwealth Minister", including in
the heading, and replaces it with the term "Titles Administrator".
Items 314 to 322 - Subsections 555(5) and (6); Section 556; Section 557;
Section 558; Section 559; Section 560; Subparagraph 563(b)(ii); Subsections
564; Section 565
These items omit the term "responsible Commonwealth Minister", wherever
occurring and including in the headings to subsection 555(5) and sections
556, 557, 559 and 560, and replace it with the term "Titles Administrator".
Item 323 - Paragraph 568(2)(b)
This item omits the term "Designated Authority" and replaces it with the
term "Joint Authority".
Item 324 - Subsection 569(1) (table item 1)
This item omits the term "Designated Authority" and replaces it with the
term "Titles Administrator".
Item 325 - Paragraph 569(8)(c)
This item inserts the words "or 574A" after the number "574", to reflect
the inclusion of a new section 574A in the OPGGS Act to which section 569
is subject. See Item 333 of Part 1 of Schedule 2.
Item 326 - Subsections 571(1) and (2)
This item omits the term "Designated Authority" and replaces it with the
term "responsible Commonwealth Minister", to provide to the responsible
Commonwealth Minister the powers previously exercisable by the DA under
these subsections.
Item 327 - Paragraph 572(7)(c)
This item inserts "574A" after "574", to reflect the inclusion of a new
section 574A in the OPGGS Act to which section 572 is subject. See Item
333 of Part 1 of Schedule 2.
Part 6.2-Directions relating to petroleum
The power to give directions under Part 6.2 has underpinned the general
regulatory role of the Designated Authorities. The power is comprehensive,
as directions can be given with respect to any matter that is within the
regulation making power in Part 9.11, which extends to all aspects of the
exploration for, or recovery, processing or piped conveyance of petroleum.
The Designated Authorities' powers to give directions covered both the
regulation of operations and also resource management and resource
security. With the abolition of the Designated Authorities, it is
necessary to distribute the powers between the two entities that will
replace the Designated Authorities. NOPSEMA is to have conferred on it the
full range of direction-giving powers of the Designated Authorities. While
NOPSEMA does not have responsibility for resource management matters, many
aspects of NOPSEMA's regulation of operations will have the potential to
impact on resource management, and it would hamper NOPSEMA's performance of
its functions if it were prevented from taking any action that had such
potential impacts.
The Joint Authority will be the entity with primary responsibility for
resource management, and it would fit the general scheme of the Act if the
Joint Authority were to have the direction-giving powers with respect to
resource management. However, the Joint Authorities for the States and the
Northern Territory cannot take action without communications between the
Commonwealth and State or Territory members, with each requiring policy
advice and recommendations before a decision is made. This will make the
giving of directions a fairly slow process, when a direction may need to be
given within a day if (for example) a direction to prevent the drilling of
a well in a particular location is to be given. For this reason, the power
to give directions in relation to resource management is to be given to the
responsible Commonwealth Minister. The giving of a direction relating to
resource management is likely to be a relatively rare event. Resource
management usually takes place in the context of the grant of retention
leases or production licences and the attaching of conditions to those
titles, and in the approval of field development plans, which are all Joint
Authority processes. The conferral of the direction-giving power on the
responsible Commonwealth Minister is therefore not seen as resulting in any
significant shift in functions as between the Commonwealth and the States
and Northern Territory. If it appears over time that an unintended
alteration in the balance has occurred, this approach will be re-evaluated.
The drafting approach that has been taken is to confer on NOPSEMA the
general direction-giving power of the Designated Authorities in
section 574. The responsible Commonwealth Minister is also given the same
general direction-giving power by new section 574A. The responsible
Commonwealth Minister's power in section 574A is, however, curtailed by the
requirement that the matter in relation to which the direction is given
must be a matter that relates to resource management, or resource security
or a matter in relation to which regulations may be made for the purposes
of section 698 (which relates to data management).
New subsection 574(9A) provides that, if NOPSEMA gives a direction that it
considers may have significant consequences for resource management or
resource security, NOPSEMA must give the responsible Commonwealth Minister
a copy of the direction as soon as practicable after it is given.
Subsection 574A(12) makes provision to deal with the unlikely event that
inconsistent directions are given by NOPSEMA and the responsible
Commonwealth Minister. The subsection provides that the direction by
NOPSEMA has no effect to the extent of the inconsistency.
Item 328 - Section 573 Simplified outline
This item repeals the existing simplified outline, and replaces it with a
new simplified outline of Part 6.2.
Item 329 - Subsection 574(2)
This item omits the words "the Designated Authority" and replaces them with
the term "NOPSEMA". NOPSEMA will have the power, previously exercisable by
the DA, to give the registered holder of a title a direction as to any
matter in relation to which regulations may be made. NOPSEMA must not give
a direction of a standing or permanent nature without the approval of the
JA; however the validity of a direction is not affected if such approval
has in fact not been sought.
This item also adds "-NOPSEMA" to the end of the heading to section 574.
Item 330 - At the end of subsection 574(2)
This item adds a note to the effect that a direction under section 574 does
not have any effect to the extent that it is inconsistent with a direction
given by the responsible Commonwealth Minister under section 574A. See
item 333 of Part 1 of Schedule 2.
Item 331 - Subsection 574(5)
This item omits the words "The Designated Authority" and replaces them with
the term "NOPSEMA".
Item 332 - After subsection 574(9)
This item inserts a new subsection (9A), which requires NOPSEMA to give to
the responsible Commonwealth Minister a copy of a direction given by
NOPSEMA under section 574, where NOPSEMA considers that the direction may
have significant consequences for resource management or resource security.
This will enable the responsible Commonwealth Minister to review the
direction from a resource management perspective, and give a direction
under section 574A if the Minister believes it is necessary to avoid
undesirable consequences to resource management or resource security. The
direction given by NOPSEMA will then become of no effect to the extent that
it is inconsistent with the direction given by the responsible Commonwealth
Minister - see item 333 of Part 1 of Schedule 2.
Item 333 - After subsection 574
This item inserts a new section 574A, which gives the responsible
Commonwealth Minister the power to give to the registered holder of a
title, by written notice, a direction as to any matter in relation to which
regulations may be made, as long as that matter relates to resource
management, resource security, or is a matter in relation to which
regulations may be made for the purposes of section 698 (relating to data
management).
A direction may be expressed to apply to both the registered holder of the
title, and a specified class of persons that includes or is within one or
more of the following classes:
. Employees or agents of the registered holder;
. Persons performing work or services for the registered holder.
A direction may also be expressed to apply to both the registered holder of
the title, and any other person in the offshore area for any reason
concerning or connected with exploration for or exploitation of petroleum,
or any other person in, on or near a vessel, aircraft, structure,
installation or equipment that is connected with the exploration for or
exploitation of petroleum resources. A direction that is expressed to
apply to both the registered holder of the title and any other person in
the vicinity of or connected with petroleum exploitation or exploration is
a legislative instrument. However, any other direction will not be a
legislative instrument.
A direction given by the responsible Commonwealth Minister will prevail
over a direction given by NOPSEMA under section 574, but only to the extent
of any inconsistency between the two. The content of the direction given
by NOPSEMA that is not inconsistent with the direction given by the
responsible Commonwealth Minister will continue to apply.
The responsible Commonwealth Minister must not give a direction of a
standing or permanent nature without the approval of the JA; however if the
requisite approval has not been granted the validity of the direction will
not be affected.
A direction given by the responsible Commonwealth Minister may apply, adopt
or incorporate a code of practice or standard contained in an instrument,
as in force or existing at the time when the direction takes effect.
Therefore if the code of practice or standard is subsequently amended by
the body that issued that code or standard, it is the code or standard that
applied at the time that the direction was given that will continue to
apply in the direction, and not the amended code or standard. To ensure
regulatory certainty for persons who are subject to a direction, any code
of practice or standard that is adopted by a direction is required to be
published on the Department's website (subject to copyright).
Item 334 - Subsection 575(3)
This item omits the term "Designated Authority" and replaces it with the
term "NOPSEMA".
Item 335 - After subsection 575(3)
This item inserts new subsections 575(3A), (3B) and (3C).
Subsection 575(3A) applies when a direction given by the responsible
Commonwealth Minister applies to a registered holder of a title and to a
person from a specified class of persons in accordance with paragraph
574A(3)(a). The registered holder is required to either give a copy of the
notice by which the direction was given to that other person, or display
the notice at a prominent position at a place in the offshore area
frequented by that person.
Subsections 575(3B) and (3C) apply when a direction given by the
responsible Commonwealth Minister applies to a registered holder of a title
and a person referred to in paragraph 574A(3)(b). The registered holder is
required to display the notice by which the direction was given at a
prominent position in the offshore area. In addition, the responsible
Commonwealth Minister may, by written notice, require the registered holder
to display copies of the notice by which the direction was given at such
places in the offshore area and in such manner as specified in the notice.
These subsections will ensure that persons to whom a direction applies are
provided with the best possible opportunity to become aware of the
existence and content of the direction.
Item 336 - Paragraph 575(4)(a)
This items omits the words "or (3)" and substitutes the words ", (3), (3A),
(3B) or (3C)". It is an offence if a registered holder of a title is
subject to a requirement under subsection 575(1), (2), (3), (3A), (3B) or
(3C), relating to notification of a direction that applies to one or more
persons in addition to the registered holder, and the registered holder
fails to meet that requirement. See also Item 335 of Part 1 of Schedule 2.
Item 337 - Paragraphs 576(1)(a) and (3)(a)
This item inserts "or 574A" after "574", to reflect the inclusion of a new
section 574A in the OPGGS Act. See Item 333 of Part 1 of Schedule 2.
A person commits an offence if they are subject to a direction under either
section 574 (given by NOPSEMA) or 574A (given by the responsible
Commonwealth Minister), and the person engages in conduct that breaches the
direction. Although the OPGGS Act and regulations cover a broad range of
regulatory matters, the case for NOPSEMA and the responsible Commonwealth
Minister to be able to issue ad hoc directions to individual titleholders
or classes of titleholders remains strong. For instance, there is the
possibility that, on a particular offshore facility, an emergency situation
may arise that the regulations address inadequately or not at all. The
option of promulgating a new regulation to cover the situation could be
ruled out by the length of time that would be required to go through the
Executive Council processes. It could also be ruled out by the
consideration that any new regulation might be an indiscriminate instrument
applying to all operators, which might not be the desired result. It is
appropriate for the appropriate and effective administration of a high risk
industry, where the consequences of incidents may be significant to human
life and the environment, to require persons to comply with directions
issued by NOPSEMA or the responsible Commonwealth Minister, and to make it
an offence for a person to fail to do so.
An offence against subsection 576(1) is an offence of strict liability.
The application of strict liability to an offence means that a fault
element, such as intention to do the act, or not do the act, is not
required to be proved. This is to ensure that the legislation can be
enforced more effectively as, without the application of strict liability
the intention to do an act or not do an act needs to be proven. Given the
remote and complex nature of offshore operations and the prevalence of
multiple titleholder arrangements it is extremely difficult to prove
intent. The intention of the application of strict liability is to improve
compliance in the regulatory regime. This is particularly important given
the high risk nature of offshore petroleum operations, and the potentially
serious consequences to people and the environment in the event of an
offence being committed.
Setting the penalty at 100 penalty units is considered appropriate. It is
noted this is higher than the preference stated in A Guide To Framing
Commonwealth Offences, Civil Penalties and Enforcement Powers, December
2007 for a maximum 60 penalty units for offences of strict liability.
However, offshore resources activities, as a matter of course, require a
very high level of expenditure and therefore by comparison a smaller
penalty would be an ineffective deterrent. This is also consistent with
other provisions in the OPGGS Act, which set the penalty for a strict
liability offence at 100 penalty units.
Subsection 576(3) provides a defence for prosecution for an offence against
subsection (1) to effect that, if the direction under section 574 or 574A
applies to a registered holder of a title and another person, and the other
person can provide evidence that they did not know, and could not
reasonably have known, of the existence of the direction, the other person
will not be convicted of the offence, unless the prosecution can prove
otherwise. The onus of proof is placed on the defence in this subsection
as the facts as to whether the defendant did not know, or could not
reasonably have known, of the existence of the direction are peculiarly
within the knowledge of the defendant. This is particularly the case given
the remote nature of offshore petroleum operations.
Item 338 - Division 3 of Part 6.2 (heading)
This item repeals the heading, and substitutes a new heading for this
Division.
Item 339 - Subsection 577(1)
This item omits the words "the Designated Authority", wherever occurring
and including in the headings to section 577 and subsection 577(1), and
substitutes the term "NOPSEMA".
Item 340 - Subsection 577(2)
This item repeals the subsection.
Item 341 - Subsection 577(3)
This item omits the words "the Designated Authority", including in the
heading to subsection 577(3), and substitutes the term "NOPSEMA".
Item 342 - At the end of Division 3 of Part 6.2
This item inserts a new section 577A, which provides that the responsible
Commonwealth Minister has the power to take action in the event of a breach
of a direction given by the responsible Commonwealth Minister under Part
6.2 of the OPGGS Act. This item provides the necessary machinery for
ensuring that things directed to be done are done even if the titleholder
or another party who is bound by the direction does not comply with it.
Subsection (2) provides for the responsible Commonwealth Minister to be
able to recover costs or expenses incurred by the responsible Commonwealth
Minister in taking the relevant action(s) in a court of competent
jurisdiction from the person who was subject to the direction.
Subsection (3) provides an exception in an action under subsection (2) to
effect that, if the direction under section 574 or 574A applies to a
registered holder of a title and another person, and the other person can
provide evidence that they did not know, and could not reasonably have
known, of the existence of the direction, the other person will not be
liable to pay costs and expenses, unless the plaintiff can prove otherwise.
The onus of proof is placed on the defendant in this subsection as the
facts as to whether the defendant did not know, or could not reasonably
have known, of the existence of the direction are peculiarly within the
knowledge of the defendant. This is particularly the case given the remote
nature of offshore petroleum operations.
Subsection (4) provides another defence, one that is equally available to
the titleholder and any other person bound by the direction, if the
defendant can prove that they took all reasonable steps to comply with the
direction. As for subsection (3), the onus of proof is placed on the
defendant as only the defendant will have knowledge of the steps taken to
comply with the direction, particularly given the remote nature of offshore
petroleum operations.
Item 343 - Section 578
This item makes the existing text subsection 578(1).
Item 344 - Section 578
This item omits the words "the Designated Authority" and substitutes the
term "NOPSEMA".
Item 345 - Section 578 (note)
This item omits the word "section" and replaces it with the word
"subsection". See Item 344.
Item 346 - At the end of section 578
This item inserts a new subsection 578(2) to provide a defence in a
prosecution for an offence in relation to a breach of a direction given by
the responsible Commonwealth Minister. It is a defence if the defendant
can prove that they took all reasonable steps to comply with the direction.
The onus of proof is placed on the defendant as only the defendant will
have knowledge of the steps taken to comply with the direction,
particularly given the remote nature of offshore petroleum operations.
Item 347 - Subparagraph 583(1)(a)(ii)
This item inserts "(other than Part 6.2)" after "Chapter". The new section
577A provides the responsible Commonwealth Minister with the power to take
action in the event of a breach of a direction given by the responsible
Commonwealth Minister under Part 6.2, and therefore the reference to this
Part is excluded in subsection 583(1). See Item 297.
Item 348 - Paragraph 584(b)
This item inserts "(other than Part 6.2)" after "Chapter". The new
subsection 578(2) makes it a defence in a prosecution for an offence in
relation to a breach of a direction given by the responsible Commonwealth
Minister under Part 6.2 if the defendant took all reasonable steps to
comply with the direction, and therefore the reference to this Part is
excluded in section 584. See Item 300.
Item 349 - Section 585
This item omits the existing simplified outline of Division 1 of Part 6.4
of the OPGGS Act, and replaces it with a new simplified outline of the
Division, which includes a description of the functions and powers of
NOPSEMA and the responsible Commonwealth Minister in this Division.
Item 350 - Subsection 586(2)
This item omits the words "the Designated Authority" and substitutes the
term "NOPSEMA". This item also amends the heading to section 586 by adding
at the end of the heading "-NOPSEMA".
Item 351 - Subsections 586(2)
This item omits the words "the Designated Authority", wherever occurring,
and replaces it with the term "NOPSEMA", to provide NOPSEMA with the
functions and powers previously exercisable by the DA under these
subsections.
Item 352 - At the end of subsection 574(2)
This item adds a third note clarifying that a direction issued under this
section has no effect to the extent that it is inconsistent with a
direction issued under section 586A - see subsection 586A(9).
Item 353 - Subsections 586(3)
This item omits the words "the Designated Authority", wherever occurring,
and replaces it with the term "NOPSEMA", to provide NOPSEMA with the
functions and powers previously exercisable by the DA under these
subsections.
Item 354 - After section 586
This item gives the responsible Commonwealth Minister the power to issue
remedial directions to current holders of petroleum exploration permits,
petroleum retention leases, petroleum production licences, infrastructure
licences, or pipeline licences.
The direction may direct the titleholder to plug or close off wells in the
title area, provide for the conservation and protection of natural
resources in the title area, and/or make good any damage to the seabed or
subsoil in the title area by the applicable date. The applicable date for
a permit, lease or fixed-term petroleum production licence is the expiry
date of the permit, lease or licence. For a petroleum production licence
that is not a fixed-term licence, an infrastructure licence, or a pipeline
licence, the applicable date is the first date on which the licence can be
terminated under the OPGGS Act. The direction must be given in writing.
A remedial direction given by the responsible Commonwealth Minister must be
for a purpose that relates to resource management or resource security.
NOPSEMA has the power more broadly under section 586to issue remedial
directions generally. However, if a direction given by NOPSEMA is
inconsistent with a direction given by the responsible Commonwealth
Minister, the direction given by the responsible Commonwealth Minister will
prevail to the extent of any inconsistency. To the extent that any part of
the direction given by NOPSEMA is not inconsistent, both directions will
operate concurrently.
Subsection (5) makes it an offence for a person who is subject to a
direction to fail to comply with the direction. Subsection (6) makes an
offence against subsection (5) an offence of strict liability. The
application of strict liability to an offence means that a fault element,
such as intention to do the act, or not do the act, is not required to be
proved. This is to ensure that the legislation can be enforced more
effectively as, without the application of strict liability the intention
to do an act or not do an act needs to be proven. Given the remote and
complex nature of offshore operations and the prevalence of multiple
titleholder arrangements it is extremely difficult to prove intent. The
intention of the application of strict liability is to improve compliance
in the regulatory regime. This is particularly important given the high
risk nature of offshore petroleum operations, and the potentially serious
consequences to people and the environment in the event of an offence being
committed.
Setting the penalty at 100 penalty units is considered appropriate. It is
noted this is higher than the preference stated in A Guide To Framing
Commonwealth Offences, Civil Penalties and Enforcement Powers, December
2007 for a maximum 60 penalty units for offences of strict liability.
However, offshore resources activities, as a matter of course, require a
very high level of expenditure and therefore by comparison a smaller
penalty would be an ineffective deterrent. This is also consistent with
other provisions in the OPGGS Act, which set the penalty for a strict
liability offence at 100 penalty units.
Item 355 - Subsection 587(2)
This item omits the words "the Designated Authority" and substitutes the
term "NOPSEMA". This item also amends the heading to section 586 by adding
at the end of the heading "-NOPSEMA".
Item 356 - Subsections 587(2)
This item omits the words "the Designated Authority", wherever occurring,
and replaces it with the term "NOPSEMA", to provide NOPSEMA with the
functions and powers previously exercisable by the DA under this
subsection.
Item 357 - At the end of subsection 587(2)
This item adds a note clarifying that a direction issued under this section
has no effect to the extent that it is inconsistent with a direction issued
under section 587A - see subsection 587A(8).
Item 358 - Subsection 587(4)
This item omits the words "the Designated Authority", wherever occurring,
and replaces it with the term "NOPSEMA", to provide NOPSEMA with the
functions and powers previously exercisable by the DA under this
subsection.
Item 359 - After section 587
This item inserts a new section 587A which gives the responsible
Commonwealth Minister the power to issue remedial directions to former
holders of petroleum exploration permits, petroleum retention leases,
petroleum production licences, infrastructure licences, or pipeline
licences.
The direction may direct the person to plug or close off wells in the
vacated area, provide for the conservation and protection of natural
resources in the vacated area, and/or make good any damage to the seabed or
subsoil in the vacated area within a specified period. The specified
period must be reasonable. The direction must be given in writing.
A remedial direction given by the responsible Commonwealth Minister must be
for a purpose that relates to resource management or resource security.
NOPSEMA has the power more broadly under section 587 to issue remedial
directions generally. However, if a direction given by NOPSEMA is
inconsistent with a direction given by the responsible Commonwealth
Minister, the direction given by the responsible Commonwealth Minister will
prevail to the extent of any inconsistency. To the extent that any part of
the direction given by NOPSEMA is not inconsistent, both directions will
operate concurrently.
Subsection (6) makes it an offence for a person who is subject to a
direction to fail to comply with the direction. Subsection (7) makes an
offence against subsection (6) an offence of strict liability. The
application of strict liability to an offence means that a fault element,
such as intention to do the act, or not do the act, is not required to be
proved. This is to ensure that the legislation can be enforced more
effectively as, without the application of strict liability the intention
to do an act or not do an act needs to be proven. Given the remote and
complex nature of offshore operations and the prevalence of multiple
titleholder arrangements it is extremely difficult to prove intent. The
intention of the application of strict liability is to improve compliance
in the regulatory regime. This is particularly important given the high
risk nature of offshore petroleum operations, and the potentially serious
consequences to people and the environment in the event of an offence being
committed.
Setting the penalty at 100 penalty units is considered appropriate. It is
noted this is higher than the preference stated in A Guide To Framing
Commonwealth Offences, Civil Penalties and Enforcement Powers, December
2007 for a maximum 60 penalty units for offences of strict liability.
However, offshore resources activities, as a matter of course, require a
very high level of expenditure and therefore by comparison a smaller
penalty would be an ineffective deterrent. This is also consistent with
other provisions in the OPGGS Act, which set the penalty for a strict
liability offence at 100 penalty units.
Items 360 to 363 - Section 588; Section 589(1); Subsections 589(2), (4) and
(5)
These items omit the words "the Designated Authority", wherever occurring
and including in the heading to sections 588 and 589 and subsection 588(2),
and substitute the term "NOPSEMA", to provide NOPSEMA with the functions
and powers previously exercisable by the DA under these sections.
Item 364 - At the end of Division 1 of Part 6.4
This item inserts a new section 590A, which provides that the responsible
Commonwealth Minister has the power to take action in the event of a breach
of a direction given by the responsible Commonwealth Minister under section
587A. This item provides the necessary machinery for ensuring that things
directed to be done are done even if the titleholder or another party who
is bound by the direction does not comply with it.
Item 365 - Section 599
This item omits the words "the Designated Authority" and substitutes the
term "NOPSEMA".
Item 366 - Subsection 600(1)
This item omits the words "The Designated Authority for an offshore area"
and substitutes the term "NOPSEMA".
Item 367 - Subsection 600(1)
This item omits the words "the offshore area" and substitutes the term "an
offshore area".
Item 368 - Subsection 600(2)
This item omits the words "The Designated Authority" and substitutes the
term "NOPSEMA".
Item 369 - Subsection 600(3)
This item repeals the existing subsection, and substitutes it with a new
subsection enabling NOPSEMA to issue an identity card to a petroleum
project inspector, instead of the DA.
Items 370 - Section 600(4)(c)(i) and (ii)
This item omits the words "the Designated Authority" and substitutes the
term "NOPSEMA", to provide NOPSEMA with the functions and powers previously
exercisable by the DA.
Item 371 - At the end of section 600
This item inserts a new subsection 600(7) that provides for circumstances
where a NOPSEMA project inspector does work preparatory to a possible
exercise of powers, or exercises powers, for a purpose that relates to a
function or power of the Titles Administrator. NOPSEMA and the Titles
Administrator may, with the agreement of the responsible Commonwealth
Minister make a written determination that provides that, in such
circumstances, an amount is to be debited from the NOPTA Special Account
and credited to the NOPSEMA Special Account. Under this provision, the
determination is self-executing and the amounts may be debited and credited
accordingly.
Subsection 600(8) is merely declaratory of the law and included to assist
readers, as the instruments are not legislative instruments within the
meaning of section 5 of the Legislative Instruments Act 2003.
Items 372 to 376 - Section 612; Section 614 (paragraph (b) of the
definition of exempt vessel); Subsection 615(2); Subsection 616(1); Section
618
These items omit the words "the Designated Authority", wherever occurring
and including in the heading to section 618, and substitute the term
"NOPSEMA".
Items 377 to 378 -Section 635; Subsection 636(1)
These items omit the term "Designated Authority", wherever occurring and
including in the headings to section 635, and substitute the term "Titles
Administrator".
Item 379 - After paragraph 636(1)(e)
This item inserts:
"(ea) a fee under subsection 564(1) or (2);
(eb) a fee under subsection 565(2) or (4);"
Item 380 - Paragraph 636(1)(g)
This item omits the term "Designated Authority" and substitutes the term
"Titles Administrator".
Item 381 - Paragraphs 636(2)(d) and (e)
This item repeals the paragraphs.
Item 382 - After paragraph 638(1)(d)
This item adds Part 5 of the Offshore Petroleum and Greenhouse Gas Storage
(Resource Management and Administration) Regulations 2011 (RMA Regulations)
to the listed OHS laws for the purposes of the OPGGS Act, to the extent to
which Part 5 relates to occupational health and safety matters. The
regulations in Part 5 of the RMA Regulations relate to well operations and
well activities.
Item 383 - Part 6.9 (heading)
This item repeals the existing heading to this Part, and substitutes a new
heading to Part 6.9.
Item 384 - Section 642
This item repeals the existing simplified outline of Part 6.9, and replaces
it with a new simplified outline of Part 6.9.
Item 385 - Section 643 (definition of Board)
This item updates the definition of "Board" to reflect the name change of
the National Offshore Petroleum Safety Authority Board to the National
Offshore Petroleum Safety and Environmental Management Authority Board.
Section 25B of the Acts Interpretation Act 1901 provides that, where an Act
alters the name of a body, or alters the name of an office, then, unless
the contrary intention appears, the body or the office continues in
existence under the new name so that its identity is not affected
Item 386 - Section 643 (definition of CEO)
This item updates the definition of "CEO" to reflect the change in name
from the Safety Authority to NOPSEMA. Section 25B of the Acts
Interpretation Act 1901 provides that, where an Act alters the name of a
body, or alters the name of an office, then, unless the contrary intention
appears, the body or the office continues in existence under the new name
so that its identity is not affected
Item 387 - Section 643
Item 327 includes a definition of 'environmental management law'. It means
the provisions of the Act and the regulations to the extent to which they
relate to offshore petroleum or greenhouse gas environmental management in
Commonwealth waters. The defined term includes the Offshore Petroleum and
Greenhouse Gas Storage (Environment) Regulations 2009 and provisions of the
Act, such as the powers of NOPSEMA to give directions under Parts 6.2, 6.3
and 6.4 in relation to the restoration of the environment at the
decommissioning stage of a petroleum or greenhouse gas project.
Item 388 - Section 643 (paragraph (b) of the definition of Greenhouse Gas
Storage Ministerial Council)
This item updates the name of "the Ministerial Council on Mineral and
Petroleum Resources" to "the Standing Council on Energy and Resources".
Item 389 - Section 643
This item inserts a definition for "NOPSEMA waters". The term means
Commonwealth waters and the designated coastal waters of each State and of
the Northern Territory. This is the same definition of 'Safety Authority
waters' in which NOPSA at present operates
Item 390 - Section 643
Item 329 inserts a definition of 'offshore greenhouse gas storage
environmental management'. It means the prevention, management, mitigation
or remediation of the environmental impacts of greenhouse gas activities
under the Commonwealth Act or under the Petroleum Submerged Lands Act of a
State or Northern Territory.
Item 391 - Section 643 (definition of offshore greenhouse gas storage
operations)
This item omits the term "Safety Authority", wherever occurring, and
replaces it with the term "NOPSEMA".
Item 392 - Section 643
Item inserts a definition of 'offshore petroleum environmental management'.
It means the prevention, management, mitigation or remediation of the
environmental impacts of petroleum activities under the Commonwealth Act or
under the Petroleum Submerged Lands Act of a State or Northern Territory.
Item 393 - Section 643 (definition of offshore petroleum operations)
This item omits the term "Safety Authority", wherever occurring, and
replaces it with the term "NOPSEMA".
Item 394 Section 643 (definition of regulated operation)
Item 332A extends the definition of 'regulated operation' to a greenhouse
gas operation. Previously, it referred only to a petroleum operation.
Item 395 - Section 643 (definition of Regulatory Levies Act)
This item repeals the definition. A definition for "Regulatory Levies Act"
is being included in section 7. See item 9.
Item 396 - Section 643 (definition of Safety Authority waters)
This item repeals the definition. A definition for "NOPSEMA waters" is
being included in section 643. See item 328 of Part 1.
Item 397 - Division 2 of Part 6.9 (heading)
This item repeals the existing heading to this Division, and substitutes a
new heading to Division 2 of Part 6.9.
Item 398 - Section 645
This item continues the existence of the National Offshore Petroleum Safety
Authority as the National Offshore Petroleum Safety and Environmental
Management Authority.
Section 25B of the Acts Interpretation Act 1901 provides that, where an Act
alters the name of a body, or alters the name of an office, then, unless
the contrary intention appears, the body or the office continues in
existence under the new name so that its identity is not affected.
Item 399 - Section 646 Functions of NOPSEMA
Occupational health and safety (OHS)
The OHS functions of NOPSEMA in Commonwealth waters as conferred by
paragraphs (a) to (g) of section 646 remain textually almost unchanged. It
is not intended that the amendments to subsequent paragraphs in
section 646, or the addition of new paragraphs, will limit the scope of
NOPSEMA's OHS-related functions in any way, in comparison with their
existing scope. In particular, the removal of the words 'non-OHS' from
paragraphs 646(ga), (gb), (gc), (gd) or (gf) will not limit NOPSEMA's OHS
functions in relation to OHS-related structural integrity matters. NOPSA's
OHS-related functions always did include structural integrity of
facilities, including pipelines. This will continue to be the case with
NOPSEMA's OHS functions in paragraphs 646(a) to (g). Consequently, there
will be a substantial degree of overlap between NOPSEMA's functions in
relation to OHS and its functions in relation to structural integrity.
There will also be substantial overlap between NOPSEMA's structural
integrity functions and its environmental management functions. This is
because there is no clear dividing line between these pairs of functions.
Structural integrity of facilities, wells and well-related equipment is an
essential element both of OHS and of environmental management of offshore
petroleum and (potentially) greenhouse gas storage activities. The
intention behind the drafting of the functions in paragraphs (a) to (gn) of
section 646 is that it should not, in relation to Commonwealth waters
operations of NOPSEMA, be necessary to distinguish with any exactness
between OHS and structural integrity or between structural integrity and
environmental management.
Structural integrity of facilities, wells and well-related equipment
The words 'non-OHS' are being removed from the term 'structural integrity'
in paragraphs (ga) to (gf). The purpose of doing this is to give
'structural integrity' its full meaning in these paragraphs, so that there
is no need to distinguish between OHS-related and non OHS-related
structural integrity. As stated above, the result will be that the OHS-
related functions and structural integrity-related functions of NOPSEMA in
Commonwealth waters will overlap substantially.
The term 'structural integrity' is defined (inclusively) in section 7. As
defined, the term refers to structural integrity in connection either with
the containment of petroleum or other substance, or with the health or
safety of persons engaged in petroleum operations or greenhouse gas
operations. NOPSEMA's focus in relation to structural integrity is
therefore on risks in connection with containment of substances or in
connection with OHS, or both.
Offshore petroleum and offshore greenhouse gas environmental management
Item 122 inserts new paragraphs 646(gg) to (gn) which confer on NOPSEMA new
functions in relation to offshore petroleum environmental management and
offshore greenhouse gas environmental management.
In the case of petroleum, NOPSEMA will be the regulator under the Offshore
Petroleum and Greenhouse Gas Storage (Environment) Regulations 2009
('Environment Regulations'). Those Regulations are at present focused on
the acceptance of environment plans and the monitoring and enforcement of
compliance with the requirements of environment plans.
In the case of greenhouse gas injection and storage, it will initially be
the responsible Commonwealth Minister who is the regulator under the
Environment Regulations. This is because of the operational
interconnection between environmental performance in relation to a
greenhouse gas injection and storage project and the regulation of
greenhouse gas injection and storage operations under the proposed
regulations relating to greenhouse gas project site plans. The responsible
Commonwealth Minister will approve the site plan in connection with the
granting of a greenhouse gas injection licence, and the site plan will
remain the primary regulatory mechanism throughout the life of a greenhouse
gas injection and storage project. Because regulation of a greenhouse gas
injection and storage project is largely concerned with the security of
storage in the geological storage formation, and because Geoscience
Australia is the technical agency with the expertise to provide assessments
and recommendations to the regulator, the responsible Commonwealth Minister
will retain the central regulatory role in the initial stages of
development of an offshore greenhouse gas injection and storage industry.
As regulatory practice develops, however, it is expected that the
responsible Commonwealth Minister will devolve at least some regulatory
responsibilities onto NOPSEMA, either by delegation of functions and powers
or by the naming of NOPSEMA as the regulator under regulations, including
the Environment Regulations.
Even before this occurs, the responsible Commonwealth Minister will be able
to call upon NOPSEMA, pursuant to its function in new paragraph 646(go) to
provide assessments, analysis, reports, advice and recommendations to the
responsible Commonwealth Minister or delegate in relation to the Minister's
functions and powers with respect to greenhouse gas injection and storage
operations.
Conferral of functions on NOPSEMA by States or Northern Territory in
designated coastal waters
Paragraphs 646(b), (gb), (gi) and (gj) enable the States and Northern
Territory to confer OHS, structural integrity and environmental management
functions, respectively, on NOPSEMA in designated coastal waters. In order
to safeguard the ability of NOPSEMA to manage its regulatory practices
efficiently and effectively, some 'bundling' requirements have been imposed
in relation to the conferral of functions. Most importantly, a State or
Territory can only confer OHS functions if it also confers the functions in
relation to structural integrity of facilities, wells and well-related
equipment. Schedule 3 to the Commonwealth Act imposes on OHS duty of care
on the titleholder in relation to wells and well-related equipment. It
will not be possible for NOPSEMA effectively to monitor compliance by a
titleholder with this duty of care unless NOPSEMA is also the regulator
under State/Territory regulations corresponding to Part 5 of the Offshore
Petroleum and Greenhouse Gas Storage (Resource Management and
Administration) Regulations 2011, which are the Commonwealth regulations
providing for management of wells and well operations.
Clause notes
Item 399 omits the words "The Safety Authority" and substitutes the term
"NOPSEMA". The heading to section 646 is also amended to reflect the name
change.
Item 400 - Paragraph 646(ga), (gb), (gc), (gd) and (gf)
This item omits the words "non-OHS". Those words were required in the
context of the amendments made by the Offshore Petroleum and Greenhouse Gas
Storage (Miscellaneous Measures) Act 2010, but they are no longer of any
significance. See above for an explanation of the relationship between the
functions of NOPSEMA. See also item 5 of Part 1.
Item 401 - After paragraph 646(gf)
Item 401 adds a range of new functions to the list of NOPSEMA's functions
in section 646.
New paragraphs 646(gg) and (gh) provide that NOPSEMA has the functions
conferred by this Act and the regulations in relation to environmental
management of petroleum and greenhouse gas operations, respectively, in
Commonwealth waters.
New paragraphs 646(gi) and (gj) provide that NOPSEMA has the functions
conferred on it by a State or NT Petroleum (Submerged Lands) Act and
regulations in relation to environmental management of petroleum and
greenhouse gas operations, respectively, in the relevant State or NT
designated coastal waters. Where a State or the NT confers environmental
management functions on NOPSEMA under either of these paragraphs, it is
expected that the State or NT will also confer the 'ancillary' functions
conferred by the Commonwealth Act on NOPSEMA by paragraphs (gk) to (go) of
section 646. This has been the practice of States and the NT in the past
when they have conferred functions on NOPSA.
New paragraphs (gk) to (go) confer the same 'ancillary' functions in
relation to environmental management as have already been conferred in
relation to OHS and structural integrity. Paragraph (gk) in relation to
monitoring and enforcement and paragraph (gl) in relation to investigations
are confined to operations in Commonwealth waters. The functions in
paragraphs (gn) and (go) are not so confined.
New paragraph (gp) confers the function of providing information,
assessments, analysis, reports, advice and recommendations to the
responsible Commonwealth Minister in relation to the Minister's functions
and powers in relation to greenhouse gas operations.
Paragraph (gq) confers an important new function on NOPSEMA. The paragraph
provides that NOPSEMA has the function of compliance monitoring and
enforcement in relation to all obligations of persons under the Act and
regulations, except for the obligations in respect of which NOPSEMA already
has those functions under the preceding paragraphs of section 646. This
function extends beyond NOPSEMA's own range of regulatory functions under
the Act and regulations. It extends for example to monitoring of
compliance with conditions of titles or with field development plans.
While the Titles Administrator will have the principal role in these areas,
the Titles Administrator's monitoring will mostly be by audits of documents
lodged by a titleholder under requirements imposed by the Act or
regulations. The conferral of this function on NOPSEMA will improve the
comprehensiveness of the monitoring and enforcement strategies available to
both regulators under the Act. In particular, NOPSEMA will employ, appoint
and deploy petroleum and greenhouse gas project inspectors, who have a
range of powers available to them under the information-gathering powers in
Division 3 of Part 7.1.
Paragraph (gr) makes it a function of NOPSEMA to cooperate with the Titles
Administrator in matters relating to the administration and enforcement of
this Act and the regulations. See the Outline in relation to the purpose
of this paragraph.
Item 402 - Paragraph 646(h)
Item 402 repeals paragraph 646(h) and replaces it with an updated
requirement to cooperate with Commonwealth, State and NT agencies and
authorities having functions related to petroleum and greenhouse gas
operations in Commonwealth waters and in State and Northern Territory
designated coastal waters.
This item also inserts paragraph 646(i), which provides that NOPSEMA has
such other functions as are conferred on it by the Act or the regulations.
This includes, importantly, NOPSEMA's powers to give directions under the
Act in relation to petroleum operations.
The item also inserts paragraph 646(j), the function to do anything
incidental to or conducive to the performance of any of the above
functions. In combination with the function in paragraph 646(i), this is
the source of NOPSEMA's function of regulating 'day-to-day' operations of
petroleum titleholders. NOPSEMA's powers to give directions under
Parts 6.2 and 6.4 Division 1 are comprehensive, relating to all aspects of
petroleum operations under the Act. Under these combined functions,
NOPSEMA will be able, in circumstances where it considers it necessary, to
keep under review the possible need to give a direction.
Item 403 - After section 646
Item 403 inserts new section 646A, which imposes a 'bundling' requirement
on the conferral of functions on NOPSEMA by a State or Northern Territory
Petroleum (Submerged Lands) Act. Section 646A provides that a State or
Territory cannot confer any function on NOPSEMA that is mentioned in
section 646(b), (gb), (gi) or (gj) ('a state functions provision') - ie
OHS, structural integrity or environmental management, unless OHS and
structural integrity are both conferred, and the State or Territory also
applies provisions equivalent to Schedule 3 to the Commonwealth Act and
regulations equivalent to the Offshore Petroleum and Greenhouse Gas Storage
(Safety) Regulations 2009 and Part 5 of the Offshore Petroleum and
Greenhouse Gas Storage (Resource Management and Administration)
Regulations 2011. These last-mentioned regulations are the Commonwealth
regulations providing for management of integrity of wells and well
operations.
The reason why this 'bundling' requirement is applied is that an important
part of the OHS regime is the titleholder duty of care in relation to wells
in Schedule 3 to the Commonwealth Act. NOPSEMA will be unable to monitor
and enforce compliance with that duty of care effectively unless it is also
the regulator of integrity of wells and well operations. In addition,
given the substantial overlap between the OHS and structural integrity
functions, it is essential for the effective and efficient management of
NOPSEMA's regulatory processes that it be the regulator of both aspects of
offshore operations.
The bundling requirement in relation to OHS and structural integrity
applies only to petroleum operations. There is no requirement that a State
or the Territory also confer greenhouse gas functions and powers - see
paragraphs (a) and (b) of subsection 646A(3).
Section 646A also provides that if a State or Territory Petroleum
(Submerged Lands) Act confers the environmental management functions
mentioned in paragraph 646(gi) or (gj), there must also be regulations
substantially corresponding to the petroleum or greenhouse gas provisions
(as the case may be) of the Offshore Petroleum and Greenhouse Gas Storage
(Environment) Regulations 2009
These provisions must substantially correspond to the equivalent
Commonwealth provisions, either as the Commonwealth provisions are in force
at the time of the commencement of section 646A or as they are in force at
any later time. This is to ensure that NOPSEMA has a coherent set of
provisions to administer, monitor and enforce in both Commonwealth waters
and designated coastal waters. The requirement does, however, take account
of the inevitable lag in amending State or Territory Acts and regulations
to update them to the Commonwealth model.
The requirements of this section do not begin to apply until 12 months
after the commencement of the section. This means that, provided the
States and the Northern Territory ensure that the OHS functions and powers
that they currently confer on NOPSA under their Petroleum (Submerged Lands)
Acts become functions and powers of NOPSEMA at the commencement day, they
will then have 12 months in which to ensure that such functions and powers
as they wish to confer on NOPSEMA under their Petroleum (Submerged Lands)
Acts are conferred in the manner required by section 650A.
Item 404 - Subsection 647(1)
This item omits the words "the Safety Authority" and substitutes the term
"NOPSEMA".
Item 405 - Subsection 647(2)
This item omits the words "the Safety Authority's" and substitutes the word
"NOPSEMA's".
Items 406 to 408 - Subsection 647(4); Subsection 647(5); Subsection 648(1)
These items omit the words "the Safety Authority" and substitute the term
"NOPSEMA". The heading to section 648 is also amended to reflect the name
change.
Item 409 - Subsection 648(2)
This item omits the words "the Safety Authority's" and substitutes the word
"NOPSEMA's".
Items 410 - Section 648
This item omits the words "the Safety Authority" and substitute the term
"NOPSEMA".
Item 411 - Subsection 649(1)
This item removes the subsection division.
Item 412 - Subsection 649(1)
This item omits the words "the Safety Authority" and substitute the term
"NOPSEMA".
Item 413 - Section 650
Item 413 repeals section 650 and replaces it with a new section.
New section 650 provides for the conferral of additional functions and
powers on NOPSEMA in specified circumstances.
Subsection 650(1) enables NOPSEMA to provide regulatory services under a
contract entered into by NOPSEMA with a State or the Northern Territory, or
an agency or authority of a State or the Northern Territory, in relation to
petroleum operations either onshore or offshore. Where the services relate
to a place within the limits of a State, the services must relate to
activities of a 'constitutional corporation' or to structures etc that are
owned or controlled, or that are being constructed, operated or
decommissioned, by a 'constitutional corporation'. This limitation ensures
that onshore activities of NOPSEMA are within the legislative power of the
Commonwealth under section 51(xx) of the Constitution (the corporations
power). The contract must be approved in writing by the responsible
Commonwealth Minister.
Subsection 650(2) enables a State or the Northern Territory to confer
regulatory (petroleum) functions and powers on NOPSEMA by a State or
Northern Territory Act in 'eligible coastal waters'. These are waters
landward of the (3-mile) territorial sea baseline that are external to the
State. Only Western Australia has any offshore petroleum activity in
waters in this category. Western Australia is able to confer functions and
powers on NOPSEMA that substantially correspond to functions and powers
conferred by the Commonwealth Act. There must be an agreement between the
responsible Commonwealth Minister and the responsible State Minister.
Subsection 650(3) enables NOPSEMA to provide petroleum regulatory services
under a contract entered into by NOPSEMA with the government of a foreign
country or the government of a part of a foreign country, or agency or
authority of such a country or part of a country. The contract must be
approved in writing by the responsible Commonwealth Minister, after having
consulted with the 'Foreign Affairs Minister' (as defined in
subsection 650(7)).
Subsection 650(5) provides that NOPSEMA is not authorised to provide a
service under a contract entered into under subsection (1) or (3) if to do
so would impede NOPSEMA's capacity to perform its other functions. It may
be that difficulties in recruiting qualified and experienced staff, or the
time taken to bring staff to an adequate level of training within NOPSEMA,
makes it impracticable for NOPSEMA to take on contract work at a particular
time.
Subsection 650(6) provides that specified governance provisions do not
apply to the performance by NOPSEMA of contract services under
subsections 650(1) or (3) or to functions or powers conferred by a State or
Territory law under subsection 650(2). In particular, the responsible
Commonwealth Minister does not have power to give directions to NOPSEMA, or
to give NOPSEMA policy principles, with respect to those operations.
Item 414 - Section 651
This item repeals the section. NOGSAC does not exist any more and there is
no successor body.
Items 415 and 416 - Subsection 652(1); Subsections 652(2) and (3)
These items omit the words "the Safety Authority", including in the heading
to section 652, and substitute the term "NOPSEMA".
Item 417 - Division 3 of Part 6.9 (heading)
This item repeals the existing heading to this Division, and substitutes a
new heading to Division 3 of Part 6.9.
Item 418 - Section 653
This item continues the existence of the National Offshore Petroleum Safety
Authority Board as the National Offshore Petroleum Safety and Environmental
Management Authority Board.
Item 419 - Paragraph 654(1)(a)
This item omits the words "the Safety Authority" and substitutes the term
"NOPSEMA".
Item 420 - Subparagraph 654(a)(b)(iv)
This item updates the name of "the Ministerial Council on Mineral and
Petroleum Resources" to "the Standing Council on Energy and Resources".
Items 421 and 422 - Paragraph 654(1)(b)
Items 421 and 422 expand paragraph 654(1)(b) in relation to the Board's
functions so that they correspond to the functions of NOPSEMA with respect
to structural integrity of facilities, wells and well-related equipment and
also petroleum environmental management.
Item 423 - Subparagraph 654(1)(b)(vi)
This item omits the words "the Safety Authority" and substitutes the term
"NOPSEMA".
Items 424 and 425 - Paragraph 654(1)(c)
Items 424 and 425 expand paragraph 654(1)(c) in relation to the Board's
functions so that they extend to the function of NOPSEMA with respect to
greenhouse gas environmental management.
Item 426 - Subparagraph 654(1)(c)(vi)
This item omits the words "the Safety Authority" and substitutes the term
"NOPSEMA".
Items 427 and 428 - Paragraph 654(3)(c)
These items update the name of "the Ministerial Council on Mineral and
Petroleum Resources" to "the Standing Council on Energy and Resources".
Item 429 - Division 4 of Part 6.9 (heading)
This item repeals the existing heading to this Division, and substitutes a
new heading to Division 4 of Part 6.9.
Item 430 - Subsection 665(1)
This item omits the words "the Safety Authority" and substitutes the term
"NOPSEMA".
Item 431 - At the end of subsection 665(1)
This item adds a note the end of this subsection to refer to section 25B of
the Acts Interpretation Act 1901. Section 25B provides that, where an Act
alters the name of an office, such as the CEO of the Safety Authority,
then, unless the contrary intention appears, the office continues in
existence under the new name so that its identity is not affected.
Because, at the time when NOPSEMA's operations commence, the current CEO
will not have been recommended for appointment by the Standing Council on
Energy and Resources, there is a transitional provision in item 552 that
confirms the continuity of the appointment. (The appointment of the
current CEO was recommended by the Ministerial Council on Mineral and
Petroleum Resources.)
Item 432 - Subsection 665(3)
This item updates the reference to "the Ministerial Council on Mineral and
Petroleum Resources" to "the Standing Council on Energy and Resources".
Item 433 - Subsection 666(1)
This item omits the words "the Safety Authority" and substitutes the term
"NOPSEMA".
Item 434 - Subsection 666(2)
This item omits the words "the Safety Authority", where it first occurs in
the subsection, and substitutes the term "NOPSEMA".
Item 435 - Subsection 666(2)
This item omits the words "the Safety Authority's" and substitutes the word
"NOPSEMA's".
Item 436 - Subsection 666(2)
This item omits the words "the Safety Authority", on the second occasion
they occur in the subsection, and substitutes the term "NOPSEMA".
Item 437 - Section 667
This item omits the words "the Safety Authority's", wherever occurring, and
substitutes the word "NOPSEMA's".
Item 438 - Paragraph 667(3)(b)
This item amends paragraph 667(3)(b) by inserting a requirement that
reports, documents and information be 'reasonably' required by the Chair of
the Board. This will provide for a dialogue between the CEO and the Chair
of the Board as to the level of NOPSEMA's resources that are to be devoted
to the provision of such material to the Board.
Item 439 to 441 - Paragraph 675(1)(a); Subsection 676(1); Subsection 677(1)
These items omit the words "the Safety Authority" and substitute the term
"NOPSEMA".
Item 442 - Subsection 667(3)
This item omits the words "The Safety Authority" and substitutes the term
"NOPSEMA".
Items 443 and 444 - Subsection 667(3); Subsection 678(1)
These items omit the words "the Safety Authority" and substitute the term
"NOPSEMA".
Item 445 - Paragraphs 678(4)(a) and (b)
This item omits the words "the Safety Authority's" and substitutes the word
"NOPSEMA's".
Item 446 - Paragraph 678(4)(c)
This item omits the words "the Safety Authority" and substitutes the term
"NOPSEMA".
Item 447 - After paragraph 678(4)(e)
This item updates subsection 678(4)(e) to include analysis of risk factors
relating to structural integrity of facilities, wells and well-related
equipment and petroleum and greenhouse gas environmental management.
Item 448 - Subsection 679(3)
This item amends subsection 679(3) so that it refers expressly to
occupational health and safety in respect of particular petroleum or
greenhouse gas operations. Previously, it was not necessary to refer
expressly to OHS, as NOPSA had only OHS functions.
Items 449 and 450 - Subsections 679(6) and (7); Paragraph 680(2)(a)
These items omit the words "the Safety Authority" and substitute the term
"NOPSEMA".
Item 451 - Subsection 681(1)
This item omits the words "The Safety Authority" and substitutes the term
"NOPSEMA".
Item 452 - Paragraph 681(3)(c)
This item omits the words "the Safety Authority" and substitutes the term
"NOPSEMA".
Item 453 - Division 7 of Part 6.9 (heading)
This item repeals the existing heading to this Division, and substitutes a
new heading to Division 7 of Part 6.9.
Item 454 - Section 682
This item continues in existence the National Offshore Petroleum Safety
Account as the National Offshore Petroleum Safety and Environmental
Management Authority Special Account. The National Offshore Petroleum
Safety and Environmental Management Authority Special Account is a Special
Account for the purposes of the Financial Management and Accountability Act
1997.
Item 455 - Paragraphs 683(a) to (db)
This item omits the words "the Safety Authority" and substitutes the term
"NOPSEMA".
Item 456 - After paragraph 683(db)
This item inserts a new paragraph 683(dc), which enables amounts paid to
NOPSEMA on behalf of the Commonwealth by way of environment plan levy
imposed by the Offshore Petroleum and Greenhouse Gas Storage (Regulatory
Levies) Act 2003, and by way of late payment penalty under subsection
688C(2) of the OPGGS Act, to be credited to the National Offshore Petroleum
Safety and Environmental Management Authority Special Account.
Item 457 - Paragraph 683(e)
This item repeals the paragraph, and substitutes new paragraphs 683(e) and
(ea) which enable amounts equal to amounts paid to NOPSEMA, on behalf of
the Commonwealth, under a contract referred to in subsection 650(1) or (3),
or an agreement referred to in subsection 650(2), of the OPGGS Act to be
credited to the National Offshore Petroleum Safety and Environmental
Management Authority Special Account.
Items 458 to 460 - Paragraphs 683(f) and (g); Paragraph 684(1)(a);
Paragraph 684(1)(b)
These items omit the words "the Safety Authority" and substitute the term
"NOPSEMA".
Item 461 - Paragraph 684(1)(c)
Item 398 deletes paragraph 684(1)(c), as it is unnecessary. The payments
will now be authorised under paragraph 684(1)(a).
Items 462 and 463 - Subsection 684(2); Section 685
These items omit the words "the Safety Authority", wherever occurring and
including in the heading to section 685, and substitutes the term
"NOPSEMA".
Item 464 - Subsection 686(4)
This item omits the words "The Safety Authority" and substitutes the term
"NOPSEMA".
Item 465 - Section 686
This item omits the words "the Safety Authority", wherever occurring, and
substitutes the term "NOPSEMA".
Item 466 - Subsection 687(6)
This item omits the words "The Safety Authority" and substitutes the term
"NOPSEMA".
Item 467 - Section 687
This item omits the words "the Safety Authority", wherever occurring, and
substitutes the term "NOPSEMA".
Item 468 - Subsection 688(4)
This item omits the words "The Safety Authority" and substitutes the term
"NOPSEMA".
Item 469 - Section 688
This item omits the words "the Safety Authority", wherever occurring, and
substitutes the term "NOPSEMA".
Item 470 - Subsection 688A(4)
This item omits the words "The Safety Authority" and substitutes the term
"NOPSEMA".
Item 471 - Section 688A
This item omits the words "the Safety Authority", wherever occurring, and
substitutes the term "NOPSEMA".
Item 472 - Subsection 688B(4)
This item omits the words "The Safety Authority" and substitutes the term
"NOPSEMA".
Item 473 - Section 688B
This item omits the words "the Safety Authority", wherever occurring, and
substitutes the term "NOPSEMA".
Item 474 - After section 688B
This item inserts a new section 688C, which provides for the collection of
the environment plan levy imposed by the Offshore Petroleum and Greenhouse
Gas Storage (Regulatory Levies) Act 2003.
The environment plan levy will become due and payable at a time specified
in the Offshore Petroleum and Greenhouse Gas Storage (Regulatory Levies)
Regulations 2004. Each levy amount, and each amount in respect of any late
payment penalties, is a debt due to NOPSEMA on behalf of the Commonwealth.
These amounts are recoverable by NOPSEMA, on behalf of the Commonwealth, in
a court of competent jurisdiction.
In addition, section 688C provides for a late payment penalty to be payable
by a person or persons where an environment plan levy remains wholly or
partly unpaid after the date it becomes due and payable. If the levy is
payable by a single person, that person will be liable to pay the late
payment penalty. If the levy is payable jointly and severally by two or
more persons, those persons are jointly and severally liable to pay the
late payment penalty.
The penalty is not cost recovery or taxation, it is a penalty designed to
ensure that levies are paid on time. Given the importance of NOPSEMA's
function in regulating environmental matters for the offshore oil and gas
industry and the fact it is funded through levies, it is critical that it
is adequately resourced through the timely payment of levies by industry.
Item 475 - Subsection 689(1)
This item omits the words "The Safety Authority" and substitutes the term
"NOPSEMA".
Item 476 - Paragraph 690(1)(a)
This item omits the words "the Safety Authority's" and substitutes the word
"NOPSEMA's". The heading to subsection 690(1) is also amended to reflect
the name change to NOPSEMA.
Item 477 - Subparagraphs 690(1)(b)(iii) and (3)(b)(iii)
This item updates the name of "the Ministerial Council on Mineral and
Petroleum Resources" to "the Standing Council on Energy and Resources".
Item 478 - Subsection 691(1)
This item omits the words "the Safety Authority", wherever occurring and
including in the heading to section 691, and substitutes the term
"NOPSEMA".
Item 479 - Paragraph 691(1)(a)
This item omits the words "The Safety Authority's", wherever occurring, and
substitutes the word "NOPSEMA's".
Item 480 - Subsection 691(2)
This item omits the words "the Safety Authority", wherever occurring, and
substitutes the term "NOPSEMA".
Item 481 - Paragraph 691(2)(a)
This item omits the words "the Safety Authority's", wherever occurring, and
substitutes the word "NOPSEMA's".
Item 482 - Subsection 691(3)
This item omits the words "The Safety Authority" and substitutes the term
"NOPSEMA".
Item 483 - Subsections 692(1) and (3)
This item omits the words "the Safety Authority", including in the heading
to section 692, and substitutes the term "NOPSEMA".
Item 484 - Subsection 692(3)
This item omits the words "in Safety Authority" and substitutes the words
"in NOPSEMA".
Item 485 - Subsection 692(4)
This item omits the words "the Safety Authority" and substitutes the term
"NOPSEMA".
Item 486 - Subsections 692(4) and (7)
This item omits the words "the Safety Authority's" and substitutes the word
"NOPSEMA's".
Item 487 - Subsection 692(8)
This item omits the words "the Safety Authority" and substitutes the term
"NOPSEMA".
Item 488 - Subsection 692(12)
This item omits the words "The Safety Authority" and substitutes the term
"NOPSEMA".
Item 489 - Section 695
Item 426 deletes existing section 695 and replaces it with a new section.
There are two substantive changes.
The first is that it updates the content requirements to include the new
functions of NOPSEMA in relation to structural integrity and environmental
management.
The other change is to the timing of reviews. The first review is to
relate to the 3-year period beginning at the commencement date, when
NOPSEMA will commence operations. It is the timing of the subsequent
reviews that has been changed, by increasing the review period to 5 years.
This has been done because experience with NOPSA periodic reviews has shown
that, where a review report recommends changes to regulatory practices that
necessitate changes to the Act or to regulations, the lengthy policy
development process, involving as it does extensive consultation with
State, Territory and industry stakeholders, followed by the time taken to
get the legislative changes drafted and into force, mean that the previous
review's recommendations have scarcely been implemented, if indeed it has
been possible to implement them, by the time the next review is due to be
undertaken. The new review is therefore unable to assess the benefits of
implementing the previous review's recommendations. Five years seems a
more realistic and therefore more cost-effective review period.
Item 490 - At the end of Division 9 of Part 6.9
Item 427 inserts a new section 695AA that replaces section 73. That
section referred to the Designated Authority for the Eastern Greater
Sunrise offshore area, which is abolished by this Bill. A number of the
functions that were previously exercised by the Designated Authority for
the Eastern Greater Sunrise Area are transferred to NOPSEMA.
Item 491 - At the end of Chapter 6
This item adds a new Part 6.10, titled "National Offshore Petroleum Titles
Administrator", which provides for the establishment, functions and powers
of NOPTA.
Division 1 provides a simplified outline of Part 6.10.
Section 695AB
The main functions of the Titles Administrator conferred by Part 6.10 are:
assisting and advising the Joint Authority and the responsible Commonwealth
Minister, and keeping the Register of titles.
In addition, the Titles Administrator will take over the administrative
functions of the Designated Authorities in relation to decisions of the
Joint Authority. The Titles Administrator will keep records of the
decisions of the Joint Authorities (section 61), sign documents on behalf
of the Joint Authority (section 62), be the point of communication with the
Joint Authority (section 63) and execute or issue instruments (such as
titles) and give notices on behalf of the Joint Authority (section 65).
The Titles Administrator will also have data management functions under
Part 7.1.
Division 2-National Offshore Petroleum Titles Administrator
Section 695A
Section 695A establishes the Titles Administrator. The Titles
Administrator is to be an SES employee in the Commonwealth Department of
Resources Energy and Tourism who is to be specified in an instrument by the
Secretary of the Department.
Subsection 695A(3) is merely declaratory of the law and included to assist
readers, as the instruments are not legislative instruments within the
meaning of section 5 of the Legislative Instruments Act 2003.
Section 695B Functions of the Titles Administrator
Section 695B provides that the Titles Administrator has certain functions.
Under paragraphs (a), (b), (c) and (d), the Titles Administrator has the
functions of providing information, assessments, analysis, reports, advice
and recommendations to the responsible Commonwealth Minister as a member of
the Joint Authority (paragraph (a)), to the responsible State or Northern
Territory Minister as a member of the Joint Authority (paragraph (b)), to
the responsible Commonwealth Minister in respect of his or her functions or
powers (other than as a member of the Joint Authority) (paragraph (c)) and
to the State and Northern Territory 'Petroleum Ministers' in relation to
their activities under their Petroleum (Submerged Lands) Acts. (This last
function in paragraph (d) would only be performed at the request of the
State or Territory 'Petroleum Minister', under a service level agreement.)
In addition, paragraph 695B(h) provides that the Titles Administrator has
the functions conferred on the Titles Administrator by or under a State or
Territory Petroleum (Submerged Lands) Act. Where the Titles Administrator
performs the function in paragraph (d) or (h), the Act authorises entry
into a service level agreement providing for (among other things) payments
to the Titles Administrator. These payments are to be credited to the
NOPTA Special Account under paragraph 695J(c).
The Titles Administrator has the function under paragraph 695B(e) of
cooperating with NOPSEMA in matters relating to the administration and
enforcement of the Act and the regulations. NOPSEMA and the Titles
Administrator will each have an express function of cooperating with the
other in matters relating to the administration and enforcement of the Act
and regulations. While it is an important aspect of the new regime that
the two bodies will act entirely independently of each other in their
decision-making and regulatory practices, a level of administrative
coordination between the agencies will assist in minimising any potential
impact on the industry of having offshore operations regulated by two
different entities
Under paragraph 695B(g) the Titles Administrator has such other functions
as are conferred on the Titles Administrator by the Act or the regulations.
Under paragraph 695B(i) the Titles Administrator may do anything
incidental to or conducive to the performance of any of the above
functions.
Section 695C Acting Titles Administrator
Section 695C contains standard provisions for the appointment of an acting
Titles Administrator.
Section 695D Delegation by the Titles Administrator
Section 695D provides for the Titles Administrator to delegate functions
and powers to a person who is:
a) an SES employee or acting SES employee in the Department; or
b) an APS employee at Executive Level 2 or equivalent in the
Department; or
c) an employee of a State or the Northern Territory.
The ability to delegate to an APS employee at EL2 level is necessary
because the Titles Administrator will be the only SES-level employee within
the Titles Administrator Branch of the Department.
Subsection 695D(2) enables the Titles Administrator to give written
directions to a delegate.
Sections 695E and 695F
Sections 695E and 695F provide that the Titles Administrator is to be
assisted by APS staff in the Department who are made available by the
Secretary and, with the written approval of the Secretary, by officers and
employees of APS Agencies or authorities of the Commonwealth or by officers
and employees of a State or Territory or of a State or Territory authority.
Division 3-National Offshore Petroleum Titles Administrator Special Account
Section 695H National Offshore Petroleum Titles Administrator Special
Account
Section 695H establishes the National Offshore Petroleum Titles
Administrator Special Account. It is a Special Account for the purposes of
the Financial Management and Accountability Act 1997.
Section 695J Credits to the Account
The amounts that may be credited to the Account are:
a) amounts equal to fees for services paid under regulations made
for the purposes of subsection 695L(1);
b) amounts equal to amounts of annual titles administration levy
and late payment fees;
c) amounts equal to any other amounts paid to the Titles
Administrator, on behalf of the Commonwealth, by a State or the
Northern Territory; and
d) amounts equal to any other amount paid to the Titles
Administrator on behalf of the Commonwealth.
Section 695K Purposes of the Account
Section 695K sets out the amounts that may be debited to the Account.
These are the costs, expenses and other obligations incurred in performing
the Titles Administrator's functions and the exercise of the Titles
Administrator's powers.
Division 4-Other financial matters
Section 695L Fees
Section 695L provides for the charging of fees for services as specified in
the regulations for specified services of the Titles Administrator. These
are cost-recovery fees such as application fees and must not be such as to
amount to taxation.
Section 695M Annual titles administration levy
This section provides for the collection of the annual titles
administration levy imposed by the Offshore Petroleum and Greenhouse Gas
Storage (Regulatory Levies) Act 2003.
The annual titles administration levy for the first year of the term of
permit, lease or licence will become due and payable at the end of 30 days
after the day on which the term begins. The levy for a later year of the
term is due and payable at the end of 30 days after the anniversary of the
day on which the first year of the term began. Each levy amount, and each
amount in respect of any late payment penalties, is a debt due to NOPTA on
behalf of the Commonwealth. These amounts are recoverable by NOPTA, on
behalf of the Commonwealth, in a court of competent jurisdiction.
In addition, section 695M provides for a late payment penalty to be payable
by a person or persons where an annual titles administration levy remains
wholly or partly unpaid after the date it becomes due and payable.
The penalty is not cost recovery or taxation, it is a penalty designed to
ensure that levies are paid on time. Given the importance of NOPTA's
titles administration functions and the fact it is funded through levies,
it is critical that it is adequately resourced through the timely payment
of levies by industry.
Section 695N Annual Report
NOPTA must prepare a report on its activities during the year as soon as
practicable after the end of each financial year. The report is given to
the responsible Commonwealth Minister for presentation to the Parliament.
A copy of the report must also be given to the Petroleum Minister for each
State and the NT, the Greenhouse Gas Minister for each State and the NT,
and the Standing Council on Energy and Resources.
Section 695P Reviews of activities of Titles Administrator
This section provides for reviews of the activities of NOPTA, and for
preparation of a report of the review. Copies of the report are to table
in both Houses of Parliament. The first review will take place after three
years from the commencement of NOPTA, and subsequent reviews will relate to
subsequent five year periods. Reviews are to be completed within 6 months
of the end of each period, or a longer period allowed by the responsible
Commonwealth Minister.
Section 695Q Judicial notice of signature of Titles Administrator
This clause requires a court to take judicial notice of signatures and
facts relating to being a person who is or being a delegate of a person who
is the Titles Administrator. Judicial notice is a finding by a court of the
existence of a fact which has not been established by evidence. Once
judicial notice is taken of a matter, it is prima facie proved and evidence
is not required to prove it. However, evidence may be led to rebut the fact
noticed or the consequences of it.
A court to which this clause refers could be a Commonwealth, State or
Territory court. Subclause (2) extends the provisions of this clause to
persons authorised to receive evidence. This would include, for example, a
tribunal or arbitrator who is authorised to receive evidence.
Section 695R Communications with responsible Commonwealth Minister
Section 695R provides that all communications to or by the responsible
Commonwealth Minister under or for the purposes of the Act or the
regulations are to be made through the Titles Administrator, except for
communications to or by the responsible Commonwealth Minister in his or her
capacity as, or as a member of, the Joint Authority for an offshore area.
Communications to or by a Joint Authority for an offshore area are covered
by section 63, and are also made through the Titles Administrator.
Part 7.1-Data management and gathering of information
Division 2-Data management
Item 492 - Section 696
This item omits the term "Designated Authority", wherever occurring, and
replaces it with the term "Titles Administrator".
Item 493 -Subsections 697(2) and (4)
Section 697 is a direction-giving power under which the Designated
Authority may give directions to a person to keep accounts, records or
other documents in connection with petroleum operations, to collect and
retain cores, cuttings or samples, and to give them to the Designated
Authority or other person specified in the notice.
Item 493 omits the term "Designated Authority", wherever occurring and
including in the heading to subsection 697(2), and substitutes the term
"Titles Administrator".
Item 494 - Subsection 697(4)
This item omits the words "Designated Authority's" and substitutes the
words "Titles Administrator's".
Item 495 - Paragraph 698(1)(c)
Under section 698, the regulations may provide for the keeping of accounts,
records and other documents in connection with petroleum operations and the
collection and retention of cores, cuttings or samples and the giving of
them to the Designated Authority. This item omits the term "Designated
Authority" and substitutes the term "Titles Administrator". Regulations
made under section 698 are in Part 7 of the Offshore Petroleum and
Greenhouse Gas Storage (Resource Management and Administration)
Regulations 2011. Item 495 transfers this part of the data management
function from the Designated Authorities to the Titles Administrator.
Division 3-Information-gathering powers
Item 496 - Subsection 699(1)
As amended by this item provides that where the Titles Administrator or
petroleum project inspector reasonably believes that a person has
information, a document or the ability to provide evidence that relates to
petroleum operations, the Titles Administrator or the project inspector may
require the provision or that information or that document and may require
the person to appear before them to give any such evidence or produce such
document. The heading to section 699 is also updated to replace the
reference to "Designated Authority" with "Titles Administrator".
Items 496 to 501 in effect transfer these information-gathering powers from
the Designated Authorities to the Titles Administrator.
These items omit the term "Designated Authority", wherever occurring and
including in the heading to section 704, and substitute the term "Titles
Administrator".
Item 502 - Paragraph 706(b)
This item omits the term "Designated Authority" and substitutes the term
"Titles Administrator".
Item 503 - At the end of Division 3 of Part 7.1
New section 707A provides that the Titles Administrator may give written
directions to a petroleum project inspector as t the exercise of the
inspector's powers under this Division. This provision is necessary
because petroleum project inspectors are appointed and deployed by NOPSEMA.
When a project inspector is acting in furtherance of the Titles
Administrator's functions under this Division, however, the inspector is
subject to direction by the Titles Administrator.
Subsection 707A(4) is merely declaratory of the law and included to assist
readers, as the instruments are not legislative instruments within the
meaning of section 5 of the Legislative Instruments Act 2003.
Item 504 - Section 708
This item omits the term "Designated Authority", wherever occurring, and
substitutes the term "Titles Administrator", to require NOPTA to meet
obligations previously required to be met by the DA under this section.
Item 505 - Subsection 709(1)
This item omits the reference in this subsection to "Designated Authority
in connection with this Act", and replaces it with "Titles Administrator in
connection with Chapter 2 or this Chapter". Section 709 therefore applies
to a document received or issued by NOPTA in connection with Chapter 2 or
Chapter 7 of the OPGGS Act.
The heading to section 709 is also amended to update the reference to
"Designated Authority" to "Titles Administrator".
Item 506 - Subsections 709(2) and (3)
This item omits the term "Designated Authority" and substitutes the term
"Titles Administrator".
Item 507 - Section 710
This item updates the simplified outline of Part 7.3 to include references
to information contained in certain documents given to NOPTA or the DA, and
to petroleum mining samples given to NOPTA or the DA.
Item 508 - Section 711 (before paragraph (a) of the definition of
applicable document)
This item amends the definition of "applicable document" by inserting new
paragraphs before paragraph (a) that will become the new list of categories
of 'applicable document' on the commencement of these amendments. The
present list will then be converted by item 509 into a transitional
provision applying to documents received pre-commencement.
The new list of applicable documents comprises
a) an application made to the Titles Administrator under Chapter 2;
b) a document accompanying such an application; or
c) a report, return or other document relating to a block and given
to the Titles Administrator under Chapter 2 or Chapter 7 of the
Act, or regulations made for the purposes of section 698 of the
Act.
Item 509 - Section 711 (paragraphs (a) and (c) of the definition of
applicable document)
This item amends the definition of "applicable document" to provide that
applications made to the DA, or specified reports, returns or other
documents given to the DA, on or after 7 March 2000 and before the
commencement of Part 6.10 are within the definition.
Item 510 - Section 711 (definition of petroleum mining sample)
This item amends the definition of "petroleum mining sample" to include
cores, cuttings and samples, or portions of cores, cuttings or samples,
that have been given to the Titles Administrator at any time under
regulations made for the purposes of section 698, in addition to cores,
cuttings and samples, or portions of cores, cuttings or samples, that have
been given to the DA at any time before the commencement of Part 6.10.
Item 511 - Subdivision A of Division 2 of Part 7.3
This item repeals the existing heading to this Division, and substitutes a
new heading to Division 2 of Part 7.3.
Items 512 to 516 - Section 712; Section 713; Section 714; Paragraph
718(2)(a); Section 720
These items omit the term "Designated Authority", wherever occurring and
including in the headings to sections 712, 713 and 714, and substitute the
term "Titles Administrator".
Chapter 8-Information relating to greenhouse gas
The Bill transfers the responsible Commonwealth Minister's powers in
relation to data management and gathering of information with respect to
greenhouse gas operations to the Titles Administrator.
Items 517 and 518 - Section 722; Subsection 723(2)
These items omit the term "responsible Commonwealth Minister", wherever
occurring and including in the heading to subsection 723(2), and substitute
the term "Titles Administrator". This transfers to the Titles
Administrator the responsible Commonwealth Minister's power to give
directions with respect to the keeping of accounts, records and other
documents, the collection and retention of cores, cuttings and samples and
the giving of them to the Titles Administrator.
Item 519 - After subsection 723(3A)
Item 454 inserts a new subsection 723(3A) that gives the responsible
Commonwealth Minister power to give directions about the exercise of the
Titles Administrator's power to give directions under subsection 723(2).
Item 520 - At the end of section 723
Subsection 723(6) is merely declaratory of the law and included to assist
readers, as the instruments are not legislative instruments within the
meaning of section 5 of the Legislative Instruments Act 2003.
Items 521 to 528 - Paragraph 724(1)(c); Paragraph 725(1)(a); Subsection
725(2); Section 727; Section 729; Section 730; Paragraph 731(a); Paragraph
732(b)
These items omit the term "responsible Commonwealth Minister", wherever
occurring and including in the headings to sections 725 and 730, and
substitutes the term "Titles Administrator".
Item 529 - At the end of Division 3 of Part 8.1
New section 733A provides that the Titles Administrator may give directions
to a greenhouse gas project inspector as to the exercise of the inspector's
powers under this Division. This power is necessary because it is NOPSEMA
that appoints and deploys greenhouse gas project inspectors. When a
greenhouse gas project inspector is acting in furtherance of the Titles
Administrator's functions under this Division, the project inspector is
subject to direction by the Titles Administrator.
Subsection 733A(4) is merely declaratory of the law and included to assist
readers, as the instruments are not legislative instruments within the
meaning of section 5 of the Legislative Instruments Act 2003.
Item 530 - Section 734
This item omits the term "responsible Commonwealth Minister", wherever
occurring, and substitutes the term "Titles Administrator".
Item 531 - At the end of Part 8.2
New section 734A is necessary because the responsible Commonwealth
Minister's powers in relation to gathering of greenhouse gas information,
documents and samples has been transferred from the responsible
Commonwealth Minister to the Titles Administrator. The information etc may
be required by the responsible Commonwealth Minister for the purposes of
the exercise of the responsible Commonwealth Minister's powers in relation
to greenhouse gas operations.
Item 532 - Section 735
This item amends the simplified outline of Part 8.3 to include references
to information contained in certain documents, and petroleum mining
samples, given to the responsible Commonwealth Minister or NOPTA.
Item 533 - Section 736 (paragraph (a) of the definition of applicable
document)
This item amends the definition of "applicable document" to include
applications made to the responsible Commonwealth Minister under Chapter 3
of the OPGGS Act. The existing definition includes applications made to
the responsible Commonwealth Minister under the OPGGS Act in its entirety;
however this is no longer applicable following amendments made by this
Bill.
Item 534 - Section 736 (paragraph (c) of the definition of applicable
document)
This item repeals the existing paragraph (c) of the definition of
"applicable document" and replaces it with new paragraphs (c), (d) and (e).
Item 535 - Section 736 (definition of eligible sample)
This item amends the definition of "eligible sample" to include cores,
cuttings and samples, or portions of cores, cuttings or samples, that have
been given to NOPTA at any time under regulations made for the purposes of
section 724, in addition to cores, cuttings and samples, or portions of
cores, cuttings or samples, that have been given to the responsible
Commonwealth Minister at any time before the commencement of Part 6.10.
Once Part 6.10 commences, the regulations may make provisions for the
giving to NOPTA or a specified person of cores, cuttings and samples,
rather than to the responsible Commonwealth Minister. See item 421.
Item 536 - Subdivision A of Division 2 of Part 8.3 (heading)
This item repeals the existing heading to this Subdivision, and substitutes
a new heading to Subdivision A of Division 2 of Part 8.3.
Items 537 to 540 - Section 738; Section 739; Section 740; Section 743
These items amend the sections to provide that the obligations, functions
and powers in these sections apply to both the responsible Commonwealth
Minister and NOPTA.
Item 541 - Part 9.1 (heading)
This item repeals the existing heading to this Part, and substitutes a new
heading to Part 9.1.
Item 542 - Section 744
This item repeals the existing simplified outline of Part 9.1, and replaces
it with a new simplified outline. Part 9.1 is amended to remove the
ability to seek review by the Administrative Appeals Tribunal of decisions
by the responsible Commonwealth Minister, or a delegate of the responsible
Commonwealth Minister, as Joint Authority in relation to the offshore area
of an external Territory. Decisions of a Joint Authority concerning the
granting of titles and the imposition of title conditions are matters of
high government policy, involving considerations of national economic
policy as well as environmental and social policy. The decisions are also
made on the basis of technical geological and geophysical data on advice
from Geoscience Australia. These are not decisions that an administrative
tribunal is equipped to make, particularly as requests for review would
arise rarely so that there was no opportunity for members to acquire any
expertise or experience in relation to such matters.
Item 543 - Section 745 (definition of reviewable delegated decision)
This item repeals the definition of "reviewable delegated decision".
Item 544 - Section 745 (definition of reviewable Ministerial decision)
This item repeals the existing definition of "reviewable Ministerial
decision" and replaces it with a new definition which limits review by the
Administrative Appeals Tribunal (AAT) to decisions of the responsible
Commonwealth Minister under:
. regulations made for the purposes of paragraph 738(2)(c) or 739(2)(c)
of the OPGGS Act, relating to the release of greenhouse gas technical
information, or
. clause 6, subclause 7(1), clause 8, or subclause 9(6) or (10), of
Schedule 5 to the OPGGS Act, relating to the release of technical
information given to the DA before 7 March 2000.
Item 545 - Section 745
This item inserts a new definition for "reviewable Titles Administrator
decision". A "reviewable Titles Administrator decision" is a decision made
by NOPTA under specified regulations relating to the release of technical
information.
Item 546 - Section 746
This item repeals the section, as the concept of a "reviewable delegated
decision" is no longer applicable. See item 543.
Item 547 - At the end of Part 9.1
This item inserts a new section 747A, which provides that applications may
be made to the AAT for review of a reviewable Titles Administrator
decision. See item 545.
Item 548 - Paragraph 768(1)(d)
This item replaces the reference to "the Designated Authority" with a
reference to "the Titles Administrator", as a body to which section 768
applies.
Item 549 - Paragraphs 768(1)(e) and (f)
This item omits the words "the Safety Authority" and substitutes the term
"NOPSEMA".
Item 550 - Paragraph 768(1)(j)
This item omits the term "Designated Authority" and substitutes the term
"Titles Administrator".
Item 551 - Paragraph 768(1)(k)
This item omits the words "the Safety Authority", wherever occurring and
substitutes the term "NOPSEMA".
Item 552 - Subsection 768(2)
This item replaces the reference to "Designated Authority or the Safety
Authority" with a reference to "Titles Administrator or NOPSEMA".
Item 553 - Subsection 771(1) (cell at table item 1, column headed "A
document required or permitted by this Act to be given to...")
This item repeals the existing cell and replaces it with a new cell to
include a reference to a person other than the responsible Commonwealth
Minister, NOPTA, NOPSEMA or a corporation.
Item 554 - Subsection 771(1) (table item 2)
This item repeals the existing item 2, and replaces it with new items 2 and
2A to set out the approved methods of serving documents that the OPGGS Act
requires or permits to be given to NOPTA or NOPSEMA.
Item 555 - Section 772
This item omits the words "the Designated Authority", wherever occurring,
and substitutes the words "the Titles Administrator".
Item 556 - Subsection 774(2)
This item omits the words "the Designated Authority" and substitutes the
words "the Titles Administrator and NOPSEMA". Where there are two or more
registered holders of a petroleum title, a nomination of one titleholder as
the person to whom documents may be given must be provided, by joint
written notice, to both NOPTA and NOPSEMA.
Item 557 - After subsection 774(3)
This item inserts a new subsection 774(3A) to provide that a joint written
notice given to NOPTA and NOPSEMA that nominates one titleholder as the
person to whom documents may be given must be in the form approved, in
writing, by NOPTA and the CEO of NOPSEMA.
Item 558 - Paragraph 774(5)(b)
This item omits the words "the Designated Authority" and substitutes the
words "the Titles Administrator and NOPSEMA". A revocation of a nomination
of one titleholder to be the person to whom documents may be given must be
provided in writing to both NOPTA and NOPSEMA.
Item 559 - After subsection 774(5)
This item inserts a new subsection 774(5A) to provide that a joint written
notice given to NOPTA and NOPSEMA that revokes a nomination of one
titleholder as the person to whom documents may be given must be in the
form jointly approved in writing by NOPTA and the CEO of NOPSEMA.
Items 560 and 561 - Subsection 775A(1); Section 775B
These items omit the term "Designated Authority", wherever occurring, and
substitute the term "Titles Administrator".
Item 562 - Section 775C
This item omits the term "Designated Authority", wherever occurring, and
substitutes the term "responsible Commonwealth Minister".
Item 563 - Before paragraph 778(1)(a)
This item inserts a new paragraph 778(1)(aa) to enable the responsible
Commonwealth Minister to delegate any or all of his functions and powers
under the OPGGS Act and the regulations to the CEO of NOPSEMA.
Item 564 - Paragraph 778(1)(a)
This item replaces the reference to "Secretary of the Department" with a
reference to "Secretary". See item 15 of Part 1, which inserts a
definition of "Secretary" into section 7 of the OPGGS Act.
Item 565 - Subsection 778(3)
This item amends the subsection to remove the reference to the DA for an
offshore area.
Item 566 - At the end of section 778
Item 566 inserts new subsections (4), (5) and (6) to the responsible
Commonwealth Minister's power of delegation. Subsection (4) provides that,
if a function or power is delegated to the CEO of NOPSEMA, the CEO may sub-
delegate the function or power to a member of staff of NOPSEMA. In
performing a function or exercising a power, the sub-delegate must comply
with any direction of the responsible Commonwealth Minister.
Item 567 - Paragraph 779(1)(c)
This item removes a reference to the "Designated Authority" and replaces it
with references to "the Titles Administrator" and "NOPSEMA".
Items 568 to 570 - Section 780D; Subsection 780F(1); Subparagraph
780F(3)(b)(i)
These items omit references to "Secretary of the Department", wherever
occurring, and replace them with references to "Secretary". See item 13 of
Part 1, which inserts a definition of "Secretary" into section 7 of the
OPGGS Act.
Item 571 - Subparagraph 780F(3)(b)(ii)
This item omits the words "a Designated Authority" and substitutes the
words "the Titles Administrator".
Item 572 - Subparagraph 780F(3)(b)(iv)
This item omits the words "the Safety Authority" and substitutes the term
"NOPSEMA".
Items 573 and 574 - Subsection 780F(4); Subsection 780F(5)
These items omit references to "Secretary of the Department", wherever
occurring, and replace them with references to "Secretary". See item 13 of
Part 1, which inserts a definition of "Secretary" into section 7 of the
OPGGS Act.
Items 575 and 576 - Clause 2 of Schedule 2; Subclauses 5(1) and (2) of
Schedule 3
These items omit the words "the Safety Authority" and substitute the term
"NOPSEMA".
Item 577 - Subparagraphs 13A(1)(a)(ii), 13A(2)(a)(ii), 13B(1)(a)(ii) and
13B(2)(a)(ii)
The Offshore Petroleum and Greenhouse Gas Storage Legislation Amendment
(Miscellaneous Measures) Act 2010 inserted clauses 13A and 13B into
Schedule 3 to the OPGGS Act to impose an OHS duty of care on offshore
petroleum and greenhouse gas titleholders in relation to wells and well-
related equipment. However, clauses 13A and 13B inadvertently contain an
error that has unduly narrowed the scope of these duties of care.
Paragraphs 13A(1)(a)(ii) and 13A(2)(a)(ii) provide that, if a well has been
used in connection with operations authorised by a petroleum title, and the
wellhead is situated in the title area, the titleholder must ensure the
well is so designed, constructed, commissioned, altered, equipped,
maintained, operated, suspended, abandoned, or closed-off that risks to the
health and safety of persons at or near a facility from the well or
anything in the well are as low as reasonably practicable. Clauses
13B(1)(a)(ii) and 13B(2)(a)(ii) include a similar requirement for
greenhouse gas titleholders. However, a well may have no wellhead; for
example, a well that is being drilled, or that is having well-related
equipment installed may not yet have a wellhead installed, or a well that
is suspended may not have a wellhead.
These amendments therefore replace the words "and the wellhead is situated
in the title area of the current title" with "and the well is situated
wholly or partly in the title area of the current title". This clarifies
that the titleholder OHS duty of care applies in relation to a well,
whether or not the well has a wellhead, and therefore ensure that the duty
of care operates as intended.
Items 578 to 584 - Clause 26 of Schedule 3; Subclause 30(1) of Schedule 3;
Clause 32 of Schedule 3; Subparagraph 34(1)(a)(iii) of Schedule 3;
Subclause 35(2) of Schedule 3; Subclause 39(1) of Schedule 3; Clause 44 of
Schedule 3
These items omit the words "the Safety Authority", wherever occurring, and
substitute the term "NOPSEMA".
Item 585 - Clause 46 of Schedule 3
This item omits the words "The Safety Authority", wherever occurring, and
substitutes the term "NOPSEMA".
Item 586 - Clause 47 of Schedule 3
This item omits the words "the Safety Authority" and substitutes the term
"NOPSEMA".
Items 587 and 588 - Clause 48 of Schedule 3; Subclause 49(2) of Schedule 3
These items omit the words "The Safety Authority", wherever occurring, and
substitute the term "NOPSEMA". The heading to subclause 49(2) of Schedule
also updates the reference to "the Safety Authority" to "NOPSEMA".
Item 589 - Subclause 49(2) of Schedule 3
This item omits the words "the Safety Authority" and substitutes the term
"NOPSEMA".
Items 590 to 594 - Paragraph 50(2)(d) of Schedule 3; Paragraph 51(2)(b) of
Schedule 3; Subparagraph 52(3)(c)(i) of Schedule 3; Subparagraph
56(5)(c)(i) of Schedule 3; Subparagraph 57(5)(c)(i) of Schedule 3
These items omit the words "the Safety Authority's" and substitute the term
"NOPSEMA".
Items 595 and 596 - Subclause 58(4) of Schedule 3; Subclause 65(1) of
Schedule 3
These items omit the words "the Safety Authority", wherever occurring, and
substitute the term "NOPSEMA".
Item 597 - Subclause 65(2) of Schedule 3
This item omits the words "The Safety Authority" and substitutes the term
"NOPSEMA".
Items 598 to 600 - Paragraph 65(2)(b) of Schedule 3; Clause 66 of Schedule
3; Subclauses 80(1) and (3) of Schedule 3
These items omit the words "the Safety Authority", wherever occurring and
including in the heading to subclause 80(1) of Schedule 3, and substitute
the term "NOPSEMA".
Item 601 - Subclause 80(4) of Schedule 3
This item omits the words "The Safety Authority" and substitutes the term
"NOPSEMA".
Items 602 to 605 - Subclause 80(5) of Schedule 3; Clause 82 of Schedule 3;
Subclause 83(1) of Schedule 3; Clause 89 of Schedule 3
These items omit the words "the Safety Authority", wherever occurring and
including in the heading to subclause 89(1) of Schedule 3, and substitute
the term "NOPSEMA".
Item 606 - Subclause 89(5) of Schedule 3
This item omits the words "The Safety Authority" and substitutes the term
"NOPSEMA".
Items 607 to 612 - Subclauses 2(2), (4), (5) and (6) of Schedule 4;
Subclause 2(7) of Schedule 4 (note 2); Clause 3 of Schedule 4; Subclauses
4(2), (4), (5) and (6) of Schedule 4; Subclause 4(7) of Schedule 4 (note
2); Subclause 7(1) of Schedule 4
These items replace all references to "Designated Authority" in Schedule 4
to the OPGGS Act and substitute "Titles Administrator", to provide NOPTA
with the functions previously exercisable by the DA under this Schedule.
The Schedule is otherwise left unchanged.
Items 613 to 627 - Paragraph 4(a) of Schedule 5; Subclause 5(1) of Schedule
5; Subclause 5(2) of Schedule 5; Clause 6 of Schedule 5; Subclause 7(1) of
Schedule 5; Paragraph 7(1)(e) of Schedule 5; Clause 8 of Schedule 5;
Subclause 9(1) of Schedule 5; Paragraph 9(1)(b) of Schedule 5; Paragraph
9(1)(e) of Schedule 5; Subclauses 9(3) and (6) of Schedule 5; Subclause
9(7) of Schedule 5; Paragraph 9(8)(a) of Schedule 5; Subclause 9(12) of
Schedule 5
These items replace references to "Designated Authority" or "Designated
Authority for a State or the Northern Territory" in Schedule 5 to the OPGGS
Act and substitute "Titles Administrator", to provide NOPTA with the
powers, functions and obligations previously exercisable by the DA under
this Schedule. The Schedule is otherwise left unchanged.
References to "Designated Authority" in this Schedule in relation to
information, applications or documents made or given to the DA before 7
March 2000, and to the time at which information is taken to have been
given to the DA, are not changed as these criteria remain applicable to the
relevant information, applications, and documents covered by this Schedule.
Part 2 - Amendments relating to the assessment of registration fees
Item 628 to 629 - Paragraph 512(1)(b); Subsection 517(1)
These items omit the term "Designated Authority" and replace it with the
term "Titles Administrator", to provide NOPTA with the powers previously
exercisable by the DA under this subsection.
Item 630 - Subsection 517(1)
This item omits the words "the Register" and replaces them with the words
"the relevant Register". See item 170.
Item 631 - Subsections 517(2) to (4)
This item omits the term "Designated Authority", wherever occurring and
including in the heading to subsection 517(2), and replaces it with the
term "Titles Administrator".
Item 632 - Subsection 517(5)
This item removes a reference to "Designated Authority" and replaces it
with a reference to "Titles Administrator", including in the heading to
this subsection.
Items 633 to 635 - Paragraph 561(1)(b); Subsection 556(1) to (4);
Subsection 566(5)
These items remove references to "responsible Commonwealth Minister" and
replace them with references to "Titles Administrator", including in the
headings to subsections 566(2) and (5), to provide NOPTA with the powers
and functions previously exercisable by the responsible Commonwealth
Minister under section 556.
Item 636 - Section 629
This item omits the term "Designated Authority", wherever occurring and
including in the heading to section 629, and replaces it with the term
"Titles Administrator".
Part 3 - Transitional provisions commencing on Royal Assent
Item 637 - Board members
This item ensures that the amendments in Schedule 2 to this Bill do not
affect the continuity of appointments to the National Offshore Petroleum
Safety Authority Board, which is re-named the National Offshore Petroleum
Safety and Environmental Management Authority Board, subject to the power
of the responsible Commonwealth Minister to terminate an appointment.
Item 638 - CEO
This item ensures that the amendments in Schedule 2 to this Bill do not
affect the continuity of the appointment of the CEO of NOPSA, which is re-
named NOPSEMA, subject to the power of the responsible Commonwealth
Minister to terminate the appointment.
Item 639 - Translation of references in documents
This item provides that transitional regulations under the Offshore
Petroleum and Greenhouse Gas Storage (National Regulator) Amendment Act
2011 (National Regulator Amendment Act) may provide that, after the
commencement of Part 1 of Schedule 2 to the Act, specified references to
the DA in specified documents will have effect as if the reference to the
DA were a reference to NOPTA, NOPSEMA or the responsible Commonwealth
Minister (as applicable). The regulations may also provide that specified
references to the responsible Commonwealth Minister in specified documents
will have effect as if the reference to the responsible Commonwealth
Minister were a reference to NOPTA.
Part 1 of Schedule 2 to the Act, among other things, establishes NOPTA and
NOPSEMA, abolishes the DA, and transfers the functions and powers
previously exercisable by the DA to NOPTA, NOPSEMA and/or the responsible
Commonwealth Minister, and some functions and powers previously exercisable
by the responsible Commonwealth Minister to NOPTA.
This item will ensure that documents specified in the regulations which
include references to the DA can effectively and validly continue in force
once the DA has been abolished. For the purposes of this item, "document"
includes a petroleum or greenhouse gas title.
See item 641 in relation to the power to make transitional regulations
under the National Regulator Amendment Act.
Item 640 - Transitional - proceedings in courts and tribunals
This item provides that transitional regulations under the National
Regulator Amendment Act may provide that, where the DA is a party to
proceedings that are pending in a court or tribunal prior to the
commencement of Part 1 of Schedule 2 to the Act, NOPTA, NOPSEMA or the
responsible Commonwealth Minister is substituted as a party to the
proceedings (as applicable). The regulations may also provide that, where
the responsible Commonwealth Minister is a party to proceedings prior to
the commencement of Part 1 of Schedule 2, NOPTA is substituted as a party
to the proceedings.
Part 1 of Schedule 2 to the Act, among other things, establishes NOPTA and
NOPSEMA, abolishes the DA, and transfers the functions and powers
previously exercisable by the DA to NOPTA, NOPSEMA and/or the responsible
Commonwealth Minister, and some functions and powers previously exercisable
by the responsible Commonwealth Minister to NOPTA.
Where a matter that is the subject of the proceedings specified in the
regulations relates to a power, function or obligation that has been
transferred from the DA to NOPTA, NOPTA will be substituted as the party to
the proceedings. Similarly, where a matter that is the subject of the
proceedings relates to a power, function or obligation that has been
transferred from the DA to NOPSEMA or the responsible Commonwealth
Minister, NOPSEMA or the responsible Commonwealth Minister respectively
will be substituted as a party to the proceedings.
Where a matter that is the subject of the proceedings relates to a power,
function or obligation that has been transferred from the responsible
Commonwealth Minister to NOPTA, NOPTA will be substituted as a party to the
proceedings.
Where it considers it is in the interests of justice to do so, the court or
tribunal before which the proceedings are being heard will have the ability
to order that the transitional regulations do not apply to those
proceedings, and that a different person is substituted as a party to the
proceedings
This item will ensure that on-going legal proceedings to which the DA is a
party will not be affected solely by the abolition of the DA and the
transfer of the DA's power, functions and obligations to other entities.
See item 641 in relation to the power to make transitional regulations
under the National Regulator Amendment Act.
Item 641 - Transitional regulations
This item gives the Governor-General the power to make regulations
prescribing the matters which are permitted by items 637 to 640 to be made.
Part 4 - Transitional provisions commencing on Proclamation
Item 642 - Interpretation
For the purposes of Part 4 of Schedule 2 to the National Regulator
Amendment Bill, this item categorises provisions of the OPGGS Act, as they
were in force before the commencement of this item on Proclamation and
which are amended by Schedule 2 to the Bill, as follows:
. A provision that is amended so as to transfer a function or power of
the DA for an offshore area to NOPTA is a Category A provision.
. A provision that is amended so as to transfer a function or power of
the DA for an offshore area to NOPSEMA is a Category B provision.
. A provision that is amended so as to transfer a function or power of
the DA for an offshore area to the responsible Commonwealth Minister
is a Category C provision.
. A provision that is amended so as to transfer a function or power of
the responsible Commonwealth Minister to NOPTA is a Category D
provision.
Item 643 - Transitional - instruments made or given by the Designated
Authority to be attributed to the Titles Administrator etc.
This item continues in effect instruments that were made or given by the DA
for an offshore area under a Category A provision (see item 642), where the
instrument was in force immediately before the commencement of this item.
To ensure their continued effectiveness, the instruments will be taken to
have been made or given by NOPTA under the Category A provision as it has
been amended by Schedule 2 to the National Regulator Amendment Bill.
Item 644 - Transitional - acts of Designated Authority to be attributed to
the Titles Administrator etc.
This item continues in effect acts or things that were done by the DA for
an offshore area, prior to the commencement of this item, under or for the
purposes of a Category A provision (see item 642). To ensure their
continued effectiveness, the acts or things will be taken to have been done
by NOPTA under the Category A provision as it has been amended by Schedule
2 to the National Regulator Amendment Bill.
This item does not apply to the making or giving of an instrument by the DA
under a Category A provision. See item 643.
Item 645 - Transitional - instruments made or given by the Designated
Authority to be attributed to NOPSEMA etc.
This item continues in effect instruments that were made or given by the DA
for an offshore area under a Category B provision (see item 642), where the
instrument was in force immediately before the commencement of this item.
To ensure their continued effectiveness, the instruments will be taken to
have been made or given by NOPSEMA under the Category B provision as it has
been amended by Schedule 2 to the National Regulator Amendment Bill.
Item 646 - Transitional - acts of Designated Authority to be attributed to
NOPSEMA etc.
This item continues in effect acts or things that were done by the DA for
an offshore area, prior to the commencement of this item, under or for the
purposes of a Category B provision (see item 642). To ensure their
continued effectiveness, the acts or things will be taken to have been done
by NOPSEMA under the Category B provision as it has been amended by
Schedule 2 to the National Regulator Amendment Bill.
This item does not apply to the making or giving of an instrument by the DA
under a Category B provision. See item 645.
Item 647 - Transitional - instruments made or given by the Designated
Authority to be attributed to the responsible Commonwealth Minister etc.
This item continues in effect instruments that were made or given by the DA
for an offshore area under a Category C provision (see item 642), where the
instrument was in force immediately before the commencement of this item.
To ensure their continued effectiveness, the instruments will be taken to
have been made or given by the responsible Commonwealth Minister under the
Category C provision as it has been amended by Schedule 2 to the National
Regulator Amendment Bill.
Item 648 - Transitional - acts of Designated Authority to be attributed to
the responsible Commonwealth Minister etc.
This item continues in effect acts or things that were done by the DA for
an offshore area, prior to the commencement of this item, under or for the
purposes of a Category C provision (see item 642). To ensure their
continued effectiveness, the acts or things will be taken to have been done
by the responsible Commonwealth Minister under the Category C provision as
it has been amended by Schedule 2 to the National Regulator Amendment Bill.
This item does not apply to the making or giving of an instrument by the DA
under a Category C provision. See item 647.
Item 649 - Transitional - instruments made or given by the responsible
Commonwealth Minister to be attributed to the Titles Administrator etc.
This item continues in effect instruments that were made or given by the
responsible Commonwealth Minister under a Category D provision (see item
642), where the instrument was in force immediately before the commencement
of this item. To ensure their continued effectiveness, the instruments
will be taken to have been made or given by NOPTA under the Category D
provision as it has been amended by Schedule 2 to the National Regulator
Amendment Bill.
Item 650 - Transitional - acts of the responsible Commonwealth Minister to
be attributed to the Titles Administrator etc.
This item continues in effect acts or things that were done by the
responsible Commonwealth Minister, prior to the commencement of this item,
under or for the purposes of a Category D provision (see item 642). To
ensure their continued effectiveness, the acts or things will be taken to
have been done by NOPTA under the Category D provision as it has been
amended by Schedule 2 to the National Regulator Amendment Bill.
This item does not apply to the making or giving of an instrument by the
responsible Commonwealth Minister under a Category D provision. See item
649.
Item 651 - Transitional - continuation of Registers
This item continues in existence the Registers of petroleum titles and
petroleum special prospecting authorities that were kept by each DA for an
offshore area, and the Register of greenhouse gas titles and greenhouse gas
search authorities that was kept by the responsible Commonwealth Minister,
after the commencement of this item (i.e. on Proclamation).
In effect, the Registers of petroleum titles and petroleum special
prospecting authorities for each offshore area that are to be kept by NOPTA
will be a continuation of the existing Registers for each offshore area.
See item 171.
Similarly, the Register of greenhouse gas titles and greenhouse gas search
authorities that are to be kept by NOPTA will be a continuation of the
existing Register of greenhouse gas titles and greenhouse gas search
authorities.
Item 652 - Transitional - transfer of Registers by Designated Authority
This item requires the Registers of petroleum titles and petroleum special
prospecting authorities for each offshore area that were kept by the DA
prior to the commencement of this item to be transferred to NOPTA after the
commencement of this item (i.e. following the abolition of the DA on
Proclamation).
Transferring the Registers will ensure that NOPTA can continue the existing
Registers once the function of keeping the Registers is transferred to
NOPTA - see item 649.
Item 653 - Transitional - transfer of Register by responsible Commonwealth
Minister
This item requires the Register of greenhouse gas titles and greenhouse gas
search authorities that was kept by the responsible Commonwealth Minister
prior to the commencement of this item to be transferred to NOPTA after the
commencement of this item (i.e. following the abolition of the DA on
Proclamation).
Transferring the Register will ensure that NOPTA can continue the existing
Register once the function of keeping the Register is transferred to NOPTA
- see item 649.
Item 654 - Transitional - transfer of petroleum records to the Titles
Administrator
This item requires any records or documents that are "applicable documents"
(within the meaning of Part 7.3 of, or Schedule 5 to, the OPGGS Act) and
that were in the possession of the DA before the commencement of this item
to be transferred to NOPTA after the commencement of this item (i.e.
following the abolition of the DA on Proclamation). The same requirement
also applies to cores, cuttings or samples that are petroleum mining
samples (within the meaning of Part 7.3 of the OPGGS Act) and within the
possession of the DA.
Item 655 - Transitional - transfer of greenhouse gas records to the Titles
Administrator
This item requires any records or documents that are "applicable documents"
(within the meaning of Part 8.3 of the OPGGS Act) and that were in the
possession of the responsible Commonwealth Minister before the commencement
of this item to be transferred to NOPTA after the commencement of this item
(i.e. following the transfer of responsibility for greenhouse gas records
to NOPTA on Proclamation). The same requirement also applies to cores,
cuttings or samples that are eligible samples (within the meaning of Part
8.3 of the OPGGS Act) and within the possession of the responsible
Commonwealth Minister.
Item 656 - Transitional regulations
This item gives the Governor-General the power to make regulations relating
to transitional matters arising out of the amendments to the OPGGS Act made
by Schedule 2 to the National Regulator Amendment Act.
Schedule 3 - Amendments relating to annual fees
Part 1 - Repeal of the Offshore Petroleum and Greenhouse Gas Storage
(Annual Fees) Act 2006
Offshore Petroleum and Greenhouse Gas Storage (Annual Fees) Act 2006
This item repeals the whole of the Offshore Petroleum and Greenhouse Gas
Storage (Annual Fees) Act 2006 (Annual Fees Act).
The annual fees imposed on holders of petroleum titles by the Annual Fees
Act were required to be passed by the Commonwealth on to the DAs to fund
their administration of the OPGGS Act. Following the abolition of the DAs,
NOPTA and NOPSEMA will operate on a cost-recovery basis funded by levies
raised by the offshore petroleum and greenhouse gas industries imposed by
the Offshore Petroleum and Greenhouse Gas Storage (Regulatory Levies) Act
2003. The annual fees imposed by the Annual Fees Act will therefore no
longer be imposed on titleholders.
Part 2 - Consequential amendments
Offshore Petroleum and Greenhouse Gas Storage Act 2006
Item 2 - Section 7 (definition of Annual Fees Act)
This item repeals the definition of "Annual Fees Act". The Annual Fees Act
will be abolished by this Schedule. See item 1 of Part 1.
Item 3 - Paragraph 270(3)(a)
This item removes the word "Acts".
Items 4 to 7 - Subparagraph 270(3)(a)(iii); Subparagraph 274(d)(iii);
Subparagraph 277(3)(a)(iii); Subparagraph 277(4)(a)(iii)
These items remove references to "Annual Fees Act" and replace them with
references to "section 10E of the Regulatory Levies Act".
Item 8 - Paragraph 442(3)(a)
This item removes the word "Acts".
Items 9 to 14 - Subparagraph 442(3)(a)(ii); Subparagraph 446(d)(ii);
Subparagraph 449(3)(a)(ii); Paragraph 449(4)(a)(ii); Paragraph 589(2)(e);
Paragraph 597(2)(d)
These items remove references to "Annual Fees Act" and replace them with
references to "section 10E of the Regulatory Levies Act".
Item 15 - Division 1 of Part 6.7
This item repeals Division 1 of Part 6.7, which relates to fees payable
under the Annual Fees Act.
Part 3 - Application and transitional provisions
Item 16 - Application of repeal
This item provides that the repeal of the Annual Fees Act applies to any
year of the term of a petroleum or greenhouse gas title that begins at or
after the commencement of this item (i.e. on Proclamation).
For example, if the Schedule commenced by Proclamation on 1 September 2011,
and a year of the term of a petroleum or greenhouse gas title commenced on
or after 1 September 2011, an annual fee would not be imposed in relation
to that year of the term of the title under the (repealed) Annual Fees Act.
However, if a year of the term of a petroleum or greenhouse gas title
commenced on or before 31 August 2011, an annual fee would be imposed in
relation to that year of the term of the title under the Annual Fees Act,
as that Act would not yet have been repealed.
Item 17 - Transitional
This item provides that the existing provisions of the OPGGS Act will
continue to apply to any fees that became payable under the Annual Fees Act
prior to the repeal of that Act, and late payment penalties in relation to
such fees, as if the amendments made to those existing provisions by
Schedule 3 to this Bill had not been made.
Schedule 4 - Amendments relating to registration fees
Part 1 - Repeal of the Offshore Petroleum and Greenhouse Gas Storage
(Registration Fees) Act 2006
Item 1
This item repeals the whole of the Offshore Petroleum and Greenhouse Gas
Storage (Registration Fees) Act 2006 (Registration Fees Act).
Part 2 - Consequential amendments
Offshore Petroleum and Greenhouse Gas Storage Act 2006
Item 2 - Section 7 (definition of Registration Fees Act)
This item repeals the definition given the Registration Fees Act will be
repealed.
Item 3 - At the end of section 473
This item adds a note to clarify that the new section 516A requires the
application for a proposed transfer of petroleum title to be accompanied by
an application fee. See Item 4A.
Item 4 - Subsection 479(3)
Omit reference to the Registration Fees Act given it will be repealed.
Item 5 - At the end of section 488
This item adds a note to clarify that the new section 516A requires the
application for a proposed approval of a dealing in relation to a petroleum
title to be accompanied by an application fee. See Item 9.
Item 6 - Subsection 494(3)
Omit reference to the Registration Fees Act given it will be repealed.
Item 7 - At the end of section 498
This item adds a note to clarify that the new section 516A requires the
application for a proposed approval of a future dealing in relation to a
petroleum title to be accompanied by an application fee. See Item 9.
Item 8 - Section 512
This item repeals the whole section given that the Registration Fees Act
will be repealed and therefore there is no registration fee payable on a
transfer or dealing in relation to petroleum titles.
Item 9 - After section 516
This item inserts an application fee provision which will apply to
applications in relation to approval of a transfer of a petroleum title or
approval of a dealing.
Item 10 - Section 517
This item repeals the whole section given that the Registration Fees Act
will be repealed and therefore there is no registration fee payable on a
transfer or dealing in relation to a petroleum title.
Item 11 - At the end of section 525
This item adds a note to clarify that the new section 565A requires the
application for a proposed transfer of greenhouse gas title to be
accompanied by an application fee. See Item 17.
Item 12 - Subsection 530(3)
Omit reference to the Registration Fees Act given it will be repealed.
Item 13 - At the end of section 539
This item adds a note to clarify that the new section 565A requires the
application for a proposed approval of a dealing in relation to a
greenhouse gas title(s) to be accompanied by an application fee. See Item
17.
Item 14 - Subsection 544(3)
Omit reference to the Registration Fees Act given it will be repealed.
Item 15 - At the end of section 548
This item adds a note to clarify that the new section 565A requires the
application for a proposed approval of a future dealing in relation to a
greenhouse gas title to be accompanied by an application fee. See Item 17.
Item 16 - Section 561
This item repeals the whole section given that the Registration Fees Act
will be repealed and therefore there is no registration fee payable on a
transfer or dealing in relation to greenhouse gas titles.
Item 17 - After section 565
This item inserts an application fee provision which will apply to
applications in relation to approval of a transfer of a greenhouse gas
title or approval of a dealing.
Item 18
This item repeals the whole section given that the Registration Fees Act
will be repealed and therefore there is no registration fee payable on a
transfer or dealing in relation to a greenhouse gas title.
Item 19 - Division 2 of Part 6.7
This item repeals the whole Division given that the Registration Fees Act
will be repealed and therefore there are no registration fees payable.
Item 20 - After paragraph 636(1)(e)
This item adds to the listing of fees payable under the OPGGS Act to
include the newly created application fees for transfers and dealings as
contained in subsection 516A(1).
Item 21 - Before paragraph 636(1)(f)
This item adds to the listing of fees payable under the OPGGS Act to
include the newly created application fees for transfers and dealings as
contained in subsection 565A(1).
Part 3 - Application and transitional provisions
Item 22 - Application of repeal
This item provides that the repeal of the Registration Fees Act applies to
relevant OPGGS Act provisions, only to the extent to which the Registration
Fees Act relates to the entry of certain information on the Register in
response to an application made after the commencement of this item.
Item 23 - Application of provisions relating to application fees
This item provides that fees contained in sections 516A and 565A of the
Offshore Petroleum and Greenhouse Gas Storage Act 2006 as amended by this
Schedule applies to eligible applications made after the commencement of
this item.
Item 24 - Transitional
This item provides that fees paid under the Registration Fees Act prior to
its repeal, are subject to the same treatment and requirements as if the
Registration Fees Act was still in force.
Schedule 5 - Technical amendments
Offshore Petroleum and Greenhouse Gas Storage Act 2006
Item 1 - Paragraph 114(2)(a)
This item corrects a technical oversight that occurred in the Offshore
Petroleum and Greenhouse Gas Storage Legislation Amendment Act 2009 (2009
Amendment Act).
Section 130 of the OPGGS Act was amended by the 2009 Amendment Act to
provide that if the JA believes that a petroleum exploration permittee is
entitled to nominate a block or blocks as a location, and the permittee has
not done so, the JA may, by written notice given to the permittee, require
the permittee to nominate the block or blocks within a certain period of
time. Prior to these amendments, the functions and powers in section 130
were exercisable by the DA.
Paragraph 114(2)(a), which cross-references section 130, should also have
been amended to refer to the JA. However, the reference to the DA in this
paragraph was left in place at the time this power was transferred to the
JA by the 2009 Amendment Act. This item corrects this oversight to refer
correctly to the JA in this paragraph.
This item will commence from the time the amendment would have originally
commenced if it had been included in the 2009 Amendment Act (i.e. 9 October
2009). Retrospective commencement will reflect that, since 9 October 2009,
the JA has been the entity that has had the ability to require a permittee
to nominate a block or blocks under section 130, and therefore reflecting
the manner in which paragraph 114(2)(a) has been applied in practice. It
will not adversely affect parties covered by this section.
Schedule 6 - Amendments relating to directions
Offshore Petroleum and Greenhouse Gas Storage Act 2006
The amendments in this Schedule remove existing provisions in the Offshore
Petroleum and Greenhouse Gas Storage Act 2006 (OPGGS Act) that enable the
relevant regulator to incorporate a code of practice or standard as
existing from time to time in directions given to petroleum or greenhouse
gas titleholders.
The OPGGS Act currently provides the Designated Authority (i.e. the
relevant State Minister) with a broad general power to give directions to
petroleum titleholders. This Bill will abolish the Designated Authority
and give this power to the National Offshore Petroleum Safety and
Environmental Management Authority (NOPSEMA) - see item 329. The OPGGS Act
also currently provides the responsible Commonwealth Minister with powers
to give directions to greenhouse gas titleholders. These direction-giving
powers of NOPSEMA and the responsible Commonwealth Minister include the
ability to issue a direction that applies, adopts or incorporates a code of
practice or standard either as in force or existing at the time the
direction takes effect, or as in force or existing from time to time.
The Senate Standing Committee for the Scrutiny of Bills (the Senate
Committee) expressed concerns in its Alert Digest No. 5 of 2011 in relation
to a proposed provision of the National Regulator Bill that would also have
enabled the responsible Commonwealth Minister to issue a direction to
petroleum titleholders that applies, adopts or incorporates a code of
practice or standard "as in force or existing from time to time." The
Senate Committee expressed concerns to the effect that incorporating a code
of practice or standard as existing from time to time may create
uncertainty in the law, and those obliged to obey the law may have
inadequate access to its terms. The Senate Committee also noted that,
although a separate provision of the Bill would have required the text of
the relevant code or standard to be made available on the Department's
website, this is subject to copyright restrictions.
The Government agreed that the Senate Committee raised a substantive
concern about incorporating material, as existing from time to time, in a
direction by reference, and therefore the provision enabling material as
existing from time to time to be incorporated in a direction given by the
responsible Commonwealth Minister to petroleum titleholders has been
removed from this Bill. However, the rationale for removing this provision
from the Bill applies equally to the existing provisions of the OPGGS Act
that provide the same ability to apply a code of practice or standard "as
in force or existing from time to time". Therefore, the amendments in this
Schedule remove those existing powers from the OPGGS Act.
These amendments will increase regulatory certainty for petroleum and
greenhouse gas titleholders, by ensuring those titleholders will not be
subject to requirements included in codes of practice or standards that may
change from time to time. If the responsible Commonwealth Minister or
NOPSEMA, as applicable, elects to incorporate codes or standards in a
direction, that material will be incorporated as in force when adopted in
the direction.
Items 1 to 7 - Subsection 316(3); Subsection 351(3); Subsection 376(5);
Subsection 380(7); Subsection 383(7); Subsection 574(7); Subsection 580(6)
These items repeal existing subsections 316(3), 351(3), 376(5), 380(7),
383(7), 574(7), and 580(6) in the OPGGS Act, and insert new subsections
316(3), 351(3), 376(5), 380(7), 383(7), 574(7), and 580(6) that allow the
adoption or incorporation (with or without modification), into a direction,
of a code of practice or standard contained in an instrument as in force or
existing at the time when the direction takes effect. In effect, the items
repeal the ability to adopt or incorporate such material as existing from
time to time.
Item 8 - Application - directions
This item provides that the amendments made by items 1 to 7 apply only to
directions issued after the commencement of this item; in other words the
amendments will not apply retrospectively.
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