GREENHOUSE GAS GEOLOGICAL SEQUESTRATION ACT 2008

Victorian Consolidated Legislation

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GREENHOUSE GAS GEOLOGICAL SEQUESTRATION ACT 2008

No. 61 of 2008
Version incorporating amendments as at 1 January 2012

TABLE OF PROVISIONS

Section Page

PART 1-PRELIMINARY

Division 1-Introduction and interpretation

1. Purpose
2. Commencement
3. Definitions
4. Meaning of greenhouse gas sequestration formation exploration
5. Meaning of greenhouse gas substance injection and monitoring
6. Meaning of serious situation

Division 2-Objectives and principles

7. Objectives
8. Principles of sustainable development

Division 3-Application of Act

9. Relationship to certain other Acts
10. Aboriginal heritage
11. Non-application of Act
12. Minister may declare land not to be used for greenhouse gas sequestration
13. Act binds the Crown

PART 2-OWNERSHIP AND CONTROL OF GREENHOUSE
GAS SUBSTANCES AND UNDERGROUND GEOLOGICAL STORAGE FORMATIONS

14. Underground geological storage formation is the property of
the Crown
15. Crown retains Crown land rights
16. Ownership of greenhouse gas substance
17. Offence to explore for greenhouse gas sequestration formations unless authorised
18. Offence to carry out greenhouse gas substance injection and monitoring unless authorised

PART 3-GREENHOUSE GAS SEQUESTRATION EXPLORATION PERMITS

Division 1-Rights and obligations

19. Rights conferred by exploration permit
20. Extraction of resources
21. Key objects of work program

Division 2-Procedure for obtaining permits

22. Minister may invite tender applications for exploration permits
23. Application for permits
24. Chief factors to be taken into account in deciding between competing applications
25. Grant of exploration permit
26. Minister may make new grant if former grant refused
27. Procedure if initial invitation does not result in the granting
of a permit
28. Restrictions on permit area
29. Permit may be limited to a stratum of land
30. Term of permit

Division 3-Renewals

31. Renewal of permit
32. Application for renewal
33. Other factors to be considered in renewing permits
34. Permit not to be renewed if key objects not achieved
35. Renewed permit area may be reduced
36. Variation of work programs for renewed permits

Division 4-Injection testing plans

37. When must an injection testing plan be prepared?
38. What must an injection testing plan include?
39. Plan to be approved before injection testing can start
40. Approval of injection testing plan
41. Risk to the environment
42. Contamination or sterilisation of a resource
43. Consent of other resource authority holders
44. Referral of plans to independent panel
45. Appointment of panel
46. Community consultation
47. Conferences
48. Compensation agreement
49. What compensation is payable for-resource authority
holders
50. Injection testing to be carried out in accordance with
approved plan
51. Minister may require variation of injection testing plan
52. Minister to consult
53. EPA may require variation of monitoring and verification plan
54. Minister may allow variation of injection testing plan
55. Reporting

Division 5-Discovery of underground geological storage
formation

56. Minister must be told if underground geological storage formation discovered
57. Minister may give directions if underground geological
storage formation discovered

PART 4-GREENHOUSE GAS SEQUESTRATION FORMATION RETENTION LEASES

58. Purpose of a retention lease
59. Rights conferred by lease
60. Right to apply for lease
61. Details to be supplied with application
62. Grant of lease
63. Work program
64. Area to which lease applies
65. Permit may be limited to a stratum of land
66. Term of lease
67. Renewal of lease
68. Procedure if lease not to be granted
69. Minister may require review of commercial viability
70. Minister may give directions if permanent storage viable

PART 5-GREENHOUSE GAS SUBSTANCE INJECTION
AND MONITORING LICENCE

Division 1-Rights conferred by licence

71. Rights conferred by licence

Division 2-Application for licence by holders of permits or leases

72. Application for licence
73. Details to be supplied with application

Division 3-Application for licence under tender process

74. Minister may invite tender applications
75. Applications
76. Procedure for deciding between competing bids
77. Notice to be given to applicants
78. Refund of deposits
79. Minister may make new grant if former grant refused
80. Extension of time in which to make licence payment
81. Minister must not issue licence unless cash bid paid

Division 4-General provisions

82. Grant of a licence
83. Minister to be satisfied of certain matters
84. Restrictions on area to which licence applies
85. Licence may be limited to a stratum of land
86. Licence may be limited to a specified volume
87. Further licence may be granted where greenhouse gas injection work completed
88. Term of licence

Division 5-Injection of greenhouse gas substance

89. Direction if greenhouse gas substance injection not to the Minister's satisfaction
90. Form of direction
91. Licence holder must comply with directions
92. Completion of injection activities

Division 6-Injection and monitoring plan

93. Injection and monitoring plan
94. Content of injection and monitoring plan
95. Plan to be approved before injection and monitoring can start
96. Approval of injection and monitoring plan
97. Risk to the environment
98. Contamination or sterilisation of a resource
99. Consent of other resource authority holders
100. Referral of plans to independent panel
101. Appointment of panel
102. Community consultation
103. Conferences
104. Compensation agreement
105. What compensation is payable for-resource authority
holders
106. Injection and monitoring plan must be adhered to
107. Minister may require variation of injection and monitoring
plan
108. Minister to consult
109. EPA may require variation of monitoring and verification
plan
110. Minister may allow variation of injection and monitoring
plan

Division 7-Conditions of greenhouse gas substance injection and monitoring licence

111. Reporting
112. Payment of long-term monitoring and verification costs

Division 8-Permanent storage of greenhouse gas substance by a third party

113. Agreement to store greenhouse gas substance
114. Minister may direct licence holder to store greenhouse gas substance
115. Licence holder must comply with directions
116. Minister may amend licence
117. Revised injection and monitoring plan
118. Compensation of licence holder

PART 6-UNIT DEVELOPMENT

119. Unit development
120. Consultation concerning unit development if part of
underground geological storage formation interstate
121. Minister may amend licence for unit development

PART 7-GREENHOUSE GAS INFRASTRUCTURE LINES

122. Meaning of greenhouse gas infrastructure line
123. Minister may exempt greenhouse gas infrastructure line from Pipelines Act

PART 8-SPECIAL ACCESS AUTHORISATIONS

124. Special access authorisation
125. Application for special access authorisation
126. Grant of special access authorisation
127. Criteria that apply to permit, lease and licence areas
128. Exception to section 127.
129. Minister may vary area to which authorisation applies
130. Authorisation does not give exclusive rights
131. Term of authorisation
132. Extension of term of authorisation
133. Special access well plan
134. Plan to be approved before well can be made
135. Approval of special access well plan
136. Risk to the environment
137. Contamination or sterilisation of a resource
138. Consent of other resource authority holders
139. Referral of plans to independent panel
140. Appointment of panel
141. Special access well plan must be adhered to
142. Minister may require variation of special access well plan
143. Minister to consult
144. EPA may require variation of special access well plan
145. Minister may allow variation of special access well plan
146. Permit, lease or licence holder not liable for actions of authorisation holder

PART 9-PROVISIONS APPLYING TO AUTHORITIES GENERALLY

Division 1-Applications

147. Application for authorities
148. Work programs
149. Applications are not transferable
150. Native title
151. Existing permits and leases continue until renewal applications etc. decided

Division 2-Community consultation

152. Duty to consult with the community
153. Community consultation plan
154. Requirements for community consultation plan
155. Minister to approve community consultation plan
156. Plan to be provided to community

Division 3-Conditions

157. Conditions that may apply to authorities
158. Statutory condition of authority
159. Minister may vary conditions unilaterally
160. Minister may vary conditions by consent
161. Variation of conditions on renewal, consolidation or transfer
162. Suspension of conditions
163. Term of authority may be extended if condition suspended

Division 4-Transfers of authorities

164. Transfers
165. Matters Minister must consider in assessing transfer
application
166. Creation of interest in authority
167. Partial transfers of permits and licences

Division 5-Surrender or cancellation of authorities

168. Surrender of authority
169. Partial surrender of authority
170. Additional criteria for surrender of injection and monitoring licence
171. Surrender of injection and monitoring licence
172. Referral of application to independent panel
173. Appointment of panel
174. Payment of long-term monitoring and verification costs
175. Cancellation of authority
176. Additional grounds for the cancellation of an injection and monitoring licence
177. Procedure to be followed before authority cancelled
178. Minister may give directions if authority expires or is
surrendered or cancelled

Division 6-Miscellaneous matters

179. Consolidation of adjoining authorities
180. Excision of area from authority
181. Reporting of serious situations
182. Power of Minister to give a direction
183. Offence to fail to comply with direction
184. Minister must publish certain details if authority granted
185. Variation of an authority
186. Expedited procedure for replacement of invalidated title
187. Occupiers liability

PART 10-PLANNING MATTERS

188. Definition of planning scheme
189. Exploration under exploration permit overrides planning
schemes
190. Injection and monitoring operations also override planning schemes
191. Alternative approvals

PART 11-CONSENT REQUIREMENTS BEFORE
OPERATIONS ALLOWED ON LAND

Division 1-Wilderness Crown land

192. Operations on wilderness land barred

Division 2-Operations requiring prior consent

193. Consent of Minister needed
194. Greenhouse gas sequestration operations on restricted Crown land
195. Greenhouse gas sequestration operations on water authority
land
196. Provisions applying to consents
197. Right to seek review of refusal to give consent

Division 3-Operations requiring notice

198. Operations on unrestricted Crown land
199. Notice to be given before operation carried out on any land

PART 12-COMPENSATION

200. Consent of, or compensation agreement with, owner etc.
needed before operation on private land starts
201. What compensation is payable for-private/native title land
202. Limit on total amount of compensation
203. Compensation not payable for underground geological
storage formations
204. What compensation is payable for-Crown land
205. Time limit on compensation claims
206. Determination of disputes-private/native title land
207. Determination of disputes-Crown land
208. Native Title Act rights prevail

PART 13-OTHER OBLIGATIONS ON THE HOLDERS OF AUTHORITIES

Division 1-Operation plan to be prepared

209. Operation plan to be prepared
210. Operate plan to be approved
211. Plan must be observed in carrying out operation
212. Minister may allow variation of operation plan

Division 2-Conduct of operations

213. Operation to be conducted in proper manner
214. Other specific obligations concerning conduct of operations
215. Maintenance etc. of property
216. Authority holder must not interfere with other rights
217. Rehabilitation
218. Insurance must be held

Division 3-Rehabilitation bond

219. Definition of rehabilitation bond
220. Requirement to take out rehabilitation bond
221. Minister may require increased rehabilitation bond
222. Minister may carry out rehabilitation
223. Return of bond if rehabilitation satisfactory

Division 4-Royalties and rents

224. Liability for, and rate of, royalty
225. Minister may vary royalty
226. When royalty must be paid
227. Rent payable in relation to Crown land

Division 5-Obligations at end of authority

228. Equipment must be removed once authority ceases
229. Minister may remove equipment

PART 14-INFORMATION

Division 1-Information to be given to the Minister

230. Minister may require certain information if underground geological storage formation discovered
231. Authority holder must provide information to Minister
232. Minister may require position of wells etc. to be surveyed
233. Minister may require person to provide information on greenhouse gas sequestration operation
234. Minister may require information from petroleum operators
235. False information not to be given

Division 2-Release of information

236. Meaning of release of information
237. Meaning of interpretive information
238. Meaning of information collection date
239. Information that is not to be released
240. Information about applications that may be released
241. Release of information about area that is no longer an
authority area
242. Release of factual information concerning licence areas
243. Release of factual information concerning other authority
areas
244. Restriction on release of information collected so that it could
be sold
245. Earlier release of information if consent given
246. Release of interpretive information relating to current
authorities
247. Procedure to be followed before interpretive information is released
248. Right to seek review of disputed release decision
249. Minister may give information etc. to other Ministers
250. Restriction on obtaining information to meet work program obligation

PART 15-ENFORCEMENT

Division 1-Inspections

251. Authorisation of inspectors
252. Production of identity card
253. Monitoring compliance with this Act
254. Emergencies
255. Offence-related searches and seizures
256. Occupier to be given copy of consent
257. Search warrant
258. Announcement before entry
259. Copy of warrant to be given to occupier
260. Receipt must be given for any thing seized
261. Copies of certain seized things to be given
262. Use of equipment to examine or process things
263. Use or seizure of electronic equipment at premises
264. Compensation for damage
265. Return of seized things
266. Magistrates' Court may extend period
267. Power of inspector to require information or documents
268. Protection against self-incrimination
269. Offence to obstruct inspector

Division 2-Improvement and prohibition notices

270. Improvement notice
271. Prohibition notice
272. Form of notices
273. Right to review
274. Defences to charge of failing to comply with a notice
275. Remedy of failure to comply with improvement notice

Division 3-Offences

276. Corporation deemed to have the knowledge of its officers
277. Offences by corporations also offences by officers
278. Offences by partners
279. Offences by joint venturers
280. Offences by employees and agents

PART 16-ADMINISTRATIVE MATTERS

Division 1-Greenhouse gas sequestration register

281. Greenhouse gas sequestration register
282. Need for registration
283. Entries in register on devolution of title
284. Registration
285. Effect of registration
286. Inspection of register and documents
287. Minister's certificates
288. Minister may make corrections to register
289. Right to review of register entries
290. Offences relating to the register

Division 2-Other administrative matters

291. Minister may require further information
292. Form of documents
293. Pecuniary interest statement
294. Surveys and drilling operations
295. Department surveys
296. Delegation

Division 3-Fees and penalties

297. Applications not to be processed unless fee paid
298. Fees and penalties debts due to the State

PART 17-GENERAL

299. Officials must not disclose information
300. Minister may vary method of identifying authority areas
301. Codes of practice
302. Use of codes of practice in proceedings
303. Regulations

PART 18-TRANSITIONAL PROVISIONS AND CONSEQUENTIAL AMENDMENTS

Division 1-Water Act 1989 licences

304. Transitional provision-Water Act 1989.

Division 2-EPA to administer monitoring and verification

305. Injection testing to be carried out in accordance with approved plan
306. Exploration permit-reporting
307. Injection and monitoring plan must be adhered to
308. Injection and monitoring licence-reporting
309. Authorisation of inspectors
310. Monitoring compliance with this Act
311. Compensation for damage
312. Improvement notices
313. Prohibition notices
314. Form of notices
315. Right to review
316. Remedy of failure to comply with improvement notice
317. Delegation
318. Regulations

Division 3-Consequential amendments to other Acts

319. Catchment and Land Protection Act 1994.
320. National Parks Act 1975.
321. Nuclear Activities (Prohibitions) Act 1983.
322. Victorian Plantations Corporation Act 1993.
323. Water Act 1989.
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ENDNOTES
1. General Information
2. Table of Amendments
3. Explanatory Details

Division 1-Introduction and interpretation

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