Offshore petroleum operations beyond designated state and territory coastal waters are governed by the Commonwealth Offshore Petroleum and Greenhouse Gas Storage Act 2006 (OPGGSA)
and related Acts and regulations. Within this legal framework, the Australian Government together with the State and the Northern Territory governments jointly administer the regulatory regime through a Joint Authority arrangement. The Joint Authorities make the major decisions under the OPGGSA 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.
Two additional bodies also perform regulatory functions under the OPGGSA and related Acts and regulations. The National Offshore Petroleum Titles Administrator’s (NOPTA) principal functions include providing information, assessments, analysis, reports, advice and recommendations to members of the Joint Authorities; management and release of data; titles administration; approval and registration of transfers and dealings; and the keeping of registers of titles.
The National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA) performs regulatory functions in relation to occupational health and safety; structural integrity of facilities, wells and well-related equipment; environmental management; and regulation of day-to-day petroleum operations.
The OPGGSA came into force in 2008 superseding and repealing the Offshore Petroleum Act 2006 (OPA) and the Petroleum (Submerged Lands) Act 1967 (PSLA). The OPA was firstly developed to replace the PSLA to modernise the offshore petroleum legislation through the use of common use English. The OPPGSA consequently incorporated greenhouse gas legislation.
The offshore petroleum legislation, regulations and guidelines provide for the orderly exploration for and production of petroleum and greenhouse gas resources, and sets out a framework of rights, entitlements and responsibilities of governments and industry.
The legal framework within which petroleum exploration and production activity takes place in Australia is a result of certain agreements including the Offshore Constitutional Settlement [
PDF, 7.3MB] and the division of responsibilities between the Australian Government and the State/Northern Territory Governments under the Australian Constitution.
Ultimate responsibility for Australia's offshore areas, beyond three nautical miles from the territorial sea baseline, rests with the Australian Government, whereas onshore and as far as three nautical miles seaward of the baseline (referred to as 'coastal waters') petroleum operations are the responsibility of the individual state and territory governments. An explanation of Australia's maritime zones is provided in Australia's Offshore Jurisdiction [ PDF, 199KB]: Explanation of Terminology in relation to Petroleum Exploration and Development.
Current Issues
Changes to regulatory arrangements in the offshore petroleum regime
The Offshore Petroleum and Greenhouse Gas Storage Amendment (National Regulator) Act 2011 (the National Regulator Amendment Act) and associated Acts were passed by the Australian Parliament on 15 September 2011, and received Royal Assent on 14 October 2011.
The National Regulator Amendment Act amended the OPGGSA to establish NOPTA and expand the former National Offshore Petroleum Safety Authority to become NOPSEMA.
As a result of these amendments, from 1 January 2012, NOPTA and NOPSEMA commenced regulatory functions and powers under the OPGGSA, and the Designated Authorities have been abolished. Amendments to regulations under the OPGGSA have also been made to fully reflect and implement the transfer of regulatory responsibilities from the Designated Authorities to NOPTA and NOPSEMA.
For further information about the changes to regulatory arrangements, new cost-recovery levy arrangements, and information about changes to submission of documents from 1 January 2012, please refer to Issue 18 of the General Policy Review.
National Legislative Compliance Framework (NLCF)
The National Legislative Compliance Framework arose from the Government's response to the Report of the Montara Commision of Inquiry. It is intended to assist the development of a consistent best practice approach by regulators of Australia's offshore petroleum industry through its identification of good regulatory practice. The report has general application as a benchmark to assess regulation of offshore petroleum and greenhouse gas storage activities as well as for use by other regulators [PDF, 593KB | 
DOC, 671KB].
Contact
Please direct any queries in the first instance to:
Jess Brown
Manager of Legislation Review and Timor Sea
Phone: +61 2 6276 1134
Email: Jessica.Brown@ret.gov.au