Offshore Petroleum Legislation, Regulation and Guidelines
Offshore petroleum acts
The Offshore Petroleum and Greenhouse Gas Storage (Annual Fees) Act 2006 was repealed on 1 January 2012. Titleholders are no longer required to pay annual fees under this Act from that date. However, new cost-recovery levies – the annual titles administration levy and the environment plan levy – apply to titleholders from 1 January 2012 under the Offshore Petroleum and Greenhouse Gas Storage (Regulatory Levies) Act 2003.
OPGGSA and PSLA concordance tables
The Offshore Petroleum and Greenhouse Gas Storage Act 2006 (OPGGSA) in its current form entered into force in 2008, superseding and repealing the previous offshore petroleum legislation – the Offshore Petroleum Act 2006 (OPA) and the Petroleum (Submerged Lands) Act 1967 (PSLA).
The OPGGSA Concordance Table and the PSLA Concordance Table list concordant provisions between the OPGGSA, the OPA and the PSLA. The OPGGSA concordance table enables a user to find provisions of the OPA and PSLA that are concordant with provisions in the OPGGSA by referring to the relevant section numbers from the OPGGSA. The PSLA concordance table enables a user to find provisions of the OPGGSA and OPA that are concordant with provisions in the PSLA by referring to the relevant section numbers from the PSLA.
DISCLAIMER: Please note these tables are accurate to the best of our knowledge and are provided as a guide only.
Offshore petroleum regulations
Directions
The Schedule of Specific Requirements as to Offshore Petroleum Exploration and Production was a set of standing directions issued under s574 of the Offshore Petroleum and Greenhouse Gas Storage Act 2006 (Cth) (OPGGSA). The Commonwealth and State/Northern Territory governments had previously agreed to revoke the remainder of the clauses. The final agreed remaining active clauses were incorporated into the final set of consolidated regulations, the Offshore Petroleum and Greenhouse Gas Storage (Resource Management and Administration) Regulations 2011 which came into force on 29 April 2011. The intention of the consolidation of this set of regulations was that the Schedule of Specific Requirements would be completely revoked, given that all requirements would then be reflected or incorporated in the revised regulations.
However the Commonwealth understands that at this point in time, some States and the Northern Territory are yet to revoke the Schedule of Specific Requirements in part or whole. There will therefore inevitably be a transition period during which the regulations have commenced but where directions, covering the same subject matter and/or requirements, contained in the Schedule have not been revoked in one or more jurisdictions.
It is the Commonwealth's stated position that in circumstances where a titleholder has fully complied with requirements in the regulations, then this in turn would be viewed as compliance with any requirements of the direction contained in the Schedule (if it has not been revoked). Consequently, we consider it unlikely that compliance action would be taken by the Commonwealth against the titleholder arising out of a breach of the direction.
Conditions of title
The Commonwealth also acknowledges that some titles either include individual conditions that duplicate contents of regulations, or have the Schedule attached in its entirety.
It is the Commonwealth's stated position that in circumstances where a titleholder has fully complied with requirements in the regulations, then this in turn would be viewed as adequate compliance with any corresponding title condition or compliance with the provision in the Schedule (if it has not been revoked). Consequently, we consider it unlikely that a compliance action would be taken by the Commonwealth against the titleholder for a breach of the relevant title condition.
However should a titleholder wish to obtain complete certainty in relation to meeting its title conditions, it is able to apply for a variation to or exemption from conditions of a title under s264 of the OPGGSA. The Joint Authority makes the decision on this matter and it is the Commonwealth's position that if there is a regulation that substantially mirrors the core requirements or objectives of the condition on the title, it will likely agree to a variation to, or exemption from, the condition.
Administrative guidelines
The National Offshore Petroleum Titles Administrator (NOPTA) and the National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA) have reviewed, and revised, the administrative guidelines for offshore petroleum activities. Changes included a plain English re-write of all guidelines to provide a clearer and logical structure; ensuring new entrants to the industry are able to easily familiarise themselves with concepts and expectations of the Joint Authorities. The updates also bring the guidelines into line with current Joint Authority expectations in relation to the content of applications for acreage release areas, exploration permit renewals ; endorsements (i.e. work program commitment suspensions, extensions, and variations); the declaration of locations; petroleum retention leases; petroleum production and infrastructure licences; and pipeline licences.
In addition, the guidelines have been revised to take account of the commencement of operations by NOPTA, and the abolition of the Designated Authorities, from 1 January 2012.
The administrative guidelines are available from NOPTA http://www.nopta.gov.au and NOPSEMA http://www.nopsema.gov.au.
Combination certificates under the Petroleum Resource Rent Tax Assessment Act 1987
The Department has prepared a guideline in relation to the grant of a combination certificate under the Petroleum Resource Rent Tax Assessment Act (PRRTA Act). The Guideline provides advice as to the relevant eligibility requirements and criteria, as well as the application process involved in the grant of a combination certificate.
Additional information
From 1 July 2012, the PRRT applies to all petroleum projects in Australia, located both onshore and offshore. A combination certificate allows two or more petroleum production licences to be regarded as a single project for the purposes of the PRRT, subject to certain criteria being satisfied.
How is RET involved?
Under the PRRTA Act, the Minister for Resources and Energy is the certifying Minister for the issuance of a combination certificate. Following receipt of a licence-holder's application for a combination certificate, the Department assesses that information against the criteria before providing advice to the Minister. The Minister makes the final determination.
More information
For more information about applying for a combination certificate contact:
Email: prrt@ret.gov.au
Offshore petroleum safety
Offshore petroleum safety-related guidelines can be accessed on the National Offshore Petroleum Safety and Environment Management Authority's Guidelines webpage.
Fees and administration
Information submittal and release (links to Geoscience Australia)