Offshore Petroleum and Greenhouse Gas Storage Amendment Act 2018
Authorised by the Chief Parliamentary Counsel
Authorised Version
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Offshore Petroleum and Greenhouse Gas Storage
Amendment Act 2018
No. 16 of 2018
TABLE OF PROVISIONS
Section Page
1 Purpose 1
2 Commencement 2
3 Principal Act 2
4 Definitions 2
5 Renewal of petroleum titles 4
6 Renewal of greenhouse gas titles 6
7 Simplified outline—Part 2.2 7
8 Conditions of petroleum exploration permits 8
9 New section 77A inserted 8
10 Duration of petroleum exploration permit 10
11 New Division 4A of Part 2.2 inserted 11
12 Application for renewal of petroleum exploration permit 16
13 Limits on renewal of work-bid petroleum exploration permits
and special petroleum exploration permits 16
14 New section 105A inserted 17
15 Standard halving rules 18
16 Declaration of location 19
17 Simplified outline—Part 2.3 20
18 Conditions of petroleum retention leases 21
19 Standard conditions of petroleum retention leases 21
20 New section 121A inserted 21
21 Duration of petroleum retention lease 21
22 New Subdivision 3 of Division 2 of Part 2.3 inserted 22
23 Simplified outline—Part 2.4 26
24 Conditions of petroleum production licences 26
25 Standard conditions of petroleum production licences 26
26 New section 155A inserted 26
27 New Division 4A of Part 2.4 inserted 27
28 Revocation of petroleum exploration permit or petroleum
retention lease to the extent to which it relates to a block not
taken up 30
29 New section 263A inserted 31
30 Changes to the boundary of the offshore area—Part 2.14 38
31 Changes to the boundary of the offshore area—Part 3.12 39
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32 New section 686A inserted 40
33 Repeal of amending Act 40
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Endnotes 41
1 General information 41
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Authorised by the Chief Parliamentary Counsel
Authorised Version
1
Offshore Petroleum and Greenhouse
Gas Storage Amendment Act 2018 †
No. 16 of 2018
[Assented to 29 May 2018]
The Parliament of Victoria enacts:
1 Purpose
The main purpose of this Act is to amend the
Offshore Petroleum and Greenhouse Gas
Storage Act 2010 to provide protections for the
holders of certain titles granted under the Offshore
Petroleum and Greenhouse Gas Storage Act 2006
of the Commonwealth in cases where, because of
a change to the boundary of the offshore area, all
or part of the area constituted by the blocks over
which the title is in force—
Victoria
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(a) ceases to be within the Commonwealth
defined offshore area; and
(b) falls within the offshore area.
2 Commencement
(1) Subject to subsection (2), this Act comes into
operation on a day or days to be proclaimed.
(2) If a provision of this Act does not come into
operation before 1 October 2018, it comes into
operation on that day.
3 Principal Act
In this Act, the Offshore Petroleum and
Greenhouse Gas Storage Act 2010 is called
the Principal Act.
4 Definitions
(1) In section 6(1) of the Principal Act insert the
following definitions—
"boundary-change petroleum exploration
permit means a petroleum exploration
permit granted under Division 4A of
Part 2.2;
Commonwealth petroleum exploration title
means an instrument under a law of the
Commonwealth that confers, in relation to
the Commonwealth defined offshore area,
rights that correspond to the rights that a
petroleum exploration permit confers in
relation to the offshore area;
Commonwealth petroleum production title
means an instrument under a law of the
Commonwealth that confers, in relation to
the Commonwealth defined offshore area,
rights that correspond to the rights that a
petroleum production licence confers in
relation to the offshore area;
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Commonwealth petroleum retention title
means an instrument under a law of the
Commonwealth that confers, in relation to
the Commonwealth defined offshore area,
rights that correspond to the rights that a
petroleum retention lease confers in relation
to the offshore area;
fixed-term Commonwealth petroleum production
title means a Commonwealth petroleum
production title that is granted for a term of
years;".
(2) In section 6(1) of the Principal Act, in the
definition of petroleum exploration permit—
(a) in paragraph (c), for "permit;" substitute
"permit; or";
(b) after paragraph (c) insert—
"(d) a boundary-change petroleum
exploration permit;".
(3) In section 6(1) of the Principal Act, in the
definition of post-commencement petroleum
production licence—
(a) in paragraph (c), for "production licence;"
substitute "production licence; or";
(b) after paragraph (c) insert—
"(d) a petroleum production licence granted
under section 179A; or
(e) a petroleum production licence that was
granted by way of renewal, where the
original petroleum production licence
was granted under section 179A;".
(4) In section 6(1) of the Principal Act, in the
definition of post-commencement petroleum
retention lease—
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(a) in paragraph (b), for "lease related;"
substitute "lease related; or";
(b) after paragraph (b) insert—
"(c) a petroleum retention lease granted
under section 141A; or
(d) a petroleum retention lease that was
granted by way of renewal, where the
original petroleum retention lease was
granted under section 141A;".
5 Renewal of petroleum titles
At the end of section 11 of the Principal Act
insert—
"(2) If—
(a) a petroleum exploration permit has
been granted on the basis that an area
(the relevant area) is within the
offshore area; and
(b) as a result of a change to the boundary
of the offshore area, the relevant area—
(i) ceases to be within the offshore
area; and
(ii) falls within the Commonwealth
defined offshore area; and
(c) immediately before the change, the
relevant area was a part of the permit
area—
then, in determining what constitutes the
renewal, or the grant of a renewal, of the
permit, item 1 of the table in subsection (1)
has effect as if—
(d) the permit had been varied to exclude
from the permit area any area that is not
within the offshore area; and
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(e) the variation had taken effect
immediately after the change.
Note
This means that an application for renewal of the
permit may be made, and the permit may be renewed,
as if the permit had been so varied.
(3) If—
(a) a petroleum retention lease has
been granted on the basis that an area
(the relevant area) is within the
offshore area; and
(b) as a result of a change to the boundary
of the offshore area, the relevant area—
(i) ceases to be within the offshore
area; and
(ii) falls within the Commonwealth
defined offshore area; and
(c) immediately before the change, the
relevant area was a part of the lease
area—
then, in determining what constitutes the
renewal, or the grant of a renewal, of the
lease, item 2 of the table in subsection (1)
has effect as if—
(d) the lease had been varied to exclude
from the lease area any area that is not
within the offshore area; and
(e) the variation had taken effect
immediately after the change.
Note
This means that an application for renewal of the
lease may be made, and the lease may be renewed, as
if the lease had been so varied.
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(4) For the purposes of subsections (2) and (3)—
(a) disregard section 278; and
(b) it is immaterial whether the change
occurred before, at or after the
commencement of this subsection.".
6 Renewal of greenhouse gas titles
At the end of section 12 of the Principal Act
insert—
"(2) If—
(a) a greenhouse gas assessment permit
has been granted on the basis that an
area (the relevant area) is within the
offshore area; and
(b) as a result of a change to the boundary
of the offshore area, the relevant area—
(i) ceases to be within the offshore
area; and
(ii) falls within the Commonwealth
defined offshore area; and
(c) immediately before the change, the
relevant area was a part of the permit
area—
then, in determining what constitutes the
renewal, or the grant of a renewal, of the
permit, item 1 of the table in subsection (1)
has effect as if—
(d) the permit had been varied to exclude
from the permit area any area that is
not within the offshore area; and
(e) the variation had taken effect
immediately after the change.
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(3) If—
(a) a greenhouse gas holding lease has
been granted on the basis that an area
(the relevant area) is within the
offshore area; and
(b) as a result of a change to the boundary
of the offshore area, the relevant area—
(i) ceases to be within the offshore
area; and
(ii) falls within the Commonwealth
defined offshore area; and
(c) immediately before the change, the
relevant area was a part of the lease
area—
then, in determining what constitutes the
renewal, or the grant of a renewal, of the
lease, item 2 of the table in subsection (1)
has effect as if—
(d) the lease had been varied to exclude
from the lease area any area that is
not within the offshore area; and
(e) the variation had taken effect
immediately after the change.
(4) For the purposes of subsections (2) and (3)—
(a) disregard section 499; and
(b) it is immaterial whether the change
occurred before, at or after the
commencement of this subsection.".
7 Simplified outline—Part 2.2
In section 71(5) of the Principal Act—
(a) for "3 types" substitute "4 types";
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(b) in paragraph (c), for "permit)." substitute
"permit);";
(c) after paragraph (c) insert—
"(d) a petroleum exploration permit
granted as a result of a change in
the boundary of the offshore area
(a boundary-change petroleum
exploration permit).".
8 Conditions of petroleum exploration permits
After section 74(2) of the Principal Act insert—
"(3) Subsection (1) does not apply to a boundary-
change petroleum exploration permit.".
9 New section 77A inserted
After section 77 of the Principal Act insert—
"77A Conditions of boundary-change petroleum
exploration permits
(1) The Minister may, by written notice given
to the permittee of a boundary-change
petroleum exploration permit, vary the
permit by imposing one or more conditions
to which the permit is subject.
(2) A notice under subsection (1) must be given
within 14 days after the grant of the permit.
(3) A variation under subsection (1) takes effect
on the day on which notice of the variation is
given to the permittee.
(4) If—
(a) the grant of a boundary-change
petroleum exploration permit is
consequential on a Commonwealth
petroleum exploration title ceasing
to be in force as mentioned in
section 101A(2)(b) or (3)(b); and
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(b) the Commonwealth petroleum
exploration title is of a kind that
corresponds to a work-bid petroleum
exploration permit or a special
petroleum exploration permit—
any or all of the conditions mentioned in
subsection (5) may be specified in—
(c) the boundary-change petroleum
exploration permit; or
(d) a petroleum exploration permit granted
under Division 5 by way of the renewal
of the boundary-change petroleum
exploration permit.
(5) The following conditions are specified for
the purposes of subsection (4)—
(a) conditions requiring the permittee
to carry out work in, or in relation to,
the permit area (including conditions
requiring the permittee to carry out the
work during a period of 12 months or
longer or during periods each of which
is 12 months or longer);
(b) conditions relating to the amounts that
the permittee must spend in carrying
out such work;
(c) conditions requiring the permittee to
comply with directions that—
(i) relate to the matters covered by
paragraphs (a) and (b); and
(ii) are given in accordance with the
permit.
(6) Subsection (4) does not limit subsection (1)
or section 77(3).
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(7) If—
(a) the grant of a boundary-change
petroleum exploration permit is
consequential on a Commonwealth
petroleum exploration title ceasing
to be in force as mentioned in
section 101A(2)(b) or (3)(b); and
(b) the Commonwealth petroleum
exploration title is of a kind that
corresponds to a cash-bid petroleum
exploration permit—
the conditions mentioned in subsection (8)
must not be specified in—
(c) the boundary-change petroleum
exploration permit; or
(d) a petroleum exploration permit granted
under Division 5 by way of the renewal
of the boundary-change petroleum
exploration permit.
(8) The following conditions are specified for
the purposes of subsection (7)—
(a) conditions requiring the permittee to
carry out work in, or in relation to, the
permit area;
(b) conditions requiring the permittee to
spend particular amounts on the
carrying out of work in, or in relation
to, the permit area.".
10 Duration of petroleum exploration permit
(1) In the table in section 84(1) of the Principal Act,
in item 1, after "original petroleum exploration
permit" insert "(other than a boundary-change
petroleum exploration permit)".
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(2) In the table in section 84(1) of the Principal Act,
after item 2 insert—
"3 a boundary-change
petroleum exploration
permit granted under
section 101A(4)
for the period of 5 years beginning
on the day on which the permit is
granted.
4 a boundary-change
petroleum exploration
permit granted under
section 101A(5)
for the period of 12 months
beginning on the day on which the
permit is granted.".
11 New Division 4A of Part 2.2 inserted
After Division 4 of the Principal Act insert—
"Division 4A—Obtaining a boundary-
change petroleum exploration permit
101A Grant of boundary-change petroleum
exploration permit
(1) This section applies if—
(a) a Commonwealth petroleum
exploration title has been granted on the
basis that an area (the relevant area) is
within the Commonwealth defined
offshore area; and
(b) as a result of a change to the boundary
of the offshore area, the relevant area—
(i) ceases to be within the
Commonwealth defined offshore
area; and
(ii) falls within the offshore area; and
(c) either—
(i) the conditions set out in
subsection (2) are satisfied; or
(ii) the conditions set out in
subsection (3) are satisfied.
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(2) The conditions mentioned in subsection
(1)(c)(i) are—
(a) one or more, but not all, of the
section 37 blocks that were covered
by the Commonwealth petroleum
exploration title immediately before the
change are in the relevant area; and
(b) the title subsequently ceases to be in
force at the same time (the relevant
time)—
(i) as to all of the section 37 blocks
that were covered by the title
immediately before the change
and that are in the Commonwealth
defined offshore area; and
(ii) otherwise than as the result of the
cancellation or surrender of the
title.
(3) The conditions mentioned in subsection
(1)(c)(ii) are—
(a) all of the section 37 blocks that
were covered by the Commonwealth
petroleum exploration title immediately
before the change are in the relevant
area; and
(b) the title subsequently ceases to be in
force at the same time (the relevant
time)—
(i) as to all of the section 37 blocks
that were covered by the title
immediately before the change;
and
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(ii) otherwise than as the result of the
cancellation or surrender of the
title.
(4) If—
(a) assuming that—
(i) the change to the boundary of the
offshore area had not occurred;
and
(ii) the relevant area had remained
in the Commonwealth defined
offshore area—
the holder of the Commonwealth
petroleum exploration title would
have been entitled to apply under the
Commonwealth Act for the renewal
of the title in relation to all of the
section 37 blocks that are—
(iii) covered by the title; and
(iv) in the relevant area; and
(b) there are one or more section 37 blocks
(the relevant section 37 blocks) that—
(i) correspond to the section 37
blocks covered by paragraph (a);
and
(ii) are in the offshore area; and
(iii) are not the subject of a variation
under section 263A—
the Minister is taken—
(c) to have granted the holder a petroleum
exploration permit over those relevant
section 37 blocks; and
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(d) to have done so immediately after the
relevant time mentioned in whichever
of subsection (2) or (3) is applicable.
Note
For the duration of the petroleum exploration permit,
see item 3 of the table in section 84(1).
(5) If—
(a) assuming that—
(i) the change to the boundary of the
offshore area had not occurred;
and
(ii) the relevant area had remained
in the Commonwealth defined
offshore area—
the holder of the Commonwealth
petroleum exploration title would not
have been entitled to apply under the
Commonwealth Act for the renewal
of the title in relation to all of the
section 37 blocks that are—
(iii) covered by the title; and
(iv) in the relevant area; and
(b) there are one or more section 37 blocks
(the relevant section 37 blocks) that—
(i) correspond to the section 37
blocks that were covered by
the Commonwealth petroleum
exploration title immediately
before the change; and
(ii) are in the offshore area; and
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(iii) are not the subject of a variation
under section 263A—
the Minister is taken—
(c) to have granted the holder a petroleum
exploration permit over those relevant
section 37 blocks; and
(d) to have done so immediately after the
relevant time mentioned in whichever
of subsection (2) or (3) is applicable.
Note
For the duration of the petroleum exploration permit,
see item 4 of the table in section 84(1).
(6) For the purposes of subsections (4) and (5),
disregard any of the following provisions of
the Commonwealth Act—
(a) standard halving rules;
(b) modified halving rules;
(c) a provision of a kind specified in the
regulations.
(7) If, after the change to the boundary of the
offshore area—
(a) a part of a section 37 block that
was covered by the Commonwealth
petroleum exploration title
immediately before the change is in
the Commonwealth defined offshore
area; and
(b) the remaining part of the section 37
block is in the offshore area—
then, for the purposes of this section
(other than this subsection), each of those
parts is taken to constitute, and to have
always constituted, a section 37 block.
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(8) An assumption in subsection (4)(a) or (5)(a)
does not affect subsection (7).
(9) In this section—
section 37 block means—
(a) a block constituted as provided by
section 37; or
(b) if a graticular section is wholly
within the area that was covered
by the Commonwealth petroleum
exploration title—the graticular
section; or
(c) if a part only of a graticular
section is within the area that was
covered by the Commonwealth
petroleum exploration title—that
part of the graticular section.
Note
See also subsection (7).".
12 Application for renewal of petroleum exploration
permit
After section 102(2)(c) of the Principal Act
insert—
"(ca) section 105A (limits on renewal of
boundary-change petroleum exploration
permits);".
13 Limits on renewal of work-bid petroleum
exploration permits and special petroleum
exploration permits
After section 105(2) of the Principal Act insert—
"(3) Despite subsection (2), the standard
halving rules in section 106 and the modified
halving rules in section 107 do not apply to
an application for renewal of a petroleum
exploration permit if—
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(a) the permit was granted on the basis that
an area (the relevant area) was within
the offshore area; and
(b) as a result of a change to the boundary
of the offshore area, the relevant area—
(i) ceased to be within the offshore
area; and
(ii) fell within the Commonwealth
defined offshore area; and
(c) immediately before the change, the
relevant area was a part of the permit
area.
(4) For the purposes of subsection (3)—
(a) disregard section 278; and
(b) it is immaterial whether the change
occurred before, at or after the
commencement of this subsection.".
14 New section 105A inserted
After section 105 of the Principal Act insert—
"105A Limits on renewal of boundary-change
petroleum exploration permits
(1) If—
(a) the grant of a boundary-change
petroleum exploration permit under
section 101A(4) is consequential on a
Commonwealth petroleum exploration
title ceasing to be in force as mentioned
in section 101A(2)(b) or (3)(b); and
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(b) the Commonwealth petroleum
exploration title was granted otherwise
than by way of renewal—
then—
(c) the standard halving rules in section
106 apply to an application for the
renewal of the permit mentioned in
paragraph (a); and
(d) an application must not be made for the
renewal of the permit if the Minister
has previously granted a renewal of the
permit mentioned in paragraph (a).
(2) If—
(a) the grant of a boundary-change
petroleum exploration permit under
section 101A(4) is consequential on a
Commonwealth petroleum exploration
title ceasing to be in force as mentioned
in section 101A(2)(b) or (3)(b); and
(b) the Commonwealth petroleum
exploration title was granted by way
of renewal—
an application must not be made for
the renewal of the permit mentioned in
paragraph (a).
(3) If a boundary-change petroleum exploration
permit was granted under section 101A(5),
an application must not be made for the
renewal of the permit.".
15 Standard halving rules
(1) In section 106(2) of the Principal Act—
(a) in paragraph (b), for "section 105(2)."
substitute "section 105(2); and";
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(b) after paragraph (b) insert—
"(c) an application for renewal that is
covered by section 105A(1)(c).".
(2) After section 106(2) of the Principal Act insert—
"(2A) Subsection (2) has effect subject to
section 105(3).".
16 Declaration of location
After section 114(4) of the Principal Act insert—
"(5) If—
(a) a boundary-change petroleum
exploration permit is granted over
one or more section 37 blocks; and
(b) immediately before the grant, those
section 37 blocks were, or were part of,
a location within the meaning of the
Commonwealth Act; and
(c) apart from this subsection, those
section 37 blocks are not, and are not
part of, a location within the meaning
of this Act—
the Minister is taken—
(d) to have declared those section 37
blocks to be a location; and
(e) to have done so immediately after the
grant.
(6) If—
(a) a petroleum exploration permit is
varied under section 263A so as to
include in the permit area one or more
section 37 blocks; and
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(b) immediately before the variation, those
section 37 blocks were, or were part of,
a location within the meaning of the
Commonwealth Act; and
(c) apart from this subsection, those
section 37 blocks are not, and are not
part of, a location within the meaning
of this Act—
the Minister is taken—
(d) to have declared those section 37
blocks to be a location; and
(e) to have done so immediately after the
variation.
(7) In this section—
section 37 block means—
(a) a block constituted as provided by
section 37; or
(b) if a graticular section is wholly
within the area that was covered
by the Commonwealth petroleum
exploration title—the graticular
section; or
(c) if a part only of a graticular
section is within the area that was
covered by the Commonwealth
petroleum exploration title—that
part of the graticular section.".
17 Simplified outline—Part 2.3
After section 117(5) of the Principal Act insert—
"(5A) A petroleum retention lease may be obtained
as a result of a change to the boundary of the
offshore area.".
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18 Conditions of petroleum retention leases
After section 119(2) of the Principal Act insert—
"(3) Subsection (1) does not apply to a petroleum
retention lease granted under section 141A.".
19 Standard conditions of petroleum retention leases
In section 120(6) of the Principal Act, for
"119(1) or 121(3)" substitute "119(1), 121(3)
or 121A(1)".
20 New section 121A inserted
After section 121 of the Principal Act insert—
"121A Variation of petroleum retention leases
obtained as result of change to the
boundary of the offshore area
(1) The Minister may, by written notice given
to the lessee of a petroleum retention lease
granted under section 141A, vary the lease
by imposing one or more conditions to
which the lease is subject.
(2) A notice under subsection (1) must be given
within 14 days after the grant of the lease.
(3) A variation under subsection (1) takes effect
on the day on which notice of the variation is
given to the lessee.".
21 Duration of petroleum retention lease
(1) In section 128(1) of the Principal Act, after
"A petroleum retention lease" insert "(other than
a lease granted under section 141A)".
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(2) After section 128(1) of the Principal Act insert—
"(1A) A petroleum retention lease granted under
section 141A remains in force for the period
of 5 years beginning on the day on which the
lease is granted.".
(3) In section 128(2) of the Principal Act, for
"Subsection (1) has" substitute "Subsections (1)
and (1A) have".
22 New Subdivision 3 of Division 2 of Part 2.3 inserted
After Subdivision 2 of Division 2 of Part 2.3 of
the Principal Act insert—
"Subdivision 3—Obtaining a petroleum
retention lease as a result of a change to
the boundary of the offshore area
141A Grant of petroleum retention lease as a
result of a change to the boundary of the
offshore area
(1) This section applies if—
(a) a Commonwealth petroleum retention
title has been granted on the basis that
an area (the relevant area) is within the
Commonwealth defined offshore area;
and
(b) as a result of a change to the boundary
of the offshore area, the relevant area—
(i) ceases to be within the
Commonwealth defined offshore
area; and
(ii) falls within the offshore area; and
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(c) either—
(i) the conditions set out in
subsection (2) are satisfied; or
(ii) the conditions set out in
subsection (3) are satisfied; and
(d) there are one or more section 37 blocks
(the relevant section 37 blocks) that—
(i) correspond to the section 37
blocks that were covered by
the Commonwealth petroleum
retention title immediately before
the change; and
(ii) are in the offshore area; and
(iii) are not the subject of a variation
under section 263A.
(2) The conditions mentioned in subsection
(1)(c)(i) are—
(a) one or more, but not all, of the
section 37 blocks that were covered by
the Commonwealth petroleum retention
title immediately before the change are
in the relevant area; and
(b) the title subsequently ceases to be in
force at the same time (the relevant
time)—
(i) as to all of the section 37 blocks
that were covered by the title
immediately before the change
and that are in the Commonwealth
defined offshore area; and
(ii) otherwise than as the result of the
cancellation or surrender of the
title.
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(3) The conditions mentioned in subsection
(1)(c)(ii) are—
(a) all of the section 37 blocks that
were covered by the Commonwealth
petroleum retention title immediately
before the change are in the relevant
area; and
(b) the title subsequently ceases to be in
force at the same time (the relevant
time)—
(i) as to all of the section 37 blocks
that were covered by the title
immediately before the change;
and
(ii) otherwise than as the result of the
cancellation or surrender of the
title.
(4) The Minister is taken—
(a) to have granted the holder of the
Commonwealth petroleum retention
title a petroleum retention lease over
the relevant section 37 blocks; and
(b) to have done so immediately after the
relevant time mentioned in whichever
of subsection (2) or (3) is applicable.
Note
For the duration of the petroleum retention lease, see
section 128(1A).
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(5) If, after the change to the boundary of the
offshore area—
(a) a part of a section 37 block that
was covered by the Commonwealth
petroleum retention title immediately
before the change is in the
Commonwealth defined offshore area;
and
(b) the remaining part of the section 37
block is in the offshore area—
then, for the purposes of this section
(other than this subsection), each of those
parts is taken to constitute, and to have
always constituted, a section 37 block.
(6) In this section—
section 37 block means—
(a) a block constituted as provided by
section 37; or
(b) if a graticular section is wholly
within the area that was covered
by the Commonwealth petroleum
retention title—the graticular
section; or
(c) if a part only of a graticular
section is within the area that was
covered by the Commonwealth
petroleum retention title—that
part of the graticular section.
Note
See also subsection (5).".
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23 Simplified outline—Part 2.4
In section 148(5) of the Principal Act—
(a) for "3 ways" substitute "4 ways";
(b) in paragraph (c), for "same block."
substitute "same block;";
(c) after paragraph (c) insert—
"(d) grant of a petroleum production licence
as a result of a change to the boundary
of the offshore area.".
24 Conditions of petroleum production licences
After section 151(2) of the Principal Act insert—
"(3) Subsection (1) does not apply to a
petroleum production licence granted
under section 179A.".
25 Standard conditions of petroleum production
licences
In section 152(2) of the Principal Act, for
"151(1) or 155(3)" substitute "151(1), 155(3)
or 155A(1)".
26 New section 155A inserted
After section 155 of the Principal Act insert—
"155A Variation of petroleum production
licences obtained as result of change to
the boundary of the offshore area
(1) The Minister may, by written notice given
to the licensee of a petroleum production
licence granted under section 179A, vary the
licence by imposing one or more conditions
to which the licence is subject.
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(2) A notice under subsection (1) must be given
within 14 days after the grant of the licence.
(3) A variation under subsection (1) takes effect
on the day on which notice of the variation is
given to the licensee.".
27 New Division 4A of Part 2.4 inserted
After Division 4 of Part 2.4 of the Principal Act
insert—
"Division 4A—Obtaining a petroleum
production licence as a result of a
change to the boundary of the
offshore area
179A Grant of petroleum production licence as
a result of a change to the boundary of the
offshore area
(1) This section applies if—
(a) a fixed-term Commonwealth petroleum
production title has been granted on the
basis that an area (the relevant area) is
within the Commonwealth defined
offshore area; and
(b) as a result of a change to the boundary
of the offshore area, the relevant area—
(i) ceases to be within the
Commonwealth defined offshore
area; and
(ii) falls within the offshore area; and
(c) either—
(i) the conditions set out in
subsection (2) are satisfied; or
(ii) the conditions set out in
subsection (3) are satisfied; and
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(d) there are one or more section 37 blocks
(the relevant section 37 blocks) that—
(i) correspond to the section 37
blocks that were covered by the
fixed-term Commonwealth
petroleum production title
immediately before the change;
and
(ii) are in the offshore area; and
(iii) are not the subject of a variation
under section 263A.
(2) The conditions mentioned in subsection
(1)(c)(i) are—
(a) one or more, but not all, of the
section 37 blocks that were covered
by the fixed-term Commonwealth
petroleum production title immediately
before the change are in the relevant
area; and
(b) the title subsequently ceases to be in
force at the same time (the relevant
time)—
(i) as to all of the section 37 blocks
that were covered by the title
immediately before the change
and that are in the Commonwealth
defined offshore area; and
(ii) otherwise than as the result of the
cancellation or surrender of the
title.
(3) The conditions mentioned in subsection
(1)(c)(ii) are—
(a) all of the section 37 blocks that
were covered by the fixed-term
Commonwealth petroleum production
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title immediately before the change are
in the relevant area; and
(b) the title subsequently ceases to be in
force at the same time (the relevant
time)—
(i) as to all of the section 37 blocks
that were covered by the title
immediately before the change;
and
(ii) otherwise than as the result of the
cancellation or surrender of the
title.
(4) The Minister is taken—
(a) to have granted the holder of the
fixed-term Commonwealth petroleum
production title a petroleum production
licence over the relevant section 37
blocks; and
(b) to have done so immediately after the
relevant time mentioned in whichever
of subsection (2) or (3) is applicable.
(5) If, after the change to the boundary of the
offshore area—
(a) a part of a section 37 block that
was covered by the fixed-term
Commonwealth petroleum production
title immediately before the change is
in the Commonwealth defined offshore
area; and
(b) the remaining part of the section 37
block is in the offshore area—
then, for the purposes of this section
(other than this subsection), each of those
parts is taken to constitute, and to have
always constituted, a section 37 block.
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(6) In this section—
section 37 block means—
(a) a block constituted as provided by
section 37; or
(b) if a graticular section is wholly
within the area that was covered
by the fixed-term Commonwealth
petroleum production title—the
graticular section; or
(c) if a part only of a graticular
section is within the area that
was covered by the fixed-term
Commonwealth petroleum
production title—that part of
the graticular section.
Note
See also subsection (5).".
28 Revocation of petroleum exploration permit or
petroleum retention lease to the extent to which it
relates to a block not taken up
After section 180(3) of the Principal Act insert—
"(4) This section does not apply in relation to a
petroleum exploration permit if—
(a) the permit has been granted on the
basis that an area (the relevant area) is
within the offshore area; and
(b) as a result of a change to the boundary
of the offshore area, the relevant area—
(i) ceases to be within the offshore
area; and
(ii) falls within the Commonwealth
defined offshore area; and
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(c) immediately before the change, the
relevant area was a part of the permit
area.
(5) For the purposes of subsection (4)—
(a) disregard section 278; and
(b) it is immaterial whether the change
occurred before, at or after the
commencement of this subsection.".
29 New section 263A inserted
After section 263 of the Principal Act insert—
"263A Variation of a State title—including an
area as the result of a change to the
boundary of the offshore area
(1) This section applies if—
(a) a Commonwealth title has been granted
on the basis that an area (the relevant
area) is within the Commonwealth
defined offshore area; and
(b) as a result of a change to the offshore
area, the relevant area—
(i) ceases to be within the
Commonwealth defined offshore
area; and
(ii) falls within the offshore area; and
(c) either—
(i) the conditions set out in
subsection (2) are satisfied; or
(ii) the conditions set out in
subsection (3) are satisfied; and
(d) immediately before the relevant
time mentioned in whichever of
subsection (2) or (3) is applicable—
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(i) the Commonwealth title was
held by the registered holder of a
State title that corresponds to the
Commonwealth title; and
(ii) at least one section 37 block
covered by the State title
immediately adjoined at least one
other section 37 block that was
covered by the Commonwealth
title and that is in the relevant
area; and
(e) before the relevant time mentioned in
whichever of subsection (2) or (3) is
applicable—
(i) the holder of the Commonwealth
title; and
(ii) the registered holder of the State
title—
gave the Minister a written notice
electing to accept the variation under
this section of the State title.
Note
For when a State title corresponds to a
Commonwealth title, see subsection (12).
(2) The conditions mentioned in subsection
(1)(c)(i) are—
(a) one or more, but not all, of the
section 37 blocks that were covered by
the Commonwealth title immediately
before the change are in the relevant
area; and
(b) the Commonwealth title subsequently
ceases to be in force at the same time
(the relevant time)—
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(i) as to all of the section 37 blocks
that were covered by the
Commonwealth title immediately
before the change and that are in
the Commonwealth defined
offshore area; and
(ii) otherwise than as the result of the
cancellation or surrender of the
Commonwealth title.
(3) The conditions mentioned in subsection
(1)(c)(ii) are—
(a) all of the section 37 blocks that were
covered by the Commonwealth title
immediately before the change are in
the relevant area; and
(b) the Commonwealth title subsequently
ceases to be in force at the same time
(the relevant time)—
(i) as to all of the section 37 blocks
that were covered by the
Commonwealth title immediately
before the change; and
(ii) otherwise than as the result of the
cancellation or surrender of the
Commonwealth title.
(4) If the conditions set out in subsection (1)(d)
and (e) are met by only one State title, that
title is the relevant State title for the
purposes of this section.
(5) If the conditions set out in subsection (1)(d)
and (e) would, apart from this subsection, be
met by 2 or more State titles that have the
same registered holder, the Minister must, by
written notice given to the registered holder,
declare that one of those State titles is the
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relevant State title for the purposes of this
section.
(6) If the relevant State title is a petroleum
exploration permit—
(a) the Minister must, by written notice
given to the permittee, vary the permit
to include in the permit area all of the
section 37 blocks that—
(i) correspond to the section 37
blocks that were covered by the
Commonwealth title immediately
before the change; and
(ii) are in the offshore area; and
(b) the section 37 blocks included in the
permit area because of the variation are,
for the remainder of the term of the
permit, blocks in relation to which the
permit is in force.
(7) If the relevant State title is a petroleum
retention lease—
(a) the Minister must, by written notice
given to the lessee, vary the lease to
include in the lease area all of the
section 37 blocks that—
(i) correspond to the section 37
blocks that were covered by the
Commonwealth title immediately
before the change; and
(ii) are in the offshore area; and
(b) the section 37 blocks included in the
lease area because of the variation are,
for the remainder of the term of the
lease, blocks in relation to which the
lease is in force.
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(8) If the relevant State title is a petroleum
production licence—
(a) the Minister must, by written notice
given to the licensee, vary the licence
to include in the licence area all of the
section 37 blocks that—
(i) correspond to the section 37
blocks that were covered by the
Commonwealth title immediately
before the change; and
(ii) are in the offshore area; and
(b) the section 37 blocks included in the
licence area because of the variation
are, for the remainder of the term of the
licence, blocks in relation to which the
licence is in force.
(9) Subsections (6)(b), (7)(b) and (8)(b) have
effect subject to this Chapter.
(10) A variation under subsection (6)(a), (7)(a)
or (8)(a) takes effect immediately after the
relevant time mentioned in whichever of
subsection (2) or (3) is applicable.
(11) For the purposes of this section, a section 37
block immediately adjoins another section 37
block if—
(a) the graticular section that constitutes or
includes that section 37 block and the
graticular section that constitutes or
includes that other section 37 block—
(i) have a side in common; or
(ii) are joined together at one point
only; or
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(b) that section 37 block and that other
section 37 block are in the same
graticular section.
(12) For the purposes of this section—
(a) a petroleum exploration permit granted
otherwise than by way of renewal
corresponds to a Commonwealth
petroleum exploration title granted
otherwise than by way of renewal; and
(b) a petroleum retention lease
corresponds to a Commonwealth
petroleum retention title; and
(c) a petroleum production licence
corresponds to a fixed-term
Commonwealth petroleum production
title granted by way of renewal or
otherwise; and
(d) a petroleum exploration permit
granted by way of first renewal
corresponds to a Commonwealth
petroleum exploration title granted by
way of first renewal; and
(e) a petroleum exploration permit
granted by way of second renewal
corresponds to a Commonwealth
petroleum exploration title granted by
way of second renewal.
(13) If, after the change to the boundary of the
offshore area—
(a) a part of a section 37 block that was
covered by the Commonwealth title
immediately before the change is in the
Commonwealth defined offshore area;
and
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(b) the remaining part of the section 37
block is in the offshore area—
then, for the purposes of this section
(other than this subsection), each of those
parts is taken to constitute, and to have
always constituted, a section 37 block.
(14) In this section—
Commonwealth title means—
(a) a Commonwealth petroleum
exploration title; or
(b) a Commonwealth petroleum
retention title; or
(c) a fixed-term Commonwealth
petroleum production title;
section 37 block means—
(a) a block constituted as provided by
section 37; or
(b) if a graticular section is wholly
within the area that was covered
by the Commonwealth title
concerned—the graticular section;
or
(c) if a part only of a graticular
section is within the area that was
covered by the Commonwealth
title concerned—that part of the
graticular section;
Note
See also subsection (13).
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State title means—
(a) a petroleum exploration permit; or
(b) a petroleum retention lease; or
(c) a petroleum production licence.".
30 Changes to the boundary of the offshore area—
Part 2.14
(1) After section 278(2) of the Principal Act insert—
"(2A) If—
(a) a Commonwealth title has been granted
on the basis that an area (the second
area) is within the Commonwealth
defined offshore area; and
(b) as a result of a change to the boundary
of the offshore area, the second area—
(i) ceases to be within the
Commonwealth defined offshore
area; and
(ii) falls within the offshore area—
then, so far as the Commonwealth title is
concerned, this Act does not apply to the
second area.
(2B) Subsection (2A) continues to apply to the
second area only while the Commonwealth
title remains in force.".
(2) In section 278(4) of the Principal Act insert the
following definition—
"Commonwealth title means an instrument
under the Commonwealth Act that confers,
in relation to the Commonwealth defined
offshore area, some or all of the rights that a
State title confers in relation to the offshore
area;".
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31 Changes to the boundary of the offshore area—
Part 3.12
(1) After section 499(2) of the Principal Act insert—
"(2A) If—
(a) a Commonwealth title has been granted
on the basis that an area (the second
area) is within the Commonwealth
defined offshore area; and
(b) as a result of a change to the boundary
of the offshore area, the second area—
(i) ceases to be within the
Commonwealth defined offshore
area; and
(ii) falls within the offshore area—
then, so far as the Commonwealth title is
concerned, this Act does not apply to the
second area.
(2B) Subsection (2A) continues to apply to the
second area only while the Commonwealth
title remains in force.".
(2) In section 499(4) of the Principal Act insert the
following definition—
"Commonwealth title means an instrument
under the Commonwealth Act that confers,
in relation to the Commonwealth defined
offshore area, some or all of the rights that a
State title confers in relation to the offshore
area;".
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32 New section 686A inserted
After section 686 of the Principal Act insert—
"686A Fees for boundary-change petroleum
exploration permits
(1) The permittee of a boundary-change
petroleum exploration permit must pay to
the Minister a fee calculated in accordance
with the regulations in respect of each year
of the term of a boundary-change petroleum
exploration permit held by the permittee.
(2) The fee in respect of the first year of the term
of a boundary-change petroleum exploration
permit is due and payable on the day the
term of the permit begins (the first payment
day).
(3) The fee in respect of a later year of the term
of a boundary-change petroleum exploration
permit is due and payable on the day falling
on the anniversary of the first payment day
in the remaining years of the term of the
permit.".
33 Repeal of amending Act
This Act is repealed on 1 October 2019.
Note
The repeal of this Act does not affect the continuing
operation of the amendments made by it (see section 15(1)
of the Interpretation of Legislation Act 1984).
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Endnotes
1 General information
See www.legislation.vic.gov.au for Victorian Bills, Acts and current
authorised versions of legislation and up-to-date legislative information.
† Minister's second reading speech—
Legislative Assembly: 18 October 2017
Legislative Council: 14 December 2017
The long title for the Bill for this Act was "A Bill for an Act to amend the
Offshore Petroleum and Greenhouse Gas Storage Act 2010 to provide
protections for the holders of petroleum titles affected by changes to the
boundary between the offshore area and the Commonwealth defined
offshore area."
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