Resources Legislation Amendment (Fracking Ban) Act 2017

Authorised by the Chief Parliamentary Counsel Authorised Version i Resources Legislation Amendment (Fracking Ban) Act 2017 No. 8 of 2017 TABLE OF PROVISIONS Section Page Part 1—Preliminary 1 1 Purposes 1 2 Commencement 2 Part 2—Amendment of Mineral Resources (Sustainable Development) Act 1990 3 3 Definitions 3 4 New sections 8AC and 8AD inserted 3 5 Application for a licence 4 6 New section 113A inserted 5 7 New sections 121A and 121B inserted 5 Part 3—Amendment of Petroleum Act 1998 9 8 General definitions 9 9 New section 16A inserted 9 10 New section 17A inserted 9 11 New sections 251A and 251B inserted 11 Part 4—Consequential amendments 14 12 Amendment of Resources Legislation Amendment (BTEX Prohibition and Other Matters) Act 2014 14 Part 5—Repeal of amending Act 15 13 Repeal of amending Act 15 ═══════════════ Endnotes 16 1 General information 16 -- 1 of 17 -- Authorised by the Chief Parliamentary Counsel Authorised Version 1 Resources Legislation Amendment (Fracking Ban) Act 2017† No. 8 of 2017 [Assented to 15 March 2017] The Parliament of Victoria enacts: Part 1—Preliminary 1 Purposes The main purposes of this Act are— (a) to amend the Mineral Resources (Sustainable Development) Act 1990— (i) to prevent the exploration for and mining of coal seam gas; and (ii) to ban hydraulic fracturing; and Victoria -- 2 of 17 -- Part 1—Preliminary Resources Legislation Amendment (Fracking Ban) Act 2017 No. 8 of 2017 2 Authorised by the Chief Parliamentary Counsel (iii) to enable the Minister to pay for the surrender of certain mining licences, exploration licences and retention licences for coal seam gas; and (b) to amend the Petroleum Act 1998— (i) to ban hydraulic fracturing; and (ii) to impose a moratorium on petroleum exploration and petroleum production in the onshore areas of Victoria until 30 June 2020; and (iii) to enable the Minister to pay for the surrender of certain exploration permits, retention leases and production licences; and (c) to make consequential amendments to the Resources Legislation Amendment (BTEX Prohibition and Other Matters) Act 2014 to repeal provisions that will be made redundant by this Act. 2 Commencement This Act comes into operation on the day after the day on which it receives the Royal Assent. -- 3 of 17 -- Part 2—Amendment of Mineral Resources (Sustainable Development) Act 1990 Resources Legislation Amendment (Fracking Ban) Act 2017 No. 8 of 2017 3 Authorised by the Chief Parliamentary Counsel Part 2—Amendment of Mineral Resources (Sustainable Development) Act 1990 3 Definitions In section 4(1) of the Mineral Resources (Sustainable Development) Act 1990, insert the following definitions— "coal seam gas means natural gas when it is contained in oil shale or coal, whether or not it is in a gaseous state; hydraulic fracturing means the injection of a substance or substances into a bore under pressure for the purposes of stimulating a geological formation;". 4 New sections 8AC and 8AD inserted After section 8AB of the Mineral Resources (Sustainable Development) Act 1990 insert— "8AC Offence to carry out exploration or mining of coal seam gas (1) A person must not carry out exploration for, or carry out mining of, coal seam gas on any land. Penalty: In the case of a corporation, 1000 penalty units. In any other case, 200 penalty units. Default penalty: In the case of a corporation, 20 penalty units. In any other case, 10 penalty units. -- 4 of 17 -- Part 2—Amendment of Mineral Resources (Sustainable Development) Act 1990 Resources Legislation Amendment (Fracking Ban) Act 2017 No. 8 of 2017 4 Authorised by the Chief Parliamentary Counsel (2) Subsection (1) does not apply to a person who is the holder of an exploration licence, a mining licence or a retention licence and who— (a) in the course of carrying out exploration for, or mining of, a mineral other than coal seam gas in accordance with that licence, incidentally discovers or mines coal seam gas; and (b) reports the discovery of coal seam gas in accordance with section 113A. 8AD Offence to carry out hydraulic fracturing The holder of an exploration licence, a mining licence or a retention licence must not carry out any hydraulic fracturing on any land in the course of carrying out any exploration or mining under the licence. Penalty: In the case of a corporation, 1000 penalty units. In any other case, 200 penalty units. Default penalty: In the case of a corporation, 20 penalty units. In any other case, 10 penalty units.". 5 Application for a licence After section 15(1BA) of the Mineral Resources (Sustainable Development) Act 1990 insert— "(1BAA) An application for an exploration licence, a mining licence or a retention licence is ineffective, and must not be accepted by the Minister, to the extent that it specifies that the licence is to relate to coal seam gas.". -- 5 of 17 -- Part 2—Amendment of Mineral Resources (Sustainable Development) Act 1990 Resources Legislation Amendment (Fracking Ban) Act 2017 No. 8 of 2017 5 Authorised by the Chief Parliamentary Counsel 6 New section 113A inserted After section 113 of the Mineral Resources (Sustainable Development) Act 1990 insert— "113A Discovery of coal seam gas to be reported (1) A person who discovers any coal seam gas on any land must report in writing that discovery to the Minister as soon as practicable. (2) The Minister may, by notice served on the person reporting a discovery under subsection (1), require that person to provide the Minister with further details relating to the discovery specified in the notice within the period specified in the notice. (3) A person must comply with a notice served on that person under subsection (2). Penalty: 50 penalty units.". 7 New sections 121A and 121B inserted After section 121 of the Mineral Resources (Sustainable Development) Act 1990 insert— "121A State liability (1) Despite any Act (other than the Charter of Human Rights and Responsibilities) or law to the contrary, the State is not liable in any way for any loss, damage or injury of any kind resulting directly or indirectly from or arising out of— (a) the amendments made to this Act by the Resources Legislation Amendment (Fracking Ban) Act 2017; or -- 6 of 17 -- Part 2—Amendment of Mineral Resources (Sustainable Development) Act 1990 Resources Legislation Amendment (Fracking Ban) Act 2017 No. 8 of 2017 6 Authorised by the Chief Parliamentary Counsel (b) the refusal to accept an application for an exploration licence, a mining licence or a retention licence to the extent that the licence specifies that it is to relate to coal seam gas; or (c) the refusal to grant an exploration licence, a mining licence or a retention licence that would entitle the holder to explore for coal seam gas; or (d) the imposition of conditions relating to coal seam gas on an exploration licence, a mining licence or a retention licence; or (e) the variation of conditions relating to coal seam gas on an exploration licence, a mining licence or a retention licence; or (f) the refusal to approve a work plan under which the exploration for, or the mining of, coal seam gas is proposed to be carried out; or (g) the refusal to approve a work plan under which hydraulic fracturing is proposed to be carried out; or (h) a decision under this Act not being made in relation to an application for— (i) an exploration licence, a mining licence or a retention licence to the extent that the licence specifies that it is to relate to coal seam gas; or (ii) an exploration licence, a mining licence or a retention licence that would entitle the holder to explore for coal seam gas; or -- 7 of 17 -- Part 2—Amendment of Mineral Resources (Sustainable Development) Act 1990 Resources Legislation Amendment (Fracking Ban) Act 2017 No. 8 of 2017 7 Authorised by the Chief Parliamentary Counsel (iii) the variation of conditions relating to coal seam gas on an exploration licence, a mining licence or a retention licence; or (iv) the approval of a work plan under which the exploration for, or the mining of, coal seam gas is proposed to be carried out; or (v) the approval a work plan under which hydraulic fracturing is proposed to be carried out. (2) Subsection (1)(b), (c), (d), (e), (f) and (g) apply to a refusal, imposition or variation made on or after 24 August 2012 and whether any loss, damage or injury resulting from or arising out of that refusal, imposition or variation is incurred before, on or after the commencement of this section. (3) Subsection (1)(h) applies whether any loss, damage or injury resulting from or arising out of the fact that a decision is not made is incurred before, on or after the commencement of this section. 121B Minister may pay for surrender of licences (1) The Minister may pay an amount, determined by Order made under subsection (2), for the surrender within 6 months after the commencement of the Resources Legislation Amendment (Fracking Ban) Act 2017 of any of the following licences if the licence is in force immediately before that commencement— (a) an exploration licence under which the holder is entitled to carry out exploration for coal seam gas; -- 8 of 17 -- Part 2—Amendment of Mineral Resources (Sustainable Development) Act 1990 Resources Legislation Amendment (Fracking Ban) Act 2017 No. 8 of 2017 8 Authorised by the Chief Parliamentary Counsel (b) a mining licence or retention licence under which the holder is entitled to carry out mining of or exploration for coal seam gas. (2) The Minister may determine, by Order published in the Government Gazette, the amount for the purposes of subsection (1).". -- 9 of 17 -- Part 3—Amendment of Petroleum Act 1998 Resources Legislation Amendment (Fracking Ban) Act 2017 No. 8 of 2017 9 Authorised by the Chief Parliamentary Counsel Part 3—Amendment of Petroleum Act 1998 8 General definitions In section 4 of the Petroleum Act 1998 insert the following definition— "hydraulic fracturing means the injection of a substance or substances into a bore under pressure for the purposes of stimulating a geological formation;". 9 New section 16A inserted After section 16 of the Petroleum Act 1998 insert— "16A Offence to carry out hydraulic fracturing A person must not carry out any hydraulic fracturing in the course of carrying out any petroleum operation. Penalty: 200 penalty units. Default penalty: In the case of a corporation, 20 penalty units. In any other case, 10 penalty units.". 10 New section 17A inserted After section 17 of the Petroleum Act 1998 insert— "17A Moratorium on petroleum exploration and petroleum production (1) Subject to this section, despite anything to the contrary in this Act or any condition of a relevant authority, the carrying out of any petroleum exploration or petroleum production during the moratorium period is not authorised under that authority. -- 10 of 17 -- Part 3—Amendment of Petroleum Act 1998 Resources Legislation Amendment (Fracking Ban) Act 2017 No. 8 of 2017 10 Authorised by the Chief Parliamentary Counsel (2) Subsection (1) does not affect any requirement or obligation imposed on the holder of a relevant authority by or under this Act or under a condition of the authority during the moratorium period. (3) In addition, subsection (1) does not affect— (a) the authorisation of petroleum exploration or petroleum production during the moratorium period by the following production licences— (i) Production Licence 1 registered in the petroleum register on 1 March 1985; (ii) Production Licence 2 registered in the petroleum register on 31 December 1990; (iii) Production Licence 3 registered in the petroleum register on 10 May 1993; (iv) Production Licence 11 registered in the petroleum register on 14 May 2002; (v) Production Licence 13 registered in the petroleum register on 7 February 2006; or (b) the authorisation under a production licence of petroleum storage in a reservoir that is carried out in accordance with a storage development plan approved under Division 7 of Part 5 that applies to the production licence. (4) Despite anything to the contrary in this Act, the Minister must not grant a relevant authority during the moratorium period. -- 11 of 17 -- Part 3—Amendment of Petroleum Act 1998 Resources Legislation Amendment (Fracking Ban) Act 2017 No. 8 of 2017 11 Authorised by the Chief Parliamentary Counsel (5) In this section— moratorium period means the period beginning on the day on which the Resources Legislation Amendment (Fracking Ban) Act 2017 comes into operation and ending on 30 June 2020; relevant authority means an exploration permit, a retention lease or a production licence.". 11 New sections 251A and 251B inserted After section 251 of the Petroleum Act 1998 insert— "251A State liability (1) Despite any Act (other than the Charter of Human Rights and Responsibilities) or law to the contrary, the State is not liable in any way for any loss, damage or injury of any kind resulting directly or indirectly from or arising out of— (a) the amendments made to this Act by the Resources Legislation Amendment (Fracking Ban) Act 2017; or (b) the refusal to grant a relevant authority; or (c) the refusal to approve a petroleum production development plan; or (d) the suspension or variation of a condition on a relevant authority; or (e) the extension of the term of a relevant authority when a condition of the authority is suspended; or -- 12 of 17 -- Part 3—Amendment of Petroleum Act 1998 Resources Legislation Amendment (Fracking Ban) Act 2017 No. 8 of 2017 12 Authorised by the Chief Parliamentary Counsel (f) the refusal to give consent to the carrying out of a petroleum operation; or (g) the refusal to accept the operation plan for a petroleum operation; or (h) a decision under this Act not being made in relation to an application for— (i) a relevant authority; or (ii) the suspension or variation of a condition on a relevant authority; or (iii) the acceptance of consent for the carrying out of a petroleum operation; or (iv) the acceptance of an operation plan for a petroleum operation; or (i) any consent that is deemed to have been given under this Act on or after 24 August 2012 in relation to a relevant authority. (2) Subsection (1)(b), (c), (d), (e), (f) and (g) apply to a refusal, suspension, variation or extension made on or after 24 August 2012 and whether any loss, damage or injury resulting from or arising out of that refusal, suspension, variation or extension is incurred before, on or after the commencement of this section. (3) Subsection (1)(h) and (i) apply whether any loss, damage or injury resulting from or arising out of the fact that a decision is not made, or resulting from or arising out of a deemed consent, is incurred before, on or after the commencement of this section. -- 13 of 17 -- Part 3—Amendment of Petroleum Act 1998 Resources Legislation Amendment (Fracking Ban) Act 2017 No. 8 of 2017 13 Authorised by the Chief Parliamentary Counsel (4) In this section— relevant authority means an exploration permit, a retention lease or a production licence. 251B Minister may pay for surrender of authority (1) The Minister may pay an amount, determined by an Order made under subsection (2), for the surrender within 6 months after the commencement of the Resources Legislation Amendment (Fracking Ban) Act 2017 of a relevant authority if the authority is in force immediately before that commencement. (2) The Minister may determine, by Order published in the Government Gazette, the amount for the purposes of subsection (1). (3) In this section— relevant authority means an exploration permit, a retention lease or a production licence.". -- 14 of 17 -- Part 4—Consequential amendments Resources Legislation Amendment (Fracking Ban) Act 2017 No. 8 of 2017 14 Authorised by the Chief Parliamentary Counsel Part 4—Consequential amendments 12 Amendment of Resources Legislation Amendment (BTEX Prohibition and Other Matters) Act 2014 Sections 13, 25 and 69 of the Resources Legislation Amendment (BTEX Prohibition and Other Matters) Act 2014 are repealed. -- 15 of 17 -- Part 5—Repeal of amending Act Resources Legislation Amendment (Fracking Ban) Act 2017 No. 8 of 2017 15 Authorised by the Chief Parliamentary Counsel Part 5—Repeal of amending Act 13 Repeal of amending Act This Act is repealed on the first anniversary of its commencement. 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). ═══════════════ -- 16 of 17 -- Endnotes Resources Legislation Amendment (Fracking Ban) Act 2017 No. 8 of 2017 16 Authorised by the Chief Parliamentary Counsel 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: 23 November 2016 Legislative Council: 9 February 2017 The long title for the Bill for this Act was "A Bill for an Act to amend the Mineral Resources (Sustainable Development) Act 1990 and the Petroleum Act 1998 to prevent the exploration and mining of coal seam gas, to ban hydraulic fracturing and to impose a moratorium on petroleum exploration and production in onshore areas of Victoria, to enable the Minister to pay for the surrender of licences, leases and permits, to make consequential amendments to the Resources Legislation Amendment (BTEX Prohibition and Other Matters) Act 2014 and for other purposes." -- 17 of 17 --