Petroleum and Minerals Authority Act 1973

subject to paragraph (b), to the foot of the continental rise or, in any place where there is no continental rise, to the foot of the continental slope; and

in any place where the outer boundary of the continental shelf, within the meaning of the Convention, adjacent to the coast of Australia has, whether before or after the commencement of this Act, been determined by agreement between Australia and another country—to that boundary,

Papua New Guinea; or

a part of that morphological unit adjacent to Papua New Guinea declared by Proclamation to be excluded from the Australian continental land mass;

any naturally occurring hydrocarbon, whether in a gaseous, liquid or solid state;

any naturally occurring mixture of hydrocarbons, whether in a gaseous, liquid or solid state; or

any naturally occurring mixture of a hydrocarbon or hydrocarbons, whether in a gaseous, liquid or solid state, and one or more of the following, that is to say, hydrogen sulphide, nitrogen, helium and carbon dioxide;

any hydrocarbon or mixture of hydrocarbons produced by subjecting petroleum to a process of refining or produced from petroliferous minerals; or

any mixture of a hydrocarbon or hydrocarbons so produced with another substance or other substances;

to explore for petroleum and petroliferous minerals on the Australian continental land mass and elsewhere;

to recover petroleum and petroliferous minerals from the Australian continental land mass or from any other place;

to refine petroleum in Australia or elsewhere;

to manufacture petroleum products and petrochemicals in Australia or elsewhere;

to buy and sell petroleum, petroliferous minerals, petroleum products and petrochemicals, whether in Australia or elsewhere; and

to transport petroleum, petroliferous minerals, petroleum products and petrochemicals on the Australian continental land mass and between Australia and other countries.

Subject to section 9, the functions of the Authority include the following:—

to explore for minerals on the Australian continental land mass and elsewhere;

to recover minerals from their natural site on the Australian continental land mass or from any other place;

to treat minerals for the purpose of extracting metals and other substances in Australia or elsewhere;

to refine metals and other substances obtained as a result of the treatment of minerals in Australia or elsewhere;

to crush, screen or otherwise treat or prepare for sale coal and construction materials in Australia or elsewhere;

to buy and sell minerals, refined substances and manufactured materials and substances, whether in Australia or elsewhere; and

to transport minerals, refined substances and manufactured materials and substances on the Australian continental land mass and between Australia and other countries.

In this section—

to assist, otherwise than by providing a financial grant or subsidy, persons to carry on, and to co-operate with persons in the carrying on, of any undertaking or operation of a kind within the functions of the Authority under section 6 or 7;

to operate, or make arrangements with a view to the operation of, a scheme designed to ascertain the quantities of petroleum and minerals available for recovery from the Australian conti­nental land mass; and

to co-operate with authorities, organizations and other persons in formulating proposals designed to ensure that the recovery of petroleum and minerals so available is carried on in the best interests of the Australian people having regard to the long term needs of the Australian people.

Subject to sub-section (2), the Authority may perform the functions conferred on it by sections 6 ,7 and 8 only—

in a Territory;

in relation to the natural resources of any part of the submarine areas of the Australian continental land mass;

for the purpose of, by way of or so as to facilitate trade and commerce with other countries, among the States, between Territories or between a Territory and a State;

for the purpose of ensuring the availability when a state of war, or danger of war, exists, of adequate reserves and supplies of petroleum, petroleum products, petrochemicals, minerals and

in respect of matters incidental to or related to the performance of its functions in accordance with paragraph (a), (b), (c) or (d).

Sections 6, 7 and 8 shall be taken to confer on the Authority only functions that may be performed by the Authority in accordance with sub-section (1).

In relation to operations by way of exploration for, or recovery of, petroleum or a mineral, it is the duty of the Authority to make thorough preliminary investigations in accordance with generally accepted principles.

The Authority shall perform its functions, in so far as it is reasonably practicable for it to do so, in such a manner as will ensure that adequate quantities of petroleum or of any mineral of a kind ordinarily imported into Australia from another country are available for use in Australia at any time when the exportation of petroleum or minerals of that kind to Australia is restricted or prohibited by the Government of another country.

It is the duty of the Authority—

to ensure that operations carried on by or on behalf of the Authority in a petroleum exploration area in connexion with the exploration of that area for petroleum or the recovery of petroleum from that area are carried on in a proper and workmanlike manner and in accordance with good oil field practice;

to ensure that all operations carried on by or on behalf of the Authority—

in a minerals exploration area in connexion with the exploration of that area for minerals or the recovery of minerals from that area; or

in connexion with the construction, maintenance or operation of a pipeline,

to ensure that—

all structures, equipment and other property that the Authority brings, or causes to be brought, into a petroleum exploration area or a minerals exploration area are maintained in good condition and repair; and

all structures, equipment and other property in a petroleum exploration area or minerals exploration area belonging to the Authority or under its control that are not used or to be used in that area in connexion with operations by way of exploration for, or recovery of, petroleum or minerals are removed from that area;

to secure the safety, health and welfare of persons engaged in operations of the Authority in a petroleum exploration area or minerals exploration area;

to carry on operations by way of exploration for, or recovery of, petroleum or minerals on the submarine areas of the Australian continental land mass in a manner that does not interfere with—

navigation;

fishing;

the conservation of the resources of the sea and sea-bed; or

any operations of another person being lawfully carried on by way of exploration for, recovery of or conveyance of petroleum or minerals or by way of the construction or operation of a pipeline,

to consider, in connexion with the exercise of any of its functions, factors connected with the ecology and the environment.

In particular, and without limiting the generality of sub-section (3), the Authority shall, in carrying on operations connected with exploration for, or the recovery of, petroleum in a petroleum exploration area—

control the flow, and prevent the waste or escape, in that area of petroleum or water;

prevent the escape in that area of any mixture of water or drilling fluid with petroleum or any other matter;

prevent damage to petroleum-bearing strata in any area, whether adjacent to that area or not;

keep separate each petroleum pool discovered in that area; and

prevent water or any other matter entering a petroleum pool through wells in that area, except when required by, and in accordance with, good oil field practice.

Without limiting the generality of section 11, the Authority has power, for or in connexion with the performance of its functions—

to purchase land;

to take land on lease;

to take easements over land;

to sell, or otherwise dispose of, land vested in the Authority but not required for the purposes of the Authority;

to lease land vested in the Authority the use of which is not for the time being required by the Authority;

to release any easements over land;

to purchase or take on hire plant, machinery, equipment or other goods;

to dispose of plant, machinery, equipment or other goods owned by the Authority but not required by the Authority;

to provide transport, accommodation, provisions, medical treatment, hospital facilities and amenities for officers and employees of the Authority and their families;

subject to sub-section (2), to enter into an agreement, on such terms and conditions as the Authority deems fit, with any person or body for or in relation to the performance of work, the provision of services or the doing of any other thing—

by the Authority for, on behalf of or in association with the person or body; or

by the person or body for or on behalf of the Authority;

to form, or participate in the formation of, a company;

to subscribe for or otherwise acquire, and dispose of, shares in, or debentures or other securities of, a company;

to enter into an agreement, on such terms and conditions as the Authority deems fit, with any person or body for the use by the Authority of a patent, process or method of performing any work;

to authorize the use of any patent vested in the Authority;

to acquire, upon such terms as the Authority deems fit, an interest in—

a mining undertaking that is being or is to be carried on on the Australian continental land mass or elsewhere by another person or body; or

any undertaking other than a mining undertaking that is being or is to be carried on in Australia or elsewhere by another person or body and is an undertaking of a kind that the Authority is authorized by this Act to carry on;

to lend moneys, upon such terms and conditions as the Authority deems fit, to a person or body carrying on or intending to carry on—

a mining undertaking on the Australian continental land mass; or

any other undertaking in Australia of a kind that the Authority is authorized by this Act to carry on,

to underwrite issues of shares in, or debentures or other securities of, a company carrying on, or intending to carry on, an undertaking of a kind referred to in paragraph (p);

to enter into a partnership or arrangement for sharing the risks involved in carrying on operations by way of exploration for, or recovery of, petroleum or minerals, and for sharing the petroleum or minerals recovered in the course of carrying on the operations or the profits derived from carrying on the operations;

to give guarantees; and

to do anything incidental to any of its powers.

Sub-section (1) does not authorize the Authority to enter into an agreement for the Authority to explore for, or recover, a substance, being petroleum or a mineral, for, on behalf of or in association with another person body at any place on the Australian continental land mass unless that person or body is authorized to explore for, or recover, as the case requires, the substance at that place.

The Authority is not authorized by paragraph (1)(q) to under write issues of shares in, or debentures or other securities of, a company or companies the nominal values of which exceed at any time in the aggregate such sum as the Treasurer determines.

The power of the Authority to give guarantees in accordance with paragraph (1)(s) is subject to such limits as the Treasurer determines as to the total amount of moneys (other than interest) the pay­ment of which may at any time be the subject of such guarantees.

In this section “mining undertaking” means an undertaking in the course of which operations by way of—

exploration for petroleum or minerals; or

extraction of petroleum or minerals from its or their natural site, are, or are proposed to be, carried on.