Petroleum Act 1923

This section imposes additional requirements for the approval of any proposed later development plan for the lease made after 31 December 2004.

However, the additional requirements do not apply if the MDL holder or the MDL applicant has made a coordinated development agreement with the lessee or has agreed in writing in relation to the proposed plan and a copy of either agreement has been lodged at—

the office of the department for lodging proposed later development plans, as stated in a gazette notice by the chief executive; or

if no office is gazetted under paragraph (a)—the office of the chief executive.

The lessee must, before lodging the proposed plan under section 74Q, give the MDL holder or the MDL applicant a copy and use reasonable attempts to—

consult with the MDL holder or the MDL applicant about the proposed plan; and

change the proposed plan to include reasonable provisions proposed by the MDL holder or the MDL applicant that will optimise the safe and efficient production of—

petroleum under the lease; and

coal or oil shale under any future mining lease over the overlapping land that may be granted to the MDL holder or the MDL applicant; and

provide for the following in the proposed plan—

the location and timing of the development of coal and petroleum in the overlapping land;

the mining or production of the petroleum in a way that is consistent with the proposed mining of the coal;

a way for the coal to be developed in a timely way, including, for example, by appropriate periodic surrenders of parts of the lease.

However, the obligations under subsection (3)(b) and (c) apply only to the extent the provisions are commercially and technically feasible for the lessee.

Also, when the lessee lodges the proposed plan, it must be accompanied by a written notice stating each of the following—

details of the consultation;

the results of the consultation;

any changes made to the proposed plan because of the consultation;

the lessee’s assessment of the potential for the lessee and the MDL holder or the MDL applicant to make a coordinated development agreement.