Petroleum Act 1923

Every lease is subject to the following reservations, covenants and conditions—

a reservation of power to authorise mining on the land for any purpose other than the production or obtaining of petroleum or petroleum products, but not such as to interfere with, encroach upon, or endanger operations for producing or obtaining petroleum;

a covenant by the lessee to pay the prescribed rent in accordance with this Act;

a covenant by the lessee to pay the State petroleum royalty, as required under the 2004 Act, chapter 6;

a covenant by the lessee to pay rates and charges payable to the local government in whose area the lease is situated;

a covenant by the lessee to work the land demised by the lease in accordance with recognised good oilfield practice and in compliance with this Act, unless exemption or partial exemption is granted in such manner as may be prescribed;

a covenant by the lessee that, if directed by the Minister not to dispose of any petroleum or petroleum products for use or consumption outside Australia, the lessee will not so dispose of any petroleum or petroleum products;

a covenant by the lessee to comply with the provisions of this Act;

a covenant by the lessee to use the land bona fide exclusively for the purpose for which it is demised and in accordance with this Act, unless prevented from so doing by circumstances beyond the lessee’s power and control;

a covenant by the lessee not to assign, transfer, sublet, mortgage or make the subject of any trust the lease or the land or any part thereof otherwise than in accordance with this Act or the Common Provisions Act;

a condition for the forfeiture of the lease in the event of any breach of any covenant or condition by the lessee and the failure of the lessee completely to remedy the same within 3 months (or such further time as the Minister may in the Minister’s discretion, allow) after the Minister shall have given to the lessee notice in writing to make good the same.

If an application for a lease has been granted, the applicant and the applicant’s assigns are taken to have entered into the covenants and accepted the reservations and conditions mentioned in subsection (1).