Petroleum (Submerged Lands) Act 1982

A permittee or licensee shall carry out all petroleum exploration operations and operations for the recovery of petroleum in the permit area or licence area in a proper and competent manner and in accordance with good oilfield practice and shall secure the safety, health and welfare of persons engaged in those operations in or about the permit area or licence area.

In particular, and without limiting the generality of subsection (1), but subject to any authorisation or requirement given or made by or under this Act or regulations or directions under this Act, a permittee or licensee shall—

control the flow and prevent the waste or escape in the permit area or licence area of petroleum or water; and

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

prevent damage to petroleum-bearing strata in an area, whether in the adjacent area or not, in respect of which the permit or licence is not in force; and

keep separate—

each petroleum pool discovered in the permit area or licence area; and

such of the sources of water (if any) discovered in that area as the Minister, by instrument in writing served on that person, directs; and

prevent water or other matter entering any petroleum pool through wells in the permit area or licence area except when required by, and in accordance with, good oilfield practice.

A pipeline licensee shall operate the pipeline in a proper and competent manner and shall secure the safety, health and welfare of persons engaged in operations in connection with the pipeline.

In particular and without limiting the generality of subsection (3), a pipeline licensee shall prevent the waste or escape of petroleum or water from the pipeline or from any secondary line, pumping station, tank station, valve station or water line.

A person who is the holder of a special prospecting authority or an access authority shall carry out all petroleum exploration operations in the area in respect of which the special prospecting authority or access authority is in force in a proper and competent manner and in accordance with good oilfield practice and shall secure the safety, health and welfare of persons engaged in those operations in or about that area.

Without limiting the generality of any provision of this Act relating to conditions, the conditions subject to which a permit, licence, pipeline licence, special prospecting authority or access authority is granted may include a condition requiring the holder to effect and maintain, to the satisfaction of the Minister, insurance against expenses or liabilities or specified things arising in connection with, or as a result of, the carrying out of work, or the doing of any other thing, in pursuance of the permit, licence or authority, including expenses of complying with directions, with respect to the clean up or other remedying of the effects of the escape of petroleum.

It is a defence if a person charged with failing to comply with a provision of this section, or a defendant in an action arising out of a failure by the defendant to comply with a provision of this section, proves that he or she took all reasonable steps to comply with that provision.Maximum penalty—135 penalty units.