Petroleum (Submerged Lands) Act 1982

This Act may be cited as the Petroleum (Submerged Lands) Act 1982.

The scheme agreed on between the Governments of the Commonwealth, the States and the Northern Territory, being the scheme set out in Schedule 4, so far as that scheme relates to the operation of this Act has the force of law by virtue of this section.

For the purposes of the scheme set out in Schedule 4, as in force by virtue of this section, this Act is the State Act of South Australia and the Minister is the Designated Authority under this Act.

A reference to the Designated Authority in a new permit (within the meaning of the scheme set out in Schedule 4) or a new pipeline licence (within the meaning of that scheme) shall for the purposes of that permit or pipeline licence and this Act be read as a reference to the Minister.

The provisions set out in Schedule 5 have the force of law by virtue of this section.

In this Act, unless the contrary intention appears—

access authority means an access authority under Part 3;

application for a primary licence means an application under section 39(1) or (2) or under section 39A(1) or (2);

application for a secondary licence means an application under section 39(3) or under section 39A(3);

approved means approved by the Minister;

block means a block constituted as provided by section 7A or 16;

Commonwealth Act means, as the context requires:

the Petroleum (Submerged Lands) Act 1967 of the Commonwealth as amended from time to time; or

if the Petroleum (Submerged Lands) Act 1967 of the Commonwealth has been repealed and re‑enacted (with or without modifications)—the re‑enacted Act of the Commonwealth as amended from time to time;

Commonwealth Minister means the Minister of the Crown in right of the Commonwealth for the time being administering the Commonwealth Act;

construct includes "place" and construction has a corresponding meaning;

corresponding law means an Act of another State or a law in force in a Territory of the Commonwealth giving effect to the agreement between the Commonwealth, the States and the Northern Territory referred to in the preamble to this Act;

document includes any map, book, record or writing;

good oil-field practice means all those things that are generally accepted as good and safe in the carrying on of exploration for petroleum, or in operations for the recovery of petroleum, as the case may be;

graticular section means a section referred to in section 16;

inspector means a person appointed under section 124;

lease means a retention lease under Part 3;

lease area means the area constituted by the blocks that are the subject of a lease;

lessee means the registered holder of a lease;

licence means a production licence for petroleum under Part 3;

licence area means the area constituted by the blocks that are the subject of a licence;

licensee means the registered holder of a licence;

listed OHS laws has the meaning given by section 150C;

location means a block or blocks in respect of which a declaration under section 36 is in force;

natural resources has the same meaning as in the Convention;

OHS inspector means an OHS inspector appointed under the Commonwealth Act;

partly cancelled means—

in relation to a permit or licence—cancelled as to one or more but not all of the blocks the subject of the permit or licence; and

in relation to a pipeline licence—cancelled as to a part of the pipeline the subject of the licence;

partly determined, in relation to a permit or lease, means determined as to one or more but not all of the blocks the subject of the permit or lease;

permit means an exploration permit for petroleum under Part 3;

permit area means the area constituted by the blocks that are the subject of a permit;

permittee means the registered holder of a permit;

petroleum means—

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

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

any naturally occurring mixture of one or more 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, and includes any petroleum as defined by paragraph (a), (b) or (c) of this definition that has been returned to a natural reservoir in the adjacent area;

petroleum pool means a naturally occurring discrete accumulation of petroleum;

pipeline means a pipe or system of pipes in the adjacent area for conveying petroleum but does not include a pipe or system of pipes—

for returning petroleum to a natural reservoir; or

for conveying petroleum for use for the purposes of petroleum exploration operations or operations for the recovery of petroleum; or

for conveying petroleum that is to be flared or vented; or

for conveying petroleum from a well to a terminal station without passing through another terminal station, whether the terminal station to which the petroleum is conveyed is in the adjacent area or not;

pipeline licence means a licence under Part 3 to construct and operate a pipeline;

pipeline licensee means the registered holder of a pipeline licence;

primary entitlement means—

in relation to a permittee—the number of blocks forming part of a location in the permit area in respect of which that permittee may make an application under section 39(1); and

in relation to a lessee—the number of blocks in the lease area in respect of which that lessee may make an application under section 39A(1);

primary licence means a licence granted on an application under section 39(1) or (2) or under section 39A(1) or (2);

pumping station means equipment for pumping petroleum or water and includes any structure associated with that equipment;

register means the register kept in pursuance of Division 5 of Part 3;

registered holder, in relation to a permit, lease, licence, pipeline licence, special prospecting authority or access authority, means the person whose name is for the time being shown in the register as being the holder of the permit, lease, licence, pipeline licence, special prospecting authority or access authority;

royalty period, in relation to a permit or licence, means—

the period from and including the date from which the permit or licence has effect to the end of the month of the year during which that date occurs; and

each month thereafter;

Safety Authority means the National Offshore Petroleum Safety Authority under the Commonwealth Act;

secondary licence means a licence granted on an application under section 39(3) or under section 39A(3);

secondary line means a pipe or system of pipes for any purpose referred to in paragraphs (a), (b), (c) and (d) of the definition of pipeline;

special prospecting authority means a special prospecting authority under Part 3;

tank station means a tank or system of tanks for holding or storing petroleum and includes any structure associated with that tank or system of tanks;

terminal station means a pumping station, a tank station or a valve station declared to be a terminal station under section 62 or under the Commonwealth Act or a corresponding law;

the adjacent area means, subject to subsection (2), so much of the area the boundary of which is described in Schedule 3 as is part of the territorial sea of Australia, including the territorial sea adjacent to any island forming part of South Australia;

the Convention means the Convention entitled Convention on the Continental Shelf signed at Geneva on 29 April 1958, being the Convention a copy of which in the English language is set out in Schedule 2;

the Joint Authority means the Commonwealth-South Australia Offshore Petroleum Joint Authority established by the Commonwealth Act;

the relinquished area means—

in relation to a permit, lease or licence that has expired—the area constituted by the blocks in respect of which the permit, lease or licence was in force but has not been renewed; and

in relation to a permit or lease that has been wholly determined or partly determined—the area constituted by the blocks as to which the permit or lease was so determined; and

in relation to a permit or licence that has been wholly cancelled or partly cancelled—the area constituted by the blocks as to which the permit or licence was so cancelled; and

in relation to a lease that has been wholly cancelled—the area constituted by the blocks in respect of which the lease was in force; and

in relation to a pipeline licence that is no longer in force—the part of the adjacent area in which the pipeline was constructed; and

in relation to a pipeline licence that has been wholly cancelled or partly cancelled—the part of the adjacent area in which the pipeline or the part of the pipeline, as the case may be, was constructed; and

in relation to a special prospecting authority or access authority that has been surrendered or cancelled, or has expired—the area constituted by the blocks in respect of which that authority was in force;

valve station means equipment for regulating the flow of petroleum and includes any structure associated with that equipment;

vessel means a vessel used in navigation, other than air navigation, and includes a barge, lighter or other floating vessel;

water line means a pipe or system of pipes for conveying water in connection with petroleum exploration operations or operations for the recovery of petroleum;

well means a hole in the sea-bed or subsoil made by drilling, boring or any other means in connection with exploration for petroleum or operations for the recovery of petroleum but does not include a seismic shot hole;

wholly cancelled, in relation to a permit, lease, licence or pipeline licence, means cancelled as to all the blocks, or as to the whole of the pipeline, the subject of the permit, lease, licence or pipeline licence;

wholly determined, in relation to a permit or lease, means determined as to all the blocks the subject of the permit or lease.

If at any time the breadth of the territorial sea of Australia is determined or declared to be greater than three nautical miles, the definition of the adjacent area in subsection (1) continues to have effect as if the breadth of the territorial sea of Australia had continued to be three nautical miles.

In this Act, a reference to the term of a permit, lease, licence, pipeline licence, special prospecting authority or access authority is a reference to the period during which the permit, lease, licence, pipeline licence, special prospecting authority or access authority remains in force and a reference to the date of expiration of a permit, lease, licence, pipeline licence, special prospecting authority or access authority is a reference to the day on which the permit, lease, licence, pipeline licence, special prospecting authority or access authority ceases to be in force.

In this Act, a reference to a year of the term of a permit, lease, licence or pipeline licence is a reference to a period of one year commencing on the day on which the permit, lease, licence or pipeline licence, as the case may be, comes into force or on any anniversary of that day.

In this Act, a reference to the renewal, or to the grant of a renewal, of a permit is a reference to the grant of a permit in respect of all or some of the blocks specified in the firstmentioned permit to commence on the day after the date of expiration of the firstmentioned permit or on the day after the date of expiration of the permit granted upon a previous renewal of the firstmentioned permit.

In this Act, a reference to the renewal, or the grant of a renewal, of a lease is a reference to the grant of a lease in respect of the blocks in respect of which the first mentioned lease was in force to commence on the day after the date of expiration of the firstmentioned lease or on the day after the date of expiration of the lease granted upon a previous renewal of the first mentioned lease.

In this Act, a reference to the renewal, or to the grant of a renewal, of a licence in respect of the blocks specified in the licence is a reference to the grant of a licence in respect of those blocks to commence on the day after the date of expiration of the firstmentioned licence or on the day after the date of expiration of the licence granted upon a previous renewal of the firstmentioned licence.

In this Act, a reference to the renewal, or to the grant of a renewal, of a pipeline licence in respect of a pipeline is a reference to the grant of a pipeline licence in respect of that pipeline to commence on the day after the date of expiration of the firstmentioned pipeline licence or on the day after the date of expiration of the pipeline licence granted upon a previous renewal of the firstmentioned pipeline licence.

In this Act, a reference to a pipeline includes a reference to a part of a pipeline.

In this Act, a reference to a permit, lease, licence, pipeline licence or access authority is reference to the permit, lease, licence, pipeline licence or access authority as varied for the time being under this Act.

The power conferred by this Act to make, grant or issue any instrument shall, unless the contrary intention appears, be construed as including a power exercisable in the like manner and subject to the like conditions, if any, to repeal, rescind, revoke, amend or vary any such instrument.

For the purposes of this Act—

the space above or below the adjacent area shall be deemed to be in that area; and

the space above or below an area that is part of the adjacent area shall be deemed to be in that part.

This Act applies to all natural persons, whether Australian citizens or not and whether resident in South Australia or not, and to all corporations, whether incorporated or carrying on business in South Australia or not.

The Minister must, in the administration of this Act, take into account the objects of the Marine Parks Act 2007 (insofar as any operations or proposed operations relate to an area that forms part of a marine park under that Act).

A right, entitlement or authority that is granted by or under this Act is not personal property for the purposes of the Personal Property Securities Act 2009 of the Commonwealth.

Where a well-head is situated in a licence area and the well from that well-head is inclined so as to enter a petroleum pool, being a pool that does not extend to that licence area, at a place within an adjoining licence area of the same licensee, any petroleum recovered through that well shall be deemed to have been recovered in that adjoining licence area under the licence in respect of that area.

Where a petroleum pool is partly in one licence area and partly in an adjoining licence area of the same licensee and petroleum is recovered from that pool through a well or wells in one or both of the licence areas, there shall be deemed to have been recovered in each of the licence areas, under the licence in respect of that area, such proportion of all petroleum so recovered as may reasonably be treated as being derived from that area, having regard to the nature and probable extent of the pool, and the respective proportions shall be determined in accordance with subsection (3).

The proportions to be determined for the purposes of subsection (2) may be determined by agreement between the licensee and the Minister or, in the absence of agreement, may be determined by the Supreme Court on the application of the licensee or the Minister.

Where a petroleum pool is partly in a licence area and partly in an area (in this subsection referred to as the Commonwealth licence area) in which the licensee has authority under the Commonwealth Act to explore for, or recover, petroleum, and petroleum is recovered from that pool through a well or wells in the licence area, the Commonwealth licence area or both, there shall be deemed to have been recovered in the licence area such proportion of all petroleum so recovered as may reasonably be treated as being derived from that area, having regard to the nature and probable extent of the pool, and that proportion shall be determined in accordance with subsection (5).

The proportion to be determined for the purposes of subsection (4) may be determined by agreement between the licensee, the Joint Authority and the Minister or, in the absence of agreement, may be determined by the Supreme Court on the application of the licensee, the Joint Authority or the Minister.

Where a petroleum pool is partly in a licence area and partly in an area (in this section called the other State licence area) in which the licensee has authority, under a corresponding law, to explore for or recover, petroleum, and petroleum is recovered from that pool through a well or wells in the licence area, the other State licence area or both, there shall be deemed to have been recovered in the licence area such proportion of all petroleum so recovered as may reasonably be treated as being derived from that area, having regard to the nature and probable extent of the pool, and that proportion shall be determined in accordance with subsection (7).

The proportion to be determined for the purposes of subsection (6) may be determined by agreement between the licensee, the Minister and the Minister of the other State administering the corresponding law or, in the absence of agreement, may be determined by the Supreme Court on the application of any of those persons.

Where—

a petroleum pool is partly in a licence area and partly in another area, being an area which is outside the adjacent area and in which the licensee has, under the Commonwealth Act or a corresponding law, authority to explore for, or recover, petroleum;

petroleum is recovered from that pool; and

the Supreme Court of another State makes a determination, under the Commonwealth Act or a corresponding law, of the proportion of the petroleum recovered from that pool that is, for the purposes of the Commonwealth Act or the corresponding law, to be deemed to have been recovered from the other area, the Supreme Court shall not make a determination under this section that is inconsistent with the determination of the Supreme Court of the other State.

Where—

a petroleum pool is partly in a licence area and partly in another area, whether in the adjacent area or not, in respect of which another person has authority, whether under this Act, the Commonwealth Act or a corresponding law, to explore for or recover petroleum; and

a unit development agreement in accordance with section 58 is in force between the licensee and that other person; and

petroleum is recovered from that pool through a well or wells in the licence area, the other area or both, there shall be deemed to have been recovered in the licence area such proportion of all petroleum so recovered as is specified in, or determined in accordance with, the agreement.

In this section a reference to a licence, a licensee or a licence area shall be read as including a reference to a permit and a lease, a permittee and a lessee or a permit area and a lease area.

Where, for the purposes of this Act, or for the purposes of an instrument under this Act, it is necessary to determine the position on the surface of the Earth of a point, line or area, that position shall be determined by reference to a spheroid having its centre at the centre of the Earth and a major (equatorial) radius of 6 378 160 metres and a flattening of

and by reference to the position of the Johnston Geodetic Station in the Northern Territory of Australia.

That station shall be taken to be situated at 133 degrees, 12 minutes and 30.0771 seconds of East Longitude and at 25 degrees, 56 minutes and 54.5515 seconds of South Latitude and to have a ground level of 571.2 metres above the spheroid referred to in subsection (1).

Where the area in respect of which a permit, lease, licence or prescribed instrument is in force includes one or more portions of a block constituted as provided by section 16, then, for the purposes of this Part—

the area of that portion or those portions constitutes a block; and

the area of the remaining portion or portions of the firstmentioned block (but not including any part of that area in respect of which a permit, lease, licence or prescribed instrument is in force) constitutes a block.

Where a permit, lease, licence or prescribed instrument ceases to be in force in respect of an area that constitutes a block as provided by subsection (1)(a), the Minister may, by instrument in writing, if the Minister considers it desirable to do so, determine that that block shall be amalgamated with another block or blocks, being a block or blocks—

constituted as provided by this section; and

forming part of the graticular section of which that firstmentioned block forms part; and

in respect of which a permit, lease or licence is in force.

Where such a determination is made, then, for the purposes of this Part—

the blocks the subject of the determination cease to constitute blocks and the areas of those blocks together constitute a block; and

the block constituted by reason of the determination is, subject to this Part, for the remainder of the term of the permit, lease or licence concerned, a block in respect of which the permit, lease or licence is in force.

The Minister shall not make a determination under subsection (2) except with the consent of the permittee, lessee or licensee concerned.

In this section—

prescribed instrument means a special prospecting authority, an access authority and any other instrument prescribed by regulation.

In this Division, unless the contrary intention appears—

Commonwealth Act means, as the context requires—

the Petroleum (Submerged Lands) Act 1967 of the Commonwealth as amended from time to time; or

if the Petroleum (Submerged Lands) Act 1967 of the Commonwealth has been repealed and re‑enacted (with or without modifications)—the re‑enacted Act of the Commonwealth as amended from time to time; or

the Petroleum (Submerged Lands) Registration Fees Act 1967 of the Commonwealth as amended from time to time; or

if the Petroleum (Submerged Lands) Registration Fees Act 1967 has been repealed and re‑enacted (with or without modifications)—the re‑enacted Act of the Commonwealth as amended from time to time; or

the Petroleum (Submerged Lands) Fees Act 1994 of the Commonwealth as amended from time to time; or

if the Petroleum (Submerged Lands) Fees Act 1994 has been repealed and re‑enacted (with or without modifications)—the re‑enacted Act of the Commonwealth as amended from time to time;

Commonwealth adjacent area means—

if the Petroleum (Submerged Lands) Act 1967 of the Commonwealth is in force—the adjacent area in respect of South Australia determined in accordance with section 5A of that Act; or

if the Petroleum (Submerged Lands) Act 1967 of the Commonwealth has been repealed and been re‑enacted (with or without modifications)—the area that, under the re‑enacted Act of the Commonwealth, corresponds to the adjacent area in respect of South Australia determined in accordance with section 5A of the repealed Act.

The Minister may exercise any power which the Commonwealth Act is expressed to authorise him to exercise as a member of the Joint Authority.

The Minister shall perform any function which the Commonwealth Act is expressed to require him to perform as a member of the Joint Authority.

The Minister is authorised to perform the functions and exercise the powers which the Commonwealth Act is expressed to require or empower the Designated Authority in respect of the Commonwealth adjacent area to perform or exercise.