Preamble

In accordance with international law, Australia as a coastal State has sovereign rights over the continental shelf beyond the limits of Australian territorial waters for the purpose of exploiting it and exploiting its natural resources.

The Seas and Submerged Lands Act 1973 of the Commonwealth declared and enacted that the sovereignty in respect of the territorial sea of Australia, its seabed and subsoil, certain internal waters of Australia, the airspace over those waters and the seabed and subsoil beneath those waters, is vested in and exercisable by the Crown in right of the Commonwealth.

The Parliaments of the States and the Legislative Assembly of the Northern Territory have certain legislative powers in respect of the seabed and subsoil referred to in the preceding recital and the Parliament of the Commonwealth has vested in the Crown in right of each of the States and the Crown in right of the Northern Territory certain proprietary rights in respect of that seabed and subsoil.

It has been agreed between the Commonwealth, the States and the Northern Territory that—

(a)

Commonwealth offshore petroleum legislation should be limited to the area that is outside the coastal waters of the States and the Northern Territory; and

(b)

for this purpose, the outer limits of State and Northern Territory coastal waters should start 3 nautical miles from the baseline of the territorial sea; and

(c)

the States and the Northern Territory should share, in the manner provided by this Act, in the administration of the Commonwealth offshore petroleum legislation; and

(d)

State and Northern Territory offshore petroleum legislation should apply to State and Northern Territory coastal waters; and

(e)

the Commonwealth, the States and the Northern Territory should try to maintain, as far as practicable, common principles, rules and practices in regulating and controlling the exploration for, and exploitation of, offshore petroleum beyond the baseline of Australia's territorial sea.

This agreement is known as the Offshore Constitutional Settlement. Various Acts of the Commonwealth affect the Offshore Constitutional Settlement.

Arrangements for offshore petroleum beyond the outer limits of State and Northern Territory coastal waters are set out in the Offshore Petroleum and Greenhouse Gas Storage Act 2006 of the Commonwealth. Arrangements for offshore petroleum within the outer limits of Victorian coastal waters are set out in the Petroleum (Submerged Lands) Act 1982. It is expedient to amend the law relating to Victorian coastal waters.

The Parliament of Victoria therefore enacts:

s 1Purpose

The purpose of this Act is to—

(a)

re-enact (with modifications) provisions regulating petroleum exploration and recovery activities and petroleum facilities; and

(b)

provide for the regulation of geological storage of carbon dioxide—

in the Victorian offshore area.

s 2Commencement

(1)

Subject to subsection (2), this Act comes into operation on a day or days to be proclaimed.

(2)

If a provision of this Act does not come into operation before 1 January 2012, it comes into operation on that day.

s 3Object

The object of this Act is to provide an effective regulatory framework for—

(a)

petroleum exploration and recovery; and

S. 3(ab) inserted by No. 42/2024 s. 4.

(ab)

underground petroleum storage; and

(b)

the injection and storage of greenhouse gas substances—

in the Victorian offshore area.

s 4Simplified outline

(1)

This section sets out a simplified outline of this Act.

(2)

This Act sets up a system for regulating the following activities in the offshore area—

(a)

exploration for petroleum;

(b)

recovery of petroleum;

S. 4(2)(ba) inserted by No. 42/2024 s. 5.

(ba)

underground petroleum storage;

(c)

construction and operation of infrastructure facilities relating to petroleum or greenhouse gas substances;

(d)

construction and operation of pipelines for conveying petroleum or greenhouse gas substances;

(e)

exploration for potential greenhouse gas storage formations;

(f)

injection and storage of greenhouse gas substances.

(3)

The offshore area—

(a)

starts from the baseline from which the breadth of the territorial sea is measured off Victoria; and

(b)

extends to 3 nautical miles from the baseline from which the breadth of the territorial sea is measured off Victoria.

(4)

This Act provides for the grant of the following titles—

(a)

a petroleum exploration permit (see Part 2.2);

(b)

a petroleum retention lease (see Part 2.3);

(c)

a petroleum production licence (see Part 2.4);

(d)

an infrastructure licence (see Part 2.5);

(e)

a pipeline licence (see Part 2.6);

(f)

a petroleum special prospecting authority (see Part 2.7);

(g)

a petroleum access authority (see Part 2.8);

(h)

a greenhouse gas assessment permit (see Part 3.2);

(i)

a greenhouse gas holding lease (see Part 3.3);

(j)

a greenhouse gas injection licence (see Part 3.4);

(k)

a greenhouse gas search authority (see Part 3.5);

(l)

a greenhouse gas special authority (see Part 3.6).

S. 4(5) amended by No. 74/2012 s. 4(1).

(5)

The Minister is generally responsible for the administration of this Act, other than the provisions of this Act for which the National Offshore Petroleum Safety and Environmental Management Authority is responsible.

S. 4(6) substituted by No. 74/2012 s. 4(2).

(6)

The National Offshore Petroleum Safety and Environmental Management Authority is responsible for the administration of—

(a)

the occupational health and safety provisions in Schedule 3; and

(b)

the provisions relating to petroleum safety zones and the area to be avoided in Part 6.6; and

(c)

the regulations to the extent that they relate to occupational health and safety for offshore petroleum operations and offshore greenhouse gas storage operations within the meaning of Part 6.9; and

(d)

the regulations to the extent that they relate to the structural integrity of—

(i)

facilities within the meaning of Schedule 3, other than vessels or structures described in clause 7 of that Schedule;

(ii)

wells or well-related equipment used for the purposes of offshore petroleum operations within the meaning of Part 6.9.

(7)

This section is intended only as a guide to readers as to the general scheme and effect of this Act.

Note

Generally, the baseline is the line of lowest astronomical tide along the coast, but it also encompasses straight lines across bays (bay closing lines), rivers (river closing lines) and between islands, as well as along heavily indented areas of coastline (straight baselines) under certain circumstances.

s 6Definitions

(1)

In this Act—

approved—

(a)

when used in any of the following provisions—

(i)

Chapter 3;

(ii)

Chapter 5;

(iii)

Chapter 8;

(iv)

section 791—

means approved in writing by the Minister; or

(b)

in any other case—means approved in writing by the Minister—

but does not apply to the expression approved site plan;

approved site plan means a site plan in respect of which an approval is in force under the regulations;

Note

See section 492.

authority area—

(a)

when used in relation to a petroleum special prospecting authority—means the area constituted by the block or blocks that are the subject of the petroleum special prospecting authority; or

(b)

when used in relation to a petroleum access authority—means the area to which the petroleum access authority relates; or

(c)

when used in relation to a greenhouse gas search authority—means the area constituted by the block or blocks that are the subject of the greenhouse gas search authority; or

(d)

when used in relation to a greenhouse gas special authority—means the area to which the greenhouse gas special authority relates;

S. 6(1) def. of block amended by No. 26/2021 s. 4(1).

block means a block constituted as provided by sections 37 and 498;

S. 6(1) def. of boundary-change petroleum exploration permit inserted by No. 16/2018 s. 4(1), substituted byNo. 26/2021 s. 37(3).

boundary-change petroleum exploration permit means—

(a)

a petroleum exploration permit granted under Division 4A of Part 2.2; or

(b)

a petroleum exploration permit granted under Division 5 of Part 2.2 by way of renewal of a permit referred to in paragraph (a);

S. 6(1) def. of cash-bid greenhouse gas assessment permit substituted by No. 26/2021 s. 37(4).

cash-bid greenhouse gas assessment permit means—

(a)

a greenhouse gas assessment permit granted under Division 3 of Part 3.2; or

(b)

a greenhouse gas assessment permit granted under Division 4 of Part 3.2 by way of renewal of a permit referred to in paragraph (a);

cash‑bid petroleum exploration permit means—

(a)

a petroleum exploration permit granted under Division 3 of Part 2.2 of this Act; or

(b)

a petroleum exploration permit granted under Division 5 of Part 2.2 of this Act by way of the renewal of a permit referred to in paragraph (a);

charge, when used in relation to the assets of a body corporate, has the same meaning as in section 263 of the Corporations Act;

S. 6(1) def. of COAG Reform Fund repealed by No. 13/2022 s. 62.

* * * * *

Commonwealth Act means the Offshore Petroleum and Greenhouse Gas Storage Act 2006 of the Commonwealth;

S. 6(1) def. of Common-wealth defined offshore area amended by No. 26/2021 s. 4(2).

Commonwealth defined offshore area means the offshore area of Victoria as defined by section 8 of the Commonwealth Act;

Notes

s 7References to Parts

Unless the context otherwise requires, a reference in this Act to a Part by a number must be construed as a reference to the Part, designated by that number, of this Act.

s 8Spaces above and below offshore area

For the purposes of this Act—

(a)

the space above or below the offshore area is taken to be in that area; and

(b)

the space above or below an area that is part of the offshore area is taken to be in that part.

s 9Term of petroleum titles

For the purposes of this Act, the table has effect—

Term of title etc.
Item	A reference in this Act to...	is a reference to...
1	the term of— (a) a petroleum exploration permit; or (b) a petroleum retention lease; or (c) a petroleum production licence; or (d) an infrastructure licence; or (e) a pipeline licence; or (f) a petroleum special prospecting authority; or (g) a petroleum access authority—	the period during which the permit, lease, licence or authority remains in force.
2	a year of the term of— (a) a petroleum exploration permit; or (b) a petroleum retention lease; or (c) a petroleum production licence; or	a period of one year beginning on— (a) the day on which the permit, lease or licence comes into force; or (b) any anniversary of that day.
	(d) an infrastructure licence; or (e) a pipeline licence—
3	the expiry date of— (a) a petroleum exploration permit; or (b) a petroleum retention lease; or (c) a petroleum production licence—	the day on which the permit, lease or licence ceases to be in force.

s 10Term of greenhouse gas titles

For the purposes of this Act, the table has effect—

Term of title etc.
Item	A reference in this Act to...	is a reference to...
1	the term of— (a) greenhouse gas assessment permit; or (b) a greenhouse gas holding lease; or (c) a greenhouse gas injection licence; or (d) a greenhouse gas search authority; or (e) a greenhouse gas special authority—	the period during which the permit, lease, licence or authority remains in force.
2	a year of the term of— (a) a greenhouse gas assessment permit; or (b) a greenhouse gas holding lease; or (c) a greenhouse gas injection licence—	a period of one year beginning on— (a) the day on which the permit, lease or licence comes into force; or (b) any anniversary of that day.
3	the expiry date of— (a) a greenhouse gas assessment permit; or (b) a greenhouse gas holding lease (other than a special greenhouse gas holding lease)—	the day on which the permit or lease ceases to be in force.

S. 11 amended by No. 16/2018 s. 5 (ILA s. 39B(1)).

s 11Renewal of petroleum titles

(1)

For the purposes of this Act, the table has effect—

Renewal of titles
Item	Column 1 A reference in this Act to...	Column 2 is a reference to...
1	the renewal, or the grant of a renewal, of a petroleum exploration permit	the grant of a petroleum exploration permit over some or all of the blocks specified in the permit mentioned in column 1, to begin on—
		(a) the day after the expiry date of the permit mentioned in column 1; or (b) the day after the expiry date of the petroleum exploration permit granted on a previous renewal of the permit mentioned in column 1.
2	the renewal, or the grant of a renewal, of a petroleum retention lease	the grant of a petroleum retention lease over all of the blocks in relation to which the lease mentioned in column 1 was in force, to begin on—
		(a) the day after the expiry date of the lease mentioned in column 1; or (b) the day after the expiry date of the petroleum retention lease granted on a previous renewal of the lease mentioned in column 1.
3	the renewal, or the grant of a renewal, of a petroleum production licence	the grant of a petroleum production licence over the block or blocks specified in the licence mentioned in column 1, to begin on—
		(a) the day after the expiry date of the licence mentioned in column 1; or (b) the day after the expiry date of the petroleum production licence granted on a previous renewal of the licence mentioned in column 1.

S. 11(2) inserted by No. 16/2018 s. 5.

(2)

If—

(a)

a petroleum exploration permit has been granted on the basis that an area (the relevant area) is within the offshore area; and

(b)

as a result of a change to the boundary of the offshore area, the relevant area—

(i)

ceases to be within the offshore area; and

(ii)

falls within the Commonwealth defined offshore area; and

(c)

immediately before the change, the relevant area was a part of the permit area—

then, in determining what constitutes the renewal, or the grant of a renewal, of the permit, item 1 of the table in subsection (1) has effect as if—

(d) the permit had been varied to exclude from the permit area any area that is not within the offshore area; and

(e)

the variation had taken effect immediately after the change.

Note

This means that an application for renewal of the permit may be made, and the permit may be renewed, as if the permit had been so varied.

S. 11(3) inserted by No. 16/2018 s. 5.

(3)

If—

(a)

a petroleum retention lease has been granted on the basis that an area (the relevant area) is within the offshore area; and

(b)

as a result of a change to the boundary of the offshore area, the relevant area—

(i)

ceases to be within the offshore area; and

(ii)

falls within the Commonwealth defined offshore area; and

(c)

immediately before the change, the relevant area was a part of the lease area—

then, in determining what constitutes the renewal, or the grant of a renewal, of the lease, item 2 of the table in subsection (1) has effect as if—

(d)

the lease had been varied to exclude from the lease area any area that is not within the offshore area; and

(e)

the variation had taken effect immediately after the change.

Note

This means that an application for renewal of the lease may be made, and the lease may be renewed, as if the lease had been so varied.

S. 11(4) inserted by No. 16/2018 s. 5.

(4)

For the purposes of subsections (2) and (3)—

(a)

disregard section 278; and

(b)

it is immaterial whether the change occurred before, at or after the commencement of this subsection.

S. 12 amended by No. 16/2018 s. 6 (ILA s. 39B(1)).

s 12Renewal of greenhouse gas titles

(1)

For the purposes of this Act, the table has effect—

Renewal of titles

Item

Column 1

A reference in this Act to...

Column 2

is a reference to...

the renewal, or the grant of a renewal, of a greenhouse gas assessment permit

the grant of a greenhouse gas assessment permit over all of the blocks in relation to which the permit mentioned in column 1 was in force, to begin on the day after the expiry date of the permit mentioned in column 1.

the renewal, or the grant of a renewal, of a greenhouse gas holding lease

the grant of a greenhouse gas holding lease over all of the blocks in relation to which the lease mentioned in column 1 was in force, to begin on the day after the expiry date of the lease mentioned in column 1.

S. 12(2) inserted by No. 16/2018 s. 6.

(2)

If—

(a)

a greenhouse gas assessment permit has been granted on the basis that an area (the relevant area) is within the offshore area; and

(b)

as a result of a change to the boundary of the offshore area, the relevant area—

(i)

ceases to be within the offshore area; and

(ii)

falls within the Commonwealth defined offshore area; and

(c)

immediately before the change, the relevant area was a part of the permit area—

then, in determining what constitutes the renewal, or the grant of a renewal, of the permit, item 1 of the table in subsection (1) has effect as if—

(d)

the permit had been varied to exclude from the permit area any area that is not within the offshore area; and

(e)

the variation had taken effect immediately after the change.

S. 12(3) inserted by No. 16/2018 s. 6.

(3)

If—

(a)

a greenhouse gas holding lease has been granted on the basis that an area (the relevant area) is within the offshore area; and

(b)

as a result of a change to the boundary of the offshore area, the relevant area—

(i)

ceases to be within the offshore area; and

(ii)

falls within the Commonwealth defined offshore area; and

(c)

immediately before the change, the relevant area was a part of the lease area—

then, in determining what constitutes the renewal, or the grant of a renewal, of the lease, item 2 of the table in subsection (1) has effect as if—

(d)

the lease had been varied to exclude from the lease area any area that is not within the offshore area; and

(e)

the variation had taken effect immediately after the change.

S. 12(4) inserted by No. 16/2018 s. 6.

(4)

For the purposes of subsections (2) and (3)—

(a)

disregard section 499; and

(b)

it is immaterial whether the change occurred before, at or after the commencement of this subsection.

Offshore Petroleum and Greenhouse Gas Storage Act 2010

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