1Objectives

The objectives of these Regulations are—

(a)

to provide for the elimination and minimisation, so far as is reasonably practicable, of hazards and risks to the environment, public amenity and public safety involved in undertaking petroleum operations over the life of those operations; and

(b)

to provide for the elimination and minimisation, so far as is reasonably practicable, of impacts from petroleum operations on local communities; and

(c)

to ensure effective engagement by authority holders with the community over the life of an authority; and

(d)

to provide for the effective management of petroleum reservoirs and petroleum storage reservoirs; and

(e)

to prescribe requirements for operation plans, storage development plans and petroleum production development plans; and

(f)

to prescribe requirements for applications for, and notices of applications for, an authority; and

(g)

to prescribe reporting requirements, including the information and samples, that an authority holder must provide to the Minister; and

(h)

to provide for various administrative matters, fees and other requirements of the Act.

2Authorising provision

These Regulations are made under section 252 of the Petroleum Act 1998.

3Commencement

These Regulations come into operation on 22 November 2021.

4Revocation

The Petroleum Interim Regulations 2021^[1] are revoked.

5Definitions

In these Regulations—

ancillary equipment, in relation to a well, includes—

(a)

equipment located downhole; and

(b)

pressure control equipment; and

(c)

a well-head;

authority number means the unique identification number designated by the Minister for an authority;

environmental legislation means an Act of the State or the Commonwealth or any instrument made or issued under or for the purpose of those Acts that relates to the protection of the environment;

facility means a structure that—

(a)

is used or constructed for the purpose of recovering or storing petroleum; or

(b)

is used or constructed for the purpose of monitoring impacts from production or storage wells; or

(c)

carries, contains or includes—

(i)

equipment for the drilling, modification, maintenance or repair of a well or ancillary equipment; and

(ii)

gas plants; and

(iii)

compression plants; and

(iv)

metering stations; and

(v)

gathering lines; and

(vi)

survey equipment;

hydrocarbon gas emissions means gaseous emissions from leaks, flaring or venting of hydrocarbons;

impact means a negative effect of a petroleum operation that is reasonably predictable at the time that the application for the authority under which the operation is carried out is made;

practicable, in relation to eliminating or minimising hazards and risks, means practicable having regard to—

(a)

the severity of the hazard or risk; and

(b)

the state of knowledge about the hazard or risk; and

(c)

the availability and suitability of ways to eliminate or minimise that hazard or risk; and

(d)

the cost of eliminating or minimising that hazard or risk;

relevant person or organisation means—

(a)

in relation to an operation plan that is proposed to be varied—

(i)

any person or organisation that may be affected by an activity carried out under the operation plan as proposed to be varied; and

(ii)

any person or organisation that has interests that may be affected by an activity carried out under the operation plan as proposed to be varied; or

(b)

in relation to any other operation plan—

(i)

any person or organisation that may be affected by an activity carried out under the operation plan; and

(ii)

any person or organisation that has interests that may be affected by an activity carried out under the operation plan;

rig release date, in relation to a well, means the date on which the drilling rig that was last used to drill the well is moved so that it is no longer above the well, if no further drilling of the well is to occur;

risk means the likelihood and consequence of a specific, undesired event occurring;

the Act means the Petroleum Act 1998;

well activity, in relation to a well, means an activity carried out during the life of the well;

well integrity, in relation to a well, means that the entire length of the well, for the life of the well—

(a)

is under control, in accordance with an operation plan accepted under section 161 of the Act; and

(b)

is able to contain reservoir fluid; and

(c)

is not the subject of any unforeseen risks;

well integrity hazard means, for the life of the well, an event—

(a)

that—

(i)

may compromise the well integrity of a well; or

(ii)

may cause loss of a well barrier control; and

(b)

that may, if it occurred, cause harm or present a risk to individuals, public safety, public amenity, the environment or a petroleum reservoir.

6Assessment of risks etc.

An application under section 20 of the Act must contain the following information in relation to the proposed work program submitted with the application over the life of the permit—

(a)

the likely regional economic, social and environmental risks and impacts of the program;

(b)

the likely regional benefits of the program relative to its likely risks and impacts;

(c)

the extent to which these risks and impacts can be managed at the regional level and how the applicant proposes to do this.

7Prescribed factors in relation to an application for an exploration permit

For the purposes of sections 20B(2)(c) and 21(2)(c) of the Act, the following are prescribed factors—

(a)

the likely regional economic, social and environmental risks and impacts of the work program;

(b)

the likely regional benefits of the work program relative to its likely risk and impacts;

(c)

the extent to which these risks and impacts can be managed at the regional level and how the applicant proposes to do this.

8Assessment of risks etc.

(1)

An application under section 38 of the Act must contain the following information in relation to the proposed work program submitted with the application over the life of the lease—

(a)

the likely regional economic, social and environmental risks and impacts of the program;

(b)

the likely regional benefits of the program relative to its likely risks and impacts;

(c)

the extent to which these risks and impacts can be managed at the regional level and how the applicant proposes to do this.

(2)

An application under section 38 of the Act must contain the following—

(a)

the certificate of any insurance policy maintained by the applicant in accordance with section 171 of the Act in respect of the exploration permit held by the applicant;

(b)

the adequacy, as at the date of the application, of that insurance to cover any expenses or liabilities arising from a petroleum operation carried out under the exploration permit held by the applicant;

(c)

the amount of the rehabilitation bond obtained by the applicant in accordance with section 173 of the Act in respect of a petroleum operation carried out under the exploration permit held by the applicant;

(d)

the sufficiency of the amount secured by a rehabilitation bond described in paragraph (c), as at the date of the application, to cover any costs of rehabilitation work necessary as a result of the relevant petroleum operation.

9Prescribed factors in relation to an application for a retention lease

For the purposes of section 40(1)(e) of the Act, the following are prescribed factors—

(a)

the likely regional economic, social and environmental risks and impacts of the work program;

(b)

the likely regional benefits of the work program relative to its likely risks;

(c)

the extent to which these risks and impacts can be managed at the regional level and how the applicant proposes to do this.

10Assessment of risks etc.

(1)

An application under section 47 of the Act must contain the following information in relation to the proposed work program submitted with the application over the life of the licence—

(a)

the likely regional economic, social and environmental risks and impacts of the program;

(b)

the likely regional benefits of the program relative to its likely risks and impacts;

(c)

the extent to which these risks and impacts can be managed at the regional level and how the applicant proposes to do this.

(2)

An application under section 47 of the Act must contain the following—

(a)

the certificate of any insurance policy maintained by the applicant in accordance with section 171 of the Act in respect of the exploration permit held by the applicant;

(b)

(c)

(d)

11Prescribed factors—determining grant of application for a production licence

For the purposes of section 49(1)(d) of the Act, the following are prescribed factors—

(a)

the likely regional economic, social and environmental risks and impacts of the proposed work program submitted with the application;

(b)

the likely regional benefits of the work program relative to its likely risks;

(c)

the extent to which these risks and impacts can be managed at the regional level and how the applicant proposes to do this.

12Prescribed factors—granting of production licences following tender

For the purposes of sections 52(3) and 52A(3) of the Act, the following are prescribed factors—

(a)

the likely regional economic, social and environmental risks and impacts of the proposed work program submitted with the application;

(b)

the likely regional benefits of the work program relative to its likely risks;

(c)

the extent to which these risks and impacts can be managed at the regional level and how the applicant proposes to do this.

Petroleum Regulations 2021

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