1Short title
This is the Gas Supply (Gas Quality Specifications) Act 2009.
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Bill homepageThis is the Gas Supply (Gas Quality Specifications) Act 2009.
This Act comes into operation as follows —
Part 1 — on the day on which this Act receives the Royal Assent;
the rest of the Act — on a day fixed by proclamation, and different days may be fixed for different provisions.
In this Act, unless the contrary intention appears —
access determination means a decision or determination, made under a Gas Access Law, on access to a pipeline service provided by means of a pipeline, that has not been reflected in or replaced by a contract for the pipeline service;
Coordinator means the Coordinator of Energy referred to in the Energy Coordination Act 1994 section 4;
exempt contract —
means a contract in respect of which a declaration under the Gas Corporation Act 1994 Schedule 5 clause 6 was in force immediately before the coming into operation of the Dampier to Bunbury Pipeline Act 1997 Schedule 4 clause 17(4); and
includes a contract entered into —
in substitution for a contract referred to in paragraph (a) or any provision of such a contract; or
by way of amendment of a contract referred to in paragraph (a) or subparagraph (i);
Gas Access Law means —
the National Gas Access (Western Australia) Law, the Rules made under that Law and the regulations made under the National Gas Access (WA) Act 2009; or
the Gas Pipelines Access (Western Australia) Law, and the regulations, in force under the Gas Pipelines Access (Western Australia) Act 1998 before the commencement of the National Gas Access (WA) Act 2009 section 30;
gas consumer means a person who —
receives gas that has been transported through a gas transmission pipeline; and
in the previous 12 months, consumed, at any one site, at least one terajoule of gas that had been transported through a gas transmission pipeline;
gas distribution system means a distribution system as defined in the Energy Coordination Act 1994 section 3(1);
gas producer means a person who supplies, or proposes to supply, gas that will flow into a gas transmission pipeline and who is —
the registered holder of a petroleum production licence under the Petroleum, Geothermal Energy and Greenhouse Gas Storage Act 1967; or
the registered holder of a petroleum production licence under the Petroleum and Greenhouse Gas Storage (Submerged Lands) Act 1982 Part 3; or
the registered holder of a petroleum production licence under the Offshore Petroleum and Greenhouse Gas Storage Act 2006 (Commonwealth); or
prescribed for the purposes of this definition,
but does not include —
a person in the person’s capacity as an operator of a gas storage facility; or
a person declared not to be a gas producer by regulations made for the purposes of this definition;
gas storage facility means a gas storage facility, with a storage capacity of more than 50 terajoules, prescribed for the purposes of this definition;
gas transmission pipeline means a pipeline as defined in the Petroleum and Greenhouse Gas Pipelines Act 1969 section 4 and includes a pipeline (as defined for the purposes of this definition) declared to be a gas transmission pipeline by regulations made for the purposes of this definition but does not include a pipeline (as defined for the purposes of this definition) declared not to be a gas transmission pipeline by regulations made for the purposes of this definition;
inlet point, on a gas transmission pipeline, means —
a point on the pipeline at which gas flows into the pipeline; or
a number of such points that are adjacent to each other and that are declared to be a single point by regulations made for the purposes of this definition;
operator, of a gas transmission pipeline, means a person who is the registered holder of a licence in respect of the pipeline, under the Petroleum and Greenhouse Gas Pipelines Act 1969 and includes a person (who owns or operates the pipeline) prescribed for the purposes of this definition;
PIA pipeline has the meaning given in section 5;
pipeline, for the purposes of the definition of gas transmission pipeline, means a pipeline as defined in the Petroleum and Greenhouse Gas Pipelines Act 1969 section 4 as if paragraph (b) of the definition were deleted;
pipeline impact agreement has the meaning given in section 6(1)(a);
pipeline service has the meaning given in the National Gas Access (Western Australia) Law section 2;
pipeline services agreement, in relation to a gas transmission pipeline, means —
a contract for a pipeline service provided by means of the pipeline; or
an access determination in relation to the pipeline;
reference specification, for a gas transmission pipeline, means the gas quality specification prescribed for the pipeline for the purposes of this definition;
relevant effects, on the capacity, operations and maintenance of a PIA pipeline, has the meaning given in section 7(2);
site, in the definition of gas consumer, means a place, other than a place that is or is part of a gas transmission pipeline or a gas storage facility, where a person consumes gas delivered to the person through an outlet point on a gas transmission pipeline or gas distribution system;
specified, in relation to an instrument made under this Act, means specified in that instrument;
standard specification, for a gas transmission pipeline, means the gas quality specification specified for the pipeline under section 13;
user, of a gas transmission pipeline, means a person provided a pipeline service by means of the pipeline under a pipeline services agreement to which the person is a party.
Before a reference specification or a standard specification for a gas transmission pipeline is amended, the Minister must consult with —
the operator of the pipeline; and
any other person to the extent to which the Minister considers necessary in relation to the proposed amendment.
A regulation to amend a reference specification or a standard specification for a gas transmission pipeline cannot be expressed to come into effect until after the period during which it is subject to disallowance under the Interpretation Act 1984 section 42.
[Section 3 amended: No. 17 of 2024 s. 391 and 433-436.]
The primary purposes of this Part are to ensure that —
a gas producer can supply gas, that will flow into a PIA pipeline, of a quality that does not comply with the reference specification for the pipeline; and
the gas producer cannot do so until the relevant effects of such supply on the capacity, operations and maintenance of the PIA pipelines have been dealt with in a way that neither materially advantages nor materially disadvantages the operators of the pipelines; and
users of PIA pipelines are not materially disadvantaged by the way in which those effects are determined and dealt with.
A PIA pipeline is a gas transmission pipeline or a part of a gas transmission pipeline declared by the Minister to be a PIA pipeline.
The Minister must not make, amend or revoke a declaration other than in accordance with the criteria and procedure provided for by the regulations.
In this Act, a reference to a gas transmission pipeline includes a reference to a part of a gas transmission pipeline when the context requires.
A gas producer must not supply gas that will flow into a PIA pipeline if the gas is of a quality that does not comply with the reference specification for the pipeline unless —
the gas producer and the operator of the pipeline are parties to an agreement (a pipeline impact agreement) in respect of the supply, that complies with the minimum requirements set out in section 7 in relation to the supply; and
the gas complies with the gas quality specification set out in the pipeline impact agreement in relation to the supply; and
the quantity of gas supplied does not exceed the maximum quantity set out in the pipeline impact agreement in relation to the supply; and
regulations, under section 14(2)(a), modifying contracts that relate to gas transported through the pipeline have come into effect.
A pipeline impact agreement that is entered into, or an amendment of a pipeline impact agreement, does not have effect for the purposes of subsection (1)(b) and (c) for the 18 months immediately following the entering into of the agreement or the amendment.
If a gas producer supplies gas that will flow into a PIA pipeline at an inlet point and the gas producer fails to comply with subsection (1), the operator of the pipeline may —
reduce the flow (including to zero) in accordance with the regulations; and
whether or not the flow of gas is reduced under paragraph (a) — reduce the allocation (including to zero) of gas flowing into the pipeline at the inlet point to users of the pipeline, in accordance with the regulations.
The operator of a PIA pipeline may, under section 12, apply to the Supreme Court for an injunction against a gas producer who has engaged, is engaging or is proposing to engage in conduct that constitutes a failure to comply with subsection (1).
The operator of a PIA pipeline may take an action under subsection (3) or (4), or both, despite any relevant pipeline services agreement.
Subsections (3) and (4) are in addition to any other rights a person may have in relation to a failure to comply with subsection (1).
The Minister may, in a particular case, allow a shorter period for the purposes of subsection (2) if satisfied that allowing a shorter period will not adversely affect, in a material way, operators of PIA pipelines, operators of other gas transmission pipelines, operators of gas storage facilities, operators of gas distribution systems or gas consumers.
The Criminal Code section 177 does not apply to the obligation in subsection (1).
For the purposes of section 6(1)(a), the minimum requirements in relation to a supply of gas are that the pipeline impact agreement —
identifies the inlet point on the PIA pipeline into which the gas will flow; and
sets out the gas quality specification with which the gas must comply; and
sets out the maximum quantity of gas to be supplied; and
sets out the day on which it is proposed to commence supplying the gas or change the quality or quantity of gas to be supplied; and
sets out the relevant effects on the capacity, operations and maintenance of the PIA pipeline of the gas flowing into the pipeline, and the way that those effects are to be dealt with; and
sets out the duration of the agreement; and
sets out any other prescribed matters; and
complies with any prescribed requirements as to the form in which the matters to be set out in the agreement are to be expressed or otherwise presented.
For the purposes of this Act, the relevant effects on the capacity, operations and maintenance of a PIA pipeline, of gas (that does not comply with the reference specification for the pipeline) flowing into the pipeline, are —
the reduction in the pipeline’s capacity; and
the effects on the pipeline’s operations and maintenance,
attributable to the gas not being of a quality that complies with the reference specification for the pipeline.
The regulations may provide for the method by which, and the assumptions upon which —
a change in the capacity of a PIA pipeline is to be worked out; and
the effects on the pipeline’s operations and maintenance are to be worked out, including by limiting which effects are to be considered as effects for the purposes of subsection (2).
An agreement of the nature of a pipeline impact agreement, that was entered into after 1 January 2009 and before the commencement of this Part, in respect of a supply of gas that will flow into a PIA pipeline, is to be taken to comply with the minimum requirements set out in this section if it substantially complies with the requirements of subsection (1)(a), (b), (c), (d), (e) and (f) in relation to the supply.
This section applies to the formation of a pipeline impact agreement in respect of the supply of gas that flows or that will flow into a PIA pipeline at an inlet point except to the extent to which the gas producer and the operator of the pipeline (the parties) agree otherwise.
The default procedure provided for in the regulations applies to the formation of a pipeline impact agreement.
If —
the relevant effects on the capacity, operations and maintenance of the pipeline are not in dispute between the parties (which includes that those effects have been determined by an expert under section 9(2)(b)); and
the gas producer proposes that those effects be dealt with by a method prescribed for the purposes of this paragraph,
the default pipeline impact agreement provided for by the regulations in relation to that method becomes the proposed pipeline impact agreement in relation to the supply of the gas.
The proposed pipeline impact agreement referred to in subsection (3) becomes the pipeline impact agreement in respect of the supply of the gas, as if the parties had entered into the agreement, when all matters in the proposed pipeline impact agreement to be resolved by the parties are not in dispute as an access dispute under a Gas Access Law or under section 9.
A dispute between the parties about a matter in the proposed pipeline impact agreement that is provided for by the default pipeline impact agreement cannot be dealt with as an access dispute under a Gas Access Law or under section 9.
For the purposes of subsection (5), a matter is provided for by a default pipeline impact agreement if the matter is set out in the default agreement and the matter is not identified in the agreement as a matter that the parties may resolve.
The regulations may adopt standard form agreements published by the Minister, in accordance with the regulations, for the purposes of this section.
Subsection (7) does not limit section 34(4).
The regulations may provide for and in relation to the resolution of —
disputes between gas producers and operators of PIA pipelines relating to pipeline impact agreements and proposed pipeline impact agreements; and
disputes relating to the reduction of the flow of gas, or the allocation of gas, under section 6(3).
The regulations may do the following —
provide for the resolution of those disputes by an arbitrator;
provide for disputes about the relevant effects on the capacity, operations and maintenance of a PIA pipeline to be resolved by the determination of an expert chosen in accordance with the regulations and for such determinations to be final and binding on the parties to the dispute;
provide for the interests of users of gas transmission pipelines to be taken into account.
If, in the resolution of a dispute, an expert or an arbitrator determines terms of a pipeline impact agreement or proposed pipeline impact agreement, those terms become part of the agreement or proposed agreement the subject of the dispute.
The regulations may provide for and in relation to short‑term situations.
A short‑term situation is a situation during which there is a disruption to the flow or quality of gas (whether planned or not) that means that —
a gas producer cannot —
continue to supply gas that will flow into a PIA pipeline; and
comply with section 6(1) in respect of that supply;
or
a pipeline services agreement or gas supply agreement cannot be complied with.
The regulations may do the following —
set out modifications of the provisions of this Part that are to apply during short‑term situations;
enable the Minister to issue directions in relation to a particular short‑term situation, modifying the application of the provisions of this Part, or regulations made for the purposes of section 14, during the short‑term situation.
Regulations or directions making modifications for the purposes of this section must specify the period during which the modifications are to have effect, which cannot be for more than 7 days, or any longer period (not exceeding 3 months) allowed by the Minister.
A direction issued by the Minister may specify a period, during which the modifications are to have effect, that begins at the beginning of the short‑term situation, whether or not that is earlier than the day on which the direction is issued.
If the Minister allows a longer period under subsection (4), the Minister must cause reasons for allowing the longer period to be laid before each House of Parliament within 6 sitting days of the House.
The regulations may provide for and in relation to a scheme of compensation under which users of a PIA pipeline are entitled to compensation from parties to pipeline impact agreements in respect of the pipeline, for adverse effects on the users’ rights (under pipeline services agreements) resulting from the way in which the relevant effects on the capacity of the pipeline were or were not dealt with in the pipeline impact agreement.
The regulations may do the following —
provide for the resolution of disputes arising out of the compensation scheme, including by an arbitrator;
provide for disputes about —
the relevant effects on the capacity of a PIA pipeline; or
the effects on users’ rights (under pipeline services agreements) resulting from the way in which the relevant effects on the capacity of the pipeline were or were not dealt with in the pipeline impact agreement,
to be resolved by the determination of an expert chosen in accordance with the regulations and for such determinations to be final and binding on the parties to the dispute;
provide for the enforcement of entitlements under the scheme, including as determined by an arbitrator.
If, on the application of the operator of a PIA pipeline, the Supreme Court is satisfied that a gas producer has engaged, is engaging or is proposing to engage in conduct that constitutes a failure to comply with section 6(1), the Court may grant an injunction, on such terms as the Court thinks appropriate —
restraining the gas producer from engaging in the conduct; or
if the conduct involves refusing or failing to do something — requiring the gas producer to do the thing.
The Court may grant an injunction by consent of all of the parties to the proceedings, whether or not the Court is satisfied as to the matters in subsection (1).
The Court may grant an interim injunction pending determination of an application under subsection (1).
The power of the Court to grant an injunction restraining a gas producer from engaging in conduct may be exercised whether or not —
it appears to the Court that the gas producer intends to engage again, or to continue to engage, in conduct of that kind; or
the gas producer has previously engaged in conduct of that kind; or
there is an imminent danger of substantial damage to any person if the gas producer engages in conduct of that kind.
The power of the Court to grant an injunction requiring a gas producer to do a thing may be exercised whether or not —
it appears to the Court that the gas producer intends to refuse or fail again, or to continue to refuse or fail, to do that thing; or
the gas producer has previously refused or failed to do that thing; or
there is an imminent danger of substantial damage to any person if the gas producer refuses or fails to do that thing.
The Court may discharge or vary an injunction granted under this section.
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