Commonwealth Numbered Regulations - Explanatory Statements

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PETROLEUM (SUBMERGED LANDS) FEES AMENDMENT REGULATIONS 2004 (NO. 1) 2004 NO. 327

Section 7 of the Petroleum (Submerged Lands) Fees Act 1994 (the Fees Act) provides that the Governor-General may make regulations, not inconsistent with the Act, prescribing matters required or permitted by the Act to be prescribed, or necessary or convenient to be prescribed for carrying out or giving effect to the Act.

The Petroleum (Submerged Lands) Act 1967 (the Principal Act) involves a large number of decisions relating to the day-to-day administration of the Act, including the granting of exploration permits, retention leases, production, pipeline and infrastructure licences.

Section 4 of the Fees Act provides that the holders of these titles (permits, leases and licences) must pay a fee to the Designated Authority for each year of the term of the title. The fee is specified in, or calculated in accordance with, the Petroleum (Submerged Lands) Fees Regulations 1994.

The Regulations decrease the level of prescribed fees by 30% to account for the transfer of safety related functions to the National Offshore Petroleum Safety Authority (NOPSA). NOPSA will take over administration of all offshore petroleum safety functions from 1 January 2005 and will collect fees for this function under separate legislation.

In keeping with the Offshore Constitutional Settlement and section 129 of the Principal Act, the Commonwealth will continue to repay all fees (excluding the goods and services tax component) received for the day-to-day administration of the regime to State and Northern Territory Authorities to offset their costs.

Details of the Regulations are set out in the Attachment.

The Regulations commenced on 1 January 2005.

Authority:       Section 7 of the Petroleum (Submerged Lands) Fees Act 1994

ATTACHMENT

Regulation 1 - Name of Regulations

This Regulation provides the title of the Regulations.

Regulation 2 - Commencement

This Regulation provides for the commencement of the Regulations on 1 January 2004.

Regulation 3 - Amendment of Petroleum (Submerged Lands) Fees Regulations 1994

This Regulation provides that the amendments to the Petroleum (Submerged Lands) Fees Regulations 1994 are as set out in Schedule 1.

SCHEDULE 1        AMENDMENTS

Item 1 - Regulation 3

This editorial change reflects the insertion of a new subregulation 3(2) by item 3 below.

Item 2 - Regulation 3

This item inserts the definition for GST and relates to section 129 of the Principal Act. Section 129 provides for, inter alia, the payment of the non-GST component of certain amounts to each state and the Northern Territory.

Item 3 - Regulation 3

This item inserts a new subregulation 3(2) which specifies that the amount of a prescribed or calculated fee includes GST.

Item 4 - Further amendments - fees

Regulation 4, paragraphs 4(a) and (b) reduced the prescribed minimum annual fee for an exploration permit from $1,500 to $1,100 per permit or from $72 to $55 for each block to which the permit relates. The amount payable will be whichever is the greater.

Regulation 5 reduced the prescribed annual fee for a retention lease from $8,600 to $6,600 for each block to which the lease relates.

Regulation 6 reduced the prescribed annual fee for a production licence from $25,800 to $19,800 for each block to which the licence relates.

Regulation 6A reduced the prescribed annual fee for an infrastructure licence from $18,000 to $13,200.

Regulation 7 reduced the prescribed annual fee for a pipeline licence from $115 to $88 per kilometre, or part kilometre, of the length of the pipeline.