Western Australian Bills Western Australian Bills[Index] [Search] [Download] [Related Items] [Help]
This is a Bill, not an Act. For current law, see the Acts databases.
Western Australia
Offshore Minerals Bill 2000
CONTENTS
Chapter 1 -- Introduction
Part 1.1 -- Legislative formalities and background
1. Short title 2
2. Commencement 2
3. Commonwealth-State agreement (the Offshore
Constitutional Settlement) 2
Part 1.2 -- Interpretation
Division 1 -- General
4. Notes in the text 5
5. Interpretation 5
6. Shares in a licence 10
7. Transfer of a licence 10
8. Successor licences 11
9. Section number not used 12
10 . Position on the Earth's surface 12
11 . Section number not used 13
12 . Power to vary and revoke instruments 13
Division 2 -- Basic concepts
13 . - 15.Section numbers not used 13
16 . Coastal waters, and effect of change in baseline 13
17 . Blocks 16
18 . Reserved block 17
page i
126--1
Offshore Minerals Bill 2000
Contents
19 . Standard block 17
20 . Tender block 17
21 . Discrete area 17
22 . Minerals 18
23 . Exploration 18
24 . Recovery 18
25 . Licence holder 19
26 . Associates 19
27 . Confidential information 20
28 . Confidential sample 21
Part 1.3 -- Administration of the
Commonwealth-State offshore area
29 . Definitions 22
30 . Minister as member of Joint Authority, or as
Designated Authority 22
31 . State officer acting under delegation 22
32 . - 34.Section numbers not used 23
Part 1.4 -- Application of this Act
35 . Act does not apply to exploration for or recovery of
petroleum 24
36 . Section number not used 24
37 . Act applies to all individuals and corporations 24
Chapter 2 -- Regulation of offshore
exploration and mining
Part 2.1 -- General
38 . General prohibition on exploring and mining without
appropriate authorisation 25
38A. Exploration and mining in marine reserves and fish
habitat protection areas 25
39 . Licences and consents available under this Act 28
40 . Steps involved in the grant of a fully effective licence 30
41 . Approval of form and manner of applications etc. 31
42 . Rights to minerals recovered 31
43 . Effect of grant of licence or special purpose consent
on native title 31
page ii
Offshore Minerals Bill 2000
Contents
44 . Licence etc. does not authorise unnecessary
interference with other activities in the licence area 32
Part 2.2 -- Exploration licences
Division 1 -- General
45 . Exploration licences 34
46 . Activities authorised by an exploration licence 34
47 . Minister may cancel or not renew exploration licence
without compensation 35
48 . Licence rights may be suspended 35
49 . Compensation for acquisition of property due to
suspension of rights 36
Division 2 -- Application for and grant of
exploration licence over standard blocks
50 . Application for exploration licence over standard
block 37
51 . Excluded blocks 37
52 . Minister may determine that excluded block is
available 38
53 . Minister may allow application for more than one
discrete area 39
54 . How to apply 39
55 . Effect of inclusion of unavailable block in application 41
56 . Payment of fee 41
57 . Application must be advertised 41
58 . How multiple applications are dealt with 42
59 . Discussions about blocks applied for 43
60 . Advertising revised application 44
61 . Request for further information 46
62 . Section number not used 46
63 . Minister may provisionally grant licence 46
64 . Section number not used 46
65 . Matters to be specified in the licence 47
66 . Applicant must be notified 47
67 . Amendment of conditions 48
68 . Amendment of security requirements 48
69 . Extension of primary payment period 48
page iii
Offshore Minerals Bill 2000
Contents
70 . Acceptance of grant of exploration licence for
standard block 49
71 . Conditions applicable to licence on grant 49
72 . Lapse of provisional grant of exploration licence 50
Division 3 -- Application for and grant of
exploration licence over tender block
73 . Matters to be determined before applications for
exploration licence over tender blocks invited 50
74 . Minister may invite applications for exploration
licence over tender blocks 50
75 . Tender block licence notice -- exploration licence 50
76 . Application for exploration licence over tender blocks 51
77 . How to apply 51
78 . Payment of fee 52
79 . Request for further information 53
80 . Section number not used 53
81 . Minister may provisionally grant licence 53
82 . Section number not used 53
83 . Successful applicant must be notified 54
84 . Acceptance of grant of exploration licence over tender
blocks 54
85 . Conditions applicable to licence on grant 55
86 . Lapse of provisional grant of exploration licence 55
87 . Provisional grant to next applicant if grant lapses 55
Division 4 -- Duration of exploration licence
88 . Initial term of exploration licence 56
89 . Term of renewal of exploration licence 56
90 . Effect of suspension of rights on term of exploration
licence 57
91 . Effect of application for renewal on term of
exploration licence 57
92 . Effect of application for retention licence or mining
licence on term of exploration licence 58
93 . Effect of application for extension on term of licence 58
94 . Extension of licence -- activities disrupted 59
95 . Grant of licence extension -- activities disrupted 59
96 . Extension of licence -- other circumstances 61
page iv
Offshore Minerals Bill 2000
Contents
97 . Grant of licence extension -- other circumstances 61
98 . Notification of decision 61
Division 5 -- Voluntary surrender of part of
exploration licence area
99 . Voluntary surrender of blocks if discrete area remains 62
100 . Voluntary surrender of blocks if up to 3 discrete areas
remain 62
Division 6 -- Application for and grant of renewal
of exploration licence
101 . Application for renewal of exploration licence 63
102 . When application to be made 64
103 . How to apply for renewal 64
104 . Mandatory reduction of licence area on renewal of
exploration licence 65
105 . Request for further information 66
106 . Payment of fee 66
107 . Section number not used 66
108 . Provisional renewal of an exploration licence 67
109 . Section number not used 67
110 . Applicant must be notified 67
111 . Amendment of conditions 68
112 . Amendment of security requirements 68
113 . Extension of primary payment period 69
114 . Acceptance of renewal of exploration licence 69
115 . Conditions applicable to licence on renewal 70
116 . Lapse of provisional renewal of exploration licence 70
Division 7 -- Obligations associated with
exploration licence
117 . General 70
118 . Conditions of exploration licence 71
119 . No conditions requiring payment of money 72
120 . Variation of conditions 72
121 . Exemption from or suspension of conditions 73
122 . Automatic suspension of conditions if licence rights
are suspended 75
123 . Work practices 75
page v
Offshore Minerals Bill 2000
Contents
124 . Licence holder must keep specified records etc. 76
125 . Licence holder must assist inspectors 76
Division 8 -- Expiry of exploration licence
126 . General 77
127 . Voluntary surrender of exploration licence 77
128 . Automatic expiry of exploration licence when
retention licence takes effect 77
129 . Automatic expiry of exploration licence when mining
licence takes effect 78
130 . Cancellation of exploration licence 78
131 . Obligations of former exploration licence holders and
former associates 79
Part 2.3 -- Retention licences
Division 1 -- General
132 . Retention licences 81
133 . Activities authorised by a retention licence 81
134 . Minister may cancel or not renew retention licence
without compensation 82
135 . Licence rights may be suspended 82
136 . Compensation for acquisition of property due to
suspension of rights 83
Division 2 -- Application for and grant of retention
licence
137 . Application for retention licence 84
138 . How to apply 84
139 . Payment of fee 86
140 . Application must be advertised 86
141 . Request for further information 87
142 . Section number not used 88
143 . Minister may provisionally grant licence 88
144 . Section number not used 88
145 . Grounds for granting retention licence 88
146 . Matters to be specified in the licence 89
147 . Applicant must be notified 90
148 . Amendment of conditions 90
149 . Amendment of security requirements 91
page vi
Offshore Minerals Bill 2000
Contents
150 . Extension of primary payment period 91
151 . Acceptance of grant of retention licence 92
152 . Conditions applicable to licence on grant 92
153 . Lapse of provisional grant of retention licence 92
Division 3 -- Duration of retention licence
154 . Initial term of retention licence 93
155 . Term of renewal of licence 93
156 . Effect of application for renewal on term of retention
licence 94
157 . Effect of application for mining licence on term of
retention licence 94
Division 4 -- Voluntary surrender of part of
retention licence area
158 . Voluntary surrender of blocks if discrete area remains 95
Division 5 -- Application for and grant of renewal
of retention licence
159 . Application for renewal of retention licence 95
160 . When application to be made 95
161 . How to apply for renewal 96
162 . Request for further information 96
163 . Payment of fee 97
164 . Section number not used 97
165 . Provisional renewal of retention licence 97
166 . Section number not used 98
167 . Matters that may be taken into account 98
168 . Refusal of application for renewal 98
169 . Applicant must be notified 99
170 . Amendment of conditions 99
171 . Amendment of security requirements 100
172 . Extension of primary payment period 100
173 . Acceptance of renewal of retention licence 101
174 . Conditions applicable to licence on renewal 101
175 . Lapse of provisional renewal of retention licence 102
page vii
Offshore Minerals Bill 2000
Contents
Division 6 -- Obligations associated with retention
licence
176 . General 102
177 . Conditions of retention licence 102
178 . No conditions requiring payment of money 104
179 . Variation of conditions 104
180 . Exemption from or suspension of conditions 105
181 . Automatic suspension of conditions if licence rights
are suspended 106
182 . Significant changes in circumstances to be reported to
Minister 107
183 . Work practices 107
184 . Licence holder must keep specified records etc. 108
185 . Licence holder must assist inspectors 108
Division 7 -- Expiry of retention licence
186 . General 109
187 . Voluntary surrender of retention licence 109
188 . Automatic expiry of retention licence when mining
licence takes effect 109
189 . Cancellation of retention licence, breach of condition
etc. 110
190 . Cancellation of retention licence, mining activities
viable 111
191 . Obligations of former retention licence holders and
former associates 112
Part 2.4 -- Mining licences
Division 1 -- General
192 . Mining licences 114
193 . Activities authorised by a mining licence 114
194 . Minister may cancel or not renew mining licence
without compensation 115
195 . Licence rights may be suspended 115
196 . Compensation for acquisition of property due to
suspension of rights 116
page viii
Offshore Minerals Bill 2000
Contents
Division 2 -- Application for and grant of mining
licence over standard blocks
197 . Application for mining licence over vacant standard
block 117
198 . Holder of exploration licence or retention licence may
apply for mining licence 117
199 . How to apply 118
200 . Effect of inclusion of unavailable block in application 119
201 . Payment of fee 119
202 . Application must be advertised 120
203 . How multiple applications are dealt with 121
204 . Request for further information 121
205 . Section number not used 122
206 . Minister may provisionally grant licence 122
207 . Restriction in case of marine nature reserve or marine
park 122
208 . Refusal of application for mining licence made under
section 198 122
209 . Matters to be specified in the licence 123
210 . Applicant must be notified 124
211 . Amendment of conditions 124
212 . Amendment of security requirements 125
213 . Extension of primary payment period 125
214 . Acceptance of grant of mining licence for standard
block 126
215 . Conditions applicable to licence on grant 126
216 . Lapse of provisional grant of mining licence 126
Division 3 -- Application for and grant of mining
licence over tender block
217 . Matters to be determined before applications for
mining licence over tender blocks invited 127
218 . Minister may invite applications for mining licence
over tender blocks 127
219 . Tender block licence notice -- mining licence 128
220 . Application for mining licence over tender blocks 129
221 . How to apply 129
222 . Payment of fee 130
page ix
Offshore Minerals Bill 2000
Contents
223 . Request for further information 130
224 . Section number not used 130
225 . Minister may provisionally grant licence 130
226 . Restriction in case of marine nature reserve or marine
park 131
227 . Successful applicant must be notified 131
228 . Acceptance of grant of mining licence over tender
blocks 132
229 . Conditions applicable to licence on grant 132
230 . Lapse of provisional grant of mining licence 133
231 . Provisional grant to next applicant if grant lapses 133
Division 4 -- Duration of mining licence
232 . Initial term of mining licence 133
233 . Term of renewal of licence 134
234 . Effect of application for renewal on term of mining
licence 135
Division 5 -- Voluntary surrender of part of mining
licence area
235 . Voluntary surrender of blocks if discrete area remains 135
Division 6 -- Application for and grant of renewal
of mining licence
236 . Application for renewal of mining licence 136
237 . When application to be made 136
238 . How to apply for renewal 136
239 . Request for further information 137
240 . Payment of fee 137
241 . Section number not used 137
242 . Provisional renewal of mining licence 138
243 . Section number not used 138
244 . Matters that may be taken into account 138
245 . Refusal of application for renewal 138
246 . Applicant must be notified 139
247 . Amendment of conditions 140
248 . Amendment of security requirements 140
249 . Extension of primary payment period 141
250 . Acceptance of renewal of mining licence 141
page x
Offshore Minerals Bill 2000
Contents
251 . Conditions applicable to licence on renewal 142
252 . Lapse of provisional renewal of mining licence 142
Division 7 -- Obligations associated with mining
licence
253 . General 142
254 . Conditions of mining licence 143
255 . No conditions requiring payment of money 144
256 . Variation of conditions 144
257 . Exemption from or suspension of conditions 145
258 . Automatic suspension of conditions if licence rights
are suspended 147
259 . Work practices 147
260 . Licence holder must pay royalty 148
261 . Licence holder must keep specified records 148
262 . Licence holder must assist inspectors 149
Division 8 -- Expiry of mining licence
263 . General 149
264 . Voluntary surrender of mining licence 149
265 . Cancellation of mining licence 149
266 . Obligations of former mining licence holders and
former associates 151
Part 2.5 -- Works licences
Division 1 -- General
267 . Works licences 153
268 . Activities authorised by a works licence 153
269 . Minister may cancel or not renew works licence
without compensation 154
Division 2 -- Application for and grant of works
licence
270 . Application for works licence 154
271 . How to apply 154
272 . Payment of fee 154
273 . Applicant to notify licence holders affected by the
application 155
274 . Application must be advertised 155
page xi
Offshore Minerals Bill 2000
Contents
275 . Section number not used 156
276 . Minister may provisionally grant licence 157
277 . Section number not used 157
278 . Matters to be specified in the licence 157
279 . Applicant must be notified 157
280 . Amendment of conditions 158
281 . Amendment of security requirements 158
282 . Extension of primary payment period 159
283 . Acceptance of grant of works licence 159
284 . Conditions applicable to works licence on grant 160
285 . Lapse of provisional grant of works licence 160
Division 3 -- Duration of works licence
286 . Initial term of works licence 160
287 . Term of renewal of works licence 161
288 . Effect of application for renewal on term of works
licence 161
Division 4 -- Application for and grant of renewal
of works licence
289 . Application for renewal of works licence 162
290 . When application to be made 162
291 . How to apply for renewal 162
292 . Payment of fee 163
293 . Section number not used 163
294 . Provisional renewal of works licence 163
295 . Section number not used 164
296 . Applicant must be notified 164
297 . Amendment of conditions 164
298 . Amendment of security requirements 165
299 . Extension of primary payment period 165
300 . Acceptance of renewal of works licence 166
301 . Conditions applicable to works licence on renewal 166
302 . Lapse of provisional renewal of works licence 167
Division 5 -- Obligations associated with works
licence
303 . General 167
304 . Conditions of works licence 167
page xii
Offshore Minerals Bill 2000
Contents
305 . No conditions requiring payment of money 169
306 . Variation of conditions 169
307 . Exemption from or suspension of conditions 169
308 . Work practices 171
309 . Licence holder must keep specified records etc. 171
310 . Licence holder must assist inspectors 172
Division 6 -- Expiry of works licence
311 . General 172
312 . Voluntary surrender of works licence 172
313 . Cancellation of works licence 173
314 . Obligations of former works licence holders and
former associates 174
Part 2.6 -- Special purpose consents
315 . Special purpose consents 176
316 . Activities authorised by a special purpose consent 176
317 . Application for a consent 177
318 . How to apply 177
319 . Payment of fee 177
320 . Applicant must obtain agreement of exploration,
retention and mining licence holders affected by the
application 178
321 . Applicant to notify works licence holders affected by
the application 178
322 . Section number not used 179
323 . Minister may grant special purpose consent 179
324 . Section number not used 179
325 . Matters to be specified in the consent 179
326 . Duration of consent 180
327 . Conditions of consent 180
Chapter 3 -- Registration and Dealings
Part 3.1 -- Registration
Division 1 -- Preliminary
328 . Register to be kept 181
329 . Document files to be kept 181
330 . Form of register and document file 182
page xiii
Offshore Minerals Bill 2000
Contents
331 . Correction of errors in the register 182
332 . Inspection of register and documents 183
Division 2 -- Matters to be entered in register
Subdivision A -- Licences
333 . Licences 184
334 . Renewal of licences 185
335 . Extension of exploration licences 185
336 . Expiry of licences 186
337 . Variations etc. to licences 186
338 . Transfer of licences 188
339 . Other dealings in licences 189
340 . Devolution of licences 190
Subdivision B -- Caveats
341 . Effect of a caveat 191
342 . Lodgment of caveats 192
343 . Form of caveat 192
344 . Payment of fee 192
345 . Caveat to be registered 193
346 . Withdrawal of caveat 193
347 . Form of withdrawal 193
348 . Duration of caveat 194
349 . Notice to caveat holder 195
350 . Caveat holder may consent to registration 196
351 . Orders that can be made by a court in relation to
caveats 196
Division 3 -- Miscellaneous
352 . Fees for registration 197
352A. Exemption from stamp duty 198
353 . Protection from legal actions 198
354 . Application to court for correction of register 199
355 . Appeals against determinations under section 352 200
356 . Section number not used 200
357 . Evidentiary value of register 200
358 . Certified copy of document on document file 201
359 . Certification of registration action 201
page xiv
Offshore Minerals Bill 2000
Contents
Part 3.2 -- Dealings in licences
Division 1 -- Dealings in licences to be in writing
and registered
360 . Dealings in licences to be in writing 202
361 . Dealings in interests in licences not effective until
registered 202
Division 2 -- Approval of transfer of licences
362 . Transfers require approval by Minister 202
363 . Application for approval of transfer 203
364 . Minister may ask for further information 204
365 . Minister's response to application for approval 204
366 . Protection from legal actions 205
Chapter 4 -- Administration
Part 4.1 -- Information management
367 . Minister may ask person for information 206
368 . Power to ask person to appear 207
369 . Power to examine on oath or affirmation 207
370 . Minister may ask for documents 208
371 . Minister may ask for samples 209
372 . Obligation to comply with request under section 367,
368, 369, 370 or 371 209
373 . Immunity from use of information etc. given in
response to request under section 367, 368, 369, 370
or 371 210
374 . Restrictions on release of confidential material 211
375 . Circumstances in which confidential material may be
released 212
376 . Certain reports to be made available 213
Part 4.2 -- Monitoring and enforcement
Division 1 -- Inspections
377 . Compliance inspections 214
378 . Powers exercisable in course of inspection 214
379 . Inspection of licence-related premises etc. without
warrant 216
page xv
Offshore Minerals Bill 2000
Contents
380 . Inspection of other premises etc. with occupier's
consent 217
381 . Inspection of other premises etc. with warrant 217
382 . Procedure for obtaining warrant 217
383 . Further provisions as to exercise of powers under
warrant 218
384 . Occupier to cooperate with inspector 219
Division 2 -- Directions
385 . Directions by Minister must be obeyed 219
386 . Scope of directions 219
387 . Minister may give directions 221
388 . Direction may incorporate material in another
document 221
389 . Direction may impose absolute prohibition 222
390 . Direction may extend to associates 222
391 . Holder to give notice of direction to associates 222
392 . Power to give directions after licence etc. ends 223
393 . Effect of directions on other instruments 223
394 . Minister may specify time for compliance 223
395 . Minister may take action if holder fails to comply 224
396 . Costs incurred by Minister in taking action under
section 395 224
397 . Defences to actions to recover debts 225
Division 3 -- Securities
398 . Securities 225
399 . Determination of requirement to lodge security 226
400 . Application of security 227
Division 4 -- Restoration of environment
401 . Removal of property from coastal waters 228
402 . Rehabilitation of damaged areas 229
Division 5 -- Safety zones
403 . Declaration of safety zone around a structure or
equipment 229
404 . Effect of declaration of safety zone 230
405 . - 420. Section numbers not used 231
page xvi
Offshore Minerals Bill 2000
Contents
Part 4.3 -- Inspectors
421 . Appointment of inspectors 232
422 . Identity cards 232
423 . Return of identity card 232
Part 4.4 -- Licence fees and royalty
Division 1 -- Licence fees
424 . Definition 233
425 . Licence fees 233
426 . Limit on amount of fees 234
427 . Time for payment 234
Division 2 -- Royalty
428 . Definition 234
429 . Royalty 235
430 . Rate of royalty 235
431 . Reduction of royalty in certain cases 235
432 . Fixing of landed value 236
433 . Fixing of quantity 236
434 . Time for payment 236
435 . State to pay 40% of royalties to Commonwealth 236
Division 3 -- Penalties and recovery
436 . Penalty if fee or royalty overdue 237
437 . Fees etc. recoverable as debts 237
Chapter 5 -- Miscellaneous
438 . State functions under Part 5.1 of Commonwealth Act 238
439 . Delegation by Minister 239
440 . False statements 239
441 . Service of documents on licence holders etc. 240
442 . Regulations 240
443 . Savings and transitional provisions 242
Schedule 1 -- Area in which coastal waters
are situated
page xvii
Offshore Minerals Bill 2000
Contents
Schedule 2 -- Savings and transitional
provisions
1. Interpretation 245
2. Existing exploration licences under Mining Act for
coastal waters 245
3. Existing mining leases under Mining Act for coastal
waters 247
4. Existing exploration licences under Mining Act that
relate both to coastal waters and to other areas 247
5. Existing mining leases under Mining Act that relate
both to coastal waters and to other areas 249
6. Registration 250
7. Document file 250
8. Securities 251
9. Licence fees 251
10 . Pending applications under Mining Act that relate
only to coastal waters 251
11 . Pending applications under Mining Act that relate
both to coastal waters and other areas 252
12 . Powers in relation to transitional provisions 253
Defined Terms
page xviii
Western Australia
LEGISLATIVE ASSEMBLY
Offshore Minerals Bill 2000
A Bill for
An Act relating to exploration for, and the recovery of, minerals
(other than petroleum) in the first 3 nautical miles of the territorial
sea in respect of Western Australia, and for related purposes.
The Parliament of Western Australia enacts as follows:
page 1
Offshore Minerals Bill 2000
Chapter 1 Introduction
Part 1.1 Legislative formalities and background
s. 1
Chapter 1 -- Introduction
Part 1.1 -- Legislative formalities and background
1. Short title
This Act may be cited as the Offshore Minerals Act 2000.
5 2. Commencement
This Act comes into operation on a day fixed by proclamation.
3. Commonwealth-State agreement (the Offshore
Constitutional Settlement)
(1) The Commonwealth and the States have agreed that --
10 (a) Commonwealth offshore mining legislation should be
limited to the area that is outside State coastal waters;
and
(b) the States should share, in the manner provided by the
Offshore Minerals Act 1994 of the Commonwealth, in
15 the administration of the Commonwealth offshore
mining legislation; and
(c) State offshore mining legislation should apply to State
coastal waters beyond the baseline for the territorial sea
(that is, the first 3 nautical miles of the territorial sea);
20 and
(d) the Commonwealth and the States should try to
maintain, as far as practicable, common principles, rules
and practices in regulating and controlling offshore
mining beyond the baseline of Australia's territorial sea.
25 Note 1: So far as the agreement relates to petroleum, it is reflected in this State's legislation
by the Petroleum (Submerged Lands) Act 1982.
page 2
Offshore Minerals Bill 2000
Introduction Chapter 1
Legislative formalities and background Part 1.1
s. 3
Note 2: Some sections of the Commonwealth Act contain provisions that are not relevant to
the operation of this Act. To keep uniformity between this Act and the
Commonwealth Act the numbers of the sections that are not relevant up to section 423
have not been used in the numbering of this Act. A section of this Act and the
5 corresponding section of the Commonwealth Act up to section 423 will therefore have
the same number. From section 424 onwards the two Acts differ significantly and
uniformity of numbering has not been maintained.
(2) Other Acts that provide background in this State to the
agreement (commonly referred to as the "Offshore
10 Constitutional Settlement") are --
(a) the Seas and Submerged Lands Act 1973, the Coastal
Waters (State Powers) Act 1980, the Coastal Waters
(State Title) Act 1980 and the Petroleum (Submerged
Lands) Act 1967 of the Commonwealth; and
15 (b) the Petroleum (Submerged Lands) Act 1982 of this
State.
Note 1: The Seas and Submerged Lands Act 1973 --
• declares and enacts that the sovereignty in respect of the territorial sea and the
associated airspace, seabed and subsoil is vested in and exercisable by the
20 Crown in right of the Commonwealth;
• gives the Governor-General power to declare, by Proclamation, the limits of the
territorial sea;
• declares and enacts that the sovereignty in respect of waters of the sea that are
on the landward side of the baseline of the territorial sea (but not within the
25 limits of a State) and in respect of the associated airspace, seabed and subsoil is
vested in and exercisable by the Crown in right of the Commonwealth;
• declares and enacts that the sovereign rights of Australia as a coastal State in
respect of the Continental Shelf of Australia (for the purpose of exploring it and
exploiting its natural resources) are vested in and exercisable by the Crown in
30 right of the Commonwealth;
• gives the Governor-General power to declare, by Proclamation, the limits of the
Continental Shelf of Australia.
Note 2: The Coastal Waters (State Powers) Act 1980 was enacted following a request from
the Parliaments of all the States under paragraph 51(xxxviii) of the Constitution of the
35 Commonwealth and provides that the legislative powers exercisable under the
Constitution of each State extend to the making of certain laws that would operate
offshore.
page 3
Offshore Minerals Bill 2000
Chapter 1 Introduction
Part 1.1 Legislative formalities and background
s. 3
Note 3: The Coastal Waters (State Title) Act 1980 vests in each State certain property rights in
the seabed beneath the coastal waters of the State.
Note 4: The Petroleum (Submerged Lands) Act 1967 of the Commonwealth and the
Petroleum (Submerged Lands) Act 1982 of this State make provision, based on the
5 agreement referred to in subsection (1), for the licensing regime that applies to the
exploration for and recovery of petroleum in coastal waters and offshore areas of this
State.
page 4
Offshore Minerals Bill 2000
Introduction Chapter 1
Interpretation Part 1.2
s. 4
Part 1.2 -- Interpretation
Division 1 -- General
4. Notes in the text
Notes and diagrams in this Act are provided to assist
5 understanding and do not form part of the Act.
5. Interpretation
In this Act, unless the contrary intention appears --
"approved" means approved by the Minister under section 41;
"associate" has the meaning given by section 26(1);
10 "associated agent of an associated contractor" has the
meaning given by section 26(4);
"associated agent of the holder" has the meaning given by
section 26(3);
"associated contractor of the holder" has the meaning given
15 by section 26(2);
"associated employee of an associated contractor" has the
meaning given by section 26(6);
"associated employee of the holder" has the meaning given by
section 26(5);
20 "block" means a portion of the coastal waters constituted
according to section 17;
"caveat" on a licence means a caveat against --
(a) the registration of dealings in relation to the licence;
or
25 (b) the registration of a person as a holder of the licence
under section 340;
page 5
Offshore Minerals Bill 2000
Chapter 1 Introduction
Part 1.2 Interpretation
s. 5
"coastal waters" has the meaning given by section 16(1)
and (2);
"Commonwealth Act" means the Offshore Minerals Act 1994
of the Commonwealth;
5 "Commonwealth Minister" means a Minister of State for the
Commonwealth;
"compliance inspection" has the meaning given by
section 377;
"confidential information" has the meaning given by
10 section 27;
"confidential sample" has the meaning given by section 28;
"consent area" means the block or blocks specified in a special
purpose consent;
"dealing" in a licence means a transaction that creates,
15 transfers, affects or otherwise deals with an interest in the
licence and includes --
(a) a transfer of the licence; and
(b) a transfer of a share in the licence,
but does not include a document that comes within
20 section 337(1) other than a document by which a block or a
licence is surrendered;
"discrete area" has the meaning given by section 21;
"document file" means a document file kept for the purposes of
Part 3.1;
25 "exploration" has the meaning given by section 23;
"holder of a licence" has the meaning given by section 25(1);
"hydrocarbon" means a hydrocarbon whether in a gaseous,
liquid or solid state;
"inspector" means an inspector appointed under section 421;
page 6
Offshore Minerals Bill 2000
Introduction Chapter 1
Interpretation Part 1.2
s. 5
"interest", in relation to a licence, includes --
(a) an equitable interest in the licence; and
(b) a security interest in the licence;
"licence" means --
5 (a) an exploration licence; or
(b) a retention licence; or
(c) a mining licence; or
(d) a works licence;
"licence area" means the block or blocks covered by a licence;
10 "licence holder" has the meaning given by section 25(1);
"mineral" has the meaning given by section 22;
"offshore exploration or mining activities" means --
(a) the exploration for minerals in coastal waters; or
(b) the recovery of minerals from coastal waters; or
15 (c) activities carried out in coastal waters under a works
licence;
"offshore mining register" means a register kept for the
purposes of Part 3.1;
"petroleum" means --
20 (a) a hydrocarbon or a mixture of hydrocarbons; or
(b) a mixture of one or more hydrocarbons and one or
more of the following --
(i) hydrogen sulphide;
(ii) nitrogen;
25 (iii) helium;
(iv) carbon dioxide;
"primary payment period" for the provisional grant or
provisional renewal of a licence means the period of
page 7
Offshore Minerals Bill 2000
Chapter 1 Introduction
Part 1.2 Interpretation
s. 5
30 days after the day on which the applicant is given a
written notice --
(a) in the case of the grant of an exploration licence,
under section 66; and
5 (b) in the case of the renewal of an exploration licence,
under section 110; and
(c) in the case of the grant of a retention licence, under
section 147; and
(d) in the case of the renewal of a retention licence,
10 under section 169; and
(e) in the case of the grant of a mining licence, under
section 210; and
(f) in the case of the renewal of a mining licence, under
section 246; and
15 (g) in the case of the grant of a works licence, under
section 279; and
(h) in the case of the renewal of a works licence, under
section 296;
"provisional holder" means a person who has been
20 provisionally granted a licence;
"recovery" has the meaning given by section 24;
"registered" means registered in an offshore mining register;
"Registration Fees Act" means the Offshore Minerals
(Registration Fees) Act 2000;
25 "reserved block" means a block that is declared to be reserved
under section 18;
"responsible Commonwealth Minister" means the
Commonwealth Minister who is responsible for the
administration of the Commonwealth Act;
page 8
Offshore Minerals Bill 2000
Introduction Chapter 1
Interpretation Part 1.2
s. 5
"sample" of the seabed or subsoil includes a core or cutting
from the seabed or subsoil;
"secondary payment period" for the provisional grant or
provisional renewal of a licence means the period of
5 30 days after the day on which an extension of the primary
payment period for the grant or renewal concerned ends;
"share" in a licence has the meaning given by section 6(1), (2)
and (3);
"special purpose consent" means a consent granted under
10 Part 2.6;
"standard block" has the meaning given by section 19;
"State Minister" means --
(a) a Minister of State for a State; or
(b) a Minister of State for the Northern Territory;
15 "successor licence" to a licence has the meaning given by
section 8;
"surrender day" for an exploration licence means --
(a) the day on which the initial term of the licence ends;
or
20 (b) a day on which the term of a renewal of the licence
ends;
"tender block" has the meaning given by section 20;
"transfer"--
(a) when used in relation to a licence, has the meaning
25 given by section 7(1); and
(b) when used in relation to a share in a licence, has the
meaning given by section 7(2) and (3);
"vary" a licence condition includes revoke or suspend.
page 9
Offshore Minerals Bill 2000
Chapter 1 Introduction
Part 1.2 Interpretation
s. 6
6. Shares in a licence
(1) A person has a share in a licence if the person is the holder, or
one of the holders, of the licence.
(2) If a holder is entitled to a particular percentage of the value of
5 the rights conferred by a licence, that percentage is the holder's
share in the licence.
Note: A sole holder has a 100% share in the licence.
(3) If --
(a) a person is a registered holder of a licence; and
10 (b) the person is shown in an offshore mining register as
being entitled to a specified percentage of the value of
the rights conferred by the licence,
the person's share in the licence is taken to be the percentage
specified in the register.
15 7. Transfer of a licence
(1) For the purposes of this Act, a licence is transferred if --
(a) the licence has only one holder and the holder transfers
the whole of the licensee's interest in the licence to
another person or other persons; or
20 (b) the licence has 2 or more holders and the holders all
transfer the whole of their interests in the licence to
another person or other persons.
(2) For the purposes of this Act, a share in a licence is transferred
if --
25 (a) the licence has only one holder and the holder transfers a
part of the holder's share in the licence to another person
or other persons; or
page 10
Offshore Minerals Bill 2000
Introduction Chapter 1
Interpretation Part 1.2
s. 8
(b) the licence has 2 or more holders and --
(i) some, but not all, of the holders transfer the whole
of their shares in the licence to another person; or
(ii) some or all of the holders transfer a part of their
5 shares in the licence to another person.
(3) The other person referred to in subsection (2)(b) may be an
existing licence holder.
8. Successor licences
(1) If --
10 (a) a mining licence takes effect immediately after an
exploration licence expires; and
(b) the holder of the mining licence immediately after it
takes effect was the holder of the exploration licence
immediately before it expired,
15 the mining licence is a successor licence to the exploration
licence.
(2) If --
(a) a retention licence takes effect immediately after an
exploration licence expires; and
20 (b) the holder of the retention licence immediately after it
takes effect was the holder of the exploration licence
immediately before it expired,
the retention licence is a successor licence to the exploration
licence.
25 (3) If --
(a) a mining licence takes effect immediately after a
retention licence expires; and
(b) the retention licence took effect immediately after an
exploration licence expired; and
page 11
Offshore Minerals Bill 2000
Chapter 1 Introduction
Part 1.2 Interpretation
s. 9
(c) the holder of the mining licence immediately after it
takes effect was the holder of the retention licence
immediately before it expired; and
(d) the holder of the retention licence immediately after it
5 took effect was the holder of the exploration licence
immediately before it expired,
the mining licence is a successor licence to the exploration
licence and the retention licence.
9. Section number not used
10 See note 2 to section 3(1).
10. Position on the Earth's surface
(1) Where, for the purposes of this Act or a subordinate instrument,
it is necessary to determine the position on the surface of the
Earth of a point, line or area, that position is to be determined by
15 reference to the prescribed Australian datum.
(2) In subsection (1) --
"subordinate instrument" means --
(a) the regulations; or
(b) an instrument under this Act or the regulations.
20 (3) A datum may be prescribed for all or some of the purposes
referred to in subsection (1), and different datums may be
prescribed for different purposes.
(4) Regulations that prescribe a datum for a purpose referred to in
subsection (1), or amend that datum or prescribe another datum
25 to replace that datum, may make any transitional or savings
provisions that are necessary or convenient to be made --
(a) in relation to licences granted before the regulations take
effect (including licences referred to in Schedule 2); or
page 12
Offshore Minerals Bill 2000
Introduction Chapter 1
Interpretation Part 1.2
s. 11
(b) in relation to applications for licences pending when the
regulations take effect (including applications referred to
in Schedule 2); or
(c) for any other purpose.
5 (5) Regulations referred to in subsection (4) may modify or
otherwise affect the operation of this Act.
11. Section number not used
See note 2 to section 3(1).
12. Power to vary and revoke instruments
10 (1) A provision of this Act that confers a power to do something in
writing is also taken to confer the power to revoke or amend the
written document by which that thing is done.
(2) The power to revoke or amend --
(a) must also be exercised in writing; and
15 (b) is subject to the same procedural requirements as the
original power; and
(c) is subject to the same conditions as those that governed
the exercise of the original power.
Division 2 -- Basic concepts
20 13. - 15. Section numbers not used
See note 2 to section 3(1).
16. Coastal waters, and effect of change in baseline
(1) Subject to this section, the coastal waters of the State are so
much of the area described in Schedule 1 as is constituted by the
25 first 3 nautical miles of the territorial sea from the baseline.
page 13
Offshore Minerals Bill 2000
Chapter 1 Introduction
Part 1.2 Interpretation
s. 16
(2) The coastal waters do not include any waters that are inside the
baseline.
(3) If --
(a) a licence has been granted on the basis that an area is
5 within coastal waters; and
(b) there is a change to the baseline or, because new data is
obtained or existing data is reconsidered, the location of
the baseline is reassessed; and
(c) as a result of the change to, or reassessment of the
10 location of, the baseline, the area ceases to be within
coastal waters,
this Act applies as if the area were still within coastal waters.
(4) Subsection (3) continues to apply to the area only while the
licence (and any successor licence) remains in force.
15 (5) If --
(a) a licence under the Commonwealth Act has been
granted on the basis that an area is within the offshore
area under the Commonwealth Act; and
(b) there is a change to the baseline or, because new data is
20 obtained or existing data is reconsidered, the location of
the baseline is reassessed; and
(c) as a result of the change to, or reassessment of the
location of, the baseline, the area --
(i) ceases to be within the offshore area under the
25 Commonwealth Act; and
(ii) falls within coastal waters,
this Act does not apply to the area.
(6) Subsection (5) continues to apply to the area only while the
licence under the Commonwealth Act (and any successor
30 licence within the meaning in that Act) remains in force.
page 14
Offshore Minerals Bill 2000
Introduction Chapter 1
Interpretation Part 1.2
s. 16
(7) This Act has effect subject to section 9A of the Mining
Act 1978.
(8) In this section --
"baseline" means the baseline adjacent to the coast of the State
5 (including the coast of any island forming part of the State)
as for the time being determined under section 7(1)(b) of
the Seas and Submerged Lands Act 1973 of the
Commonwealth.
Note 1: Generally the baseline is the lowest astronomical tide along the coast but it also
10 includes lines enclosing bays and indentations that are not bays and straight baselines
that depart from the coast. See Australia's territorial sea baseline published 1988 by
the Australian Government Printing Service.
Note 2: The following diagram illustrates the coastal waters of the State --
COASTAL WATERS OF THE STATE
Limits of the State
Australian territorial sea baseline (see Note 1 above)
12nm
3nm
Australian territorial sea
coastal waters
Key: nm = nautical mile = seabed, subsoil = sea
page 15
Offshore Minerals Bill 2000
Chapter 1 Introduction
Part 1.2 Interpretation
s. 17
17. Blocks
This is how a block is constituted in coastal waters --
(a) assume that there is laid over the coastal waters a grid
constituted by --
5 (i) lines running along meridians drawn through
each degree of longitude and the minutes
between those degrees; and
(ii) lines running along parallels drawn through each
degree of latitude and the minutes between those
10 degrees;
(b) take a bounded space defined by the grid;
(c) the seabed and subsoil within the coastal waters that is
under that space is a block.
Note: The following diagram shows how a block is constituted.
15 Each block is identified by giving the name of the plan in the 1:1 000 000 map series,
an identifying number of the 5 minute primary block and a letter identifying the one
minute block. The block in the diagram is 72 (e) on the Broome sheet.
GRATICULATION AND CONSTITUTION
OF A BLOCK
125° 59' E 126° 00' E
2 kms
(approx.)
2 kms
(approx.) BLOCK
page 16
Offshore Minerals Bill 2000
Introduction Chapter 1
Interpretation Part 1.2
s. 18
18. Reserved block
(1) Subject to subsection (2), the Minister may declare that a block
in coastal waters is a reserved block.
Note 1: A reserved block may be put up for tender by the Minister publishing in the Gazette a
5 tender block licence notice (see sections 74 and 218).
Note 2: Section 10(c) of the Interpretation Act 1984 allows a single declaration under this
subsection to be made in respect of 2 or more blocks.
(2) A declaration under subsection (1) must not be made in relation
to a block if --
10 (a) a licence over that block is in force; or
(b) an application for a licence over that block has been
made and has not been determined.
(3) A declaration under subsection (1) must be made by notice
published in the Gazette.
15 19. Standard block
A standard block is a block that is not the subject of a
declaration under section 18(1).
20. Tender block
A tender block is a block that is the subject of a tender block
20 licence notice published by the Minister under section 74 or
section 218.
21. Discrete area
(1) A group of blocks forms a discrete area if the area formed by
the blocks is continuous.
page 17
Offshore Minerals Bill 2000
Chapter 1 Introduction
Part 1.2 Interpretation
s. 22
(2) Two blocks that are joined at one point only do not form a
continuous area.
22. Minerals
(1) A mineral is a naturally occurring substance or a naturally
5 occurring mixture of substances.
Note: This Act does not apply to petroleum (see section 35).
(2) Without limiting subsection (1), a mineral may be in the form of
sand, gravel, clay, limestone, rock, evaporites, shale, oil-shale or
coal.
10 23. Exploration
(1) For the purposes of this Act, exploration for minerals includes
any activity that is directly related to the exploration for
minerals.
(2) For the purposes of this Act, exploration does not include the
15 exploration for minerals of the subsoil of coastal waters that is
carried out by means of underground mining from land in the
State if that exploration is carried out in accordance with the
Mining Act 1978.
24. Recovery
20 (1) For the purposes of this Act, recovery of minerals includes any
activity that is directly related to the recovery of minerals.
(2) For the purposes of this Act, recovery does not include the
recovery of minerals from the subsoil of coastal waters that is
carried out by means of underground mining from land in the
25 State if that exploration is carried out in accordance with the
Mining Act 1978.
page 18
Offshore Minerals Bill 2000
Introduction Chapter 1
Interpretation Part 1.2
s. 25
25. Licence holder
(1) References in this Act to the holder of a licence or the licence
holder are references to the person whose name is entered in the
offshore mining register as the person who holds the licence.
5 Note 1: This Act is based upon the grant and registration of licences.
Note 2: If a licence is granted to a person, that person's name is entered in the register (see
section 333).
Note 3: The entry in the register in relation to a licence will be varied if there is a change in
the holder of the licence (see section 338(4)).
10 (2) A licence may be held by more than one person.
26. Associates
(1) For the purposes of this Act, the following are the associates of
a licence holder --
(a) associated contractors of the holder;
15 (b) associated agents of the holder;
(c) associated agents of associated contractors;
(d) associated employees of the holder;
(e) associated employees of associated contractors.
(2) A person is an associated contractor of the holder if --
20 (a) the person enters into an agreement with the holder for
carrying out activities under the licence; or
(b) the person enters into an agreement with a person who is
an associated contractor under paragraph (a) or this
paragraph for carrying out activities under the licence.
25 (3) A person is an associated agent of the holder if the person is the
agent of, or acts on behalf of, the holder in relation to carrying
out activities under the licence.
page 19
Offshore Minerals Bill 2000
Chapter 1 Introduction
Part 1.2 Interpretation
s. 27
(4) A person is an associated agent of an associated contractor if the
person is the agent of, or acts on behalf of, the associated
contractor in relation to carrying out activities under the licence.
(5) A person is an associated employee of the holder if the person is
5 employed by the holder and, in the course of that employment,
carries out activities under the licence.
(6) A person is an associated employee of an associated contractor
if the person is employed by the associated contractor and, in
the course of that employment, carries out activities under the
10 licence.
27. Confidential information
(1) For the purposes of this Act, information is confidential
information if --
(a) a licence holder has given it to the Minister; and
15 (b) it is in a record, return, report or document; and
(c) it relates to activities authorised by the licence; and
(d) it relates to an area of the seabed or subsoil that is
covered by the licence or a successor licence to the
licence.
20 (2) However, if --
(a) a person is required to give the Minister a report in
relation to particular blocks; and
(b) the person gives the Minister a report that relates not
only to those blocks but also to other blocks; and
25 (c) the Minister is required to make the report available
under section 376,
the information that relates to those other blocks is not
confidential information.
page 20
Offshore Minerals Bill 2000
Introduction Chapter 1
Interpretation Part 1.2
s. 28
28. Confidential sample
For the purposes of this Act, a sample is a confidential sample
if --
(a) a licence holder has given it to the Minister; and
5 (b) it was recovered in the course of activities authorised by
the licence; and
(c) it was recovered from an area of the seabed or subsoil
that is covered by the licence or a successor licence to
the licence.
page 21
Offshore Minerals Bill 2000
Chapter 1 Introduction
Part 1.3 Administration of the Commonwealth-State offshore area
s. 29
Part 1.3 -- Administration of the
Commonwealth-State offshore area
29. Definitions
In this Part --
5 "associated revenue Act" has the same meaning as in the
Commonwealth Act;
"Commonwealth-State offshore area" means the
Commonwealth-State offshore area in respect of the State
within the meaning of section 13 of the Commonwealth
10 Act.
30. Minister as member of Joint Authority, or as Designated
Authority
(1) The Minister may perform any function that the Minister has
under the Commonwealth Act or an associated revenue Act --
15 (a) as a member of the Joint Authority for the
Commonwealth-State offshore area provided for by
section 32(2) of the Commonwealth Act; or
(b) as the Designated Authority for that area provided for by
section 29(2) of that Act.
20 (2) The Minister must perform any such function that the Minister
is required to perform by the Commonwealth Act or an
associated revenue Act.
31. State officer acting under delegation
A public service officer within the meaning of the Public Sector
25 Management Act 1994 to whom a delegation is made under
section 419 of the Commonwealth Act may perform any
function that the officer has under that delegation and must
page 22
Offshore Minerals Bill 2000
Introduction Chapter 1
Administration of the Commonwealth-State offshore area Part 1.3
s. 32
perform any such function that the officer is required to perform
under the Commonwealth Act.
32. - 34. Section numbers not used
See note 2 to section 3(1).
page 23
Offshore Minerals Bill 2000
Chapter 1 Introduction
Part 1.4 Application of this Act
s. 35
Part 1.4 -- Application of this Act
35. Act does not apply to exploration for or recovery of
petroleum
This Act does not apply to the exploration for or recovery of
5 petroleum.
Note 1: For "petroleum" see section 5.
Note 2: Offshore petroleum exploration and mining are regulated by the Petroleum
(Submerged Lands) Act 1967 of the Commonwealth and the Petroleum (Submerged
Lands) Act 1982 of this State.
10 36. Section number not used
See note 2 to section 3(1).
37. Act applies to all individuals and corporations
(1) This Act applies to all individuals, including --
(a) individuals who are not Australian citizens; and
15 (b) individuals who are not resident in Western Australia.
(2) This Act applies to all corporations, including --
(a) corporations that are not incorporated in Western
Australia; and
(b) corporations that do not carry on business in Western
20 Australia.
page 24
Offshore Minerals Bill 2000
Regulation of offshore exploration and mining Chapter 2
General Part 2.1
s. 38
Chapter 2 -- Regulation of offshore
exploration and mining
Part 2.1 -- General
38. General prohibition on exploring and mining without
5 appropriate authorisation
A person must not --
(a) explore for minerals in coastal waters; or
(b) recover minerals from coastal waters,
unless the exploration or recovery is authorised by a licence or
10 special purpose consent granted under this Act.
Maximum penalty: $30 000.
Note 1: A works licence may be necessary because "exploration" includes activities that are
directly related to exploration (see section 23(1)) and "recovery" includes activities
that are directly related to recovery (see section 24(1)).
15 Note 2: Section 38A(2) requires the consent of Parliament to be obtained to the provisional
grant under section 206, 225 or 231 of a mining licence over a marine nature reserve
or a marine park.
38A. Exploration and mining in marine reserves and fish habitat
protection areas
20 (1) Nothing in section 13A, 13B or 13C of the Conservation and
Land Management Act 1984 --
(a) prevents a licence or special purpose consent from being
applied for, granted, held or renewed; or
(b) affects the validity or effect of a licence or special
25 purpose consent,
over an area in a marine nature reserve, marine park or marine
management area.
page 25
Offshore Minerals Bill 2000
Chapter 2 Regulation of offshore exploration and mining
Part 2.1 General
s. 38A
(2) Despite sections 206, 225 and 231, a mining licence over a
marine nature reserve or marine park, or part of such a reserve
or park, may be provisionally granted under those sections --
(a) only if both Houses of Parliament by resolution consent
5 to the provisional grant; and
(b) on such terms and conditions as are specified in the
resolution.
(3) Despite --
(a) the grant of a licence or special purpose consent; or
10 (b) any provision of this Act,
offshore exploration or mining activities may be carried out under
the licence or consent in a marine nature reserve or marine park
only with the written consent of the Minister who may --
(c) refuse consent; or
15 (d) give consent subject to such terms and conditions as he
or she specifies in the consent.
(4) Before giving consent under subsection (3), whether
conditionally or unconditionally, the Minister must --
(a) consult, and obtain the concurrence of, the conservation
20 Minister; and
(b) consult and obtain the recommendations of the fisheries
Minister and the marine Minister.
(5) Despite --
(a) the grant of a licence or special purpose consent; or
25 (b) any provision of this Act,
offshore exploration or mining activities may be carried out
under the licence or consent in a marine management area only
with the written consent of the Minister who may --
(c) refuse consent; or
page 26
Offshore Minerals Bill 2000
Regulation of offshore exploration and mining Chapter 2
General Part 2.1
s. 38A
(d) give consent subject to such terms and conditions as he
or she specifies in the consent.
(6) Before giving consent under subsection (5), whether
conditionally or unconditionally, the Minister must consult and
5 obtain the recommendations of the conservation Minister, the
fisheries Minister and the marine Minister.
(7) Nothing in this Act authorises, or enables the Minister to
authorise or consent to, the disturbance of --
(a) the seabed; or
10 (b) subsoil below the seabed to a depth of 200 metres,
in a marine nature reserve or a restricted area in respect of
which a licence or special purpose consent is in force.
(8) Subsection (7) applies only if the marine nature reserve or
restricted area was in existence when the licence or special
15 purpose consent was granted.
(9) Despite --
(a) the grant of a licence or special purpose consent; or
(b) any provision of this Act,
offshore exploration or mining activities may be carried out
20 under the licence or consent in a fish habitat protection area
only with the written consent of the Minister who may --
(c) refuse consent; or
(d) give consent subject to such terms and conditions as he
or she specifies in the consent.
25 (10) Before giving consent under subsection (5), whether
conditionally or unconditionally, the Minister must consult and
obtain the recommendations of the fisheries Minister and the
marine Minister.
page 27
Offshore Minerals Bill 2000
Chapter 2 Regulation of offshore exploration and mining
Part 2.1 General
s. 39
(11) In this section --
"conservation Minister" means the Minister for the time being
administering the Conservation and Land Management
Act 1984;
5 "fish habitat protection area" has the meaning given to it by
the Fish Resources Management Act 1994;
"fisheries Minister" means the Minister for the time being
administering the Fish Resources Management Act 1994;
"marine management area", "marine nature reserve" and
10 "marine park" have the meanings given to them by the
Conservation and Land Management Act 1984;
"marine Minister" means the Minister for the time being
administering the Marine and Harbours Act 1981;
"restricted area" means any area of a marine park which is
15 classified by notice under section 62 of the Conservation
and Land Management Act 1984 as --
(a) a sanctuary area; or
(b) a recreation area; or
(c) a special purpose area which, or that part of such an
20 area which, the conservation Minister has declared in
the classification notice to be an area where
disturbance of the seabed or subsoil would be
incompatible with a conservation purpose specified in
the classification notice.
25 39. Licences and consents available under this Act
This Act provides for the grant of --
(a) exploration licences (see Part 2.2); and
(b) retention licences (see Part 2.3); and
(c) mining licences (see Part 2.4); and
page 28
Offshore Minerals Bill 2000
Regulation of offshore exploration and mining Chapter 2
General Part 2.1
s. 39
(d) works licences (see Part 2.5); and
(e) special purpose consents (see Part 2.6).
Note 1: An exploration licence is designed to cover the exploration phase of a project and
authorises --
5 • exploration; and
• the recovery of mineral samples.
Note 2: A retention licence is designed to ensure the retention of rights pending the transition
of a project from the exploration phase to the commercial mining phase and
authorises --
10 • exploration; and
• the recovery of minerals but not as part of a commercial mining operation.
Note 3: A mining licence is designed to cover the commercial mining phase of a project and
authorises --
• exploration; and
15 • full commercial recovery.
Note 4: A project might make use of any of the following 3 licence arrangements --
• an exploration licence leading to a mining licence;
• an exploration licence leading to a retention licence and then a mining licence;
• a mining licence (without progressing through an exploration/retention licence
20 stage).
Note 5: A licence is granted over a particular area (constituted by blocks). The licence holder
may need to carry out engineering or other activities outside the licence area. If so, the
licence holder or someone else must obtain a works licence to carry out those
activities.
25 Note 6: If a person wants to carry out --
• a scientific investigation; or
• a reconnaissance survey; or
• the collection of only small amounts of minerals,
in coastal waters, the person must obtain a special purpose consent under Part 2.6 to
30 carry out the activity.
Note 7: Even though a person has a licence or special purpose consent, the person must not
interfere unnecessarily with navigation, native title, fishing, resource conservation or
other activities in the area (see section 44).
page 29
Offshore Minerals Bill 2000
Chapter 2 Regulation of offshore exploration and mining
Part 2.1 General
s. 40
40. Steps involved in the grant of a fully effective licence
(1) The following 3 steps must occur before a licence comes into
force --
(a) provisional grant of the licence;
5 (b) proper acceptance of the grant;
(c) registration of the grant.
Note 1: See sections 88, 154, 232 and 286.
Note 2: Section 38A(2) requires the consent of Parliament to be obtained to the provisional
grant under section 206, 225 or 231 of a mining licence over a marine nature reserve
10 or a marine park.
(2) If a licence is provisionally granted to a person, the person must
do the following to properly accept the grant --
(a) give the Minister a written acceptance;
(b) lodge any security that the Minister has required;
15 (c) pay the fee that is payable under section 425.
Note: See sections 70, 84, 151, 214, 228 and 283.
(3) The following 3 steps must occur before a renewal of a licence
comes into force --
(a) provisional renewal of the licence;
20 (b) proper acceptance of the renewal;
(c) registration of the renewal.
Note: See sections 89, 155, 233 and 287.
(4) If a licence is provisionally renewed, the holder must do the
following to properly accept the renewal --
25 (a) give the Minister a written acceptance of the renewal;
(b) lodge any security that the Minister has required;
(c) pay the fee that is payable under section 425.
Note: See sections 114, 173, 250 and 300.
page 30
Offshore Minerals Bill 2000
Regulation of offshore exploration and mining Chapter 2
General Part 2.1
s. 41
41. Approval of form and manner of applications etc.
(1) The Minister may approve the form and the manner in which
the following are to be made --
(a) applications for licences over blocks in coastal waters;
5 (b) applications for the renewal of licences over blocks in
coastal waters.
(2) An approval under subsection (1) is to be made in writing.
42. Rights to minerals recovered
(1) Any minerals recovered by a licence holder or special purpose
10 consent holder from a block covered by the licence or consent
become the property of the holder when they are recovered.
(2) If the licence or consent authorises the exploration for and the
recovery of minerals only of a particular kind, subsection (1)
only applies to the recovery of minerals of that kind.
15 (3) Subsection (1) does not apply to the recovery of minerals by a
works licence holder.
(4) The minerals recovered are not subject to the rights of any other
person.
(5) Subsection (4) does not apply to rights that the licence or
20 consent holder transfers to the other person.
43. Effect of grant of licence or special purpose consent on
native title
(1) The grant of a licence or special purpose consent does not
extinguish native title in the licence or consent area.
25 (2) While a licence or special purpose consent is in force over an
area, native title in the area is subject to the rights conferred by
the licence or consent.
page 31
Offshore Minerals Bill 2000
Chapter 2 Regulation of offshore exploration and mining
Part 2.1 General
s. 44
(3) If compensation is payable to native title holders for or in
respect of the grant of a licence or special purpose consent, the
person liable to pay the compensation is --
(a) if an amount is to be paid and held in trust, the applicant
5 for the grant of, or the holder of, the licence or consent
at the time the amount is required to be paid; or
(b) otherwise, the applicant for the grant of, or the holder of,
the licence or consent at the time a determination of
compensation is made.
10 (4) If, at the relevant time, there is no holder of the licence or
consent because the licence or consent has been surrendered or
forfeited or has expired, a reference in subsection (3) to the
holder of the licence or consent is a reference to the holder of
the licence or consent immediately before its surrender,
15 forfeiture or expiry.
(5) In subsection (3) --
"grant" includes renewal.
(6) Expressions relating to native title have the same meanings in
this section and section 44 as they have in the Native Title
20 Act 1993 of the Commonwealth.
44. Licence etc. does not authorise unnecessary interference
with other activities in the licence area
A person who carries out activities in coastal waters under a
licence or special purpose consent granted under this Act must
25 not do so in a way that interferes with --
(a) navigation; or
(b) the exercise of native title rights and interests; or
(c) fishing; or
page 32
Offshore Minerals Bill 2000
Regulation of offshore exploration and mining Chapter 2
General Part 2.1
s. 44
(d) the conservation of the resources of the sea or the
seabed; or
(e) any activities that someone else is lawfully carrying out,
to a greater extent than is necessary for --
5 (f) the reasonable exercise of the person's rights under the
licence or consent; or
(g) the performance of the person's duties under the licence
or consent.
Maximum penalty: $10 000.
10 Note: The person referred to here might be the licence holder or consent holder or might be
an associated person.
page 33
Offshore Minerals Bill 2000
Chapter 2 Regulation of offshore exploration and mining
Part 2.2 Exploration licences
s. 45
Part 2.2 -- Exploration licences
Division 1 -- General
45. Exploration licences
(1) This Part provides for the grant of exploration licences over
5 blocks in coastal waters.
(2) An exploration licence may be granted over a standard block
(see Division 2) or over a tender block (see Division 3).
Note: A tender block is a block that has been declared available for tender. A standard block
is any block that is not a reserved block (see sections 19 and 20).
10 46. Activities authorised by an exploration licence
(1) Subject to subsection (2), an exploration licence holder may --
(a) explore for minerals in the licence area; and
(b) take samples of minerals in the licence area.
Note 1: Under section 23(1) the concept of "exploration" extends to activities that are directly
15 related to exploration.
Note 2: Under section 38A(3) and (5) the consent of the Minister is required to the carrying
out of offshore exploration or mining activities in a marine nature reserve, marine
park or marine management area. Section 38A(7) and (8) also contain provisions
about the disturbance of certain parts of marine nature reserves and restricted areas.
20 (2) If the licence is expressed to restrict the kind of minerals
covered by the licence, the holder is not permitted to explore
for, or to take samples of, minerals not covered by the licence.
(3) A restriction on the kind of minerals covered by the licence may
be inclusive (for example, only minerals A, B and C) or
25 exclusive (for example, all minerals except A, B and C).
(4) For the purposes of subsection (2), the holder does not take
samples of an excluded mineral if, in the course of exploring
page 34
Offshore Minerals Bill 2000
Regulation of offshore exploration and mining Chapter 2
Exploration licences Part 2.2
s. 47
for, or taking samples of, another mineral, the holder recovers
some excluded mineral.
47. Minister may cancel or not renew exploration licence
without compensation
5 No compensation is payable because of the cancellation or
non-renewal of an exploration licence by the Minister.
Note 1: The Minister may cancel the licence under section 130.
Note 2: The Minister may refuse under section 108 to renew the licence.
48. Licence rights may be suspended
10 (1) The Minister must suspend particular rights conferred by an
exploration licence if the Minister is satisfied that it is necessary
in the public interest to do so.
(2) The Minister may suspend rights under subsection (1) for a
specified period or for an indefinite period.
15 (3) The Minister may end a suspension at any time.
(4) A suspension or the ending of a suspension must be in writing.
(5) If the Minister --
(a) suspends rights conferred by an exploration licence; or
(b) ends a suspension,
20 the Minister must give the licence holder a written notice that
informs the holder of the suspension or the ending of the
suspension.
Note: See section 122 for the effect of the suspension on the obligations associated with the
licence.
25 (6) A suspension takes effect when --
(a) the holder has been given notice of the suspension under
subsection (5); and
page 35
Offshore Minerals Bill 2000
Chapter 2 Regulation of offshore exploration and mining
Part 2.2 Exploration licences
s. 49
(b) the suspension has been registered under section 337.
49. Compensation for acquisition of property due to suspension
of rights
(1) If --
5 (a) the Minister suspends licence rights under section 48;
and
(b) the suspension results in the acquisition of property from
a person; and
(c) the State and the person agree on an amount of
10 compensation for the acquisition,
the State must pay the person the agreed amount of
compensation.
(2) If --
(a) the Minister suspends licence rights under section 48;
15 and
(b) the suspension results in the acquisition of property from
a person; and
(c) the State and the person do not agree on an amount of
compensation for the acquisition; and
20 (d) the person brings an action for compensation against the
State in the Supreme Court,
the State must pay the person the amount of compensation (if
any) that is determined by that court.
(3) In this section --
25 "acquisition of property" has the same meaning as it has in
section 51(xxxi) of the Commonwealth Constitution.
page 36
Offshore Minerals Bill 2000
Regulation of offshore exploration and mining Chapter 2
Exploration licences Part 2.2
s. 50
Division 2 -- Application for and grant of exploration licence
over standard blocks
50. Application for exploration licence over standard block
(1) A person may apply to the Minister for an exploration licence
5 over a standard block if --
(a) the block is vacant; and
(b) the block is not excluded.
Note: For "excluded blocks" see section 51.
(2) A standard block is vacant if no exploration, retention or mining
10 licence is in force over the block.
(3) A person may apply for an exploration licence over a group of
standard blocks if --
(a) the group forms a discrete area; and
(b) there are not more than 500 blocks in the group.
15 Note: The Minister may, in certain circumstances, allow an application to be made for an
exploration licence covering up to 3 discrete areas (see section 53).
51. Excluded blocks
(1) A block is excluded if --
(a) an exploration licence over the block has been
20 surrendered or cancelled; and
(b) a period of 30 days after the day on which the licence
was surrendered or cancelled has not ended.
(2) A block is excluded for a particular applicant if --
(a) the applicant previously applied for an exploration
25 licence over the block; and
(b) the application was refused; and
page 37
Offshore Minerals Bill 2000
Chapter 2 Regulation of offshore exploration and mining
Part 2.2 Exploration licences
s. 52
(c) a period of 6 months after the day on which the previous
application was refused has not ended.
(3) A block is excluded for a particular applicant if --
(a) the applicant was previously the holder of an
5 exploration, retention or mining licence over the block;
and
(b) that previous licence was surrendered or cancelled; and
(c) a period of 6 months after the day on which the previous
licence was surrendered or cancelled has not ended.
10 (4) A block is excluded for a particular applicant if --
(a) the applicant was previously the holder of an
exploration, retention or mining licence over the block;
and
(b) the holder was --
15 (i) required by the licence conditions; or
(ii) given a direction under section 387 or 392,
to provide the Minister with information; and
(c) the holder provided the information; and
(d) the holder surrendered the licence; and
20 (e) a period of 6 months from the day on which the holder
provided the information has not ended.
52. Minister may determine that excluded block is available
(1) A person who wants to apply for an exploration licence over a
block that is excluded may apply to the Minister for a
25 determination under subsection (2).
(2) The Minister may determine that the person may apply for the
licence over the block despite section 51.
(3) The determination is to be made in writing.
page 38
Offshore Minerals Bill 2000
Regulation of offshore exploration and mining Chapter 2
Exploration licences Part 2.2
s. 53
53. Minister may allow application for more than one discrete
area
(1) If --
(a) a person (the "first applicant") applies for an
5 exploration licence; and
(b) another person (the "second applicant") subsequently
applies for an exploration licence for a group of blocks
that includes a block covered by the application made by
the first applicant; and
10 (c) an exploration licence is then granted to the first
applicant; and
(d) as a result of the grant, the blocks for which the second
applicant can be granted an exploration licence no
longer form a discrete area,
15 the second applicant may apply to the Minister for approval for
the application to proceed even though the blocks it covers no
longer form a discrete area.
Note: See also section 59.
(2) Subject to subsection (3), the Minister may approve the
20 application proceeding even though the blocks that the
application covers do not form a discrete area.
(3) The Minister may give an approval under subsection (2) only if
the blocks covered by the application form not more than 3
discrete areas.
25 54. How to apply
(1) The application must --
(a) be made in accordance with the approved form; and
(b) be made in the approved manner; and
page 39
Offshore Minerals Bill 2000
Chapter 2 Regulation of offshore exploration and mining
Part 2.2 Exploration licences
s. 54
(c) specify the blocks for which the application is made;
and
(d) include details of --
(i) the activities that the applicant intends to carry
5 out on the block or blocks covered by the
application; and
(ii) the amount of money that the applicant intends to
spend on those activities; and
(iii) the technical qualifications of the applicant and
10 of the applicant's employees who are likely to be
involved in activities authorised by the licence;
and
(iv) the technical advice available to the applicant;
and
15 (v) the financial resources available to the applicant;
and
(vi) if the licence is to be held by more than one
person, the share in the licence that each
prospective holder will hold;
20 and
(e) be accompanied by maps that --
(i) relate to the blocks; and
(ii) comply with the regulations;
and
25 (f) specify an address for service of notices under this Act
and the regulations.
Note 1: For paragraphs (a) and (b) see section 41.
Note 2: Paragraph (c): the Minister may, after consulting the applicant, vary the blocks
applied for (see section 59).
page 40
Offshore Minerals Bill 2000
Regulation of offshore exploration and mining Chapter 2
Exploration licences Part 2.2
s. 55
(2) The applicant may include in the application any other
information that the applicant thinks is relevant.
55. Effect of inclusion of unavailable block in application
If --
5 (a) a person applies for a licence over a group of standard
blocks; and
(b) because of section 18, 50 or 51 an exploration licence
cannot be granted over one or more of the blocks in the
group,
10 the Minister may still deal with the application to the extent to
which the application covers blocks for which an exploration
licence can be granted.
Note: An exploration licence cannot be granted over a block that is not vacant or is excluded
(see sections 50 and 51) or over a reserved block (see section 18).
15 56. Payment of fee
(1) The applicant must pay the application fee prescribed by the
regulations.
(2) The fee must be paid when the application is made.
(3) The Minister may refund any fee paid under subsection (1) but
20 only if the Minister is satisfied that special circumstances exist
that justify the refund of the fee.
57. Application must be advertised
(1) The applicant must advertise the application in a newspaper
circulating throughout the State.
25 (2) The advertisement must contain --
(a) the applicant's name and address; and
page 41
Offshore Minerals Bill 2000
Chapter 2 Regulation of offshore exploration and mining
Part 2.2 Exploration licences
s. 58
(b) a map and description of the blocks applied for that are
sufficient for the blocks to be identified; and
(c) the address of the Minister; and
(d) a statement that --
5 (i) advises that the applicant has applied for an
exploration licence over the blocks described in
the notice; and
(ii) invites comment from the public on the
application; and
10 (iii) requests that comments be sent to the applicant
and the Minister within 30 days after the day on
which the advertisement is published.
(3) The advertisement must be published --
(a) as soon as possible after the applicant makes the
15 application; and
(b) in any case, subject to subsection (4), within 14 days
after the day on which the applicant makes the
application.
(4) If --
20 (a) the applicant applies to the Minister within the 14 day
period referred to in subsection (3) for an extension of
the period; and
(b) the Minister extends the period,
the advertisement must be published within the period as
25 extended by the Minister.
58. How multiple applications are dealt with
(1) Subject to subsection (2), if a block is covered by 2 or more
applications for an exploration or mining licence, the Minister
page 42
Offshore Minerals Bill 2000
Regulation of offshore exploration and mining Chapter 2
Exploration licences Part 2.2
s. 59
must deal with the applications in the order in which they are
made.
Note: See also section 203.
(2) If --
5 (a) the applications are lodged within a particular time of
each other; and
(b) the time is less than the time prescribed by the
regulations,
the Minister must determine the order in which the applications
10 are to be dealt with by drawing lots in the way prescribed by the
regulations.
59. Discussions about blocks applied for
(1) The Minister may ask the applicant to discuss with the Minister
the blocks covered by the application.
15 (2) The request under subsection (1) must be --
(a) made in writing; and
(b) given to the applicant.
(3) If, after discussions, the Minister and the applicant agree on the
blocks to be covered by the application, the applicant is taken to
20 have applied for an exploration licence over the blocks agreed
on.
(4) The Minister must give the applicant written confirmation of the
agreement as soon as possible after the agreement is reached.
(5) The Minister may include in the written confirmation a direction
25 that the applicant must advertise the revised application under
section 60.
page 43
Offshore Minerals Bill 2000
Chapter 2 Regulation of offshore exploration and mining
Part 2.2 Exploration licences
s. 60
(6) If the Minister and the applicant do not agree on the blocks to be
covered by the application --
(a) the Minister may make a written determination
specifying the blocks to be covered by the application;
5 and
(b) the applicant is taken to have applied for an exploration
licence over the blocks specified in the determination.
(7) The Minister may include in the written determination a
direction that the applicant must advertise the revised
10 application under section 60.
(8) If the Minister makes a determination under subsection (6), the
Minister must give a copy of the determination to the applicant
as soon as possible after the determination is made.
60. Advertising revised application
15 (1) If --
(a) the application has been revised under section 59; and
(b) the applicant has been given a direction under
section 59(5) or (7),
the applicant must advertise the revised application in a
20 newspaper circulating throughout the State.
(2) The advertisement must contain --
(a) the applicant's name and address; and
(b) a map and description of the blocks covered by the
revised application that are sufficient for the blocks to
25 be identified; and
(c) the address of the Minister; and
page 44
Offshore Minerals Bill 2000
Regulation of offshore exploration and mining Chapter 2
Exploration licences Part 2.2
s. 60
(d) a statement that --
(i) advises that the applicant has applied for an
exploration licence over the blocks described in
the notice; and
5 (ii) invites comment from the public on the
application; and
(iii) requests that comments be sent to the applicant
and the Minister within 30 days after the day on
which the advertisement is published.
10 (3) The advertisement must be published --
(a) if the Minister and the applicant agree on the blocks
applied for under section 59(3), as soon as possible after
the applicant is given written confirmation of the
agreement under section 59(4); or
15 (b) if the Minister makes a determination of the blocks
applied for under section 59(6), as soon as possible after
the applicant is given a copy of the determination under
section 59(8),
but in any case, subject to subsection (4), within 14 days after
20 the applicant is given the confirmation or copy.
(4) If --
(a) the applicant applies to the Minister within the 14 day
period referred to in subsection (3) for an extension of
the period; and
25 (b) the Minister extends the period,
the advertisement must be published within the period as
extended by the Minister.
page 45
Offshore Minerals Bill 2000
Chapter 2 Regulation of offshore exploration and mining
Part 2.2 Exploration licences
s. 61
61. Request for further information
(1) The Minister may ask the applicant for further information
about the application.
(2) The request must --
5 (a) be in writing; and
(b) be given to the applicant; and
(c) specify the time within which the information must be
provided.
(3) Information requested under subsection (1) must be provided --
10 (a) in writing; and
(b) within the time specified in the request.
62. Section number not used
See note 2 to section 3(1).
63. Minister may provisionally grant licence
15 If the applicant does what is required by sections 54 to 61, the
Minister may --
(a) provisionally grant an exploration licence to the
applicant; or
(b) refuse the application.
20 Note: Under section 88, the grant of the licence cannot be effective before it is registered
(see section 333 for registration). The grant will not be registered until it has been
properly accepted (see section 70 for "proper acceptance").
64. Section number not used
See note 2 to section 3(1).
page 46
Offshore Minerals Bill 2000
Regulation of offshore exploration and mining Chapter 2
Exploration licences Part 2.2
s. 65
65. Matters to be specified in the licence
The licence must specify --
(a) the blocks covered by the licence; and
(b) the term of the licence; and
5 (c) the licence conditions.
Note: For the term of a licence see section 88.
66. Applicant must be notified
(1) The Minister must give the applicant written notice of a
decision under section 63.
10 (2) If the Minister provisionally grants an exploration licence --
(a) the Minister must give the licence to the provisional
holder; and
(b) the notice under subsection (1) must contain the
following information --
15 (i) notification of any determination under
section 399 that the provisional holder must
lodge a security;
(ii) notification that the provisional grant will lapse
unless the provisional holder, before the end of
20 the primary payment period --
(I) gives the Minister a written acceptance
of the grant; and
(II) lodges any security required under
section 399; and
25 (III) pays the fee that must be paid for the
licence under section 425.
page 47
Offshore Minerals Bill 2000
Chapter 2 Regulation of offshore exploration and mining
Part 2.2 Exploration licences
s. 67
67. Amendment of conditions
(1) If the provisional holder is dissatisfied with a licence condition, the
provisional holder may ask the Minister to amend the condition.
(2) The request must be made within 30 days after the day on which
5 the provisional holder is given the licence under section 66.
(3) If a request is made under subsection (1), the Minister may
amend the licence condition and, with the consent of the
provisional holder, any other licence condition.
(4) The Minister must give the provisional holder written notice of
10 a decision under this section.
68. Amendment of security requirements
(1) If the provisional holder --
(a) is notified of a security requirement; and
(b) is dissatisfied with the amount of the security required,
15 the provisional holder may ask the Minister to make a new
determination under section 399.
(2) The request must be made within 30 days after the day on which
the provisional holder is given notice under section 66.
(3) If a request is made under subsection (1), the Minister may
20 make a new determination under section 399.
(4) The Minister must give the provisional holder written notice of
the new determination.
69. Extension of primary payment period
(1) If the provisional holder makes a request under section 67 or 68,
25 the provisional holder may ask the Minister to extend the
primary payment period.
page 48
Offshore Minerals Bill 2000
Regulation of offshore exploration and mining Chapter 2
Exploration licences Part 2.2
s. 70
(2) The request must be made within 30 days after the day on which
the provisional holder is given notice under section 66.
(3) If the Minister agrees to the request, the Minister must --
(a) determine the period of the extension; and
5 (b) give the provisional holder a written notice of the period
of the extension.
70. Acceptance of grant of exploration licence for standard
block
(1) The provisional grant of the exploration licence is properly
10 accepted by the provisional holder if, before the required time,
the provisional holder --
(a) gives the Minister a written acceptance of the grant; and
(b) lodges any security required under section 399; and
(c) pays the fee that must be paid for the licence under
15 section 425.
(2) The required time under subsection (1) is the end of the primary
payment period or, if the provisional holder has been granted an
extension of the primary payment period under section 69, the
end of the secondary payment period.
20 Note: Under section 88, the grant of the licence cannot be effective before it is registered
(see section 333 for registration).
71. Conditions applicable to licence on grant
If the provisional grant of the licence is properly accepted under
section 70, it is subject to --
25 (a) the conditions specified in the licence given to the
applicant under section 66; or
(b) if the Minister amended those conditions under
section 67, those conditions as amended.
page 49
Offshore Minerals Bill 2000
Chapter 2 Regulation of offshore exploration and mining
Part 2.2 Exploration licences
s. 72
72. Lapse of provisional grant of exploration licence
If the provisional grant of the licence is not properly accepted
under section 70, the provisional grant lapses.
Division 3 -- Application for and grant of exploration
5 licence over tender block
73. Matters to be determined before applications for
exploration licence over tender blocks invited
If the Minister proposes to invite applications for the grant of an
exploration licence over reserved blocks, the Minister must,
10 before inviting the applications, determine --
(a) the procedure and criteria that the Minister will adopt to
allocate the licence; and
(b) the amount of security that will be required for the
licence under section 399; and
15 (c) the licence conditions.
74. Minister may invite applications for exploration licence over
tender blocks
(1) Subject to subsection (2), the Minister may invite applications
for the grant of an exploration licence over reserved blocks.
20 (2) Applications may be invited for a licence covering a group of
reserved blocks only if the group forms a discrete area.
(3) The Minister is to invite applications by publishing a tender
block licence notice for the licence in the Gazette.
75. Tender block licence notice -- exploration licence
25 (1) A tender block licence notice for an exploration licence must --
(a) specify the blocks to be covered by the licence; and
page 50
Offshore Minerals Bill 2000
Regulation of offshore exploration and mining Chapter 2
Exploration licences Part 2.2
s. 76
(b) specify the period within which applications may be
made; and
(c) specify the procedure and criteria that the Minister will
adopt to allocate the licence; and
5 (d) specify the amount of security that the successful
applicant will be required to lodge; and
(e) include a statement to the effect that information
about --
(i) the security that the successful applicant will be
10 required to lodge; and
(ii) the licence conditions,
may be obtained from the Minister.
(2) Without limiting paragraph (c) of subsection (1), the Minister
may for the purposes of that paragraph specify that the tender
15 will be determined on the basis of either or both of the
following --
(a) the nature and extent of the exploration activity
proposed to be carried out;
(b) the amount of money offered for the licence.
20 (3) The tender block licence notice may specify not more than 500
blocks for the exploration licence.
76. Application for exploration licence over tender blocks
If a tender block licence notice has been published inviting
applications for an exploration licence, a person may apply to
25 the Minister for the licence.
77. How to apply
(1) The application must --
(a) be made in accordance with the approved form; and
page 51
Offshore Minerals Bill 2000
Chapter 2 Regulation of offshore exploration and mining
Part 2.2 Exploration licences
s. 78
(b) be made in the approved manner; and
(c) be made before the end of the period specified in the
tender block licence notice; and
(d) address the criteria specified under section 75(1)(c); and
5 (e) include details of --
(i) the technical qualifications of the applicant and
of the applicant's employees who are likely to be
involved in activities authorised by the licence;
and
10 (ii) the technical advice available to the applicant;
and
(iii) the financial resources available to the applicant;
and
(iv) if the licence is to be held by more than one
15 person, the share in the licence that each
prospective holder will hold;
and
(f) specify an address for service of notices under this Act
and the regulations.
20 Note: For paragraphs (a) and (b) see section 41.
(2) The applicant may include in the application any other
information that the applicant thinks is relevant.
78. Payment of fee
(1) The applicant must pay the application fee prescribed by the
25 regulations.
(2) The fee must be paid when the application is made.
(3) The Minister may refund any fee paid under subsection (1) but
only if the Minister is satisfied that special circumstances exist
that justify the refund of the fee.
page 52
Offshore Minerals Bill 2000
Regulation of offshore exploration and mining Chapter 2
Exploration licences Part 2.2
s. 79
79. Request for further information
(1) The Minister may ask the applicant for further information
about the application.
(2) The request must --
5 (a) be in writing; and
(b) be given to the applicant; and
(c) specify the time within which the information must be
provided.
(3) Information requested under subsection (1) must be provided --
10 (a) in writing; and
(b) within the time specified in the request.
80. Section number not used
See note 2 to section 3(1).
81. Minister may provisionally grant licence
15 (1) The Minister may provisionally grant an exploration licence to
an applicant who has done what is required by sections 77 to 79.
(2) When provisionally granting a licence under subsection (1), the
Minister must follow the procedure and apply the criteria
specified in the tender block licence notice published for the
20 licence under section 74.
(3) If the Minister refuses to grant a licence under subsection (1),
the Minister must give the applicant written notice of the
refusal.
82. Section number not used
25 See note 2 to section 3(1).
page 53
Offshore Minerals Bill 2000
Chapter 2 Regulation of offshore exploration and mining
Part 2.2 Exploration licences
s. 83
83. Successful applicant must be notified
(1) If the Minister provisionally grants an exploration licence under
section 81 or 87, the Minister must give the provisional
holder --
5 (a) the licence; and
(b) written notice that the provisional grant will lapse unless
the provisional holder, within 30 days after the day on
which the notice is given --
(i) gives the Minister a written acceptance of the
10 grant; and
(ii) lodges any security required under section 399;
and
(iii) pays the fee that must be paid for the licence
under section 425; and
15 (iv) if the tender is determined on the basis of the
amounts of money offered for the licence, pays
to the Minister the amount that the provisional
holder offered for the licence under
section 77(1)(d).
20 (2) The licence must specify --
(a) the blocks covered by the licence; and
(b) the term of the licence; and
(c) the licence conditions.
Note: For the term of a licence see section 88.
25 84. Acceptance of grant of exploration licence over tender
blocks
The provisional grant of an exploration licence is properly
accepted by the provisional holder if, within 30 days after the
page 54
Offshore Minerals Bill 2000
Regulation of offshore exploration and mining Chapter 2
Exploration licences Part 2.2
s. 85
day on which the provisional holder is given notice under
section 83, the provisional holder --
(a) gives the Minister a written acceptance of the grant; and
(b) lodges any security required under section 399; and
5 (c) pays the fee that must be paid for the licence under
section 425; and
(d) if the tender is determined on the basis of the amount of
money offered for the licence, pays to the Minister the
amount that the provisional holder offered for the
10 licence under section 77(1)(d).
Note: Under section 88, the grant of the licence cannot be effective before it is registered
(see section 333 for registration).
85. Conditions applicable to licence on grant
If the provisional grant of the licence is properly accepted, the
15 licence is subject to the conditions determined under section 73.
86. Lapse of provisional grant of exploration licence
If the provisional grant of the licence is not properly accepted
under section 84, the provisional grant lapses.
87. Provisional grant to next applicant if grant lapses
20 (1) If the provisional grant of the licence lapses under section 86,
the Minister may provisionally grant the licence to another of
the applicants for the licence.
(2) When provisionally granting a licence under subsection (1), the
Minister must follow the procedure and apply the criteria
25 specified in the tender block licence notice published for the
licence under section 74.
page 55
Offshore Minerals Bill 2000
Chapter 2 Regulation of offshore exploration and mining
Part 2.2 Exploration licences
s. 88
Division 4 -- Duration of exploration licence
88. Initial term of exploration licence
(1) An exploration licence comes into force on --
(a) the day on which the grant of the licence is registered; or
5 (b) if a day later than the day on which the grant of the
licence is registered is specified in the licence as its
commencement day, that specified day.
(2) The initial term of an exploration licence ends --
(a) 4 years after the day on which the licence is
10 provisionally granted; or
(b) if a day later than the day on which the licence is
provisionally granted is specified in the licence as its
commencement day, 4 years after that specified day.
Note: The licence may be surrendered at any time (see section 127).
15 89. Term of renewal of exploration licence
(1) A renewal of an exploration licence comes into force on --
(a) the day on which the renewal is registered; or
(b) the day on which the previous term of the licence
expires,
20 whichever is the later.
Note: See Division 6 for renewal.
(2) The term of a renewal of a licence ends 2 years after the day on
which the previous term of the licence expires.
Note: The licence may be surrendered at any time (see section 127).
25 (3) In working out the previous term of the licence, section 90 is to
be disregarded.
(4) An exploration licence is not to be renewed more than 3 times.
page 56
Offshore Minerals Bill 2000
Regulation of offshore exploration and mining Chapter 2
Exploration licences Part 2.2
s. 90
90. Effect of suspension of rights on term of exploration licence
(1) If the Minister suspends rights conferred by an exploration
licence for a specified period under section 48, the Minister may
extend the term of the licence.
5 (2) An extension of a licence term under subsection (1) --
(a) must not be for a period that is longer than the period for
which the licence rights were suspended; and
(b) must be in writing.
(3) If the Minister extends the term of a licence under
10 subsection (1), the Minister must give the licence holder a
written notice that informs the holder --
(a) that the licence has been extended; and
(b) of the period of the extension.
91. Effect of application for renewal on term of exploration
15 licence
If --
(a) an exploration licence holder applies to renew the
licence under section 101; and
(b) the current term of the licence expires; and
20 (c) a renewal of the licence does not take effect immediately
after the current term expires,
the licence remains in force after the current term expires
until --
(d) a renewal of the licence takes effect; or
25 (e) a provisional renewal of the licence lapses; or
(f) the application for renewal is withdrawn or refused.
page 57
Offshore Minerals Bill 2000
Chapter 2 Regulation of offshore exploration and mining
Part 2.2 Exploration licences
s. 92
92. Effect of application for retention licence or mining licence
on term of exploration licence
If --
(a) an exploration licence holder applies for --
5 (i) a retention licence (see section 137); or
(ii) a mining licence (see section 198),
over the licence area, or part of the licence area, of the
exploration licence; and
(b) the current term of the exploration licence expires; and
10 (c) a grant of the retention licence or mining licence does
not take effect before the current term of the exploration
licence expires,
the exploration licence remains in force until --
(d) the grant of the retention licence or mining licence takes
15 effect; or
(e) a provisional grant of the retention licence or mining
licence lapses; or
(f) the application for the retention licence or mining
licence is withdrawn or refused.
20 93. Effect of application for extension on term of licence
If --
(a) an exploration licence holder applies for an extension of
the term of the licence under section 94 or 96; and
(b) the holder has also applied to renew the licence under
25 section 101; and
(c) the extension application is not decided before the
licence is due to expire,
then --
(d) the renewal application lapses; and
page 58
Offshore Minerals Bill 2000
Regulation of offshore exploration and mining Chapter 2
Exploration licences Part 2.2
s. 94
(e) the licence remains in force until --
(i) if the Minister extends the term of the licence
under section 95 or 97 for a specified period,
30 days after the day on which that period ends;
5 or
(ii) if the Minister refuses to extend the term of the
licence under section 95 or 97, 30 days after the
day on which the holder is given notice of the
refusal under section 98.
10 94. Extension of licence -- activities disrupted
(1) If --
(a) an exploration licence authorises the licence holder to
carry out an activity; and
(b) circumstances beyond the control of the holder prevent
15 the holder from carrying out the activity,
the holder may apply to the Minister for an extension of the
term of the licence.
(2) The application must be made --
(a) within 30 days after the day on which the holder first
20 became aware of the circumstances; and
(b) before the licence expires.
95. Grant of licence extension -- activities disrupted
(1) Subject to subsection (2), if an exploration licence holder
applies for an extension under section 94, the Minister --
25 (a) must grant an extension of the term of the licence if the
Minister is satisfied that --
(i) the holder is or has been unable to carry out the
activities authorised by the licence; and
page 59
Offshore Minerals Bill 2000
Chapter 2 Regulation of offshore exploration and mining
Part 2.2 Exploration licences
s. 95
(ii) the holder is or has been unable to do so because
of circumstances beyond the holder's control;
and
(iii) no excluded time is included in the period of
5 inability for which an extension is sought;
and
(b) must refuse the application for extension if the Minister
is not satisfied of the matters referred to in
paragraph (a).
10 (2) The period for which the extension is granted must not be
longer than the disruption period for the licence less any
excluded time for the licence.
(3) The extension may be granted subject to whatever conditions
the Minister thinks appropriate.
15 (4) In this section --
"disruption period" for a licence means the period during
which the licence holder is unable to carry out activities
authorised by the licence because of circumstances beyond
the holder's control;
20 "excluded time" for a licence means any period during which
the licence was in force because of section 90, 91, 92 or 93.
Note: Under section 90, if the Minister has under section 48 suspended rights under a
licence for a period, the Minister may extend the term of the licence for an equivalent
period. Under section 91, the term of a licence is automatically extended if there is an
25 application for the renewal of a licence undecided when the licence is due to expire.
Under section 92, the term of a licence is automatically extended if the holder applies
for a retention or mining licence over the licence area. Under section 93, the term of a
licence is automatically extended if there is an application for an extension of the
licence undecided when the licence is due to expire.
page 60
Offshore Minerals Bill 2000
Regulation of offshore exploration and mining Chapter 2
Exploration licences Part 2.2
s. 96
96. Extension of licence -- other circumstances
(1) An exploration licence holder may apply to the Minister for an
extension of the term of the licence if, under section 121, the
Minister --
5 (a) suspends a licence condition; or
(b) exempts the holder from complying with a licence
condition.
(2) The application must be made not later than 30 days before the
licence expires.
10 97. Grant of licence extension -- other circumstances
(1) Subject to subsection (2), if an exploration licence holder
applies for an extension under section 96, the Minister --
(a) may grant an extension of the term of the licence; or
(b) may refuse to grant an extension of the term of the
15 licence.
(2) The extension must not be for a period that is longer than the
period of the suspension or exemption.
(3) The extension may be granted subject to whatever conditions
the Minister thinks appropriate.
20 98. Notification of decision
(1) If the Minister grants an extension of the term of the exploration
licence under section 95 or 97, the Minister must give the
licence holder a written notice that informs the holder of --
(a) the grant of extension; and
25 (b) the period of the extension; and
(c) if the extension is subject to conditions, the conditions.
page 61
Offshore Minerals Bill 2000
Chapter 2 Regulation of offshore exploration and mining
Part 2.2 Exploration licences
s. 99
(2) If the Minister refuses an application for a licence extension, the
Minister must give the licence holder a written notice that
informs the holder of --
(a) the refusal; and
5 (b) the reasons for the refusal.
Division 5 -- Voluntary surrender of part of exploration licence area
99. Voluntary surrender of blocks if discrete area remains
(1) An exploration licence holder may surrender a block or some of
the blocks covered by the licence if the remaining blocks in the
10 licence area form a discrete area.
Note: See section 127 for the surrender of the whole licence.
(2) A surrender under subsection (1) must --
(a) be made in writing; and
(b) identify the blocks surrendered; and
15 (c) be given to the Minister.
Note: The surrender takes effect when it is registered under section 337 (see section 337(5)).
100. Voluntary surrender of blocks if up to 3 discrete areas
remain
(1) If --
20 (a) an exploration licence holder wants to surrender some of
the blocks covered by the licence; and
(b) the blocks remaining in the licence area after the
proposed surrender would form not more than 3 discrete
areas,
25 the holder may apply to the Minister for approval of the
proposed surrender.
page 62
Offshore Minerals Bill 2000
Regulation of offshore exploration and mining Chapter 2
Exploration licences Part 2.2
s. 101
(2) The application --
(a) must be in writing; and
(b) must include a surrender proposal that identifies the
blocks in the licence area that the holder proposes to
5 surrender; and
(c) may include any other information that the holder thinks
is relevant.
(3) If the Minister agrees with the surrender proposal, the Minister
may approve the surrender of the blocks specified in the
10 proposal by giving the holder written notice of the approval.
Note: The surrender takes effect when it is registered under section 337 (see section 337(5)).
(4) If the Minister does not agree with the surrender proposal, the
Minister may ask the holder to discuss the proposal.
(5) If the Minister and the holder agree, after discussions, on the
15 blocks to be surrendered the Minister may approve the surrender
of the blocks agreed on by giving the holder written
confirmation of the agreement.
Note: The surrender takes effect when it is registered under section 337 (see section 337(5)).
(6) If, after discussions, the Minister and the holder do not agree on
20 the surrender proposal, no blocks are surrendered.
Division 6 -- Application for and grant of renewal
of exploration licence
101. Application for renewal of exploration licence
An exploration licence holder may apply to the Minister to
25 renew the licence.
Note 1: Part of the licence area must be surrendered on each renewal (see section 104).
Note 2: At each renewal, the licence conditions are reviewed (see section 118).
page 63
Offshore Minerals Bill 2000
Chapter 2 Regulation of offshore exploration and mining
Part 2.2 Exploration licences
s. 102
102. When application to be made
(1) Subject to subsections (2) and (3), the application must be made
at least 30 days before the day on which the licence is to expire.
Note: If an application for extension of a licence is made, the expiry of the licence is
5 postponed (see section 93). For expiry of a licence see section 126.
(2) The Minister may accept an application that is made later than
30 days before the day on which the licence is to expire if --
(a) the application is made before the day on which the
licence expires; and
10 (b) the Minister believes that there are reasonable grounds
for accepting the application.
(3) If a licence remains in force because of section 93(e)(ii), the
application may be made at any time before the licence ceases
to be in force.
15 103. How to apply for renewal
(1) The application must --
(a) be made in accordance with the approved form; and
(b) be made in the approved manner; and
(c) include details of --
20 (i) the activities carried out by the applicant under
the licence during its current term; and
(ii) the amount of money spent by the applicant in
relation to the blocks covered by the licence
during its current term; and
25 (iii) the activities that the applicant intends to carry
out under the licence during the term applied for;
and
page 64
Offshore Minerals Bill 2000
Regulation of offshore exploration and mining Chapter 2
Exploration licences Part 2.2
s. 104
(iv) the amount of money that the applicant intends to
spend on those activities during the term applied
for;
and
5 (d) specify the blocks that the applicant nominates for
surrender in accordance with section 104.
Note: For paragraphs (a) and (b) see section 41.
(2) The applicant may include in the application any other
information that the applicant thinks is relevant.
10 104. Mandatory reduction of licence area on renewal of
exploration licence
(1) This section deals with the mandatory reduction of the licence
area covered by an exploration licence when the licence is
renewed.
15 (2) Subject to subsection (4)(b), on each surrender day of an
exploration licence, the licence holder must surrender --
(a) 50% of the number of blocks in the licence area; or
(b) if 50% of that number of the blocks is a whole number
and a fraction, the next higher whole number of the
20 blocks.
(3) Subject to subsection (4)(a), the blocks that remain in the
licence area after a surrender under subsection (2) must form a
discrete area.
(4) The Minister may --
25 (a) give permission for the surrender of blocks in a licence
area if the licence area remaining after the proposed
surrender would consist of not more than 3 discrete
areas; or
page 65
Offshore Minerals Bill 2000
Chapter 2 Regulation of offshore exploration and mining
Part 2.2 Exploration licences
s. 105
(b) give permission for a licence area to be reduced by less
than 50% if the Minister considers that there are special
circumstances present in relation to the renewal
application.
5 105. Request for further information
(1) The Minister may ask the applicant to provide further
information about the application.
(2) The request must --
(a) be in writing; and
10 (b) be given to the applicant; and
(c) specify the time within which the information must be
provided.
(3) Information requested under subsection (1) must be provided --
(a) in writing; and
15 (b) within the time specified in the request.
106. Payment of fee
(1) The applicant must pay the application fee prescribed by the
regulations.
(2) The fee must be paid when the application is made.
20 (3) The Minister may refund any fee paid under subsection (1) but
only if the Minister is satisfied that special circumstances exist
that justify the refund of the fee.
107. Section number not used
See note 2 to section 3(1).
page 66
Offshore Minerals Bill 2000
Regulation of offshore exploration and mining Chapter 2
Exploration licences Part 2.2
s. 108
108. Provisional renewal of an exploration licence
(1) The Minister must provisionally renew an exploration licence if
the applicant --
(a) does what is required by sections 101 to 106; and
5 (b) has complied with --
(i) this Act; and
(ii) the regulations; and
(iii) the licence conditions.
Note 1: Under section 89, the renewal of the licence cannot be effective before it is registered
10 (see section 334 for registration). The renewal will not be registered until it has been
properly accepted (see section 114 for "proper acceptance").
Note 2: Under section 118, new conditions may be imposed on renewal.
(2) If subsection (1) does not require the Minister to provisionally
renew the licence, the Minister may --
15 (a) provisionally renew the licence; or
(b) refuse to renew the licence.
109. Section number not used
See note 2 to section 3(1).
110. Applicant must be notified
20 (1) The Minister must give the applicant written notice of the
Minister's decision under section 108.
(2) If the Minister provisionally renews the exploration licence
under section 108, the notice must contain the following
information --
25 (a) notification of the conditions of the renewed licence;
(b) notification of any determination under section 399 that
the applicant must lodge a security or a further security;
page 67
Offshore Minerals Bill 2000
Chapter 2 Regulation of offshore exploration and mining
Part 2.2 Exploration licences
s. 111
(c) notification that the provisional renewal will lapse
unless the applicant, before the end of the primary
payment period --
(i) gives the Minister a written acceptance of the
5 renewal; and
(ii) lodges any security required by the Minister
under section 399; and
(iii) pays the fees that must be paid under section 425.
Note: Section 118 provides for renewals to be granted subject to conditions.
10 111. Amendment of conditions
(1) If the licence holder --
(a) has been provisionally granted a renewal of the licence
under section 108; and
(b) is notified of the licence conditions; and
15 (c) is dissatisfied with a condition,
the holder may ask the Minister to amend the condition.
(2) The request must be made within 30 days after the day on which
the holder is given notice under section 110.
(3) If a request is made under subsection (1), the Minister may
20 amend the licence conditions and, with the consent of the
holder, any other licence condition.
(4) The Minister must give the holder written notice of a decision
under this section.
112. Amendment of security requirements
25 (1) If the licence holder --
(a) has been provisionally granted a renewal of the licence
under section 108; and
page 68
Offshore Minerals Bill 2000
Regulation of offshore exploration and mining Chapter 2
Exploration licences Part 2.2
s. 113
(b) is notified of a security requirement; and
(c) is dissatisfied with the amount of the security required,
the holder may ask the Minister to make a new determination
under section 399.
5 (2) The request must be made within 30 days after the day on which
the holder is given notice under section 110.
(3) If a request is made under subsection (1), the Minister may
make a new determination under section 399.
(4) The Minister must give the holder written notice of the new
10 determination.
113. Extension of primary payment period
(1) If the licence holder makes a request under section 111 or 112,
the holder may ask the Minister to extend the primary payment
period.
15 (2) The request must be made within 30 days after the day on which
the holder is given notice under section 110.
(3) If the Minister agrees to the request, the Minister must --
(a) determine the period of the extension; and
(b) give the holder a written notice informing the holder of
20 the period of the extension.
114. Acceptance of renewal of exploration licence
(1) The provisional renewal of an exploration licence is properly
accepted by the licence holder if, before the required time, the
holder --
25 (a) gives the Minister a written acceptance of the renewal;
and
(b) lodges any security required under section 399; and
page 69
Offshore Minerals Bill 2000
Chapter 2 Regulation of offshore exploration and mining
Part 2.2 Exploration licences
s. 115
(c) pays the fee that must be paid under section 425.
(2) The required time under subsection (1) is the end of the primary
payment period or, if the licence holder has been granted an
extension of the primary payment period under section 113, the
5 end of the secondary payment period.
Note: Under section 89, the renewal of the licence cannot be effective before it is registered
(see section 334 for registration).
115. Conditions applicable to licence on renewal
If the provisional renewal is properly accepted under
10 section 114, the renewed licence is subject to --
(a) the conditions specified in the notice given to the licence
holder under section 110; or
(b) if the Minister amended those conditions under
section 111, those conditions as amended.
15 116. Lapse of provisional renewal of exploration licence
If the provisional renewal of an exploration licence is not
properly accepted under section 114, the provisional renewal
lapses.
Division 7 -- Obligations associated with exploration licence
20 117. General
(1) The sources of obligations associated with an exploration
licence are --
(a) the licence conditions; and
(b) obligations arising from directions under section 387 or
25 392 given by the Minister; and
(c) obligations imposed by this Act and the regulations.
Note: For paragraph (a) see sections 118 to 120. For paragraph (c) see sections 44, 123 to
125, 372 and 391(1).
page 70
Offshore Minerals Bill 2000
Regulation of offshore exploration and mining Chapter 2
Exploration licences Part 2.2
s. 118
(2) If an exploration licence has 2 or more holders, all the holders
are jointly and severally bound by the obligations that attach to
the licence.
118. Conditions of exploration licence
5 (1) The Minister may grant or renew an exploration licence subject
to whatever conditions the Minister thinks appropriate.
(2) If the Minister grants or renews an exploration licence subject to
conditions, the conditions must be specified in the licence.
(3) Without limiting subsection (1), the Minister may attach the
10 following kinds of conditions to the grant or renewal of an
exploration licence --
(a) a condition requiring the licence holder to take out
insurance as required by the Minister;
(b) a condition requiring the holder to carry out certain
15 work in or in relation to the licence area during the term
of the licence;
(c) a condition requiring the holder to spend a specified
amount of money in carrying out the work referred to in
paragraph (b);
20 (d) a condition requiring the holder to lodge a security with
the Minister;
(e) a condition requiring the holder to keep specified
information;
(f) a condition requiring the holder to give the Minister, on
25 request, specified information;
(g) a condition requiring the holder to take steps to protect
the environment of the licence area, including conditions
relating to --
(i) protecting wildlife; or
page 71
Offshore Minerals Bill 2000
Chapter 2 Regulation of offshore exploration and mining
Part 2.2 Exploration licences
s. 119
(ii) minimising the effect on the environment of the
licence area and the area surrounding the licence
area of activities carried out in the licence area;
(h) a condition requiring the holder to repair any damage to
5 the environment caused by activities in the licence area;
(i) a condition requiring the holder to pay a specified
penalty to the State if the holder does not comply with a
licence condition.
(4) A condition under subsection (3)(d) must specify --
10 (a) the amount of the security required; and
(b) the kind of security required; and
(c) the manner and form in which the security is to be
lodged.
(5) Without limiting paragraph (d) of subsection (3), a condition
15 under that paragraph may require the lodgment of a security in
the form of a guarantee and if a guarantee is required the
condition may specify --
(a) the kind of person who is to give the guarantee; and
(b) the terms of the guarantee.
20 119. No conditions requiring payment of money
Except for a condition requiring the payment of a penalty or
lodgment of security, a licence condition must not require the
payment of money to the State.
120. Variation of conditions
25 (1) If --
(a) an exploration licence holder requests the Minister in
writing to vary a licence condition; or
page 72
Offshore Minerals Bill 2000
Regulation of offshore exploration and mining Chapter 2
Exploration licences Part 2.2
s. 121
(b) an exploration licence continues in force because of
section 93; or
(c) an extension of the term of an exploration licence is
granted under section 95; or
5 (d) part of the licence area of an exploration licence is
surrendered under section 99 or 100,
the Minister may vary a licence condition.
(2) If the Minister gives --
(a) a direction under section 387; or
10 (b) an approval, consent or exemption under the regulations,
to an exploration licence holder, the Minister may vary a licence
condition to the extent necessary to avoid inconsistency
between the licence conditions and the direction, approval,
consent or exemption.
15 (3) The Minister may vary a licence condition subject to whatever
conditions the Minister thinks appropriate.
(4) If the Minister varies a licence condition, the Minister must give
the licence holder a written notice that --
(a) informs the holder of the variation; and
20 (b) specifies the conditions which have been varied; and
(c) specifies any conditions to which the variation is
subject.
121. Exemption from or suspension of conditions
(1) If --
25 (a) an exploration licence holder requests the Minister in
writing to --
(i) suspend a licence condition; or
page 73
Offshore Minerals Bill 2000
Chapter 2 Regulation of offshore exploration and mining
Part 2.2 Exploration licences
s. 121
(ii) exempt the holder from complying with a licence
condition;
or
(b) an exploration licence continues in force because of
5 section 93; or
(c) an extension of the term of an exploration licence is
granted under section 95; or
(d) part of the licence area of an exploration licence is
surrendered under section 99 or 100,
10 the Minister may --
(e) suspend a licence condition; or
(f) exempt the holder from complying with a licence
condition.
(2) If the Minister gives --
15 (a) a direction under section 387; or
(b) an approval, consent or exemption under the regulations,
to an exploration licence holder, the Minister may suspend a
licence condition, or exempt the holder from compliance with a
licence condition, to the extent necessary to avoid inconsistency
20 between the licence conditions and the direction, approval,
consent or exemption.
(3) The Minister may --
(a) suspend a licence condition; or
(b) exempt the licence holder from complying with a
25 licence condition,
subject to whatever conditions the Minister thinks appropriate.
(4) If the Minister --
(a) suspends a licence condition; or
page 74
Offshore Minerals Bill 2000
Regulation of offshore exploration and mining Chapter 2
Exploration licences Part 2.2
s. 122
(b) exempts the licence holder from complying with a
licence condition,
the Minister must give the holder a written notice that --
(c) informs the holder of the exemption or suspension; and
5 (d) specifies the conditions which have been suspended or
affected by the exemption; and
(e) specifies any conditions to which the suspension or
exemption is subject.
Note: A suspension or exemption of a condition cannot be effective before it is registered
10 (see section 337).
122. Automatic suspension of conditions if licence rights are
suspended
If --
(a) the Minister suspends particular rights conferred by an
15 exploration licence under section 48; and
(b) a licence condition is affected by the suspension,
the licence condition is suspended for the period of the
suspension of the rights.
123. Work practices
20 A person who is an exploration licence holder or an associate of
the holder, in carrying out activities in the licence area that are
authorised by the licence, must take all reasonable steps --
(a) to ensure that the activities are carried out at a standard
that is accepted as reasonable and proper in the mining
25 industry; and
(b) to maintain in good repair all structures and equipment
erected in, or brought into, the licence area by the
person; and
page 75
Offshore Minerals Bill 2000
Chapter 2 Regulation of offshore exploration and mining
Part 2.2 Exploration licences
s. 124
(c)
to remove from the licence area any structure,
equipment or other property that --
(i) belongs to the person, or is under the person's
control; and
5 (ii) is not being used, or is not going to be used, in
connection with the activities.
Maximum penalty: $20 000.
Note: The safety of offshore exploration activities is governed by the Mines Safety and
Inspection Act 1994 -- see the definition of "exploration operations" and
10 paragraph (a) of the definition of "mining operations" in section 4(1) of that Act.
124. Licence holder must keep specified records etc.
An exploration licence holder must --
(a) keep whatever records and samples; and
(b) give whatever records and samples to the Minister for
15 inspection; and
(c) make whatever returns,
are necessary to comply with --
(d) the regulations; or
(e) the licence conditions; or
20 (f) a direction given by the Minister under section 387.
Note: Under sections 386 and 387 the Minister may direct a person to keep records and
samples, to give records and samples to the Minister, and to make returns.
Maximum penalty: $10 000.
125. Licence holder must assist inspectors
25 An exploration licence holder must provide an inspector with
reasonable facilities and assistance so that the inspector is able
to carry out compliance inspections.
Note: See sections 377 to 384 for compliance inspections.
Maximum penalty: $5 000.
page 76
Offshore Minerals Bill 2000
Regulation of offshore exploration and mining Chapter 2
Exploration licences Part 2.2
s. 126
Division 8 -- Expiry of exploration licence
126. General
(1) An exploration licence expires if --
(a) the term of the licence ends without the licence being
5 renewed; or
(b) the licence holder surrenders the licence; or
(c) a retention licence is granted over the blocks in the
licence area of the exploration licence; or
(d) a mining licence is granted over the blocks in the licence
10 area of the exploration licence; or
(e) the licence is cancelled.
Note: For paragraph (a) see Division 6. For paragraph (b) see section 127. For paragraph (c)
see section 128. For paragraph (d) see section 129. For paragraph (e) see section 130.
(2) In subsection (1)(a) the reference to the term of the licence
15 includes any period during which the licence is in force under
section 90, 91, 92 or 93.
127. Voluntary surrender of exploration licence
An exploration licence holder may surrender the licence.
Note 1: See Division 5 for voluntary surrender of part of a licence area.
20 Note 2: The surrender takes effect when it is registered under section 337 (see section 337(5)).
128. Automatic expiry of exploration licence when retention
licence takes effect
If --
(a) an exploration licence is in force; and
25 (b) a retention licence over all or some of the blocks in the
exploration licence area comes into force under
section 154,
the exploration licence expires in relation to the blocks covered
by the retention licence.
page 77
Offshore Minerals Bill 2000
Chapter 2 Regulation of offshore exploration and mining
Part 2.2 Exploration licences
s. 129
129. Automatic expiry of exploration licence when mining licence
takes effect
If --
(a) an exploration licence is in force; and
5 (b) a mining licence over all or some of the blocks in the
exploration licence area comes into force under
section 232,
the exploration licence expires in relation to the blocks covered
by the mining licence.
10 130. Cancellation of exploration licence
(1) Subject to subsection (5), the Minister may cancel an
exploration licence if the licence holder --
(a) breaches a licence condition; or
(b) contravenes a provision of this Act or the regulations; or
15 (c) breaches a condition attached to an approval under
section 365(2).
(2) If the Minister proposes to cancel a licence under subsection (1),
the Minister must give the licence holder a written notice that
informs the holder of the proposed cancellation.
20 (3) The notice must --
(a) specify the reason for the proposed cancellation; and
(b) invite the holder to make submissions in relation to the
proposed cancellation; and
(c) specify the day by which submissions may be given to
25 the Minister; and
(d) specify an address where submissions are to be lodged.
(4) The day specified under subsection (3)(c) must be not less than
60 days after the day on which the notice is given.
page 78
Offshore Minerals Bill 2000
Regulation of offshore exploration and mining Chapter 2
Exploration licences Part 2.2
s. 131
(5) The Minister may cancel the licence only if --
(a) the holder has been given a notice under subsection (2);
and
(b) the Minister has considered --
5 (i) any submission made by the holder in
accordance with subsection (3); and
(ii) any steps taken by the holder to remedy the
breach or contravention that led to the proposal
to cancel the licence and to prevent any similar
10 breach or contravention from happening again;
and
(c) the Minister is satisfied that no special circumstances
exist that justify the licence not being cancelled.
131. Obligations of former exploration licence holders and
15 former associates
(1) Subject to subsection (4), if --
(a) a person was --
(i) an exploration licence holder; or
(ii) an associate of an exploration licence holder;
20 and
(b) the licence --
(i) expires; or
(ii) is cancelled; or
(iii) is surrendered;
25 and
(c) an obligation associated with the licence arising out
of --
(i) a licence condition; or
page 79
Offshore Minerals Bill 2000
Chapter 2 Regulation of offshore exploration and mining
Part 2.2 Exploration licences
s. 131
(ii) a direction given under section 387; or
(iii) this Act or the regulations,
has not been discharged; and
(d) the person was bound by that obligation when the
5 person was the licence holder or an associate,
the person remains bound by the obligation until the obligation
is discharged.
(2) Subsection (1) does not continue an obligation to carry out
exploration or recovery activities.
10 (3) Subsection (1) continues an obligation that a person had to carry
out exploration or recovery activities in a particular manner if
the person carries them out.
(4) The Minister may determine that the person is not subject to --
(a) any particular obligation under this section; or
15 (b) all the person's remaining obligations under this section.
(5) A determination under subsection (4) is to be in writing.
page 80
Offshore Minerals Bill 2000
Regulation of offshore exploration and mining Chapter 2
Retention licences Part 2.3
s. 132
Part 2.3 -- Retention licences
Division 1 -- General
132. Retention licences
This Part provides for the grant of retention licences over blocks
5 in coastal waters.
Note: A retention licence is designed to allow an exploration licence holder to retain rights
over an area if --
• the holder has identified and evaluated a significant mineral deposit in the
exploration licence area; and
10 • mining the deposit is not commercially viable in the short term; and
• there is a reasonable prospect of development of the deposit in the longer term.
See section 145 for the grounds on which a retention licence may be granted.
133. Activities authorised by a retention licence
(1) Subject to subsections (2) and (3), a retention licence holder
15 may --
(a) explore for minerals in the licence area; and
(b) recover minerals in the licence area.
Note 1: The retention licence may specify a restricted range of activities that are the only ones
authorised by the licence (see section 146(3)).
20 Note 2: Under section 23(1) the concept of "exploration" extends to activities that are directly
related to exploration.
Note 3: Under section 24(1) the concept of "recovery" extends to activities that are directly
related to the recovery of minerals.
Note 4: Under section 38A(3) and (5) the consent of the Minister is required to the carrying
25 out of offshore exploration or mining activities in a marine nature reserve, marine
park or marine management area. Section 38A(7) and (8) also contain provisions
about the disturbance of certain parts of marine nature reserves and restricted areas.
(2) A retention licence does not authorise the recovery of minerals
as part of a commercial mining operation.
page 81
Offshore Minerals Bill 2000
Chapter 2 Regulation of offshore exploration and mining
Part 2.3 Retention licences
s. 134
(3) If the licence is expressed to restrict the kind of minerals
covered by the licence, the holder is not permitted to explore
for, or to recover, minerals not covered by the licence.
(4) A restriction on the kind of minerals covered by the licence may
5 be inclusive (for example, only minerals A, B and C) or
exclusive (for example, all minerals except A, B and C).
(5) For the purposes of subsection (3), the holder does not recover
an excluded mineral if, in the course of exploring for, or
recovering, another mineral, the holder recovers some excluded
10 mineral.
134. Minister may cancel or not renew retention licence without
compensation
No compensation is payable because of the cancellation or
non-renewal of a retention licence by the Minister.
15 Note 1: The Minister may cancel the licence under section 189 or 190.
Note 2: The Minister may refuse under section 165 to renew the licence.
135. Licence rights may be suspended
(1) The Minister must suspend particular rights conferred by a
retention licence if the Minister is satisfied that it is necessary in
20 the public interest to do so.
(2) The Minister may suspend rights under subsection (1) for a
specified period or for an indefinite period.
(3) The Minister may end a suspension at any time.
(4) A suspension or the ending of a suspension must be in writing.
25 (5) If the Minister --
(a) suspends rights conferred by a retention licence; or
page 82
Offshore Minerals Bill 2000
Regulation of offshore exploration and mining Chapter 2
Retention licences Part 2.3
s. 136
(b) ends a suspension,
the Minister must give the licence holder a written notice that
informs the holder of the suspension or the ending of a
suspension.
5 Note: See section 181 for the effect of the suspension on the obligations associated with the
licence.
(6) A suspension takes effect when --
(a) the holder has been given notice of the suspension under
subsection (5); and
10 (b) the suspension has been registered under section 337.
136. Compensation for acquisition of property due to suspension
of rights
(1) If --
(a) the Minister suspends licence rights under section 135;
15 and
(b) the suspension results in the acquisition of property from
a person; and
(c) the State and the person agree on an amount of
compensation for the acquisition,
20 the State must pay the person the agreed amount of
compensation.
(2) If --
(a) the Minister suspends licence rights under section 135;
and
25 (b) the suspension results in the acquisition of property from
a person; and
(c) the State and the person do not agree on an amount of
compensation for the acquisition; and
page 83
Offshore Minerals Bill 2000
Chapter 2 Regulation of offshore exploration and mining
Part 2.3 Retention licences
s. 137
(d) the person brings an action for compensation against the
State in the Supreme Court,
the State must pay the person the amount of compensation (if
any) that is determined by that court.
5 (3) In this section --
"acquisition of property" has the same meaning as it has in
section 51(xxxi) of the Commonwealth Constitution.
Division 2 -- Application for and grant of retention licence
137. Application for retention licence
10 (1) An exploration licence holder may apply to the Minister for a
retention licence over blocks within the exploration licence area.
(2) A person may apply for a retention licence over a group of
blocks only if --
(a) the group forms a discrete area; and
15 (b) there are not more than 20 blocks in the group.
(3) The exploration licence holder may apply for 2 or more
retention licences over different parts of the exploration licence
area.
138. How to apply
20 (1) The application must --
(a) be made in accordance with the approved form; and
(b) be made in the approved manner; and
(c) specify the blocks for which the application is made;
and
page 84
Offshore Minerals Bill 2000
Regulation of offshore exploration and mining Chapter 2
Retention licences Part 2.3
s. 138
(d) include details of --
(i) the reasons why the applicant is applying for a
retention licence rather than a mining licence;
and
5 (ii) the mineral deposit that the applicant has
identified and evaluated and that the applicant
believes is commercially viable in the longer
term; and
(iii) the applicant's assessment of the present and
10 potential commercial viability of the mineral
deposit; and
(iv) the overall work programme that the applicant has
already carried out under the exploration licence on
the blocks covered by the application; and
15 (v) the amount of money that the applicant has
already spent under the exploration licence on
and in connection with the blocks covered by the
application; and
(vi) the activities that the applicant intends to carry
20 out on the blocks covered by the application; and
(vii) the amount of money that the applicant intends to
spend on and in connection with those activities;
and
(viii) the technical qualifications of the applicant and
25 of the applicant's employees who are likely to be
involved in activities authorised by the licence;
and
(ix) the technical advice available to the applicant;
and
30 (x) the financial resources available to the applicant;
and
page 85
Offshore Minerals Bill 2000
Chapter 2 Regulation of offshore exploration and mining
Part 2.3 Retention licences
s. 139
(e) be accompanied by maps that --
(i) relate to the blocks; and
(ii) comply with the regulations;
and
5 (f) specify an address for service of notices under this Act
and the regulations.
Note: For paragraphs (a) and (b) see section 41.
(2) The mineral deposit details given under subsection (1)(d)(ii)
must include --
10 (a) a full description of the mineral deposit; and
(b) both factual information about the deposit and the
applicant's interpretation of the factual information.
(3) The applicant may include in the application any other
information that the applicant thinks is relevant.
15 139. Payment of fee
(1) The applicant must pay the application fee prescribed by the
regulations.
(2) The fee must be paid when the application is made.
(3) The Minister may refund any fee paid under subsection (1) but
20 only if the Minister is satisfied that special circumstances exist
that justify the refund of the fee.
140. Application must be advertised
(1) The applicant must advertise the application in a newspaper
circulating throughout the State.
25 (2) The advertisement must contain --
(a) the applicant's name and address; and
page 86
Offshore Minerals Bill 2000
Regulation of offshore exploration and mining Chapter 2
Retention licences Part 2.3
s. 141
(b) a map and description of the blocks applied for that are
sufficient for the blocks to be identified; and
(c) the address of the Minister; and
(d) a statement that --
5 (i) advises that the applicant has applied for a
retention licence for the blocks described in the
notice; and
(ii) invites comment from the public on the
application; and
10 (iii) requests that comments be sent to the applicant
and the Minister within 30 days after the day on
which the advertisement is published.
(3) The advertisement must be published --
(a) as soon as possible after the applicant makes the
15 application; and
(b) in any case, subject to subsection (4), within 14 days
after the day on which the applicant makes the
application.
(4) If --
20 (a) the applicant applies to the Minister within the 14 day
period referred to in subsection (3) for an extension of
the period; and
(b) the Minister extends the period,
the advertisement must be published within the period as
25 extended by the Minister.
141. Request for further information
(1) The Minister may ask the applicant for further information
about the application.
page 87
Offshore Minerals Bill 2000
Chapter 2 Regulation of offshore exploration and mining
Part 2.3 Retention licences
s. 142
(2) The request must --
(a) be in writing; and
(b) be given to the applicant; and
(c) specify the time within which the information must be
5 provided.
(3) Information requested under subsection (1) must be provided --
(a) in writing; and
(b) within the time specified in the request.
142. Section number not used
10 See note 2 to section 3(1).
143. Minister may provisionally grant licence
If the applicant does what is required by sections 138 to 141, the
Minister may --
(a) subject to section 145, provisionally grant a retention
15 licence to the applicant; or
(b) refuse the application.
Note: Under section 154, the grant of the licence cannot be effective before it is registered
(see section 333 for registration). The grant will not be registered until it has been
properly accepted (see section 151 for "proper acceptance").
20 144. Section number not used
See note 2 to section 3(1).
145. Grounds for granting retention licence
(1) The Minister may provisionally grant the retention licence only
if the Minister is satisfied that --
25 (a) the exploration licence holder has identified and
evaluated a significant mineral deposit in the exploration
licence area; and
page 88
Offshore Minerals Bill 2000
Regulation of offshore exploration and mining Chapter 2
Retention licences Part 2.3
s. 146
(b) there are reasonable grounds for the holder not applying
immediately for a mining licence.
(2) Without limiting subsection (1), reasonable grounds for not
applying immediately for a mining licence include the
5 following --
(a) the need to obtain government approvals (for example,
relating to environmental protection) before mining
activities can commence;
(b) the need to carry out further exploration or evaluation in
10 order to establish the commercial viability of a mineral
deposit found in the licence area;
(c) the need to develop technologies before mining
activities can commence;
(d) the need to arrange finance, or to secure additional
15 capital reserves, before mining activities can commence;
(e) the existence of economic considerations (for example,
the prevailing condition of the commodity market for
the minerals concerned) that effectively preclude mining
activities in the immediate future;
20 (f) the existence of political considerations that effectively
preclude mining activities in the immediate future.
146. Matters to be specified in the licence
(1) The licence must specify --
(a) the blocks covered by the licence; and
25 (b) the term of the licence; and
(c) the licence conditions.
(2) The term specified under subsection (1)(b) is not to exceed
5 years.
page 89
Offshore Minerals Bill 2000
Chapter 2 Regulation of offshore exploration and mining
Part 2.3 Retention licences
s. 147
(3) The licence may specify the activities that may be carried out
under the licence.
(4) If the licence includes a specification under subsection (3), the
licence authorises only the specified activities.
5 147. Applicant must be notified
(1) The Minister must give the applicant written notice of a
decision under section 143.
(2) If the Minister provisionally grants a retention licence --
(a) the Minister must give the licence to the provisional
10 holder; and
(b) the notice under subsection (1) must contain the
following information --
(i) notification of any determination under
section 399 that the provisional holder must
15 lodge a security;
(ii) notification that the provisional grant will lapse
unless the provisional holder, before the end of
the primary payment period --
(I) gives the Minister a written acceptance
20 of the grant; and
(II) lodges any security required under
section 399; and
(III) pays the fee that must be paid for the
licence under section 425.
25 148. Amendment of conditions
(1) If the provisional holder is dissatisfied with a licence condition,
the provisional holder may ask the Minister to amend the
condition.
page 90
Offshore Minerals Bill 2000
Regulation of offshore exploration and mining Chapter 2
Retention licences Part 2.3
s. 149
(2) The request must be made within 30 days after the day on which
the provisional holder is given the licence under section 147.
(3) If a request is made under subsection (1), the Minister may
amend the licence condition and, with the consent of the
5 provisional holder, any other licence condition.
(4) The Minister must give the provisional holder written notice of
a decision under this section.
149. Amendment of security requirements
(1) If the provisional holder --
10 (a) is notified of a security requirement; and
(b) is dissatisfied with the amount of the security required,
the provisional holder may ask the Minister to make a new
determination under section 399.
(2) The request must be made within 30 days after the day on which
15 the provisional holder is given notice under section 147.
(3) If a request is made under subsection (1), the Minister may
make a new determination under section 399.
(4) The Minister must give the provisional holder written notice of
the new determination.
20 150. Extension of primary payment period
(1) If the provisional holder makes a request under section 148 or
149, the provisional holder may ask the Minister to extend the
primary payment period.
(2) The request must be made within 30 days after the day on which
25 the provisional holder is given notice under section 147.
page 91
Offshore Minerals Bill 2000
Chapter 2 Regulation of offshore exploration and mining
Part 2.3 Retention licences
s. 151
(3) If the Minister agrees to the request, the Minister must --
(a) determine the period of the extension; and
(b) give the provisional holder a written notice of the period
of the extension.
5 151. Acceptance of grant of retention licence
(1) The provisional grant of a retention licence is properly accepted
by the provisional holder if, before the required time, the
provisional holder --
(a) gives the Minister a written acceptance of the grant; and
10 (b) lodges any security required under section 399; and
(c) pays the fee that must be paid for the licence under
section 425.
(2) The required time under subsection (1) is the end of the primary
payment period or, if the provisional holder has been granted an
15 extension of the primary payment period under section 150, the
end of the secondary payment period.
Note: Under section 154, the grant of the licence cannot be effective before the grant is
registered (see section 333 for registration).
152. Conditions applicable to licence on grant
20 If the provisional grant of the licence is properly accepted under
section 151, it is subject to --
(a) the conditions specified in the licence given to the
applicant under section 147; or
(b) if the Minister amended those conditions under
25 section 148, those conditions as amended.
153. Lapse of provisional grant of retention licence
If the provisional grant of the licence is not properly accepted
under section 151, the provisional grant lapses.
page 92
Offshore Minerals Bill 2000
Regulation of offshore exploration and mining Chapter 2
Retention licences Part 2.3
s. 154
Division 3 -- Duration of retention licence
154. Initial term of retention licence
(1) A retention licence comes into force on --
(a) the day on which the grant of the licence is registered; or
5 (b) if a day later than the day on which the grant of the
licence is registered is specified in the licence as its
commencement day, that specified day.
(2) The initial term of a retention licence expires at the end of the
period specified in the licence under section 146(1).
10 Note 1: For the maximum initial term see section 146(2).
Note 2: The licence may be surrendered at any time (see section 187).
(3) The period runs from --
(a) the day on which the licence is provisionally granted; or
(b) if a day later than the day on which the licence is
15 provisionally granted is specified in the licence as its
commencement day, that specified day.
155. Term of renewal of licence
(1) A renewal of a retention licence comes into force on --
(a) the day on which the renewal is registered; or
20 (b) the day on which the previous term of the licence
expires,
whichever is the later.
Note: See Division 5 for renewal.
(2) The term of a renewal of a licence expires at the end of the
25 period specified in the notice under section 169.
Note 1: For the maximum term of renewal see section 169(3).
Note 2: The licence may be surrendered at any time (see section 187).
page 93
Offshore Minerals Bill 2000
Chapter 2 Regulation of offshore exploration and mining
Part 2.3 Retention licences
s. 156
(3) The period runs from the expiry of the previous term of the
licence.
(4) In working out the period referred to in subsection (3)
section 156 is to be disregarded.
5 156. Effect of application for renewal on term of retention licence
If --
(a) a retention licence holder applies to renew the licence
under section 159; and
(b) the current term of the licence expires; and
10 (c) a renewal of the licence does not take effect immediately
after the current term expires,
the licence remains in force after the current term expires
until --
(d) a renewal of the licence takes effect; or
15 (e) a provisional renewal of the licence lapses; or
(f) the application for renewal is withdrawn or refused.
157. Effect of application for mining licence on term of retention
licence
If --
20 (a) a retention licence holder applies for a mining licence
over the licence area, or part of the licence area, of the
retention licence; and
(b) the current term of the retention licence expires; and
(c) a grant of the mining licence does not take effect before
25 the current term of the retention licence expires,
the retention licence remains in force until --
(d) the grant of the mining licence takes effect; or
page 94
Offshore Minerals Bill 2000
Regulation of offshore exploration and mining Chapter 2
Retention licences Part 2.3
s. 158
(e) a provisional grant of the mining licence lapses; or
(f) the application for the mining licence is withdrawn or
refused.
Division 4 -- Voluntary surrender of part of retention licence area
5 158. Voluntary surrender of blocks if discrete area remains
(1) A retention licence holder may surrender a block or some of the
blocks covered by the licence if the remaining blocks in the
licence area form a discrete area.
Note: See section 187 for the surrender of the whole licence.
10 (2) A surrender under subsection (1) must --
(a) be made in writing; and
(b) identify the blocks surrendered; and
(c) be given to the Minister.
Note: The surrender takes effect when it is registered under section 337 (see section 337(5)).
15 Division 5 -- Application for and grant of renewal of
retention licence
159. Application for renewal of retention licence
A retention licence holder may apply to the Minister to renew
the licence.
20 Note: At each renewal, the licence conditions are reviewed (see section 177).
160. When application to be made
(1) Subject to subsection (2), the application must be made at least
6 months before the day on which the licence is to expire.
(2) The Minister may accept an application that is made later than
25 6 months before the day on which the licence is to expire if --
(a) the application is made before the day on which the
licence expires; and
page 95
Offshore Minerals Bill 2000
Chapter 2 Regulation of offshore exploration and mining
Part 2.3 Retention licences
s. 161
(b) the Minister believes that there are reasonable grounds
for accepting the application.
161. How to apply for renewal
(1) The application must --
5 (a) be made in accordance with the approved form; and
(b) be made in the approved manner; and
(c) include details of --
(i) the reasons why the applicant is applying to
renew the retention licence rather than applying
10 for a mining licence; and
(ii) the activities carried out by the applicant under
the licence during its current term; and
(iii) the amount of money spent by the applicant in
relation to the blocks covered by the licence
15 during its current term; and
(iv) the results obtained by the applicant from
carrying out the activities referred to in
subparagraph (ii); and
(v) the activities that the applicant intends to carry out
20 under the licence during the term applied for; and
(vi) the amount of money that the applicant intends to
spend in relation to activities authorised by the
licence during the term applied for.
Note: For paragraphs (a) and (b) see section 41.
25 (2) The applicant may include in the application any other
information that the applicant thinks is relevant.
162. Request for further information
(1) The Minister may ask the applicant to provide further
information relating to the application.
page 96
Offshore Minerals Bill 2000
Regulation of offshore exploration and mining Chapter 2
Retention licences Part 2.3
s. 163
(2) The request must --
(a) be in writing; and
(b) be given to the applicant; and
(c) specify the time within which the information must be
5 provided.
(3) Information requested under subsection (1) must be provided --
(a) in writing; and
(b) within the time specified in the request.
163. Payment of fee
10 (1) The applicant must pay the application fee prescribed by the
regulations.
(2) The fee must be paid when the application is made.
(3) The Minister may refund any fee paid under subsection (1) but
only if the Minister is satisfied that special circumstances exist
15 that justify the refund of the fee.
164. Section number not used
See note 2 to section 3(1).
165. Provisional renewal of retention licence
The Minister may --
20 (a) provisionally renew the licence; or
(b) subject to section 168, refuse to renew the licence.
Note 1: Under section 155, the renewal of the licence cannot be effective before it is
registered (see section 334 for registration). The renewal will not be registered until it
has been properly accepted (see section 173 for "proper acceptance").
25 Note 2: Under section 177, new conditions may be imposed on renewal.
page 97
Offshore Minerals Bill 2000
Chapter 2 Regulation of offshore exploration and mining
Part 2.3 Retention licences
s. 166
166. Section number not used
See note 2 to section 3(1).
167. Matters that may be taken into account
In determining whether to renew the licence, the Minister may
5 have regard to --
(a) whether mining activities are commercially viable in the
retention licence area; and
(b) whether the applicant has complied with --
(i) this Act; and
10 (ii) the regulations; and
(iii) any licence conditions.
168. Refusal of application for renewal
(1) If the Minister proposes to refuse to renew the licence, the
Minister must give the applicant notice of the proposed refusal.
15 Note: The retention licence remains in force until the application for renewal has been
finally determined (i.e. until the Minister decides whether or not to renew the
licence) (see section 156).
(2) The notice must --
(a) be in writing; and
20 (b) give details of the Minister's reasons for the proposal
not to renew the licence; and
(c) invite the applicant to make written submissions on the
proposed non-renewal to the Minister; and
(d) specify the day by which submissions may be made to
25 the Minister.
(3) The day specified under subsection (2)(d) is to be at least
30 days after the day on which the notice under subsection (1) is
given to the applicant.
page 98
Offshore Minerals Bill 2000
Regulation of offshore exploration and mining Chapter 2
Retention licences Part 2.3
s. 169
(4) The Minister, in deciding whether to refuse to renew the
licence, must have regard to any submissions made by the
applicant in response to the notice under subsection (1).
169. Applicant must be notified
5 (1) The Minister must give the applicant written notice of the
Minister's decision under section 165.
(2) If the Minister provisionally renews the licence under
section 165, the notice must contain the following
information --
10 (a) notification of the term of the renewal;
(b) notification of the conditions of the renewed licence;
(c) notification of any determination under section 399 that
the applicant must lodge a security or a further security;
(d) notification that the provisional renewal will lapse
15 unless the applicant, before the end of the primary
payment period --
(i) gives the Minister a written acceptance of the
renewal; and
(ii) lodges any security required under section 399;
20 and
(iii) pays the fee that must be paid under section 425.
Note: Paragraph (b): section 177 provides for renewals to be granted subject to conditions.
(3) The term specified under subsection (2)(a) is not to exceed
5 years.
25 170. Amendment of conditions
(1) If the licence holder --
(a) has been provisionally granted a renewal of the licence
under section 165; and
page 99
Offshore Minerals Bill 2000
Chapter 2 Regulation of offshore exploration and mining
Part 2.3 Retention licences
s. 171
(b) is notified of the licence conditions; and
(c) is dissatisfied with a condition,
the holder may ask the Minister to amend the condition.
(2) The request must be made within 30 days after the day on which
5 the applicant is given notice under section 169.
(3) If a request is made under subsection (1), the Minister may
amend the licence conditions and, with the consent of the
holder, any other licence condition.
(4) The Minister must give the holder written notice of a decision
10 under this section.
171. Amendment of security requirements
(1) If the licence holder --
(a) has been provisionally granted a renewal of the licence
under section 165; and
15 (b) is notified of a security requirement; and
(c) is dissatisfied with the amount of the security required,
the holder may ask the Minister to make a new determination
under section 399.
(2) The request must be made within 30 days after the day on which
20 the holder is given notice under section 169.
(3) If a request is made under subsection (1), the Minister may
make a new determination under section 399.
(4) The Minister must give the holder written notice of the new
determination.
25 172. Extension of primary payment period
(1) If the licence holder makes a request under section 170 or 171,
the holder may ask the Minister to extend the primary payment
period.
page 100
Offshore Minerals Bill 2000
Regulation of offshore exploration and mining Chapter 2
Retention licences Part 2.3
s. 173
(2) The request must be made within 30 days after the day on which
the holder is given notice under section 169.
(3) If the Minister agrees to the request to extend the primary
payment period, the Minister must --
5 (a) determine the period of the extension; and
(b) give the holder a written notice informing the holder of
the period of the extension.
173. Acceptance of renewal of retention licence
(1) The provisional renewal of a retention licence is properly
10 accepted by the licence holder if, before the required time, the
holder --
(a) gives the Minister a written acceptance of the renewal;
and
(b) lodges any security required under section 399; and
15 (c) pays the fee that must be paid under section 425.
(2) The required time under subsection (1) is the end of the primary
payment period or, if the licence holder has been granted an
extension of the primary payment period under section 172, the
end of the secondary payment period.
20 Note: Under section 155, the renewal of the licence cannot be effective before it is
registered (see section 334 for registration).
174. Conditions applicable to licence on renewal
If the provisional renewal is properly accepted under
section 173, the renewed licence is subject to --
25 (a) the conditions specified in the notice given to the licence
holder under section 169; or
(b) if the Minister amended those conditions under
section 170, those conditions as amended.
page 101
Offshore Minerals Bill 2000
Chapter 2 Regulation of offshore exploration and mining
Part 2.3 Retention licences
s. 175
175. Lapse of provisional renewal of retention licence
If the provisional renewal of a retention licence is not properly
accepted under section 173, the provisional renewal lapses.
Division 6 -- Obligations associated with retention licence
5 176. General
(1) The sources of obligations associated with a retention licence
are --
(a) the licence conditions; and
(b) obligations arising from directions under section 387 or
10 392 given by the Minister; and
(c) obligations imposed by this Act and the regulations.
Note: For paragraph (a) see section 177. For paragraph (c) see sections 44, 177 to 185, 372
and 391(1).
(2) If a retention licence has 2 or more holders, all the holders are
15 jointly and severally bound by the obligations that attach to the
licence.
177. Conditions of retention licence
(1) The Minister may grant or renew a retention licence subject to
whatever conditions the Minister thinks appropriate.
20 (2) If the Minister grants or renews a retention licence subject to
conditions, the conditions must be specified in the licence.
(3) Without limiting subsection (1), the Minister may attach the
following kinds of conditions to the grant or renewal of a
retention licence --
25 (a) a condition requiring the licence holder to take out
insurance as required by the Minister;
page 102
Offshore Minerals Bill 2000
Regulation of offshore exploration and mining Chapter 2
Retention licences Part 2.3
s. 177
(b) a condition requiring the holder to carry out certain
activities in or in relation to the licence area during the
term of the licence;
(c) a condition requiring the holder to spend a specified
5 amount of money in carrying out the activities referred
to in paragraph (b);
(d) a condition requiring the holder to lodge a security with
the Minister;
(e) a condition requiring the holder to keep specified
10 information;
(f) a condition requiring the holder to give the Minister, on
request, specified information;
(g) a condition requiring the holder to take steps to protect
the environment of the licence area, including conditions
15 relating to --
(i) protecting wildlife; or
(ii) minimising the effect on the environment of the
licence area and the area surrounding the licence
area of activities carried out in the licence area;
20 (h) a condition requiring the holder to repair any damage to
the environment caused by activities in the licence area;
(i) a condition requiring the holder to pay a specified
penalty to the State if the holder does not comply with a
licence condition.
25 (4) A condition under subsection (3)(d) must specify --
(a) the amount of the security required; and
(b) the kind of security required; and
(c) the manner and form in which the security is to be
lodged.
page 103
Offshore Minerals Bill 2000
Chapter 2 Regulation of offshore exploration and mining
Part 2.3 Retention licences
s. 178
(5) Without limiting subsection (3)(d), a condition under that
provision may require the lodgment of a security in the form of
a guarantee and if a guarantee is required the condition may
specify --
5 (a) the kind of person who is to give the guarantee; and
(b) the terms of the guarantee.
178. No conditions requiring payment of money
Except for a condition requiring the payment of a penalty or
lodgment of a security, a licence condition must not require the
10 payment of money to the State.
179. Variation of conditions
(1) If --
(a) a retention licence holder requests the Minister in
writing to vary a licence condition; or
15 (b) part of the licence area of a retention licence is
surrendered under section 158,
the Minister may vary a licence condition.
(2) If a Minister gives --
(a) a direction under section 387; or
20 (b) an approval, consent or exemption under the regulations,
to a retention licence holder, the Minister may vary a licence
condition to the extent necessary to avoid inconsistency
between the licence conditions and the direction, approval,
consent or exemption.
25 (3) The Minister may vary a licence condition subject to whatever
conditions the Minister thinks appropriate.
page 104
Offshore Minerals Bill 2000
Regulation of offshore exploration and mining Chapter 2
Retention licences Part 2.3
s. 180
(4) If the Minister varies a licence condition, the Minister must give
the licence holder a written notice that --
(a) informs the holder of the variation; and
(b) specifies the conditions which have been varied; and
5 (c) specifies any conditions to which the variation is
subject.
180. Exemption from or suspension of conditions
(1) If --
(a) a retention licence holder requests the Minister in
10 writing to --
(i) suspend a licence condition; or
(ii) exempt the holder from complying with a licence
condition;
or
15 (b) part of the licence area of a retention licence is
surrendered under section 158,
the Minister may --
(c) suspend a licence condition; or
(d) exempt the holder from complying with a licence
20 condition.
(2) If the Minister gives --
(a) a direction under section 387; or
(b) an approval, consent or exemption under the regulations,
to a retention licence holder, the Minister may suspend a licence
25 condition, or exempt the holder from compliance with a licence
condition, to the extent necessary to avoid inconsistency
between the licence conditions and the direction, approval,
consent or exemption.
page 105
Offshore Minerals Bill 2000
Chapter 2 Regulation of offshore exploration and mining
Part 2.3 Retention licences
s. 181
(3) The Minister may --
(a) suspend a licence condition; or
(b) exempt the licence holder from compliance with a
licence condition,
5 subject to whatever conditions the Minister thinks appropriate.
(4) If the Minister --
(a) suspends a licence condition; or
(b) exempts the licence holder from complying with a
licence condition,
10 the Minister must give the holder a written notice that --
(c) informs the holder of the exemption or suspension; and
(d) specifies the conditions which have been suspended or
affected by the exemption; and
(e) specifies any conditions to which the suspension or
15 exemption is subject.
Note: A suspension or exemption of a condition does not take effect until registered (see
section 337).
181. Automatic suspension of conditions if licence rights are
suspended
20 If --
(a) the Minister suspends particular rights conferred by a
retention licence under section 135; and
(b) a licence condition is affected by the suspension,
the licence condition is suspended for the period of the
25 suspension of the rights.
page 106
Offshore Minerals Bill 2000
Regulation of offshore exploration and mining Chapter 2
Retention licences Part 2.3
s. 182
182. Significant changes in circumstances to be reported to
Minister
(1) A retention licence holder must notify the Minister of any
change of circumstances that significantly affects the long term
5 viability of mining activities in the retention licence area.
Note: The Minister may cancel the retention licence if the Minister believes that
circumstances have changed so that mining activities can now commence (see
section 190).
(2) Subsection (1) applies to a change of circumstances whether
10 favourable or unfavourable to the long term viability of mining
activities in the retention licence area.
183. Work practices
A person who is a retention licence holder, or an associate of the
holder, in carrying out activities in the licence area that are
15 authorised by the licence, must take all reasonable steps --
(a) to ensure that the activities are carried out at a standard
that is accepted as reasonable and proper in the mining
industry; and
(b) to maintain in good repair all structures and equipment
20 erected in, or brought into, the licence area by the
person; and
(c) to remove from the licence area any structure,
equipment or other property that --
(i) belongs to the person, or is under the person's
25 control; and
(ii) is not being used, or is not going to be used, in
connection with the activities.
Maximum penalty: $20 000.
Note 1: The safety of offshore exploration and mining activities is governed by the Mines
30 Safety and Inspection Act 1994 -- see the definition of "exploration operations" and
page 107
Offshore Minerals Bill 2000
Chapter 2 Regulation of offshore exploration and mining
Part 2.3 Retention licences
s. 184
paragraphs (a) and (j) of the definition of "mining operations" in section 4(1) of that
Act.
Note 2: Under section 38A(3) and (5) the consent of the Minister is required to the carrying
out of offshore exploration or mining activities in a marine nature reserve, marine
5 park or marine management area. Section 38A(7) and (8) also contain provisions
about the disturbance of certain parts of marine nature reserves and restricted areas.
184. Licence holder must keep specified records etc.
A retention licence holder must --
(a) keep whatever records and samples; and
10 (b) give whatever records and samples to the Minister for
inspection; and
(c) make whatever returns,
are necessary to comply with --
(d) the regulations; or
15 (e) the licence conditions; or
(f) a direction given by the Minister under section 387.
Note: Under sections 386 and 387 the Minister may direct a person to keep records and
samples and to give records and samples to the Minister, and to make returns.
Maximum penalty: $10 000.
20 185. Licence holder must assist inspectors
A retention licence holder must provide an inspector with
reasonable facilities and assistance so that the inspector is able
to carry out compliance inspections.
Note: See sections 377 to 384 for compliance inspections.
25 Maximum penalty: $5 000.
page 108
Offshore Minerals Bill 2000
Regulation of offshore exploration and mining Chapter 2
Retention licences Part 2.3
s. 186
Division 7 -- Expiry of retention licence
186. General
A retention licence expires if --
(a) the term of the licence ends without the licence being
5 renewed; or
(b) the licence holder surrenders the licence; or
(c) a mining licence is granted over the blocks in the licence
area of the retention licence; or
(d) the licence is cancelled.
10 Note: For paragraph (a) see Division 5. For paragraph (b) see section 187. For paragraph (c)
see section 188. For paragraph (d) see sections 189 and 190.
187. Voluntary surrender of retention licence
A retention licence holder may surrender the licence.
Note 1: See Division 4 for voluntary surrender of part of a licence area.
15 Note 2: The surrender takes effect when it is registered under section 337 (see section 337(5)).
188. Automatic expiry of retention licence when mining licence
takes effect
If --
(a) a retention licence is in force; and
20 (b) a mining licence over all or some of the blocks in the
retention licence area comes into force under
section 232,
the retention licence expires in relation to the blocks covered by
the mining licence.
page 109
Offshore Minerals Bill 2000
Chapter 2 Regulation of offshore exploration and mining
Part 2.3 Retention licences
s. 189
189. Cancellation of retention licence, breach of condition etc.
(1) Subject to subsection (5), the Minister may cancel a retention
licence if the licence holder --
(a) breaches a licence condition; or
5 (b) contravenes a provision of this Act or the regulations; or
(c) breaches a condition attached to an approval under
section 365(2).
(2) If the Minister proposes to cancel a licence under subsection (1),
the Minister must give the holder a written notice that informs
10 the holder of the proposed cancellation.
(3) The notice must --
(a) specify the reason for the proposed cancellation; and
(b) invite the holder to make submissions in relation to the
proposed cancellation; and
15 (c) specify the day by which submissions may be made to
the Minister; and
(d) specify an address where submissions are to be lodged.
(4) The day specified under subsection (3)(c) must be not less than
60 days after the day on which the notice is given.
20 (5) The Minister may cancel the licence only if --
(a) the holder has been given a notice under subsection (2);
and
(b) the Minister has considered --
(i) any submission made by the holder in
25 accordance with subsection (3); and
(ii) any steps taken by the holder to remedy the
breach or contravention that led to the proposal
page 110
Offshore Minerals Bill 2000
Regulation of offshore exploration and mining Chapter 2
Retention licences Part 2.3
s. 190
to cancel the licence and to prevent any similar
breach or contravention from happening again;
and
(c) the Minister is satisfied that no special circumstances
5 exist that justify the licence not being cancelled.
190. Cancellation of retention licence, mining activities viable
(1) If the Minister believes that mining activities should commence
in a retention licence area, the Minister must ask the licence
holder to explain to the Minister why the holder should not
10 apply for a mining licence over the retention licence area.
(2) A request under subsection (1) must --
(a) be in writing; and
(b) specify the day by which the holder is to give the
explanation to the Minister.
15 (3) The day specified under subsection (2)(b) is to be at least
30 days after the day on which the request is given to the holder.
(4) An explanation provided in response to a request under
subsection (1) must be in writing.
(5) The Minister may cancel the retention licence if --
20 (a) a request is made under subsection (1); and
(b) either --
(i) the holder does not give the Minister an
explanation in response to the request by the day
specified in the request; or
25 (ii) the holder gives the Minister an explanation in
response to the request but the Minister does not
consider the explanation to be satisfactory.
page 111
Offshore Minerals Bill 2000
Chapter 2 Regulation of offshore exploration and mining
Part 2.3 Retention licences
s. 191
(6) If the Minister cancels a retention licence under subsection (5),
the Minister may specify the day on which the cancellation
takes effect.
(7) Without limiting subsection (6), the Minister, in determining the
5 day on which the cancellation is to take effect, may have regard
to the time needed by the holder to obtain the grant of a mining
licence over the retention licence area.
191. Obligations of former retention licence holders and former
associates
10 (1) Subject to subsection (4), if --
(a) a person was --
(i) a retention licence holder; or
(ii) an associate of a retention licence holder;
and
15 (b) the licence --
(i) expires; or
(ii) is cancelled; or
(iii) is surrendered;
and
20 (c) an obligation associated with the licence arising out
of --
(i) a licence condition; or
(ii) a direction given under section 387; or
(iii) this Act or the regulations,
25 has not been discharged; and
page 112
Offshore Minerals Bill 2000
Regulation of offshore exploration and mining Chapter 2
Retention licences Part 2.3
s. 191
(d) the person was bound by that obligation when the
person was the licence holder or an associate,
the person remains bound by the obligation until the obligation
is discharged.
5 (2) Subsection (1) does not continue an obligation to carry out
exploration or recovery activities.
(3) Subsection (1) continues an obligation that a person had to carry
out exploration or recovery activities in a particular manner if
the person carries them out.
10 (4) The Minister may determine that the person is not subject to --
(a) any particular obligation under this section; or
(b) all the person's remaining obligations under this section.
(5) A determination under subsection (4) is to be in writing.
page 113
Offshore Minerals Bill 2000
Chapter 2 Regulation of offshore exploration and mining
Part 2.4 Mining licences
s. 192
Part 2.4 -- Mining licences
Division 1 -- General
192. Mining licences
(1) This Part provides for the grant of mining licences over blocks
5 in coastal waters.
(2) A mining licence may be granted over --
(a) a vacant standard block (see Division 2); or
(b) certain blocks that are not vacant (see Division 2); or
(c) a tender block (see Division 3).
10 Note 1: A tender block is a block that has been declared available for tender. A standard block
is any other block (see sections 19 and 20).
Note 2: A retention or exploration licence holder may apply for a mining licence over the
same area or part of the same area.
Note 3: Section 38A(2) requires the consent of Parliament to be obtained to the provisional
15 grant under section 206, 225 or 231 of a mining licence over a marine nature reserve
or a marine park.
193. Activities authorised by a mining licence
(1) Subject to subsection (2), a mining licence holder may --
(a) recover minerals in the licence area; and
20 (b) explore for minerals in the licence area.
Note 1: Under section 23(1) the concept of "exploration" extends to activities that are directly
related to exploration.
Note 2: Under section 24(1) the concept of "recovery" extends to activities that are directly
related to the recovery of minerals.
25 Note 3: Under section 38A(3) and (5) the consent of the Minister is required to the carrying
out of offshore exploration or mining activities in a marine nature reserve, marine
park or marine management area. Section 38A(7) and (8) also contain provisions
about the disturbance of certain parts of marine nature reserves and restricted areas.
page 114
Offshore Minerals Bill 2000
Regulation of offshore exploration and mining Chapter 2
Mining licences Part 2.4
s. 194
(2) If the licence is expressed to restrict the kind of minerals
covered by the licence, the holder is not permitted to recover, or
to explore for, minerals not covered by the licence.
(3) A restriction on the kind of minerals covered by the licence may
5 be inclusive (for example, only minerals A, B and C) or
exclusive (for example, all minerals except A, B and C).
(4) For the purposes of subsection (2), the holder does not recover
an excluded mineral if, in the course of recovering, or exploring
for, another mineral, the holder recovers some excluded
10 mineral.
194. Minister may cancel or not renew mining licence without
compensation
No compensation is payable because of the cancellation or
non-renewal of a mining licence by the Minister.
15 Note 1: The Minister may cancel the licence under section 265.
Note 2: The Minister may refuse under section 242 to renew the licence.
195. Licence rights may be suspended
(1) The Minister must suspend particular rights conferred by a
mining licence if the Minister is satisfied that it is necessary in
20 the public interest to do so.
(2) The Minister may suspend rights under subsection (1) for a
specified period or for an indefinite period.
(3) The Minister may end a suspension at any time.
(4) A suspension or the ending of a suspension must be in writing.
25 (5) If the Minister --
(a) suspends rights conferred by a mining licence; or
page 115
Offshore Minerals Bill 2000
Chapter 2 Regulation of offshore exploration and mining
Part 2.4 Mining licences
s. 196
(b) ends a suspension,
the Minister must give the licence holder a written notice that
informs the holder of the suspension or the ending of a
suspension.
5 Note: See section 258 for the effect of the suspension on the obligations associated with the
licence.
(6) A suspension takes effect when --
(a) the holder has been given notice of the suspension under
subsection (5); and
10 (b) the suspension has been registered under section 337.
196. Compensation for acquisition of property due to suspension
of rights
(1) If --
(a) the Minister suspends licence rights under section 195;
15 and
(b) the suspension results in the acquisition of property from
a person; and
(c) the State and the person agree on an amount of
compensation for the acquisition,
20 the State must pay the person the agreed amount of
compensation.
(2) If --
(a) the Minister suspends licence rights under section 195;
and
25 (b) the suspension results in the acquisition of property from
a person; and
(c) the State and the person do not agree on an amount of
compensation for the acquisition; and
page 116
Offshore Minerals Bill 2000
Regulation of offshore exploration and mining Chapter 2
Mining licences Part 2.4
s. 197
(d) the person brings an action for compensation against the
State in the Supreme Court,
the State must pay the person the amount of compensation (if
any) that is determined by that court.
5 (3) In this section --
"acquisition of property" has the same meaning as it has in
section 51(xxxi) of the Commonwealth Constitution.
Division 2 -- Application for and grant of mining licence
over standard blocks
10 197. Application for mining licence over vacant standard block
(1) A person may apply to the Minister for a mining licence over a
standard block that is vacant.
(2) A standard block is vacant if no exploration, retention or mining
licence is in force over the block.
15 (3) The application must not cover more than 20 blocks.
(4) If the application is for a licence over a group of blocks, the
blocks must form a discrete area.
198. Holder of exploration licence or retention licence may apply
for mining licence
20 (1) An exploration or retention licence holder may apply to the
Minister for a mining licence over all or some of the blocks in
the licence area of the exploration or retention licence.
(2) A person may apply for a mining licence under subsection (1)
over a group of blocks only if --
25 (a) the group forms a discrete area; and
(b) there are not more than 20 blocks in the group.
page 117
Offshore Minerals Bill 2000
Chapter 2 Regulation of offshore exploration and mining
Part 2.4 Mining licences
s. 199
(3) The holder may apply for 2 or more mining licences over
different parts of the licence area of the exploration or retention
licence.
199. How to apply
5 (1) An application under section 197 or 198 must --
(a) be made in accordance with the approved form; and
(b) be made in the approved manner; and
(c) specify the blocks for which the application is made;
and
10 (d) include details of --
(i) the activities that the applicant intends to carry
out on the block or blocks covered by the
application; and
(ii) the amount of money that the applicant intends to
15 spend on those activities; and
(iii) the technical qualifications of the applicant and
of the applicant's employees who are likely to be
involved in activities authorised by the licence;
and
20 (iv) the technical advice available to the applicant;
and
(v) the financial resources available to the applicant;
and
(vi) if the licence is to be held by more than one
25 person, the share of the licence that each
prospective holder will hold;
and
(e) be accompanied by maps that --
(i) relate to the blocks; and
page 118
Offshore Minerals Bill 2000
Regulation of offshore exploration and mining Chapter 2
Mining licences Part 2.4
s. 200
(ii) comply with the regulations;
and
(f) specify an address for service of notices under this Act
and the regulations.
5 Note: For paragraphs (a) and (b) see section 41.
(2) The applicant may include in the application any other
information that the applicant thinks is relevant.
200. Effect of inclusion of unavailable block in application
If --
10 (a) a person applies under section 197 or 198 for a licence
over a group of blocks; and
(b) because of section 18, 197 or 198 a mining licence
cannot be granted over one or more of the blocks in the
group,
15 the Minister may still deal with the application to the extent to
which the application covers blocks for which a mining licence
can be granted.
Note: A mining licence cannot be granted over a block that is not vacant or over a reserved
block (see section 18).
20 201. Payment of fee
(1) The applicant must pay the application fee prescribed by the
regulations.
(2) The fee must be paid when the application is made.
(3) The Minister may refund any fee paid under subsection (1) but
25 only if the Minister is satisfied that special circumstances exist
that justify the refund of the fee.
page 119
Offshore Minerals Bill 2000
Chapter 2 Regulation of offshore exploration and mining
Part 2.4 Mining licences
s. 202
202. Application must be advertised
(1) The applicant must advertise the application in a newspaper that
circulates throughout the State.
(2) The advertisement must contain --
5 (a) the applicant's name and address; and
(b) a map and description of the blocks applied for that are
sufficient for the blocks to be identified; and
(c) the address of the Minister; and
(d) a statement that --
10 (i) advises that the applicant has applied for a
mining licence over the blocks described in the
notice; and
(ii) invites comment from the public on the
application; and
15 (iii) requests that comments be sent to the applicant
and the Minister within 30 days after the day on
which the advertisement is published.
(3) The advertisement must be published --
(a) as soon as possible after the applicant lodges the
20 application; and
(b) in any case, subject to subsection (4), within 14 days
after the day on which the applicant lodges the
application.
(4) If --
25 (a) the applicant applies to the Minister within the 14 day
period referred to in subsection (3) for an extension of
the period; and
page 120
Offshore Minerals Bill 2000
Regulation of offshore exploration and mining Chapter 2
Mining licences Part 2.4
s. 203
(b) the Minister extends the period,
the advertisement must be published within the period as
extended by the Minister.
203. How multiple applications are dealt with
5 (1) Subject to subsection (2), if a block is covered by 2 or more
applications for a mining or exploration licence, the Minister
must deal with the applications in the order in which they are
made.
Note: See also section 58.
10 (2) If --
(a) the applications are lodged within a particular time of
each other; and
(b) the time is less than the time prescribed by the
regulations,
15 the Minister must determine the order in which the applications
are to be dealt with by drawing lots in the way prescribed by the
regulations.
204. Request for further information
(1) The Minister may ask the applicant for further information
20 relating to the application.
(2) The request must --
(a) be in writing; and
(b) be given to the applicant; and
(c) specify the time within which the information must be
25 provided.
(3) Information requested under subsection (1) must be provided --
(a) in writing; and
page 121
Offshore Minerals Bill 2000
Chapter 2 Regulation of offshore exploration and mining
Part 2.4 Mining licences
s. 205
(b) within the time specified in the request.
205. Section number not used
See note 2 to section 3(1).
206. Minister may provisionally grant licence
5 If the applicant does what is required by sections 199 to 204, the
Minister may --
(a) provisionally grant a mining licence to the applicant; or
(b) subject to section 208, refuse the application.
Note: Under section 232, the grant of the licence cannot be effective before it is registered
10 (see section 333 for registration). The grant will not be registered until it has been
properly accepted (see section 214 for "proper acceptance").
207. Restriction in case of marine nature reserve or marine park
In the case of the provisional grant of a mining licence over a
marine nature reserve or a marine park, section 206 has effect
15 subject to section 38A(2).
Note: Section 38A(2) requires the consent of Parliament to be obtained to the provisional
grant under section 206 of a mining licence over a marine nature reserve or a marine
park.
208. Refusal of application for mining licence made under
20 section 198
(1) If the Minister proposes to refuse an application for a mining
licence made under section 198, the Minister must notify the
applicant of the proposed refusal.
(2) The notice must --
25 (a) be in writing; and
(b) specify the reason for the proposed refusal; and
(c) invite the applicant to make written submissions in
relation to the proposed refusal; and
page 122
Offshore Minerals Bill 2000
Regulation of offshore exploration and mining Chapter 2
Mining licences Part 2.4
s. 209
(d) specify the day by which submissions may be made to
the Minister; and
(e) specify an address where submissions are to be lodged.
(3) The day specified under subsection (2)(d) must be not less than
5 30 days after the day on which the notice is given.
(4) The Minister may refuse to grant an application for a mining
licence made under section 198 only if --
(a) the applicant has been given a notice under
subsection (1); and
10 (b) the Minister has considered any submission made by the
applicant; and
(c) the Minister is satisfied that no special circumstances
exist that justify the licence being granted.
(5) This section does not apply if the reason for the refusal of an
15 application for a mining licence is that the requirements of
section 38A(2) have not been met.
Note: Section 38A(2) requires the consent of Parliament to be obtained to the provisional
grant under section 206 of a mining licence over a marine nature reserve or a marine
park.
20 209. Matters to be specified in the licence
(1) The licence must specify --
(a) the blocks covered by the licence; and
(b) the term of the licence; and
(c) the licence conditions.
25 (2) The term specified under subsection (1)(b) is not to exceed
21 years.
page 123
Offshore Minerals Bill 2000
Chapter 2 Regulation of offshore exploration and mining
Part 2.4 Mining licences
s. 210
210. Applicant must be notified
(1) The Minister must give the applicant written notice of the
Minister's decision under section 206.
(2) If the Minister provisionally grants a mining licence --
5 (a) the Minister must give the licence to the provisional
holder; and
(b) the notice under subsection (1) must contain the
following information --
(i) notification of any determination under
10 section 399 that the provisional holder must
lodge a security;
(ii) notification that the provisional grant will lapse
unless the provisional holder, before the end of
the primary payment period --
15 (I) gives the Minister a written acceptance
of the grant; and
(II) lodges any security required by the
Minister under section 399; and
(III) pays the fee that must be paid for the
20 licence under section 425.
211. Amendment of conditions
(1) If the provisional holder is dissatisfied with a licence condition,
the provisional holder may ask the Minister to amend the
condition.
25 (2) The request must be made within 30 days after the day on which
the provisional holder is given the licence under section 210.
(3) If a request is made under subsection (1), the Minister may
amend the licence condition and, with the consent of the
provisional holder, any other licence condition.
page 124
Offshore Minerals Bill 2000
Regulation of offshore exploration and mining Chapter 2
Mining licences Part 2.4
s. 212
(4) The Minister must give the provisional holder written notice of
a decision under this section.
(5) This section does not apply to a licence condition that is
specified in a resolution referred to in section 38A(2).
5 212. Amendment of security requirements
(1) If the provisional holder --
(a) is notified of a security requirement; and
(b) is dissatisfied with the amount of the security required,
the provisional holder may ask the Minister to make a new
10 determination under section 399.
(2) The request must be made within 30 days after the day on which
the applicant is given notice under section 210.
(3) If a request is made under subsection (1), the Minister may
make a new determination under section 399.
15 (4) The Minister must give the provisional holder written notice of
the new determination.
(5) This section does not apply to a security requirement that is
specified in a resolution referred to in section 38A(2).
213. Extension of primary payment period
20 (1) If the provisional holder makes a request under section 211 or
212, the provisional holder may ask the Minister to extend the
primary payment period.
(2) The request must be made within 30 days after the day on which
the provisional holder is given notice under section 210.
25 (3) If the Minister agrees to the request, the Minister must --
(a) determine the period of the extension; and
page 125
Offshore Minerals Bill 2000
Chapter 2 Regulation of offshore exploration and mining
Part 2.4 Mining licences
s. 214
(b) give the provisional holder a written notice of the period
of the extension.
214. Acceptance of grant of mining licence for standard block
(1) The provisional grant of the mining licence is properly accepted
5 by the provisional holder if, before the required time, the
provisional holder --
(a) gives the Minister a written acceptance of the grant; and
(b) lodges any security required under section 399; and
(c) pays the fee that must be paid for the licence under
10 section 425.
(2) The required time under subsection (1) is the end of the primary
payment period or, if the provisional holder has been granted an
extension of the primary payment period under section 213, the
end of the secondary payment period.
15 Note: Under section 232, the grant of the licence cannot be effective before it is registered
(see section 333 for registration).
215. Conditions applicable to licence on grant
If the provisional grant of the licence is properly accepted under
section 214, it is subject to --
20 (a) the conditions specified in the licence given to the
applicant under section 210; or
(b) if the Minister amended those conditions under
section 211, those conditions as amended.
216. Lapse of provisional grant of mining licence
25 If the provisional grant of the licence is not properly accepted
under section 214, the provisional grant lapses.
page 126
Offshore Minerals Bill 2000
Regulation of offshore exploration and mining Chapter 2
Mining licences Part 2.4
s. 217
Division 3 -- Application for and grant of mining licence
over tender block
217. Matters to be determined before applications for mining
licence over tender blocks invited
5 (1) If the Minister proposes to invite applications for the grant of a
mining licence over reserved blocks, the Minister must, before
inviting the applications, determine --
(a) the procedure and criteria that the Minister will adopt to
allocate the licence; and
10 (b) the amount of security that will be required for the
licence under section 399; and
(c) the initial term of the licence; and
(d) the licence conditions.
(2) The term determined under subsection (1)(c) is not to exceed
15 21 years.
218. Minister may invite applications for mining licence over
tender blocks
(1) Subject to subsection (2), the Minister may invite applications
for the grant of a mining licence over reserved blocks.
20 (2) Applications may be invited for a licence covering a group of
reserved blocks only if the group forms a discrete area.
(3) The Minister is to invite applications by publishing a tender
block licence notice for the licence in the Gazette.
Note 1: A mining licence may cover not more than 20 tender blocks (see section 219).
25 Note 2: A mining licence might be made available by a tender block notice if a mineral
deposit in the area had already been identified and sufficient information was already
available to justify the issue of a mining licence rather than an exploration licence.
page 127
Offshore Minerals Bill 2000
Chapter 2 Regulation of offshore exploration and mining
Part 2.4 Mining licences
s. 219
219. Tender block licence notice -- mining licence
(1) A tender block licence notice for a mining licence must --
(a) specify the blocks to be covered by the licence; and
(b) specify the period within which applications may be
5 made; and
(c) specify the procedure and criteria that the Minister will
adopt to allocate the licence; and
(d) specify the amount of security that the successful
applicant will be required to lodge; and
10 (e) specify the initial term of the licence; and
(f) include a statement to the effect that information
about --
(i) the security that the successful applicant will be
required to lodge; and
15 (ii) the licence conditions,
may be obtained from the Minister.
(2) Without limiting paragraph (c) of subsection (1), the Minister
may for the purposes of that paragraph specify that the tender
will be determined on the basis of either or both of the
20 following --
(a) the nature and extent of the mining activity proposed to
be carried out;
(b) the amount of money offered for the licence.
(3) The tender block licence notice may specify not more than 20
25 blocks for the mining licence.
(4) If section 38A will apply to the grant of a licence, the tender
block licence notice must specify that fact.
page 128
Offshore Minerals Bill 2000
Regulation of offshore exploration and mining Chapter 2
Mining licences Part 2.4
s. 220
220. Application for mining licence over tender blocks
If a tender block licence notice has been published inviting
applications for a mining licence, a person may apply to the
Minister for the licence.
5 221. How to apply
(1) The application must --
(a) be made in accordance with the approved form; and
(b) be made in the approved manner; and
(c) be made before the end of the period specified in the
10 tender block licence notice; and
(d) address the criteria specified under section 219(1)(c);
and
(e) include details of --
(i) the technical qualifications of the applicant and
15 of the applicant's employees who are likely to be
involved in activities authorised by the licence;
and
(ii) the technical advice available to the applicant;
and
20 (iii) the financial resources available to the applicant;
and
(iv) if the licence is to be held by more than one
person, the share in the licence that each
prospective holder will hold;
25 and
(f) specify an address for service of notices under this Act
and the regulations.
Note: For paragraphs (a) and (b) see section 41.
page 129
Offshore Minerals Bill 2000
Chapter 2 Regulation of offshore exploration and mining
Part 2.4 Mining licences
s. 222
(2) The applicant may include in the application any other
information that the applicant thinks is relevant.
222. Payment of fee
(1) The applicant must pay the application fee prescribed by the
5 regulations.
(2) The fee must be paid when the application is made.
(3) The Minister may refund any fee paid under subsection (1) but
only if the Minister is satisfied that special circumstances exist
that justify the refund of the fee.
10 223. Request for further information
(1) The Minister may ask the applicant for further information
about the application.
(2) The request must --
(a) be in writing; and
15 (b) be given to the applicant; and
(c) specify the time within which the information must be
provided.
(3) Information requested under subsection (1) must be provided --
(a) in writing; and
20 (b) within the time specified in the request.
224. Section number not used
See note 2 to section 3(1).
225. Minister may provisionally grant licence
(1) The Minister may provisionally grant a mining licence to an
25 applicant who has done what is required by sections 221 to 223.
page 130
Offshore Minerals Bill 2000
Regulation of offshore exploration and mining Chapter 2
Mining licences Part 2.4
s. 226
(2) When provisionally granting a licence under subsection (1), the
Minister must follow the procedure and apply the criteria
specified in the tender block licence notice published for the
licence under section 218.
5 (3) If the Minister refuses to grant a licence under subsection (1) the
Minister must give the applicant notice of the refusal.
226. Restriction in case of marine nature reserve or marine park
In the case of the provisional grant of a mining licence over a
marine nature reserve or a marine park, section 225 has effect
10 subject to section 38A(2).
Note: Section 38A(2) requires the consent of Parliament to be obtained to the provisional
grant under section 225 of a mining licence over a marine nature reserve or a marine
park.
227. Successful applicant must be notified
15 (1) If the Minister provisionally grants a mining licence under
section 225 or 231, the Minister must give the provisional
holder --
(a) the licence; and
(b) written notice that the provisional grant will lapse unless
20 the provisional holder, within 30 days after the day on
which the notice is given --
(i) gives the Minister a written acceptance of the
grant; and
(ii) lodges any security required under section 399;
25 and
(iii) pays the fee that must be paid for the licence
under section 425; and
page 131
Offshore Minerals Bill 2000
Chapter 2 Regulation of offshore exploration and mining
Part 2.4 Mining licences
s. 228
(iv) if the tender is determined on the basis of the
amounts of money offered for the licence, pays
to the Minister the amount that the provisional
holder offered for the licence under
5 section 221(1)(d).
(2) The licence must specify --
(a) the blocks covered by the licence; and
(b) the term of the licence; and
(c) the licence conditions.
10 Note: For the term of a licence see section 217(2).
228. Acceptance of grant of mining licence over tender blocks
The provisional grant of a mining licence is properly accepted
by the provisional holder if, within 30 days after the day on
which the provisional holder is given notice under section 227,
15 the provisional holder --
(a) gives the Minister a written acceptance of the grant; and
(b) lodges any security required under section 399; and
(c) pays the fee that must be paid for the licence under
section 425; and
20 (d) if the tender is determined on the basis of the amounts of
money offered for the licence, pays to the Minister the
amount that the provisional holder offered for the
licence under section 221(1)(d).
Note: Under section 232, the grant of the licence cannot be effective before it is registered
25 (see section 333 for registration).
229. Conditions applicable to licence on grant
(1) If the provisional grant of the licence is properly accepted, the
licence is subject to the conditions determined under
section 217.
page 132
Offshore Minerals Bill 2000
Regulation of offshore exploration and mining Chapter 2
Mining licences Part 2.4
s. 230
(2) If subsection (2) of section 38A applies, the licence is also
subject to the conditions specified in a resolution referred to in
that subsection.
230. Lapse of provisional grant of mining licence
5 If the provisional grant of the licence is not properly accepted
under section 228, the provisional grant lapses.
231. Provisional grant to next applicant if grant lapses
(1) If the provisional grant of the licence lapses under section 230,
the Minister may provisionally grant the licence to another of
10 the applicants for the licence.
(2) When provisionally granting a licence under subsection (1), the
Minister must follow the procedure and apply the criteria
specified in the tender block licence notice published for the
licence under section 218.
15 (3) In the case of the provisional grant of a licence over a marine
nature reserve or a marine park, subsection (1) has effect subject
to section 38A(2).
Note: Section 38A(2) requires the consent of Parliament to be obtained to the provisional
grant under section 231 of a mining licence over a marine nature reserve or a marine
20 park.
Division 4 -- Duration of mining licence
232. Initial term of mining licence
(1) A mining licence comes into force on --
(a) the day on which the grant of the licence is registered; or
25 (b) if a day later than the day on which the grant of the
licence is registered is specified in the licence as its
commencement day, that specified day.
page 133
Offshore Minerals Bill 2000
Chapter 2 Regulation of offshore exploration and mining
Part 2.4 Mining licences
s. 233
(2) The initial term of a mining licence ends --
(a) if the licence is granted under Division 2, at the end of
the period specified in the licence under section 209(1);
or
5 (b) if the licence is granted under Division 3, at the end of
the period specified under section 227(2).
Note: The licence may be surrendered at any time (see section 264).
(3) The period runs from --
(a) the day on which the licence is provisionally granted; or
10 (b) if a day later than the day on which the licence is
provisionally granted is specified in the licence as its
commencement day, that specified day.
233. Term of renewal of licence
(1) A renewal of a mining licence comes into force on --
15 (a) the day on which the renewal is registered; or
(b) the day on which the previous term of the licence
expires,
whichever is the later.
Note: See Division 6 for renewal.
20 (2) The term of a renewal of a licence ends at the end of the period
specified in the notice under section 246.
Note 1: For the maximum term of renewal see section 246(3).
Note 2: The licence may be surrendered at any time (see section 264).
(3) The period runs from the day on which the previous term of the
25 licence expires.
(4) In working out the period referred to in subsection (3)
section 234 is to be disregarded.
page 134
Offshore Minerals Bill 2000
Regulation of offshore exploration and mining Chapter 2
Mining licences Part 2.4
s. 234
234. Effect of application for renewal on term of mining licence
If --
(a) a mining licence holder applies to renew the licence
under section 236; and
5 (b) the current term of the licence expires; and
(c) a renewal of the licence does not take effect immediately
after the current term expires,
the licence remains in force after the current term expires
until --
10 (d) a renewal of the licence takes effect; or
(e) a provisional renewal of the licence lapses; or
(f) the application for renewal is withdrawn or refused.
Division 5 -- Voluntary surrender of part of mining licence area
235. Voluntary surrender of blocks if discrete area remains
15 (1) A mining licence holder may surrender a block or some of the
blocks covered by the licence if the remaining blocks in the
licence area form a discrete area.
Note: See section 264 for the surrender of the whole licence.
(2) A surrender under subsection (1) must --
20 (a) be made in writing; and
(b) identify the blocks surrendered; and
(c) be given to the Minister.
Note: The surrender takes effect when it is registered under section 337 (see section 337(5)).
page 135
Offshore Minerals Bill 2000
Chapter 2 Regulation of offshore exploration and mining
Part 2.4 Mining licences
s. 236
Division 6 -- Application for and grant of renewal of mining licence
236. Application for renewal of mining licence
A mining licence holder may apply to the Minister to renew the
licence.
5 Note: At each renewal, the licence conditions are reviewed (see section 254).
237. When application to be made
(1) Subject to subsection (2), the application must be made at least
6 months before the day on which the licence is to expire.
(2) The Minister may accept an application that is made later than
10 6 months before the day on which the licence is to expire if --
(a) the application is made before the day on which the
licence expires; and
(b) the Minister believes that there are reasonable grounds
for accepting the application.
15 238. How to apply for renewal
(1) The application must --
(a) be made in accordance with the approved form; and
(b) be made in the approved manner; and
(c) include details of --
20 (i) the activities carried out by the applicant under
the licence during its current term; and
(ii) the amount of money spent by the applicant in
relation to the blocks covered by the licence
during its current term; and
25 (iii) the activities that the applicant intends to carry
out under the licence during the term applied for;
and
page 136
Offshore Minerals Bill 2000
Regulation of offshore exploration and mining Chapter 2
Mining licences Part 2.4
s. 239
(iv) the amount of money that the applicant intends to
spend in relation to activities authorised by the
licence during the term applied for.
Note: For paragraphs (a) and (b) see section 41.
5 (2) The applicant may include in the application any other
information that the applicant thinks is relevant.
239. Request for further information
(1) The Minister may ask the applicant to provide further
information relating to the application.
10 (2) The request must --
(a) be in writing; and
(b) be given to the applicant; and
(c) specify the time within which the information must be
provided.
15 (3) Information requested under subsection (1) must be provided --
(a) in writing; and
(b) within the time specified in the request.
240. Payment of fee
(1) The applicant must pay the application fee prescribed by the
20 regulations.
(2) The fee must be paid when the application is made.
(3) The Minister may refund any fee paid under subsection (1) but
only if the Minister is satisfied that special circumstances exist
that justify the refund of the fee.
25 241. Section number not used
See note 2 to section 3(1).
page 137
Offshore Minerals Bill 2000
Chapter 2 Regulation of offshore exploration and mining
Part 2.4 Mining licences
s. 242
242. Provisional renewal of mining licence
The Minister may --
(a) provisionally renew the licence; or
(b) subject to section 245, refuse to renew the licence.
5 Note 1: Under section 233, the renewal of the licence cannot be effective before it is
registered (see section 334 for registration). The renewal will not be registered until it
has been properly accepted (see section 250 for "proper acceptance").
Note 2: Under section 254, new conditions may be imposed on renewal.
243. Section number not used
10 See note 2 to section 3(1).
244. Matters that may be taken into account
In deciding whether to renew a mining licence, the Minister
may have regard to whether the applicant has complied with --
(a) this Act; and
15 (b) the regulations; and
(c) any licence conditions.
245. Refusal of application for renewal
(1) If the Minister proposes to refuse to renew the licence, the
Minister must give the applicant notice of the proposed refusal.
20 (2) The notice must --
(a) be in writing; and
(b) specify the reason for the proposed refusal; and
(c) invite the holder to make written submissions in relation
to the proposed refusal; and
25 (d) specify the day by which submissions may be given to
the Minister; and
page 138
Offshore Minerals Bill 2000
Regulation of offshore exploration and mining Chapter 2
Mining licences Part 2.4
s. 246
(e) specify an address where submissions are to be lodged.
(3) The day specified under subsection (2)(d) must be not less than
30 days after the day on which the notice is given.
(4) The Minister may refuse to grant the application only if --
5 (a) the holder has been given a notice under subsection (1);
and
(b) the Minister has considered any submission made by the
applicant; and
(c) the Minister is satisfied that no special circumstances
10 exist that justify the renewal being granted.
246. Applicant must be notified
(1) The Minister must give the applicant written notice of the
Minister's decision under section 242.
(2) If the Minister provisionally renews the licence under
15 section 242, the notice must contain the following
information --
(a) notification of the term of the renewal;
(b) notification of the conditions of the renewed licence;
(c) notification of any determination under section 399 that
20 the applicant must lodge a security or a further security;
(d) notification that the provisional renewal will lapse
unless the applicant, before the end of the primary
payment period --
(i) gives the Minister a written acceptance of the
25 renewal; and
(ii) lodges any security required under section 399;
and
page 139
Offshore Minerals Bill 2000
Chapter 2 Regulation of offshore exploration and mining
Part 2.4 Mining licences
s. 247
(iii) pays the fee that must be paid for the renewal
under section 425.
Note: Section 254 provides for renewals to be granted subject to conditions.
(3) The term specified under subsection (2)(a) is not to be more
5 than 21 years.
247. Amendment of conditions
(1) If the licence holder --
(a) has been provisionally granted a renewal of the licence
under section 242; and
10 (b) is notified of the licence conditions; and
(c) is dissatisfied with a condition,
the holder may ask the Minister to amend the condition.
(2) The request must be made within 30 days after the day on which
the holder is given notice under section 246.
15 (3) If a request is made under subsection (1), the Minister may
amend the licence condition and, with the consent of the holder,
any other licence condition.
(4) The Minister must give the holder written notice of a decision
under this section.
20 248. Amendment of security requirements
(1) If the licence holder --
(a) has been provisionally granted a renewal of the licence
under section 242; and
(b) is notified of a security requirement for the licence; and
25 (c) is dissatisfied with the amount of the security required,
the holder may ask the Minister to make a new determination
under section 399.
page 140
Offshore Minerals Bill 2000
Regulation of offshore exploration and mining Chapter 2
Mining licences Part 2.4
s. 249
(2) The request must be made within 30 days after the day on which
the holder is given notice under section 246.
(3) If a request is made under subsection (1), the Minister may
make a new determination under section 399.
5 (4) The Minister must give the holder written notice of the new
determination.
249. Extension of primary payment period
(1) If the licence holder makes a request under section 247 or 248,
the holder may ask the Minister to extend the primary payment
10 period.
(2) The request must be made within 30 days after the day on which
the holder is given notice under section 246.
(3) If the Minister agrees to the request, the Minister must --
(a) determine the period of the extension; and
15 (b) give the holder a written notice informing the holder of
the period of the extension.
250. Acceptance of renewal of mining licence
(1) The provisional renewal of a mining licence is properly
accepted by the licence holder if, before the required time, the
20 holder --
(a) gives the Minister a written acceptance of the renewal;
and
(b) lodges any security required under section 399; and
(c) pays the fee that must be paid under section 425.
25 (2) The required time under subsection (1) is the end of the primary
payment period or, if the provisional holder has been granted an
page 141
Offshore Minerals Bill 2000
Chapter 2 Regulation of offshore exploration and mining
Part 2.4 Mining licences
s. 251
extension of the primary payment period under section 249, the
end of the secondary payment period.
Note: Under section 233, the renewal of the licence cannot be effective before it is
registered (see section 334 for registration).
5 251. Conditions applicable to licence on renewal
If the provisional renewal is properly accepted under
section 250, the renewed licence is subject to --
(a) the conditions specified in the notice given to the licence
holder under section 246; or
10 (b) if the Minister amended those conditions under
section 247, those conditions as amended.
252. Lapse of provisional renewal of mining licence
If the provisional renewal of a mining licence is not properly
accepted under section 250, the provisional renewal lapses.
15 Division 7 -- Obligations associated with mining licence
253. General
(1) The sources of obligations associated with a mining licence
are --
(a) the licence conditions; and
20 (b) obligations arising from directions under section 387 or
392 given by the Minister; and
(c) obligations imposed by this Act and the regulations.
Note: For paragraph (a) see sections 254 to 256. For paragraph (c) see sections 44, 259 to
262, 372 and 391(1).
25 (2) If a mining licence has 2 or more holders, all the holders are
jointly and severally bound by the obligations that attach to the
licence.
page 142
Offshore Minerals Bill 2000
Regulation of offshore exploration and mining Chapter 2
Mining licences Part 2.4
s. 254
254. Conditions of mining licence
(1) The Minister may grant or renew a mining licence subject to
whatever conditions the Minister thinks appropriate.
(2) If the Minister grants or renews a mining licence subject to
5 conditions, the conditions must be specified in the licence.
(3) Without limiting subsection (1), the Minister may attach the
following kinds of conditions to the grant or renewal of a
mining licence --
(a) a condition requiring the licence holder to take out
10 insurance as required by the Minister;
(b) a condition requiring the holder to carry out certain
work in or in relation to the licence area during the term
of the licence;
(c) a condition requiring the holder to lodge a security with
15 the Minister;
(d) a condition requiring the holder to keep specified
information;
(e) a condition requiring the holder to give to the Minister,
on request, specified information;
20 (f) a condition requiring the holder to take steps to protect
the environment of the licence area, including conditions
relating to --
(i) protecting wildlife; or
(ii) minimising the effect on the environment of the
25 licence area and the area surrounding the licence
area of activities carried out in the licence area;
(g) a condition requiring the holder to repair any damage to
the environment caused by activities in the licence area;
page 143
Offshore Minerals Bill 2000
Chapter 2 Regulation of offshore exploration and mining
Part 2.4 Mining licences
s. 255
(h) a condition requiring the holder to pay a specified
penalty to the State if the holder does not comply with a
licence condition.
(4) A condition under subsection (3)(c) must specify --
5 (a) the amount of the security required; and
(b) the kind of security required; and
(c) the manner and form in which the security is to be
lodged.
(5) Without limiting subsection (3)(c), a condition under that
10 provision may require the lodgment of a security in the form of
a guarantee and if a guarantee is required the condition may
specify --
(a) the kind of person who is to give the guarantee; and
(b) the terms of the guarantee.
15 (6) If subsection (2) of section 38A applies to a mining licence, the
licence must include any condition specified in a resolution
under that subsection.
255. No conditions requiring payment of money
(1) Except for a condition requiring the payment of a penalty or
20 lodgment of security, a licence condition must not require the
payment of money to the State.
(2) Subsection (1) does not limit the conditions that may be
included in a resolution referred to in section 38A(2).
256. Variation of conditions
25 (1) If --
(a) a mining licence holder requests the Minister in writing
to vary a licence condition; or
page 144
Offshore Minerals Bill 2000
Regulation of offshore exploration and mining Chapter 2
Mining licences Part 2.4
s. 257
(b) part of the licence area of a mining licence is
surrendered under section 235,
the Minister may vary a licence condition.
(2) If the Minister gives --
5 (a) a direction under section 387; or
(b) an approval, consent or exemption under the regulations,
to a mining licence holder, the Minister may vary a licence
condition to the extent necessary to avoid inconsistency
between the licence conditions and the direction, approval,
10 consent or exemption.
(3) The Minister may vary a licence condition subject to whatever
conditions the Minister thinks appropriate.
(4) If the Minister varies a licence condition, the Minister must give
the licence holder a written notice that --
15 (a) informs the holder of the variation; and
(b) specifies the conditions which have been varied; and
(c) specifies any conditions to which the variation is subject.
(5) This section does not apply to a licence condition that is
specified in a resolution referred to in section 38A(2).
20 257. Exemption from or suspension of conditions
(1) If --
(a) a mining licence holder requests the Minister in writing
to --
(i) suspend a licence condition; or
25 (ii) exempt the holder from complying with a licence
condition;
or
page 145
Offshore Minerals Bill 2000
Chapter 2 Regulation of offshore exploration and mining
Part 2.4 Mining licences
s. 257
(b) part of the licence area of a mining licence is
surrendered under section 235,
the Minister may --
(c) suspend a licence condition; or
5 (d) exempt the holder from complying with a licence
condition.
(2) If the Minister gives --
(a) a direction under section 387; or
(b) an approval, consent or exemption under the regulations,
10 to a mining licence holder, the Minister may suspend a licence
condition, or exempt the holder from compliance with a licence
condition, to the extent necessary to avoid inconsistency
between the licence conditions and the direction, approval,
consent or exemption.
15 (3) The Minister may --
(a) suspend a licence condition; or
(b) exempt the licence holder from complying with a
licence condition,
subject to whatever conditions the Minister thinks appropriate.
20 (4) If the Minister --
(a) suspends a licence condition; or
(b) exempts the licence holder from complying with a
licence condition,
the Minister must give the holder a written notice that --
25 (c) informs the holder of the exemption or suspension; and
(d) specifies the conditions which have been suspended or
affected by the exemption; and
page 146
Offshore Minerals Bill 2000
Regulation of offshore exploration and mining Chapter 2
Mining licences Part 2.4
s. 258
(e) specifies any conditions to which the suspension or
exemption is subject.
(5) This section does not apply to a licence condition that is
specified in a resolution referred to in section 38A(2).
5 Note: A suspension or exemption of a condition does not take effect until registered (see
section 337).
258. Automatic suspension of conditions if licence rights are
suspended
If --
10 (a) the Minister suspends particular rights conferred by a
mining licence under section 195; and
(b) a licence condition is affected by the suspension,
the licence condition is suspended for the period of the
suspension of the rights.
15 259. Work practices
A person who is a mining licence holder or an associate of the
holder, in carrying out activities in the licence area that are
authorised by the licence, must take all reasonable steps --
(a) to ensure that the activities are carried out at a standard
20 that is accepted as reasonable and proper in the mining
industry; and
(b) to maintain in good repair all structures and equipment
erected in, or brought into, the licence area by the
person; and
25 (c) to remove from the licence area any structure,
equipment or other property that --
(i) belongs to the person, or is under the person's
control; and
page 147
Offshore Minerals Bill 2000
Chapter 2 Regulation of offshore exploration and mining
Part 2.4 Mining licences
s. 260
(ii)
is not being used, or is not going to be used, in
connection with the activities.
Maximum penalty: $20 000.
Note 1: The safety of offshore exploration and mining activities is governed by the Mines
5 Safety and Inspection Act 1994 -- see the definition of "exploration operations" and
paragraphs (a) and (j) of the definition of "mining operations" in section 4(1) of that
Act.
Note 2: Under section 38A(3) and (5) the consent of the Minister is required to the carrying
out of offshore exploration or mining activities in a marine nature reserve, marine
10 park or marine management area. Section 38A(7) and (8) also contain provisions
about the disturbance of certain parts of marine nature reserves and restricted areas.
260. Licence holder must pay royalty
A mining licence holder must comply with Division 2 of
Part 4.4.
15 261. Licence holder must keep specified records
A mining licence holder must --
(a) keep whatever records and samples; and
(b) give whatever records and samples to the Minister for
inspection; and
20 (c) make whatever returns,
are necessary to comply with --
(d) the regulations; or
(e) the licence conditions; or
(f) a direction given by the Minister under section 387.
25 Note: Under section 386 and 387 the Minister may direct a person to keep records and
cores, to collect and retain samples, and to make returns.
Maximum penalty: $10 000.
page 148
Offshore Minerals Bill 2000
Regulation of offshore exploration and mining Chapter 2
Mining licences Part 2.4
s. 262
262. Licence holder must assist inspectors
A mining licence holder must provide an inspector with
reasonable facilities and assistance so that the inspector is able
to carry out compliance inspections.
5 Note: See sections 377 to 384 for compliance inspections.
Maximum penalty: $5 000.
Division 8 -- Expiry of mining licence
263. General
A mining licence expires if --
10 (a) the term of the licence ends without the licence being
renewed; or
(b) the licence holder surrenders the licence; or
(c) the licence is cancelled.
Note: For paragraph (a) see Division 6. For paragraph (b) see section 264. For paragraph (c)
15 see section 265.
264. Voluntary surrender of mining licence
A mining licence holder may surrender the licence.
Note 1: See Division 5 for voluntary surrender of part of a licence area.
Note 2: The surrender takes effect when it is registered under section 337 (see section 337(5)).
20 265. Cancellation of mining licence
(1) Subject to subsection (5), the Minister may cancel a mining
licence if the licence holder --
(a) breaches a licence condition; or
(b) contravenes a provision of this Act or the regulations; or
25 (c) breaches a condition attached to an approval under
section 365(2).
page 149
Offshore Minerals Bill 2000
Chapter 2 Regulation of offshore exploration and mining
Part 2.4 Mining licences
s. 265
(2) If the Minister proposes to cancel a licence under subsection (1),
the Minister must give the licence holder a written notice that
informs the holder of the proposed cancellation.
(3) The notice must --
5 (a) specify the reason for the proposed cancellation; and
(b) invite the holder to make submissions in relation to the
proposed cancellation; and
(c) specify the day by which submissions may be made to
the Minister; and
10 (d) specify an address where submissions are to be lodged.
(4) The day specified under subsection (3)(c) must be not less than
60 days after the day on which the notice is given.
(5) The Minister may cancel the licence only if --
(a) the holder has been given a notice under subsection (2);
15 and
(b) the Minister has considered --
(i) any submission made by the holder in
accordance with subsection (3); and
(ii) any steps taken by the holder to remedy the
20 breach or contravention that led to the proposal
to cancel the licence and to prevent any similar
breach or contravention from happening again;
and
(c) the Minister is satisfied that no special circumstances
25 exist that justify the licence not being cancelled.
page 150
Offshore Minerals Bill 2000
Regulation of offshore exploration and mining Chapter 2
Mining licences Part 2.4
s. 266
266. Obligations of former mining licence holders and former
associates
(1) Subject to subsection (4), if --
(a) a person was --
5 (i) a mining licence holder; or
(ii) an associate of a mining licence holder;
and
(b) the licence --
(i) expires; or
10 (ii) is cancelled; or
(iii) is surrendered;
and
(c) an obligation associated with the licence arising out
of --
15 (i) a licence condition; or
(ii) a direction given under section 387; or
(iii) this Act or the regulations,
has not been discharged; and
(d) the person was bound by that obligation when the
20 person was the licence holder or an associate,
the person remains bound by the obligation until the obligation
is discharged.
(2) Subsection (1) does not continue an obligation to carry out
exploration or recovery activities.
25 (3) Subsection (1) continues an obligation that a person had to carry
out exploration or recovery activities in a particular manner if
the person carries them out.
page 151
Offshore Minerals Bill 2000
Chapter 2 Regulation of offshore exploration and mining
Part 2.4 Mining licences
s. 266
(4) The Minister may determine that the person is not subject to --
(a) a particular obligation under this section; or
(b) all the person's remaining obligations under this section.
(5) A determination under subsection (4) is to be in writing.
page 152
Offshore Minerals Bill 2000
Regulation of offshore exploration and mining Chapter 2
Works licences Part 2.5
s. 267
Part 2.5 -- Works licences
Division 1 -- General
267. Works licences
(1) This Part provides for the grant of works licences over blocks in
5 coastal waters.
Note: A works licence allows licence-related activities to be carried out on blocks that are
outside the licence area of the exploration, retention or mining licence concerned.
(2) A works licence can only authorise activities that --
(a) are directly connected with activities that are carried out,
10 or are to be carried out, under an exploration, retention
or mining licence; and
(b) are necessary or desirable for the exploration, retention
or mining licence holder to --
(i) effectively exercise the licence rights; or
15 (ii) effectively perform the licence obligations.
(3) A works licence can be granted over a particular block even
though the block is a reserved block or is in someone else's
licence area.
(4) More than one works licence can be granted over a particular
20 block.
(5) A works licence may be granted so as to allow activities that are
connected with 2 or more licences.
268. Activities authorised by a works licence
A works licence holder may carry out in the licence area the
25 activities that are specified in the licence.
Note: Under section 38A(3) and (5) the consent of the Minister is required to the carrying
out of offshore exploration or mining activities in a marine nature reserve, marine
park or marine management area. Section 38A(7) and (8) also contain provisions
about the disturbance of certain parts of marine nature reserves and restricted areas.
page 153
Offshore Minerals Bill 2000
Chapter 2 Regulation of offshore exploration and mining
Part 2.5 Works licences
s. 269
269. Minister may cancel or not renew works licence without
compensation
No compensation is payable because of the cancellation or
non-renewal of a works licence by the Minister.
5 Note 1: The Minister may cancel the licence under section 313.
Note 2: The Minister may refuse under section 294 to renew the licence.
Division 2 -- Application for and grant of works licence
270. Application for works licence
A person may apply to the Minister for a works licence over a
10 block.
271. How to apply
(1) The application must --
(a) be made in accordance with the approved form; and
(b) be made in the approved manner; and
15 (c) include details of the activities that the applicant
proposes to carry out; and
(d) be accompanied by a map that shows the proposed
location of the activities; and
(e) specify an address for service of notices under this Act
20 and the regulations.
Note: For paragraphs (a) and (b) see section 41.
(2) The applicant may include in the application any other
information that the applicant thinks is relevant.
272. Payment of fee
25 (1) The applicant must pay the application fee prescribed by the
regulations.
page 154
Offshore Minerals Bill 2000
Regulation of offshore exploration and mining Chapter 2
Works licences Part 2.5
s. 273
(2) The fee must be paid when the application is made.
(3) The Minister may refund any fee paid under subsection (1) but
only if the Minister is satisfied that special circumstances exist
that justify the refund of the fee.
5 273. Applicant to notify licence holders affected by the
application
(1) The applicant must notify interested licence holders of the
application.
(2) The notification --
10 (a) must be given to the interested licence holder in writing;
and
(b) must give details of the works licence applied for; and
(c) must invite the interested licence holder to give
comments to the Minister within 30 days after the day
15 on which the notice is given.
(3) For the purposes of this section, a licence holder is interested
if --
(a) a block covered by the application is inside the licence
area; and
20 (b) the holder is not the applicant.
274. Application must be advertised
(1) The applicant must advertise the application in a newspaper
circulating throughout the State.
(2) The advertisement must contain --
25 (a) the applicant's name and address; and
(b) a map and description of the blocks covered that are
sufficient for the blocks to be identified; and
page 155
Offshore Minerals Bill 2000
Chapter 2 Regulation of offshore exploration and mining
Part 2.5 Works licences
s. 275
(c) details of the activities that the applicant proposes to
carry out; and
(d) a map showing the proposed location of those activities;
and
5 (e) the address of the Minister; and
(f) a statement that --
(i) advises that the applicant has applied for a works
licence over the blocks described in the notice; and
(ii) invites comment from the public on the
10 application; and
(iii) requests that comments be sent to the applicant
and to the Minister specified in the notice within
30 days of the day on which the advertisement is
published.
15 (3) The advertisement must be published --
(a) as soon as possible after the applicant makes the
application; and
(b) in any case, subject to subsection (4), within 14 days
after the day on which the applicant makes the
20 application.
(4) If --
(a) the applicant applies to the Minister within the 14 day
period referred to in subsection (3) for an extension of
the period; and
25 (b) the Minister extends the period,
the advertisement must be published within the period as
extended by the Minister.
275. Section number not used
See note 2 to section 3(1).
page 156
Offshore Minerals Bill 2000
Regulation of offshore exploration and mining Chapter 2
Works licences Part 2.5
s. 276
276. Minister may provisionally grant licence
If the applicant does what is required by sections 271 to 274, the
Minister may --
(a) provisionally grant a works licence to the applicant; or
5 (b) refuse the application.
Note: Under section 286, the grant of the licence cannot be effective before it is registered
(see section 333 for registration). The grant will not be registered until it has been
properly accepted (see section 283 for "proper acceptance").
277. Section number not used
10 See note 2 to section 3(1).
278. Matters to be specified in the licence
(1) The licence must specify --
(a) the blocks covered by the licence; and
(b) the activities authorised by the licence; and
15 (c) the area in which the activities are to be carried out; and
(d) the term of the licence; and
(e) the licence conditions.
Note: Under section 38A(3) and (5) the consent of the Minister is required to the carrying
out of offshore exploration or mining activities in a marine nature reserve, marine
20 park or marine management area. Section 38A(7) and (8) also contain provisions
about the disturbance of certain parts of marine nature reserves and restricted areas.
(2) The term specified under subsection (1)(d) is not to exceed 5 years.
279. Applicant must be notified
(1) The Minister must give the applicant written notice of a
25 decision under section 276.
(2) If the Minister provisionally grants a works licence --
(a) the Minister must give the licence to the provisional
holder; and
page 157
Offshore Minerals Bill 2000
Chapter 2 Regulation of offshore exploration and mining
Part 2.5 Works licences
s. 280
(b) the notice under subsection (1) must contain the
following information --
(i) notification of any determination under
section 399 that the provisional holder must
5 lodge a security;
(ii) notification that the provisional grant will lapse
unless the provisional holder, before the end of
the primary payment period --
(I) gives the Minister a written acceptance
10 of the grant; and
(II) lodges any security required under
section 399; and
(III) pays the fee that must be paid for the
licence under section 425.
15 280. Amendment of conditions
(1) If the provisional holder is dissatisfied with a licence condition,
the provisional holder may ask the Minister to amend the
condition.
(2) The request must be made within 30 days after the day on which
20 the provisional holder is given the licence under section 279.
(3) If a request is made under subsection (1), the Minister may
amend the licence conditions and, with the consent of the
provisional holder, any other licence condition.
(4) The Minister must give the provisional holder written notice of
25 a decision under this section.
281. Amendment of security requirements
(1) If the provisional holder --
(a) is notified of a security requirement; and
page 158
Offshore Minerals Bill 2000
Regulation of offshore exploration and mining Chapter 2
Works licences Part 2.5
s. 282
(b) is dissatisfied with the amount of the security required,
the provisional holder may ask the Minister to make a new
determination under section 399.
(2) The request must be made within 30 days after the day on which
5 the applicant is given notice under section 279.
(3) If a request is made under subsection (1), the Minister may
make a new determination under section 399.
(4) The Minister must give the provisional holder written notice of
the new determination.
10 282. Extension of primary payment period
(1) If the provisional holder makes a request under section 280 or
281, the provisional holder may ask the Minister to extend the
primary payment period.
(2) The request must be made within 30 days after the day on which
15 the provisional holder is given notice under section 279.
(3) If the Minister agrees to the request, the Minister must --
(a) determine the period of the extension; and
(b) give the provisional holder a written notice of the period
of the extension.
20 283. Acceptance of grant of works licence
(1) The provisional grant of a works licence is properly accepted by
the provisional holder if, before the required time, the
provisional holder --
(a) gives the Minister a written acceptance of the grant; and
25 (b) lodges any security required under section 399; and
(c) pays the fee that must be paid for the licence under
section 425.
page 159
Offshore Minerals Bill 2000
Chapter 2 Regulation of offshore exploration and mining
Part 2.5 Works licences
s. 284
(2) The required time under subsection (1) is the end of the primary
payment period or, if the provisional holder has been granted an
extension of the primary payment period under section 282, the
end of the secondary payment period.
5 Note: Under section 286, the grant of the licence cannot be effective before it is registered
(see section 333 for registration).
284. Conditions applicable to works licence on grant
If the provisional grant of the licence is properly accepted under
section 283, it is subject to --
10 (a) the conditions specified in the licence given to the
applicant under section 279; or
(b) if the Minister amended those conditions under
section 280, those conditions as amended.
285. Lapse of provisional grant of works licence
15 If the provisional grant of the licence is not properly accepted
under section 283, the provisional grant lapses.
Division 3 -- Duration of works licence
286. Initial term of works licence
(1) A works licence comes into force on --
20 (a) the day on which the grant of the licence is registered; or
(b) if a day later than the day on which the grant of the
licence is registered is specified in the licence as its
commencement day, that specified day.
(2) The initial term of a works licence expires at the end of the
25 period specified in the licence under section 278(1).
Note 1: For the maximum initial term see section 278(2).
Note 2: The licence may be surrendered at any time (see section 312).
page 160
Offshore Minerals Bill 2000
Regulation of offshore exploration and mining Chapter 2
Works licences Part 2.5
s. 287
(3) The period is to run from --
(a) the day on which the licence is provisionally granted; or
(b) if a day later than the day on which the licence is
provisionally granted is specified in the licence as the
5 licence's commencement day, that specified day.
287. Term of renewal of works licence
(1) A renewal of a works licence comes into force on --
(a) the day on which the renewal is registered; or
(b) the day on which the previous term of the licence
10 expires,
whichever is the later.
Note: See Division 4 for renewal.
(2) The term of a renewal of a licence expires at the end of the
period specified in the notice under section 296.
15 Note 1: For the maximum term of renewal see section 296(3).
Note 2: The licence may be surrendered at any time (see section 312).
(3) The period runs from the day on which the previous term of the
licence expires.
288. Effect of application for renewal on term of works licence
20 If --
(a) a works licence holder applies to renew the licence
under section 289; and
(b) the current term of the licence expires; and
(c) a renewal of the licence does not take effect immediately
25 after the current term expires,
the licence remains in force after the current term expires until --
(d) a renewal of the licence takes effect; or
page 161
Offshore Minerals Bill 2000
Chapter 2 Regulation of offshore exploration and mining
Part 2.5 Works licences
s. 289
(e) a provisional renewal of the licence lapses; or
(f) the application for renewal is withdrawn or refused,
whichever happens first.
Division 4 -- Application for and grant of renewal of works licence
5 289. Application for renewal of works licence
A works licence holder may apply to the Minister to renew the
licence.
Note: At each renewal, the works licence conditions are reviewed (see section 304).
290. When application to be made
10 (1) Subject to subsection (2), the application must be made at least
30 days before the day on which the licence is to expire.
(2) The Minister may accept an application that is made later than
30 days before the day on which the works licence is to expire
if --
15 (a) the application is made before the day on which the
licence expires; and
(b) the Minister believes that there are reasonable grounds
for accepting the application.
291. How to apply for renewal
20 (1) The application must --
(a) be made in accordance with the approved form; and
(b) be made in the approved manner; and
(c) include details of --
(i) the activities carried out by the applicant under
25 the licence during its current term; and
page 162
Offshore Minerals Bill 2000
Regulation of offshore exploration and mining Chapter 2
Works licences Part 2.5
s. 292
(ii) the amount of money spent by the applicant in
relation to the blocks covered by the licence
during its current term; and
(iii) the activities that the applicant intends to carry
5 out under the licence during the term applied for;
and
(iv) the amount of money that the applicant intends to
spend in relation to the activities authorised by
the licence during the term applied for.
10 Note: For paragraphs (a) and (b) see section 41.
(2) The applicant may include in the application any other
information that the applicant thinks is relevant.
292. Payment of fee
(1) The applicant must pay the application fee prescribed by the
15 regulations.
(2) The fee must be paid when the application is made.
(3) The Minister may refund any fee paid under subsection (1) but
only if the Minister is satisfied that special circumstances exist
that justify the refund of the fee.
20 293. Section number not used
See note 2 to section 3(1).
294. Provisional renewal of works licence
The Minister may --
(a) provisionally renew the licence; or
25 (b) refuse to renew the licence.
Note 1: Under section 287, the renewal of the licence cannot be effective before it is
registered (see section 334 for registration). The renewal will not be registered until it
has been properly accepted (see section 300 for "proper acceptance").
Note 2: Under section 304, new conditions may be imposed on renewal.
page 163
Offshore Minerals Bill 2000
Chapter 2 Regulation of offshore exploration and mining
Part 2.5 Works licences
s. 295
295. Section number not used
See note 2 to section 3(1).
296. Applicant must be notified
(1) The Minister must give the applicant written notice of the
5 Minister's decision under section 294.
(2) If the Minister provisionally renews the works licence under
section 294, the notice must contain the following
information --
(a) notification of the term of the renewal;
10 (b) notification of the conditions of the renewed licence;
(c) notification that the provisional renewal will lapse
unless the applicant, before the end of the primary
payment period --
(i) gives the Minister a written acceptance of the
15 renewal; and
(ii) lodges any security required by the Minister
under section 399; and
(iii) pays the fee that must be paid under section 425.
Note: Paragraph (b): section 304 provides for renewals to be granted subject to conditions.
20 (3) The term specified under subsection (2)(a) is not to exceed
5 years.
297. Amendment of conditions
(1) If the licence holder --
(a) has been provisionally granted a renewal of the licence
25 under section 294; and
(b) is notified of the licence conditions; and
(c) is dissatisfied with a licence condition,
the holder may ask the Minister to amend the condition.
page 164
Offshore Minerals Bill 2000
Regulation of offshore exploration and mining Chapter 2
Works licences Part 2.5
s. 298
(2) The request must --
(a) be made within 30 days after the day on which the
holder is given notice under section 296; and
(b) be lodged with the Minister.
5 (3) If a request is made under subsection (1), the Minister may
amend the licence condition and, with the consent of the holder,
any other licence condition.
(4) The Minister must give the holder written notice of a decision
under this section.
10 298. Amendment of security requirements
(1) If the licence holder --
(a) has been provisionally granted a renewal of the licence
under section 294; and
(b) is notified of a security requirement; and
15 (c) is dissatisfied with the amount of security required,
the holder may ask the Minister to make a new determination
under section 399.
(2) The request must be made within 30 days after the day on which
the holder is given notice under section 296.
20 (3) If a request is made under subsection (1), the Minister may
make a new determination under section 399.
(4) The Minister must give the holder written notice of the new
determination.
299. Extension of primary payment period
25 (1) If the licence holder makes a request under section 297 or 298,
the holder may ask the Minister to extend the primary payment
period.
page 165
Offshore Minerals Bill 2000
Chapter 2 Regulation of offshore exploration and mining
Part 2.5 Works licences
s. 300
(2) The request must be made within 30 days after the day on which
the holder is given notice under section 296.
(3) If the Minister agrees to the request, the Minister must --
(a) determine the period of the extension; and
5 (b) give the holder written notice informing the holder of
the period of the extension.
300. Acceptance of renewal of works licence
(1) The provisional renewal of a works licence is properly accepted
by the licence holder if, before the required time, the holder --
10 (a) gives the Minister a written acceptance of the renewal;
and
(b) lodges any security required under section 399; and
(c) pays the fee that must be paid for the licence under
section 425.
15 (2) The required time under subsection (1) is the end of the primary
payment period or, if the provisional holder has been granted an
extension of the primary payment period under section 299, the
end of the secondary payment period.
Note: Under section 287, the renewal of the licence cannot be effective before it is
20 registered (see section 334 for registration).
301. Conditions applicable to works licence on renewal
If the provisional renewal is properly accepted under
section 300, the renewed licence is subject to --
(a) the conditions specified in the notice given to the licence
25 holder under section 296; or
(b) if the Minister amended those conditions under
section 297, those conditions as amended.
page 166
Offshore Minerals Bill 2000
Regulation of offshore exploration and mining Chapter 2
Works licences Part 2.5
s. 302
302. Lapse of provisional renewal of works licence
If the provisional renewal of the licence is not properly accepted
under section 300, the provisional renewal lapses.
Division 5 -- Obligations associated with works licence
5 303. General
(1) The sources of obligations associated with a works licence are --
(a) the licence conditions; and
(b) obligations arising from directions under section 387 or
392 given by the Minister; and
10 (c) obligations imposed by this Act and the regulations.
Note: For paragraph (a) see sections 304 to 306. For paragraph (c) see sections 44, 308 to
310, 372 and 391(1).
(2) If a works licence has 2 or more holders, all the holders are jointly
and severally bound by the obligations that attach to the licence.
15 304. Conditions of works licence
(1) The Minister may grant or renew a works licence subject to
whatever conditions the Minister thinks appropriate.
(2) If the Minister grants or renews a works licence subject to
conditions, the conditions must be specified in the licence.
20 (3) Without limiting subsection (1), the Minister may attach the
following kinds of conditions to the grant or renewal of a works
licence --
(a) a condition requiring the licence holder to take out
insurance as required by the Minister;
25 (b) a condition requiring the holder to carry out certain
work in or in relation to the licence area during the term
of the licence;
page 167
Offshore Minerals Bill 2000
Chapter 2 Regulation of offshore exploration and mining
Part 2.5 Works licences
s. 304
(c) a condition requiring the holder to lodge a security with
the Minister;
(d) a condition requiring the holder to keep specified
information;
5 (e) a condition requiring the holder to give the Minister, on
request, specified information;
(f) a condition requiring the holder to take steps to protect
the environment of the licence area, including conditions
relating to --
10 (i) protecting wildlife; or
(ii) minimising the effect on the environment of the
licence area and the area surrounding the licence
of activities carried out in the licence area;
(g) a condition requiring the holder to repair any damage to
15 the environment caused by activities in the licence area;
(h) a condition requiring the holder to pay a specified
penalty to the State if the holder does not comply with a
licence condition.
(4) A condition under subsection 3(c) must specify --
20 (a) the amount of the security required; and
(b) the kind of security required; and
(c) the manner and form in which the security is to be
lodged.
(5) Without limiting subsection (3)(c), a condition under that
25 provision may require the lodgment of a security in the form of
a guarantee and if a guarantee is required the condition may
specify --
(a) the kind of person who is to give the guarantee; and
(b) the terms of the guarantee.
page 168
Offshore Minerals Bill 2000
Regulation of offshore exploration and mining Chapter 2
Works licences Part 2.5
s. 305
305. No conditions requiring payment of money
Except for a condition requiring the payment of a penalty or
lodgment of a security, a licence condition must not require the
payment of money to the State.
5 306. Variation of conditions
(1) If a works licence holder requests the Minister in writing to vary
a licence condition, the Minister may vary the condition.
(2) If the Minister gives --
(a) a direction under section 387; or
10 (b) an approval, consent or exemption under the regulations,
to a works licence holder, the Minister may vary a licence
condition to the extent necessary to avoid inconsistency
between the licence conditions and the direction, approval,
consent or exemption.
15 (3) The Minister may vary a licence condition subject to whatever
conditions the Minister thinks appropriate.
(4) If the Minister varies a licence condition, the Minister must give
the licence holder a written notice that --
(a) informs the holder of the variation; and
20 (b) specifies the conditions which have been varied; and
(c) specifies any conditions to which the variation is
subject.
307. Exemption from or suspension of conditions
(1) If a works licence holder requests the Minister in writing to --
25 (a) suspend a licence condition; or
(b) exempt the holder from complying with a licence
condition,
page 169
Offshore Minerals Bill 2000
Chapter 2 Regulation of offshore exploration and mining
Part 2.5 Works licences
s. 307
the Minister may --
(c) suspend a licence condition; or
(d) exempt the holder from complying with a licence
condition.
5 (2) If the Minister gives --
(a) a direction under section 387; or
(b) an approval, consent or exemption under the regulations,
to a works licence holder, the Minister may suspend a licence
condition, or exempt the holder from compliance with a licence
10 condition, to the extent necessary to avoid inconsistency
between the licence conditions and the direction, approval,
consent or exemption.
(3) The Minister may --
(a) suspend a licence condition; or
15 (b) exempt the licence holder from complying with a
licence condition,
subject to whatever conditions the Minister thinks appropriate.
(4) If the Minister --
(a) suspends a licence condition; or
20 (b) exempts the licence holder from complying with a
licence condition,
the Minister must give the holder a written notice that --
(c) informs the holder of the exemption or suspension; and
(d) specifies the conditions which have been suspended or
25 affected by the exemption; and
(e) specifies any conditions to which the suspension or
exemption is subject.
Note: A suspension or exemption of a condition does not take effect until registered (see
section 337).
page 170
Offshore Minerals Bill 2000
Regulation of offshore exploration and mining Chapter 2
Works licences Part 2.5
s. 308
308. Work practices
A person who is a works licence holder or an associate of the
holder, in carrying out activities in the licence area that are
authorised by the licence, must take all reasonable steps --
5 (a) to ensure that the activities are carried out at a standard
that is accepted as reasonable and proper in the mining
industry; and
(b) to maintain in good repair all structures, equipment and
other property erected in, or brought into, the licence
10 area by the person; and
(c) to remove from the licence area any structure,
equipment or other property that --
(i) belongs to the person, or is under the person's
control; and
15 (ii) is not being used, or is not going to be used, in
connection with the activities.
Maximum penalty: $20 000.
Note 1: The safety of offshore exploration and mining activities is governed by the Mines
Safety and Inspection Act 1994 -- see the definition of "exploration operations" and
20 paragraphs (a) and (j) of the definition of "mining operations" in section 4(1) of that
Act.
Note 2: Under section 38A(3) and (5) the consent of the Minister is required to the carrying
out of offshore exploration or mining activities in a marine nature reserve, marine
park or marine management area. Section 38A(7) and (8) also contain provisions
25 about the disturbance of certain parts of marine nature reserves and restricted areas.
309. Licence holder must keep specified records etc.
A works licence holder must --
(a) keep whatever records; and
(b) give whatever records to the Minister for inspection; and
30 (c) make whatever returns,
page 171
Offshore Minerals Bill 2000
Chapter 2 Regulation of offshore exploration and mining
Part 2.5 Works licences
s. 310
are necessary to comply with --
(d) the regulations; or
(e) the licence conditions; or
(f) a direction given by the Minister under section 387.
5 Note: Under sections 386 and 387 the Minister may direct a person to keep records and to
make returns.
Maximum penalty: $10 000.
310. Licence holder must assist inspectors
A works licence holder must provide an inspector with
10 reasonable facilities and assistance so that the inspector is able
to carry out compliance inspections.
Note: See sections 377 to 384 for compliance inspections.
Maximum penalty: $5 000.
Division 6 -- Expiry of works licence
15 311. General
A works licence expires if --
(a) the term of the licence ends without the licence being
renewed; or
(b) the licence holder surrenders the licence; or
20 (c) the licence is cancelled.
Note: For paragraph (a) see Division 4. For paragraph (b) see section 312. For paragraph (c)
see section 313.
312. Voluntary surrender of works licence
The holder of a works licence may surrender the licence.
25 Note: The surrender takes effect when it is registered under section 337 (see section 337(5)).
page 172
Offshore Minerals Bill 2000
Regulation of offshore exploration and mining Chapter 2
Works licences Part 2.5
s. 313
313. Cancellation of works licence
(1) Subject to subsection (5), the Minister may cancel a works
licence if the licence holder --
(a) breaches a licence condition; or
5 (b) contravenes a provision of this Act or the regulations; or
(c) breaches a condition attached to an approval under
section 365(2).
(2) If the Minister proposes to cancel a works licence under
subsection (1), the Minister must give the licence holder a
10 written notice that informs the holder of the proposed
cancellation.
(3) The notice must --
(a) specify the reason for the proposed cancellation; and
(b) invite the holder to make submissions in relation to the
15 proposed cancellation; and
(c) specify the day by which submissions may be made to
the Minister; and
(d) specify an address where submissions are to be lodged.
(4) The day specified under subsection (3)(c) must be not less than
20 60 days after the day on which the notice is given.
(5) The Minister may cancel a works licence only if --
(a) the holder has been given a notice under subsection (2);
and
(b) the Minister has considered --
25 (i) any submission made by the holder in
accordance with subsection (3); and
(ii) any steps taken by the holder to remedy the
circumstances that led to the proposal to cancel
page 173
Offshore Minerals Bill 2000
Chapter 2 Regulation of offshore exploration and mining
Part 2.5 Works licences
s. 314
the licence and to prevent any similar breach or
contravention from happening again;
and
(c) the Minister is satisfied that no special circumstances
5 exist that justify the licence not being cancelled.
314. Obligations of former works licence holders and former
associates
(1) Subject to subsection (2), if --
(a) a person was --
10 (i) a works licence holder; or
(ii) an associate of a works licence holder;
and
(b) the licence --
(i) expires; or
15 (ii) is cancelled; or
(iii) is surrendered;
and
(c) an obligation associated with the licence arising out
of --
20 (i) a licence condition; or
(ii) a direction given under section 387; or
(iii) this Act or the regulations,
has not been discharged; and
(d) the person was bound by that obligation when the
25 person was the works licence holder or an associate,
the person remains bound by the obligation until the obligation
is discharged.
page 174
Offshore Minerals Bill 2000
Regulation of offshore exploration and mining Chapter 2
Works licences Part 2.5
s. 314
(2) The Minister may determine that the person is not subject to --
(a) any particular obligation under this section; or
(b) all the person's remaining obligations under this section.
(3) A determination under subsection (2) is to be in writing.
page 175
Offshore Minerals Bill 2000
Chapter 2 Regulation of offshore exploration and mining
Part 2.6 Special purpose consents
s. 315
Part 2.6 -- Special purpose consents
315. Special purpose consents
(1) A special purpose consent may be granted over --
(a) a standard block; or
5 (b) a reserved block; or
(c) a tender block.
(2) A special purpose consent may be granted over a block even if
the block is in the licence area of a licence or the consent area of
another special purpose consent.
10 (3) A special purpose consent can only be granted for --
(a) a scientific investigation; or
(b) a reconnaissance survey; or
(c) the collection of small amounts of minerals.
(4) A reconnaissance survey is the exploration of an area to work
15 out whether the area is sufficiently promising to justify more
detailed exploration under an exploration licence.
316. Activities authorised by a special purpose consent
(1) A special purpose consent holder may --
(a) explore for minerals; and
20 (b) take samples of or recover minerals,
in the consent area, in accordance with the consent.
Note 1: Under section 23(1) the concept of "exploration" extends to activities that are directly
related to exploration.
Note 2: Under section 24(1) the concept of "recovery" extends to activities that are directly
25 related to the recovery of minerals.
page 176
Offshore Minerals Bill 2000
Regulation of offshore exploration and mining Chapter 2
Special purpose consents Part 2.6
s. 317
(2) The grant of a consent does not give the consent holder --
(a) any exclusive or proprietary rights over the blocks
covered by the consent; or
(b) any option or preference when it comes to the grant of a
5 licence over blocks covered by the consent.
317. Application for a consent
A person may apply to the Minister for a special purpose
consent.
318. How to apply
10 (1) The application must --
(a) be made in writing; and
(b) include details of the activities for which consent is
being sought; and
(c) specify the blocks for which the consent is being sought.
15 (2) If the activity involves the collection of only small amounts of
minerals (see section 315(3)(c)), the application must also
specify --
(a) any mineral to be recovered; and
(b) the proposed quantity of any mineral to be recovered.
20 319. Payment of fee
(1) The applicant must pay the application fee prescribed by the
regulations.
(2) The fee must be paid when the application is made.
(3) The Minister may refund any fee paid under subsection (1) but
25 only if the Minister is satisfied that special circumstances exist
that justify the refund of the fee.
page 177
Offshore Minerals Bill 2000
Chapter 2 Regulation of offshore exploration and mining
Part 2.6 Special purpose consents
s. 320
320. Applicant must obtain agreement of exploration, retention
and mining licence holders affected by the application
(1) Subject to subsection (3), the applicant must obtain the
agreement of interested licence holders to the application.
5 (2) The agreement must be in writing.
(3) The agreement of an interested licence holder is not necessary
if --
(a) the application is for a scientific investigation; and
(b) Australia has obligations under international
10 conventions to allow the investigation.
(4) For the purposes of this section, a licence holder is interested
if --
(a) the holder holds an exploration, retention or mining
licence; and
15 (b) the block concerned is inside the licence area.
321. Applicant to notify works licence holders affected by the
application
(1) The applicant must notify interested works licence holders of
the application.
20 (2) The notification --
(a) must be given to the interested works licence holders in
writing; and
(b) must give details of the special purpose consent applied
for; and
25 (c) must invite the interested works licence holder to give
comments to the Minister within 30 days after the day
on which the notice was given.
page 178
Offshore Minerals Bill 2000
Regulation of offshore exploration and mining Chapter 2
Special purpose consents Part 2.6
s. 322
(3) For the purposes of this section, a works licence holder is
interested if the block concerned is inside the works licence
area.
322. Section number not used
5 See note 2 to section 3(1).
323. Minister may grant special purpose consent
If the applicant does what is required by sections 318 to 321, the
Minister may --
(a) grant a special purpose consent to the applicant; or
10 (b) refuse the application.
324. Section number not used
See note 2 to section 3(1).
325. Matters to be specified in the consent
(1) The consent must specify --
15 (a) the blocks covered by the consent; and
(b) the activities authorised by the consent; and
(c) the period for which the consent is to have effect; and
(d) the consent conditions.
Note: Under section 38A(3) and (5) the consent of the Minister is required to the carrying
20 out of offshore exploration or mining activities in a marine nature reserve, marine
park or marine management area. Section 38A(7) and (8) also contain provisions
about the disturbance of certain parts of marine nature reserves and restricted areas.
(2) If the activity involves the collection of only small amounts of
minerals (see section 315(3)(c)), the consent must also
25 specify --
(a) the minerals to be collected; and
(b) the quantities to be collected.
page 179
Offshore Minerals Bill 2000
Chapter 2 Regulation of offshore exploration and mining
Part 2.6 Special purpose consents
s. 326
(3) The period specified under subsection (1)(c) is not to be more
than 12 months.
326. Duration of consent
A consent has effect for the period specified under
5 section 325(1)(c).
327. Conditions of consent
(1) The Minister may grant a special purpose consent subject to
whatever conditions the Minister thinks are appropriate.
(2) Without limiting subsection (1), the Minister may impose
10 conditions that relate to --
(a) reports to be provided by the consent holder about
activities carried out under the consent; and
(b) environmental matters.
page 180
Offshore Minerals Bill 2000
Registration and Dealings Chapter 3
Registration Part 3.1
s. 328
Chapter 3 -- Registration and Dealings
Part 3.1 -- Registration
Division 1 -- Preliminary
328. Register to be kept
5 (1) The Minister must keep a register for the purposes of this Part.
Note: The main matters entered in the register are --
• the grant or renewal of a licence (see sections 333 and 334);
• details of instruments that affect a licence (see section 337);
• details of instruments that affect an interest in a licence (see sections 338 and
10 339);
• details of interests in a licence that are acquired by devolution (see section 340);
• details of caveats (see section 345).
(2) The register is to be known as the State Offshore Mining
Register.
15 329. Document files to be kept
(1) The Minister must keep a document file for the purposes of this
Part.
(2) In the document file are to be kept the documents that the
Minister is required to keep under this Part.
20 Note: The documents to be kept in the document file are --
• copies of licences (see section 333(6));
• copies of instruments that affect licences (see section 337(4));
• copies of transfers of licences (see section 338(6));
• copies of other dealings in licences (see section 339(4));
25 • caveats (see section 345(3));
• withdrawals of caveats (see section 346(2));
page 181
Offshore Minerals Bill 2000
Chapter 3 Registration and Dealings
Part 3.1 Registration
s. 330
• consents to dealings given under section 350 (see section 350(6));
• copies of court orders (see section 351).
330. Form of register and document file
(1) The offshore mining register is to be kept in the form and
5 manner determined by the Minister.
(2) Without limiting subsection (1), the offshore mining register
may be kept in the form of a computer record.
(3) The document file is to be kept in the form and manner
determined by the Minister.
10 331. Correction of errors in the register
(1) Subject to subsection (4), the Minister may correct the offshore
mining register if the Minister is satisfied that --
(a) there is an omission of an entry from the register; or
(b) an entry in the register should not have been made; or
15 (c) there is an error or defect in an entry in the register.
(2) A person may apply to the Minister for correction of the
offshore mining register under subsection (1).
(3) The application --
(a) must be in writing; and
20 (b) must specify the correction that is being requested.
(4) If --
(a) the Minister intends to correct the offshore mining
register under subsection (1); and
(b) the correction relates to a licence; and
page 182
Offshore Minerals Bill 2000
Registration and Dealings Chapter 3
Registration Part 3.1
s. 332
(c) the correction is not to be made in response to an
application under subsection (2) by the licence holder,
the Minister must notify the holder that the Minister intends to
correct the register.
5 (5) The notice --
(a) must be in writing; and
(b) must specify the correction the Minister intends to
make; and
(c) must invite the holder to make submissions to the
10 Minister about the proposed correction within the period
specified in the notice.
(6) The period specified under subsection (5)(c) is to be at least
14 days after the day on which the notice is given.
(7) If a notice is given under subsection (4) --
15 (a) the Minister is not to correct the register until the period
specified in the notice has ended; and
(b) the Minister is to have regard to any submissions made
by the licence holder before the end of that period in
exercising the power under subsection (1) to correct the
20 register.
332. Inspection of register and documents
(1) A person may inspect the offshore mining register and the
document file if the person pays the fee prescribed by the
regulations.
25 (2) The Minister must make the offshore mining register and the
document file available for inspection at all convenient times.
page 183
Offshore Minerals Bill 2000
Chapter 3 Registration and Dealings
Part 3.1 Registration
s. 333
Division 2 -- Matters to be entered in register
Subdivision A -- Licences
333. Licences
(1) If the provisional grant of a licence is properly accepted, the
5 Minister must register --
(a) the holder's name; and
(b) if there is more than one licence holder, the share in the
licence held by each holder; and
(c) a description of the licence area, including a map or map
10 reference; and
(d) the term of the licence; and
(e) the date of the provisional grant of the licence; and
(f) the date of registration of the licence; and
(g) an address for the service of notices under this Act on
15 the licence holder.
(2) The address registered under subsection (1)(g) is to be the
address specified by the licence holder by notice in writing to
the Minister.
(3) If the holder has not given a notice under subsection (2), the
20 address to be registered under subsection (1)(g) is to be the
address specified in the application that the holder made for the
licence.
(4) If the Minister registers a licence under subsection (1) --
(a) the licence holder must give the licence to the Minister;
25 and
(b) the Minister must endorse the date of registration on the
licence.
page 184
Offshore Minerals Bill 2000
Registration and Dealings Chapter 3
Registration Part 3.1
s. 334
(5) The Minister may include in the register any other information
about the holder or the terms and conditions of the licence that
the Minister thinks is appropriate.
(6) The Minister must keep a copy of the licence.
5 (7) A licence is taken to be registered as soon as an entry
complying with subsection (1) is made in the register.
334. Renewal of licences
(1) If the Minister receives an application for the renewal of a
licence, the Minister must register the fact.
10 (2) If the provisional renewal of a licence is properly accepted, the
Minister must register --
(a) the renewal; and
(b) the term of the renewal; and
(c) the date of the provisional renewal; and
15 (d) the date of registration of the renewal.
(3) If the Minister registers the renewal of a licence under
subsection (2) --
(a) the licence holder must give the licence to the Minister;
and
20 (b) the Minister must endorse on the licence --
(i) the term of the renewal; and
(ii) the date of registration of the renewal.
(4) If the Minister refuses to renew a licence, the Minister must
register the refusal.
25 335. Extension of exploration licences
(1) If the Minister receives an application for the extension of the term
of an exploration licence, the Minister must register the fact.
page 185
Offshore Minerals Bill 2000
Chapter 3 Registration and Dealings
Part 3.1 Registration
s. 336
(2) If the Minister refuses to extend the term of an exploration
licence, the Minister must register the refusal.
Note 1: For extensions of the term of a licence see sections 94 to 98.
Note 2: The grant of the extension of the term of an exploration licence is registered under
5 section 337(1).
336. Expiry of licences
(1) If a licence expires because --
(a) its term ends; or
(b) a retention licence or mining licence is granted to the
10 licence holder,
the Minister must register the expiry of the licence.
Note: Cancellation is dealt with under section 337.
(2) In subsection (1)(a) the reference to the term of a licence
includes any period during which the licence is in force under
15 section 90, 91, 92 or 93.
(3) If the Minister registers the expiry of a licence under
subsection (1) --
(a) the licence holder must give the licence to the Minister;
and
20 (b) the Minister must endorse the expiry and the date of the
expiry on the licence.
337. Variations etc. to licences
(1) The Minister must register --
(a) the details of any document under this Act that varies,
25 surrenders, cancels or otherwise affects a licence; and
(b) the details of any document that varies or revokes a
document referred to in paragraph (a).
Note: The documents referred to in paragraph (a) are --
• suspension of licence rights (see sections 48 (exploration licence), 135
30 (retention licence) and 195 (mining licence));
page 186
Offshore Minerals Bill 2000
Registration and Dealings Chapter 3
Registration Part 3.1
s. 337
• amendment of licence conditions between provisional grant and registration (see
sections 67 (exploration licence), 148 (retention licence), 211 (mining licence)
and 280 (works licence)) -- these need to be registered at the same time as the
grant is registered because if the conditions are amended between provisional
5 grant and registration a replacement licence reflecting the change in conditions
is not issued to the provisional holder;
• extension of term (see sections 90, 95 and 97 (exploration licence));
• surrender of the whole or a part of a licence (see sections 99 and 127
(exploration licence), 158 and 187 (retention licence), 235 and 264 (mining
10 licence) and 312 (works licence));
• voluntary surrender -- special approval (see section 100 (exploration licence));
• mandatory reduction of licence area -- special permission (see section 104
(exploration licence));
• amendment of licence conditions between provisional renewal and registration
15 (see sections 111 (exploration licence), 170 (retention licence), 247 (mining
licence) and 297 (works licence)) -- these need to be registered at the same time
as the renewal because if the licence conditions are amended between
provisional renewal and registration a replacement licence reflecting the
changed conditions is not issued to the holder;
20 • variation of conditions (see sections 120 (exploration licence), 179 (retention
licence), 256 (mining licence) and 306 (works licence));
• exemption from or suspension of condition (see sections 121 (exploration
licence), 180 (retention licence), 257 (mining licence) and 307 (works licence));
• cancellation (see sections 130 (exploration licence), 189 and 190 (retention
25 licence), 265 (mining licence) and 313 (works licence));
• directions (see sections 387 and 392);
• security requirements (see section 399);
• approvals of transfers (see section 365).
(2) Subsection (1)(a) applies to a document that suspends the rights
30 of a holder of a licence.
(3) Details of a document may be registered by registering a
summary of the contents of the document.
(4) The Minister must keep a document referred to in
subsection (1), or a copy of the document.
page 187
Offshore Minerals Bill 2000
Chapter 3 Registration and Dealings
Part 3.1 Registration
s. 338
(5) A document referred to in subsection (1) --
(a) has no effect until it is registered; and
(b) is taken to be registered as soon as an entry complying
with subsection (1) is made in the register.
5 338. Transfer of licences
(1) The Minister must register the transfer of a licence or a share in
a licence if --
(a) a party to the transfer lodges the instrument of transfer
for registration; and
10 (b) a party to the transfer lodges a copy of the instrument of
transfer; and
(c) the transfer has been approved by the Minister; and
(d) the licence is lodged with the Minister for annotation
under subsection (5); and
15 (e) the fee provided for in the Registration Fees Act is paid;
and
(f) the fee prescribed by the regulations is paid; and
(g) section 341 (caveats) does not prevent the registration of
the transfer.
20 Note: Paragraph (c): the Minister's approval is endorsed on the transfer (see section 365(3)).
(2) The Minister must also register the date and time of registration
of the transfer.
(3) If an instrument purports to transfer a licence or a share in a
licence, the Minister must register the instrument under this
25 section without inquiring into or being concerned as to the legal
effectiveness of the instrument.
(4) If an instrument that transfers a licence or a share in a licence is
registered, the Minister must register the name of the transferee
as a licence holder.
page 188
Offshore Minerals Bill 2000
Registration and Dealings Chapter 3
Registration Part 3.1
s. 339
(5) If the Minister registers the transfer of a licence or a share in a
licence, the Minister must annotate the licence to show the
transferee as a licence holder.
(6) The Minister must --
5 (a) keep the copy of the transfer;
(b) return the transfer to the person who lodged it; and
(c) return the annotated licence to the person who lodged it.
(7) The registration of a document under this section does not give
the document any greater effect than it would have had apart
10 from this Act.
339. Other dealings in licences
(1) The Minister must register a document (other than a transfer of
a licence or a share in a licence) that creates, transfers, affects or
otherwise deals with an interest in a licence if --
15 (a) a party to the dealing lodges the document for
registration; and
(b) a party to the dealing lodges a copy of the document;
and
(c) the fee provided for in the Registration Fees Act is paid;
20 and
(d) the fee prescribed by the regulations is paid; and
(e) section 341 (caveats) does not prevent the registration of
the dealing.
(2) The Minister must also register the date and time of registration
25 of the dealing.
(3) If a document purports to create, transfer, affect or otherwise
deal with an interest in a licence, the Minister is to register the
document under this section without inquiring into or being
concerned as to the legal effectiveness of the document.
page 189
Offshore Minerals Bill 2000
Chapter 3 Registration and Dealings
Part 3.1 Registration
s. 340
(4) The Minister must keep the copy of the document.
(5) The Minister must return the document to the person who
lodged it.
(6) The registration of a document under this section does not give
5 the document any greater effect than it would have had apart
from this Act.
340. Devolution of licences
(1) If --
(a) the rights of a licence holder have devolved to a person
10 by operation of law; and
(b) the person applies to the Minister in writing to be
registered as a licence holder; and
(c) the licence is lodged with the Minister for annotation
under subsection (3); and
15 (d) the person pays the fee prescribed by the regulations;
and
(e) the Minister is satisfied that the applicant is entitled to
those rights; and
(f) section 341 (caveats) does not prevent the registration of
20 the person as a licence holder,
the Minister must register the person as a licence holder.
(2) If the Minister registers a person as a licence holder under
subsection (1), the Minister must also register the date and time
of registration.
25 (3) If the Minister registers a person as a licence holder under
subsection (1), the Minister must annotate the licence
accordingly.
page 190
Offshore Minerals Bill 2000
Registration and Dealings Chapter 3
Registration Part 3.1
s. 341
(4) The Minister must return the annotated licence to the person
who lodged it.
(5) This section applies to 2 or more persons to whom rights have
devolved in the same way as it applies to a single person to
5 whom rights have devolved.
Subdivision B -- Caveats
341. Effect of a caveat
(1) If a caveat is in force on a licence, the Minister must not register
a dealing in the licence unless --
10 (a) the Minister is not required to give the caveat holder
notice of the particular dealing; or
(b) the caveat holder consents to the registration of the
dealing under section 350; or
(c) a court of competent jurisdiction orders the Minister to
15 register the dealing under section 338 or 339 despite the
caveat.
Note 1: For "dealing" see section 5.
Note 2: Once the caveat holder has been given notice of the dealing, the caveat will lapse at
the end of 30 days unless the caveat holder consents to the registration of the dealing
20 or gets a court order extending the life of the caveat (see section 348).
Note 3: The Minister may not be required to give the caveat holder notice of the dealing
because the caveat holder is a party to the dealing or because the dealing falls outside
the class of dealings that the caveat holder has specified under section 343(2) (see
section 349(6)).
25 (2) If a caveat is in force on a licence, the Minister must not register
a person under section 340 as a licence holder unless --
(a) the caveat holder consents to the registration under
section 350; or
page 191
Offshore Minerals Bill 2000
Chapter 3 Registration and Dealings
Part 3.1 Registration
s. 342
(b) a court of competent jurisdiction orders the Minister to
register the person under section 340 despite the caveat.
Note: Once the caveat holder has been given notice, the caveat will lapse at the end of
30 days unless the caveat holder consents to the registration or gets a court order
5 extending the life of the caveat.
342. Lodgment of caveats
(1) A person who claims a legal or equitable interest in or affecting
a licence may lodge with the Minister a caveat on the licence.
(2) A person may claim a legal or equitable interest in or affecting a
10 licence even if the interest claimed arises under a document that
has not been registered under section 338 or 339.
343. Form of caveat
(1) A caveat must --
(a) be in accordance with the form approved by the
15 Minister; and
(b) set out --
(i) the full name and address of the person claiming
the interest; and
(ii) details of the interest claimed;
20 and
(c) be signed by the person claiming the interest; and
(d) specify an address for service of notices within the State.
(2) A caveat may specify the particular dealings that the caveat
holder wants to be given notice of under section 349.
25 344. Payment of fee
The person lodging a caveat must pay the caveat fee that is
prescribed by the regulations.
page 192
Offshore Minerals Bill 2000
Registration and Dealings Chapter 3
Registration Part 3.1
s. 345
345. Caveat to be registered
(1) If --
(a) a caveat is lodged for registration; and
(b) the caveat complies with section 343; and
5 (c) the person lodging the caveat pays the fee required by
section 344,
the Minister must, subject to subsection (4), register the caveat.
(2) The Minister must register the date and time of lodgment.
(3) The Minister must keep the original of the caveat and endorse
10 on it the date and time of lodgment.
(4) Subsection (1) does not apply if --
(a) a court has made an order under section 351(2); and
(b) the order requires the court's consent to the registration
of the caveat; and
15 (c) the court has not consented to the registration of the
caveat.
346. Withdrawal of caveat
(1) A caveat holder may withdraw the caveat at any time by lodging
a written withdrawal with the Minister.
20 (2) The Minister must --
(a) register details of the withdrawal; and
(b) endorse details of the withdrawal on the original of the
caveat; and
(c) keep the original of the withdrawal.
25 347. Form of withdrawal
A withdrawal of a caveat must --
(a) be in accordance with the approved form; and
page 193
Offshore Minerals Bill 2000
Chapter 3 Registration and Dealings
Part 3.1 Registration
s. 348
(b) give details of the caveat; and
(c) be signed by the caveat holder.
348. Duration of caveat
(1) A caveat that is registered is taken to have had effect from the
5 time at which it is lodged with the Minister.
(2) A caveat on a licence ceases to have effect if --
(a) a court of competent jurisdiction makes an order for the
removal of the caveat under section 351; or
(b) the caveat is withdrawn under section 346; or
10 (c) the caveat holder is given notice under section 349(1),
(2) or (3) and 30 days have passed since the caveat
holder was given the notice.
(3) Subsection (2)(c) does not apply if, before the end of the
30 days, the caveat holder consents to the registration of the
15 dealing or to the registration under section 340.
(4) Subsection (2)(c) does not apply if, before the end of the
30 days --
(a) the caveat holder applies to a court of competent
jurisdiction for an order under section 351 that the
20 caveat be extended beyond the period; and
(b) the court makes an order extending the period.
(5) If a court makes an order under section 351(1)(c), the caveat
ceases to have effect at the end of the extended period.
(6) Subsection (5) does not apply if, before the end of the extended
25 period, the caveat holder consents to the registration of the
dealing under section 350 or to the registration under
section 340.
page 194
Offshore Minerals Bill 2000
Registration and Dealings Chapter 3
Registration Part 3.1
s. 349
349. Notice to caveat holder
(1) If --
(a) a transfer of a licence or a share in a licence is lodged
with the Minister under section 338; and
5 (b) a caveat is in force on the licence,
the Minister must, subject to subsection (6), notify the caveat
holder that the transfer has been lodged for registration.
(2) If --
(a) a dealing in a licence (other than a transfer of the licence
10 or a share in the licence) is lodged with the Minister
under section 339; and
(b) a caveat is in force on the licence,
the Minister must, subject to subsection (6), notify the caveat
holder that the dealing has been lodged for registration.
15 (3) If --
(a) a person applies to the Minister under section 340 to be
registered as a licence holder; and
(b) a caveat is in force on the licence,
the Minister must notify the caveat holder that the application
20 has been made.
(4) If --
(a) a licence holder surrenders the licence or surrenders a
block or some of the blocks covered by the licence; and
(b) a caveat is in force on the licence,
25 the Minister must notify the caveat holder of the surrender.
(5) Notification under subsection (1), (2), (3) or (4) must be by
certified mail.
page 195
Offshore Minerals Bill 2000
Chapter 3 Registration and Dealings
Part 3.1 Registration
s. 350
(6) Notice is not to be given under subsection (1) or (2) if --
(a) the caveat holder is a party to the transfer or dealing
concerned; or
(b) the caveat holder has specified the class of dealings the
5 caveat holder wants to receive notice of (see
section 343(2)) and the transfer or dealing falls outside
that class.
350. Caveat holder may consent to registration
(1) If a caveat holder is given notice under section 349(1), the
10 caveat holder may consent to the registration of the transfer.
(2) If a caveat holder is given notice under section 349(2), the
caveat holder may consent to the registration of the dealing.
(3) If a caveat holder is given notice under section 349(3), the
caveat holder may consent to the registration of the person as a
15 licence holder.
(4) A consent under this section must be in writing and must be
lodged with the Minister.
(5) A consent under this section is only effective if it is given
within 30 days after the day on which the caveat holder receives
20 the notice concerned.
(6) The Minister must --
(a) register details of the consent; and
(b) endorse details of the consent on the original of the
caveat; and
25 (c) keep the original of the consent.
351. Orders that can be made by a court in relation to caveats
(1) The Supreme Court may --
(a) order the removal of a caveat from a licence; or
page 196
Offshore Minerals Bill 2000
Registration and Dealings Chapter 3
Registration Part 3.1
s. 352
(b) order the Minister to register a dealing despite a caveat;
or
(c) extend the period provided for by section 348(2)(c).
(2) If --
5 (a) a court makes an order under subsection (1)(a) or (b) in
relation to the licence; and
(b) the court is satisfied that caveats are being used
vexatiously to delay the registration of a document,
the court may also make an order that the Minister is not to
10 register any caveats in respect of the licence unless the court has
consented to the registration.
(3) An order under subsection (2) may be for an indefinite period or
for a specified period.
(4) An order under subsection (2) may provide that the court's
15 consent is not required in any specified case or class of case.
(5) If an application is made to the court for an order under
subsection (2), the Minister becomes a party to the proceedings.
(6) If a court makes an order under this section, the Minister
must --
20 (a) register details of the order; and
(b) keep a copy of the order.
Division 3 -- Miscellaneous
352. Fees for registration
(1) The Minister is to determine the amount of the fee payable
25 under the Registration Fees Act for registration of any document
or fact.
page 197
Offshore Minerals Bill 2000
Chapter 3 Registration and Dealings
Part 3.1 Registration
s. 352A
(2) If --
(a) a document creates, transfers, affects or otherwise deals
with a licence or an interest in a licence; and
(b) the Minister determines under subsection (1) the amount
5 of the fee payable under the Registration Fees Act on the
basis of the information contained in the document; and
(c) the Minister subsequently becomes satisfied that the
document does not fully and truly set out --
(i) the consideration for the transaction it relates to;
10 or
(ii) all the other facts and circumstances (if any) that
affect the amount of the fee payable under the
Registration Fees Act in respect of the document,
the Minister may make a fresh determination under
15 subsection (1) of the amount of the fee.
352A. Exemption from stamp duty
Duty under the Stamp Act 1921 is not chargeable --
(a) on a licence; or
(b) on any instrument that creates, transfers, affects or
20 otherwise deals with an interest in a licence.
353. Protection from legal actions
(1) This section applies to --
(a) the Minister; and
(b) a delegate of the Minister; and
25 (c) a person acting under the direction or authority of the
Minister or a delegate of the Minister.
page 198
Offshore Minerals Bill 2000
Registration and Dealings Chapter 3
Registration Part 3.1
s. 354
(2) A person to whom this section applies is not liable to an action,
suit or proceeding in relation to an act or matter if --
(a) the act or matter is done or omitted to be done in the
exercise or purported exercise of a power or authority
5 given by this Part; and
(b) the act or matter is done or omitted to be done in good
faith.
354. Application to court for correction of register
(1) The Supreme Court, on the application of a person aggrieved
10 by --
(a) the omission of an entry from the offshore mining
register; or
(b) an entry wrongly existing in the register; or
(c) an error or defect in an entry in the register,
15 may make any order it thinks appropriate directing correction of
the register.
(2) In any proceedings under subsection (1), the Supreme Court
may decide any necessary or expedient question concerning the
rectification of the register.
20 (3) A copy of a Supreme Court order may be served on the
Minister.
(4) In any proceedings under subsection (1) --
(a) the Minister may appear; or
(b) if the Supreme Court so directs, the Minister must
25 appear.
(5) If the Minister receives a copy of an order under subsection (3),
the Minister must amend the register so that the register accords
with the order.
page 199
Offshore Minerals Bill 2000
Chapter 3 Registration and Dealings
Part 3.1 Registration
s. 355
355. Appeals against determinations under section 352
(1) If a person is dissatisfied with a determination by the Minister
under section 352, the person may appeal to the Supreme Court
against the determination.
5 (2) Written notice of an appeal under subsection (1) must be given
to the Minister.
(3) In any proceedings under this section --
(a) the Minister may appear; or
(b) if the Supreme Court so directs, the Minister must
10 appear.
(4) On hearing an appeal under subsection (1), the Supreme Court
may affirm, revoke or amend the determination of the Minister.
356. Section number not used
See note 2 to section 3(1).
15 357. Evidentiary value of register
(1) The offshore mining register is admissible in proceedings as
evidence of the matters registered in it.
(2) If the register is kept by the use of a computer, the Minister may
issue a document containing the details of a matter taken from
20 the register.
(3) The document issued under subsection (2) is admissible in
proceedings as evidence of the matter.
(4) The Minister may give a person a certified copy of, or extract
from, the register if the person pays the fee prescribed by the
25 regulations.
(5) The certified copy is admissible in proceedings without any
further proof of, or the production of, the original.
page 200
Offshore Minerals Bill 2000
Registration and Dealings Chapter 3
Registration Part 3.1
s. 358
358. Certified copy of document on document file
(1) The Minister may give a person a certified copy of a document
that is kept on the document file if the person pays the fee
prescribed by the regulations.
5 (2) The certified copy is admissible in proceedings without any
further proof of, or the production of, the original.
359. Certification of registration action
(1) The Minister may give a person a signed certificate that --
(a) a thing required or allowed by this Part has been done;
10 or
(b) a thing required or allowed by this Part has not been
done,
if the person pays the fee prescribed by the regulations.
(2) The certificate is admissible in proceedings as evidence of the
15 facts stated in the certificate.
page 201
Offshore Minerals Bill 2000
Chapter 3 Registration and Dealings
Part 3.2 Dealings in licences
s. 360
Part 3.2 -- Dealings in licences
Division 1 -- Dealings in licences to be in writing and registered
360. Dealings in licences to be in writing
(1) An interest in a licence may be created, transferred, affected or
5 otherwise dealt with only by a written document.
Note: A transfer must be in writing because it is a dealing.
(2) Subsection (1) does not apply to the rights of a licence holder
that devolve to a person by operation of law.
Note 1: Rights might devolve to a person, for example, by operation of the laws relating to
10 intestacy or bankruptcy.
Note 2: For the registration of rights that devolve to a person by operation of law see
section 340.
361. Dealings in interests in licences not effective until registered
A document that creates, transfers, affects or otherwise deals
15 with an interest in a licence has no effect until it is registered
under Part 3.1.
Note 1: A transfer is a dealing and does not take effect until registered.
Note 2: Transfers are registered under section 338 and other dealings under section 339.
Division 2 -- Approval of transfer of licences
20 362. Transfers require approval by Minister
(1) The transfer of a licence is not to be registered under
section 338 unless it has been approved by the Minister.
Note 1: For "transfer" of a licence see section 7(1).
Note 2: A transfer is a dealing and under section 361 does not take effect until registered.
page 202
Offshore Minerals Bill 2000
Registration and Dealings Chapter 3
Dealings in licences Part 3.2
s. 363
(2) The transfer of a share in a licence is not to be registered under
section 338 unless it has been approved by the Minister.
Note 1: For "transfer" in a share of a licence see section 7(2) and (3).
Note 2: A transfer is a dealing and under section 361 does not take effect until registered.
5 363. Application for approval of transfer
(1) A person may apply to the Minister for approval of the transfer.
(2) The application must be in writing.
(3) The application must be accompanied by --
(a) the transfer document (duly signed or executed); and
10 (b) a copy of the transfer document; and
(c) if a caveat holder has consented to the registration of the
transfer under section 350(1), a copy of the consent.
(4) The application may include a statement of any matter that the
applicant wants the Minister to take into account in deciding
15 whether to approve the transfer.
(5) Without limiting subsection (4), the application may include a
statement about --
(a) the technical qualifications of a party to the transfer; or
(b) the technical qualifications of the employees of a party
20 to the transfer; or
(c) the technical advice available to a party to the transfer;
or
(d) the financial resources of a party to the transfer.
(6) The application must be accompanied by the fee prescribed by
25 the regulations.
page 203
Offshore Minerals Bill 2000
Chapter 3 Registration and Dealings
Part 3.2 Dealings in licences
s. 364
364. Minister may ask for further information
(1) If --
(a) an application is made under section 363 for approval of
a transfer; and
5 (b) the Minister has reason to believe that a person
possesses or controls a document that relates to --
(i) the transfer document; or
(ii) the transfer transaction; or
(iii) the application for approval of the transfer,
10 the Minister may ask the person --
(c) to give the document to the Minister; or
(d) to make the document available for inspection by or on
behalf of the Minister.
(2) The request under subsection (1) must be made by giving to the
15 person a written notice containing the request.
(3) A person must not fail to comply with a request under
subsection (1) without reasonable excuse.
Maximum penalty: $5 000.
365. Minister's response to application for approval
20 (1) If an application is made under section 363, the Minister may --
(a) approve the transfer; or
(b) refuse to approve the transfer.
(2) The Minister may, under subsection (1)(a), approve the transfer
on conditions that the Minister considers necessary or desirable
25 in the public interest.
page 204
Offshore Minerals Bill 2000
Registration and Dealings Chapter 3
Dealings in licences Part 3.2
s. 366
(3) If the Minister approves the transfer, the Minister must endorse
on --
(a) the transfer document; and
(b) a copy of the transfer document,
5 a record of the approval.
Note: A record of the approval will also be entered in the offshore mining register (see
section 338(1)).
366. Protection from legal actions
(1) This section applies to --
10 (a) the Minister; and
(b) a delegate of the Minister; and
(c) a person acting under the direction or authority of the
Minister or a delegate of the Minister.
(2) A person to whom this section applies is not liable to an action,
15 suit or proceeding in relation to an act or matter if --
(a) the act or matter is done or omitted to be done in the
exercise or purported exercise of a power or authority
given by this Part; and
(b) the act or matter is done or omitted to be done in good
20 faith.
page 205
Offshore Minerals Bill 2000
Chapter 4 Administration
Part 4.1 Information management
s. 367
Chapter 4 -- Administration
Part 4.1 -- Information management
367. Minister may ask person for information
(1) The Minister may ask a person to give the Minister information
5 if --
(a) the information is relevant to the operation of this Act;
and
(b) the Minister has reasonable grounds for believing that
the person is able to give the information.
10 Note: The person must comply with the request (see section 372).
(2) The Minister may ask the person to give the information to --
(a) the Minister; or
(b) an inspector nominated by the Minister.
(3) The request must --
15 (a) be made by written notice given to the person; and
(b) specify the person to whom the information is to be
given; and
(c) specify the period within which the information is to be
given.
20 (4) The information must be given --
(a) in writing; and
(b) before the end of the period specified in the request.
(5) The document containing the information must be signed by --
(a) if the information is given by a body corporate, an
25 authorised officer of the body corporate; or
(b) if the information is provided by an individual, the
individual.
page 206
Offshore Minerals Bill 2000
Administration Chapter 4
Information management Part 4.1
s. 368
368. Power to ask person to appear
(1) If the Minister has reasonable grounds for believing that a
person is able to give information that is relevant to the
operation of this Act, the Minister may ask the person to appear
5 personally to --
(a) give the information; and
(b) answer questions about the activity to which the
information relates.
Note: The person must comply with the request (see section 372).
10 (2) The Minister may ask a person to appear before --
(a) the Minister; or
(b) an inspector nominated by the Minister.
(3) The request must --
(a) be made by written notice given to the person; and
15 (b) specify the activity about which the information is
sought or questions will be asked; and
(c) specify the address at which the person is to attend; and
(d) specify the day on which and the time at which the
person is to attend; and
20 (e) indicate whether the appearance is to be before the
Minister or before a nominated inspector.
369. Power to examine on oath or affirmation
(1) Where, following a notice under section 368, a person appears
before the Minister or a nominated inspector, the Minister or the
25 inspector may --
(a) administer an oath or affirmation to the person; and
(b) request the person to answer any question that comes
within the terms of the notice.
page 207
Offshore Minerals Bill 2000
Chapter 4 Administration
Part 4.1 Information management
s. 370
(2) The oath or affirmation to be administered is an oath or
affirmation that the person will truthfully answer the questions
put by the Minister or the inspector.
370. Minister may ask for documents
5 (1) The Minister may ask a person to produce a document if --
(a) the document is relevant to the operation of this Act; and
(b) the Minister has reasonable grounds for believing that
the person is able to produce the document.
Note: The person must comply with the request (see section 372).
10 (2) The Minister may ask the person to produce the document to --
(a) the Minister; or
(b) an inspector nominated by the Minister.
(3) The request --
(a) must be made by written notice given to the person; and
15 (b) must specify the person to whom, and the address at
which, the document is to be produced; and
(c) must specify --
(i) the period within which the document is to be
produced; or
20 (ii) the day on which and the time at which the
document is to be produced;
and
(d) may specify whether the original or a copy of the
document is to be produced.
25 (4) The regulations may provide for the manner in which the
Minister is to deal with the document.
(5) Without limiting subsection (4), the regulations may authorise
the Minister or inspector to take a copy of the document.
page 208
Offshore Minerals Bill 2000
Administration Chapter 4
Information management Part 4.1
s. 371
371. Minister may ask for samples
(1) The Minister may ask a person to produce a sample taken from
the seabed or subsoil in coastal waters if --
(a) the sample is relevant to the operation of this Act; and
5 (b) the Minister has reasonable grounds for believing that
the person is able to produce the sample.
Note: The person must comply with the request (see section 372).
(2) The Minister may ask the person to give the sample to --
(a) the Minister; or
10 (b) an inspector nominated by the Minister.
(3) The request --
(a) must be made by written notice given to the person; and
(b) must specify the person to whom, and the address at
which, the sample is to be given; and
15 (c) must specify --
(i) the period within which the sample is to be
given; or
(ii) the day on which and the time at which the
sample is to be given.
20 (4) The regulations may provide for the manner in which the
Minister or inspector is to deal with the sample.
(5) Without limiting subsection (4), the regulations may authorise
the Minister or inspector to test or analyse the sample.
372. Obligation to comply with request under section 367, 368,
25 369, 370 or 371
(1) A person must not, without reasonable excuse, fail to comply
with a request under section 367, 368, 369, 370 or 371.
Maximum penalty: $10 000.
page 209
Offshore Minerals Bill 2000
Chapter 4 Administration
Part 4.1 Information management
s. 373
(2) A person is not excused from complying with the request on the
ground that complying with the request might tend to
incriminate the person or make the person liable to a penalty.
Note: Section 373 provides immunity for the response to the request.
5 (3) A person must not give false or misleading information --
(a)in response to a request under section 367, 368, 370 or
371; or
(b) in response to a question asked under section 369(1).
Maximum penalty: $10 000.
10 373. Immunity from use of information etc. given in response to
request under section 367, 368, 369, 370 or 371
(1) Where a person gives the Minister information in response to a
request under section 367 or 368, or to a question under
section 369(1), the following are not admissible in evidence
15 against the person in any proceedings --
(a) the document containing the information given in
response to the request;
(b) the answer to the question; or
(c) any information, document or thing obtained as a direct
20 or indirect consequence of the giving of the information
or answer.
(2) If a person produces a document in response to a request under
section 370, the following are not admissible in evidence
against the person in any proceedings --
25 (a) the document;
(b) the fact of the production of the document by the person;
(c) any information, document or thing obtained as a direct
or indirect consequence of the production of the
document.
page 210
Offshore Minerals Bill 2000
Administration Chapter 4
Information management Part 4.1
s. 374
(3) If a person produces a sample in response to a request under
section 371, the following are not admissible in evidence
against the person in any proceedings --
(a) the sample;
5 (b) the fact of the production of the sample by the person;
(c) any information, document or thing obtained as a direct
or indirect consequence of the production of the sample.
(4) The immunity provided by subsections (1), (2) and (3) does not
apply to proceedings for an offence against section 372(3).
10 374. Restrictions on release of confidential material
(1) Subject to sections 375 and 376, if the Minister holds
confidential information --
(a) the Minister; and
(b) a Commonwealth or State Minister who is given the
15 information under section 375; and
(c) a person acting on behalf of the Minister or of a Minister
referred to in paragraph (b); and
(d) a person who is given the information under
section 375(3),
20 must not --
(e) publish the information; or
(f) make the information available to a person.
Maximum penalty: Imprisonment for 2 years.
(2) Subject to section 375, if the Minister holds a confidential
25 sample --
(a) the Minister; and
(b) a Commonwealth or State Minister who is given access
to the sample under section 375; and
page 211
Offshore Minerals Bill 2000
Chapter 4 Administration
Part 4.1 Information management
s. 375
(c) a person acting on behalf of the Minister or of a Minister
referred to in paragraph (b); and
(d) a person who is given access to the sample under
section 375(4),
5 must not --
(e) allow a person to inspect the sample; or
(f) publish information about the sample.
Maximum penalty: Imprisonment for 2 years.
375. Circumstances in which confidential material may be
10 released
(1) If --
(a) a licence holder gives confidential information to the
Minister; and
(b) the holder --
15 (i) makes the information publicly available; or
(ii) consents in writing to the information being
made publicly available,
the Minister, or another State Minister or a Commonwealth
Minister who is given access to the information, may make the
20 information available to any person.
(2) If --
(a) a licence holder gives a confidential sample to the
Minister; and
(b) the holder --
25 (i) publishes details of the sample; or
(ii) consents in writing to the details being made
publicly available; or
page 212
Offshore Minerals Bill 2000
Administration Chapter 4
Information management Part 4.1
s. 376
(iii) consents in writing to the sample being made
available for public inspection,
the Minister, or another State Minister or a Commonwealth
Minister who is given access to the sample, may --
5 (c) make details of the sample available to any person; or
(d) allow any person to inspect the sample.
Note: For "confidential information" and "confidential sample" see sections 27 and 28.
(3) Confidential information may be made available to a person if
the information is made available for the purposes of the
10 administration of this Act or the Registration Fees Act.
(4) A person may be given access to a confidential sample if the
access is given for the purposes of the administration of this Act
or the Registration Fees Act.
376. Certain reports to be made available
15 If --
(a) in order to comply with --
(i) the regulations; or
(ii) a direction under section 387 or 392; or
(iii) a licence condition,
20 a licence holder gives the Minister a report; and
(b) the report relates to blocks that are no longer covered by
the licence or by a successor licence to the licence; and
(c) another person requests the Minister to make the report
available to the person,
25 the Minister must make the report available to the person.
page 213
Offshore Minerals Bill 2000
Chapter 4 Administration
Part 4.2 Monitoring and enforcement
s. 377
Part 4.2 -- Monitoring and enforcement
Division 1 -- Inspections
377. Compliance inspections
For the purposes of this Act, a compliance inspection is an
5 inspection carried out to determine whether --
(a) a licence holder, a special purpose consent holder or an
associate has complied with or is complying with --
(i) this Act or the regulations; or
(ii) the Registration Fees Act or regulations made
10 under that Act; or
(iii) the licence or consent conditions; or
(iv) a direction under section 387 or 392;
or
(b) a person is exploring for or recovering minerals in
15 breach of section 38.
Note: An inspector may carry out a compliance inspection under --
• section 379 (inspection of licence-related premises etc. without a warrant);
• section 380 (inspection of other premises etc. with consent of the occupier);
• section 381 (inspection of premises etc. with a warrant).
20 378. Powers exercisable in course of inspection
(1) If an inspector may carry out a compliance inspection, the
inspector may do anything that is reasonable and necessary to
carry out the inspection.
(2) Without limiting subsection (1), the inspector may --
25 (a) examine things that are being used for exploration or
mining purposes and things that appear to the inspector
to be intended to be used for those purposes; and
page 214
Offshore Minerals Bill 2000
Administration Chapter 4
Monitoring and enforcement Part 4.2
s. 378
(b) test equipment (for example, by operating it); and
(c) examine, and copy, documents; and
(d) remove documents; and
(e) take photographs and videotapes; and
5 (f) examine, and take samples from the seabed or subsoil;
and
(g) enter or go onto any land, building or structure; and
(h) enter or board any vehicle, vessel or aircraft.
(3) If the compliance inspection is being carried out under a warrant
10 under section 382, subsection (2) has effect subject to the
restrictions that are specified in the warrant.
(4) Subject to subsections (5) and (6), if an inspector removes a
document under subsection (2)(d), the inspector may retain the
document for as long as is necessary to determine whether the
15 licence holder, the consent holder or the associate has complied
with or is complying with --
(a) this Act and the regulations; or
(b) the Registration Fees Act or regulations made under that
Act; or
20 (c) the licence or consent conditions; or
(d) a direction under section 387 or 392.
(5) Subject to subsection (6), the inspector must not retain the
document for more than 60 days.
(6) If --
25 (a) proceedings for an offence against a provision of this
Act or the regulations are commenced within that period
of 60 days; and
page 215
Offshore Minerals Bill 2000
Chapter 4 Administration
Part 4.2 Monitoring and enforcement
s. 379
(b) the document may afford evidence of the commission of
the offence,
the inspector may retain the document until the proceedings are
completed.
5 (7) For the purposes of subsection (6) the proceedings for an
offence are taken to include any appeal to a court in relation to
those proceedings.
(8) While an inspector is retaining the document under
subsection (4), the inspector must allow a person to inspect the
10 document if the person would have a right to inspect the
document if it were not in the inspector's possession.
379. Inspection of licence-related premises etc. without warrant
(1) Subject to subsections (2), (3) and (4), an inspector may,
without a warrant, carry out a compliance inspection of --
15 (a) licence-related land; or
(b) a licence-related building, structure, vehicle, vessel or
aircraft,
if the inspection is reasonably necessary.
(2) An inspection under subsection (1) must be made at a
20 reasonable time.
(3) An inspector may not enter premises under subsection (1) if --
(a) the premises are a residence; and
(b) the occupier has not consented to the entry.
(4) An inspector may not carry out a compliance inspection under
25 subsection (1) if --
(a) the person occupying or in charge of the land, building,
structure, vehicle, vessel or aircraft concerned asks the
page 216
Offshore Minerals Bill 2000
Administration Chapter 4
Monitoring and enforcement Part 4.2
s. 380
inspector to produce the inspector's identity card for
inspection by the person; and
(b) the inspector does not comply with the person's request.
(5) For the purposes of this section, land or a building, structure,
5 vehicle, vessel or aircraft is licence-related if --
(a) it is used in connection with activities carried out under
a licence or special purpose consent; or
(b) records about activities of that kind are kept there.
380. Inspection of other premises etc. with occupier's consent
10 An inspector may carry out a compliance inspection of land or a
building, structure, vehicle, vessel or aircraft with the consent of
the person who occupies or is in charge of the land, building,
structure, vehicle, vessel or aircraft.
381. Inspection of other premises etc. with warrant
15 An inspector may carry out a compliance inspection in
accordance with a warrant issued under section 382.
382. Procedure for obtaining warrant
(1) An inspector may apply to a magistrate for a warrant to carry
out a compliance inspection of land or of a building, structure,
20 vehicle, vessel or aircraft.
(2) The application must be supported by a statement on oath or
affirmation that sets out the grounds on which the inspector is
applying for the warrant.
(3) If the magistrate is satisfied that the compliance inspection is
25 reasonably necessary, the magistrate may issue a warrant to the
inspector to carry out the inspection.
page 217
Offshore Minerals Bill 2000
Chapter 4 Administration
Part 4.2 Monitoring and enforcement
s. 383
(4) The warrant must state --
(a) the name of the inspector; and
(b) whether the inspection may be carried out at any time or
only during specified hours of the day; and
5 (c) the day on which the warrant ceases to have effect; and
(d) the purposes for which the warrant is issued.
(5) The day specified under subsection (4)(c) is not to be more than
7 days after the day on which the warrant is issued.
(6) The purposes specified under subsection (4)(d) must include the
10 identification of --
(a) the land, building, structure, vehicle, vessel or aircraft to
be inspected; and
(b) any equipment that the inspector may test; and
(c) any documents that the inspector may examine and
15 copy; and
(d) any cores or cuttings from the seabed or subsoil that the
inspector may examine and take samples of.
383. Further provisions as to exercise of powers under warrant
(1) If a warrant for a compliance inspection is issued to an inspector
20 under section 382, the warrant authorises the inspector to carry
out the inspection --
(a) with such assistance as is reasonable and necessary; and
(b) by such force as is reasonable and necessary.
(2) An inspector may not carry out a compliance inspection under a
25 warrant if --
(a) the person occupying or in charge of the land, building,
structure, vehicle, vessel or aircraft concerned asks the
page 218
Offshore Minerals Bill 2000
Administration Chapter 4
Monitoring and enforcement Part 4.2
s. 384
inspector to produce the inspector's identity card for
inspection by the person; and
(b) the inspector does not comply with the person's request.
384. Occupier to cooperate with inspector
5 If an inspector carries out a compliance inspection of land or of a
building, structure, vehicle, vessel or aircraft under section 379
or 381, the person who occupies or is in charge of it must provide
the inspector with the facilities and assistance that the inspector
reasonably requires for carrying out the inspection.
10 Maximum penalty: $5 000.
Division 2 -- Directions
385. Directions by Minister must be obeyed
(1) A person must comply with a direction under section 387 or
392.
15 Maximum penalty: $10 000.
(2) A person must comply with a supplementary direction given
under section 391(2).
Maximum penalty: $5 000.
386. Scope of directions
20 (1) The Minister may give a direction under section 387 or 392 if it
is necessary or convenient to do so to carry out or give effect to
this Act or the regulations.
(2) Without limiting subsection (1), directions may be given in
relation to --
25 (a) the control of offshore exploration or mining activities;
and
page 219
Offshore Minerals Bill 2000
Chapter 4 Administration
Part 4.2 Monitoring and enforcement
s. 386
(b) the conservation and protection of the mineral resources
in coastal waters; and
(c) the remedying of --
(i) damage caused to the seabed or subsoil in coastal
5 waters by offshore exploration or mining
activities; or
(ii) damage caused by the escape of substances as a
result of offshore exploration or mining
activities;
10 and
(d) the protection of the environment; and
(e) the keeping of records and samples; and
(f) the giving of records and samples to the Minister for
inspection; and
15 (g) the making of returns.
Note: For "offshore exploration or mining activities" see section 5.
(3) For the purposes of subsection (2), the control of offshore
exploration or mining activities extends to the control of --
(a) the construction, maintenance and operation of
20 installations used in or for use in exploration or mining
activities in coastal waters; and
(b) the flow or discharge of fluids arising from exploration
or mining activities in coastal waters; and
(c) the safety, health and welfare of persons working in
25 offshore exploration or mining activities; and
(d) the maintenance of structures, equipment and property
used in or for use in offshore exploration or mining
activities.
Note: For "offshore exploration or mining activities" see section 5.
page 220
Offshore Minerals Bill 2000
Administration Chapter 4
Monitoring and enforcement Part 4.2
s. 387
387. Minister may give directions
(1) Subject to subsections (2), (3) and (4), the Minister may direct a
licence holder or special purpose consent holder to do or not to
do the thing specified in the direction.
5 (2) The direction must be in writing and is given by serving it on
the holder.
(3) The Minister must not give a direction of a permanent or
standing nature except after consultation with the responsible
Commonwealth Minister.
10 (4) A failure to comply with subsection (3) does not affect the
validity of the direction concerned.
388. Direction may incorporate material in another document
(1) A direction under section 387 may apply, adopt or incorporate a
code of practice or a standard that is contained in another
15 document.
(2) The application, adoption or incorporation of the other
document may be made with or without modification.
(3) The other document may be one issued outside Australia.
(4) The direction may apply, adopt or modify the other
20 document --
(a) as in force at the time when the direction is given; or
(b) as in force from time to time.
(5) If a direction applies, adopts or incorporates material in another
document, a copy of the document must be attached to the
25 direction when it is given to the licence holder or special
purpose consent holder.
page 221
Offshore Minerals Bill 2000
Chapter 4 Administration
Part 4.2 Monitoring and enforcement
s. 389
389. Direction may impose absolute prohibition
Without limiting section 387 a direction under that section
may --
(a) prohibit absolutely the doing of a thing; or
5 (b) prohibit the doing of a thing unless a person's consent or
approval is obtained.
390. Direction may extend to associates
(1) A direction under section 387 to a licence holder or special
purpose consent holder may extend to an associate specified in
10 the direction.
(2) An associate may be specified by name or by class.
(3) The direction may provide that only particular obligations
specified in the direction extend to a particular associate.
391. Holder to give notice of direction to associates
15 (1) If a direction under section 387 extends to an associate, the
licence holder or special purpose consent holder must either --
(a) give a copy of the direction to the associate; or
(b) display a copy of the direction at a place that the
associate goes to in the course of carrying out activities
20 under the licence or consent.
Maximum penalty: $5 000.
(2) The Minister may give the licence holder or special purpose
consent holder a supplementary direction that specifies the
manner in which, or the places at which, copies of a direction
25 are to be displayed under subsection (1)(b).
(3) A supplementary direction is to have effect as if it were part of
the original direction.
page 222
Offshore Minerals Bill 2000
Administration Chapter 4
Monitoring and enforcement Part 4.2
s. 392
392. Power to give directions after licence etc. ends
(1) If a person is bound by an obligation because of section 131,
191, 266 or 314, the Minister may direct the person to do a thing
or not to do a thing specified in the direction.
5 (2) A direction may be given only for the following purposes --
(a) to ensure that the obligation is complied with;
(b) a purpose that is incidental to the purpose in
paragraph (a).
Note: Sections 131, 191, 266 and 314 provide for undischarged obligations to continue to
10 bind a former licence holder or associate after the licence ends.
(3) A direction must be in writing and is given by serving it on the
person bound by the obligation.
393. Effect of directions on other instruments
(1) A later direction under section 387 or 392 overrides an earlier
15 direction if they are inconsistent.
(2) A direction has effect despite anything in --
(a) the regulations; or
(b) a licence condition that relates to safety or
environmental matters.
20 394. Minister may specify time for compliance
(1) If the Minister gives a direction under section 387 or 392 to a
person, the Minister may --
(a) specify in the direction a time for compliance with the
direction; or
25 (b) give the person a supplementary direction specifying a
time for compliance with the direction.
page 223
Offshore Minerals Bill 2000
Chapter 4 Administration
Part 4.2 Monitoring and enforcement
s. 395
(2) A supplementary direction is to have effect as if it were part of
the original direction.
395. Minister may take action if holder fails to comply
(1) The Minister may do all or any of the things required by a
5 direction under section 387 or 392 if --
(a) the time for compliance specified under section 394 has
ended; and
(b) the person to whom the direction was given or to whom
it extended has not complied with the direction.
10 (2) If the direction required consultation under section 387(3), the
Minister must not take action under subsection (1) without
similar consultation.
396. Costs incurred by Minister in taking action under
section 395
15 (1) If --
(a) the Minister takes action under section 395 in relation to
a direction under section 387 given to a licence holder or
special purpose consent holder; and
(b) the direction does not extend to an associate of the
20 holder,
the costs and expenses incurred by the Minister in taking that
action are a debt due to the State by the holder.
(2) If --
(a) a direction under section 387 specifies that a particular
25 associate of a licence holder or special purpose consent
holder is subject to a particular obligation; and
page 224
Offshore Minerals Bill 2000
Administration Chapter 4
Monitoring and enforcement Part 4.2
s. 397
(b) the Minister takes action under section 395 in relation to
that obligation,
the costs and expenses incurred by the Minister in taking that
action are a debt due to the State by the holder and the associate.
5 (3) The associate and the holder are jointly and severally liable to
pay the debt arising under subsection (2).
(4) A debt under this section is recoverable in a court of competent
jurisdiction.
397. Defences to actions to recover debts
10 (1) It is a defence to an action to recover the debt from the licence
holder, special purpose consent holder or the associate if --
(a) the holder or associate produces evidence that the holder
or associate took all reasonable steps to comply with the
direction; and
15 (b) the evidence is not rebutted.
(2) It is a defence to an action to recover the debt from the associate
if --
(a) the associate produces evidence that the associate did
not know of, and could not reasonably be expected to
20 know of, the existence of the direction; and
(b) the evidence is not rebutted.
Division 3 -- Securities
398. Securities
(1) A person may be required to lodge a security with the Minister
25 under --
(a) section 399 (security as prerequisite for proper
acceptance of provisional grant or provisional renewal);
or
page 225
Offshore Minerals Bill 2000
Chapter 4 Administration
Part 4.2 Monitoring and enforcement
s. 399
(b) section 118 (exploration licence conditions), 177
(retention licence conditions), 254 (mining licence
conditions) or 304 (works licence conditions).
(2) Securities are required as a way of ensuring compliance with
5 this Act and with licence conditions.
(3) Securities may only be used for the purposes laid down in
section 400.
399. Determination of requirement to lodge security
(1) The Minister may determine that a person who has been
10 provisionally granted a licence must lodge a security with the
Minister.
Note 1: The provisional holder will be given notice of the determination under section 66 or
83 (exploration licence), 147 (retention licence), 210 or 227 (mining licence) or 279
(works licence).
15 Note 2: If the provisional holder does not lodge the security within a particular time provided
for in this Act, the provisional grant will lapse (see section 72 or 86 (exploration
licence), 153 (retention licence), 216 or 230 (mining licence) or 285 (works licence)).
(2) If the Minister provisionally renews a licence, the Minister may
determine that the licence holder must lodge a security with the
20 Minister.
Note 1: The licence holder will be given notice of the determination under section 110
(exploration licence), 169 (retention licence), 246 (mining licence) or 296 (works
licence).
Note 2: If the holder does not lodge the security within a particular time provided for in this
25 Act, the provisional renewal will lapse (see section 116 (exploration licence), 175
(retention licence), 252 (mining licence) or 302 (works licence)).
(3) A determination under subsection (1) or (2) must specify --
(a) the amount of the security required; and
(b) the kind of security required; and
30 (c) the manner and form in which the security is to be
lodged.
page 226
Offshore Minerals Bill 2000
Administration Chapter 4
Monitoring and enforcement Part 4.2
s. 400
(4) Without limiting subsections (1) and (2), a determination may
require the lodgment of a security in the form of a guarantee and
if a guarantee is required the determination may specify --
(a) the kind of person who is to give the guarantee; and
5 (b) the terms of the guarantee.
(5) The determination is to be in writing.
(6) If a person is provisionally granted a licence over a tender
block, the amount determined as a security under subsection (1)
is to be the amount of security referred to in the tender block
10 licence notice.
(7) This section does not limit the terms and conditions that may be
included in a resolution referred to in section 38A(2).
Note: For the contents of a tender block licence notice see sections 75 and 219.
400. Application of security
15 (1) If --
(a) a person is or was a licence holder; and
(b) the person has lodged a security with the Minister,
the Minister may use the security to discharge the person's
obligations arising from a failure to comply with --
20 (c) this Act or the regulations; or
(d) the licence conditions; or
(e) a direction under section 387 or 392.
(2) Without limiting subsection (1), the holder's financial
obligations include the obligation to pay a penalty imposed
25 under the licence conditions.
(3) Subject to subsection (1), the Minister is to deal with a security
in accordance with the regulations.
page 227
Offshore Minerals Bill 2000
Chapter 4 Administration
Part 4.2 Monitoring and enforcement
s. 401
Division 4 -- Restoration of environment
401. Removal of property from coastal waters
(1) The regulations may provide for --
(a) the removal from coastal waters of property that --
5 (i) has been brought into coastal waters for use in
offshore exploration or mining activities; and
(ii) is not being used and is not intended to be used
in exploration or mining activities in accordance
with a licence;
10 and
(b) the disposal by the Minister of property removed under
regulations made for the purposes of paragraph (a); and
(c) the recovery of costs and expenses incurred by the
Minister or another person in removing or disposing of
15 property in accordance with regulations made for the
purposes of paragraphs (a) and (b).
Note: For "offshore exploration or mining activities" see section 5.
(2) Regulations made for the purposes of subsection (1)(a) may
provide for removal by the Minister or by someone else.
20 (3) Regulations made for the purposes of subsection (1)(c) may
provide for the recovery of costs by way of deduction from the
proceeds of the disposal.
(4) Subject to the regulations, no action lies in respect of the
removal or disposal of property in accordance with the
25 regulations.
(5) In this section --
"property" includes a structure or equipment.
page 228
Offshore Minerals Bill 2000
Administration Chapter 4
Monitoring and enforcement Part 4.2
s. 402
402. Rehabilitation of damaged areas
(1) The regulations may provide for --
(a) the rehabilitation of an area in coastal waters that has
been damaged or affected by offshore exploration or
5 mining activities of a licence holder; and
(b) the recovery of costs and expenses incurred by the
Minister in rehabilitating an area under regulations made
for the purposes of paragraph (a).
(2) Regulations made for the purposes of subsection (1)(a) may
10 provide for the rehabilitation to be carried out by the Minister or
someone else.
(3) Regulations made for the purposes of subsection (1)(b) may
provide for the recovery of costs and expenses by way of
deduction from the licence holder's security.
15 Division 5 -- Safety zones
403. Declaration of safety zone around a structure or equipment
(1) The Minister may, by order published in the Gazette, establish a
safety zone around a structure or equipment in coastal waters.
(2) A safety zone may only be established for the purpose of
20 protecting the structure or equipment.
(3) The safety zone may extend not more than 500 metres from the
outer edge of the structure or equipment.
(4) The order may apply to --
(a) all vessels; or
25 (b) all vessels except those specified in the order.
page 229
Offshore Minerals Bill 2000
Chapter 4 Administration
Part 4.2 Monitoring and enforcement
s. 404
404. Effect of declaration of safety zone
(1) If a safety zone is established by order under section 403, a
vessel to which the order applies is not to enter or remain in the
safety zone without the written consent of the Minister.
5 (2) If a consent is given under subsection (1) on conditions, a vessel
to which the consent applies is to enter or remain in the safety
zone only in accordance with the conditions.
(3) The owner of a vessel and the person in command or in charge
of a vessel each commit a crime if the vessel enters or remains
10 in a safety zone in contravention of subsection (1) or (2), and
are liable to imprisonment for 5 years.
(4) A court of petty sessions may hear and determine proceedings
for an offence against subsection (3) if the court is satisfied that
it is appropriate to do so, and the defendant and the prosecutor
15 consent.
(5) Where, in accordance with subsection (3), a court of petty
sessions convicts a person of the offence, the person is liable to
a fine of $10 000 or imprisonment for 2 years, or both.
(6) It is a defence to a prosecution of a person for an offence against
20 subsection (3) if the person satisfies the court that --
(a) an unforeseen emergency made it necessary for the
vessel to enter or remain in the safety zone to attempt to
secure the safety of --
(i) a human life; or
25 (ii) the vessel; or
(iii) another vessel; or
(iv) a well, pipeline, structure or equipment;
or
page 230
Offshore Minerals Bill 2000
Administration Chapter 4
Monitoring and enforcement Part 4.2
s. 405. - 420
(b) the vessel entered or remained in the safety zone in
circumstances beyond the control of the person who was
in command or in charge of the vessel (for example,
adverse weather).
5 (7) It is a defence to a prosecution of the owner of a vessel for an
offence against subsection (3) if the owner satisfies the court
that the owner --
(a) did not aid, abet, counsel or procure the vessel's
entering or remaining in the safety zone; and
10 (b) was not in any way, directly or indirectly, knowingly
concerned in, or party to, the vessel's entering or
remaining in the safety zone.
405. - 420. Section numbers not used
See note 2 to section 3(1).
page 231
Offshore Minerals Bill 2000
Chapter 4 Administration
Part 4.3 Inspectors
s. 421
Part 4.3 -- Inspectors
421. Appointment of inspectors
(1) The Minister may appoint a person who is a public service
officer within the meaning of the Public Sector Management
5 Act 1994 to be an inspector for the purposes of this Act and the
regulations.
Note: Inspectors have powers under sections 367, 368, 369, 370, 371, 378, 379, 380 and
381.
(2) The appointment must be in writing.
10 422. Identity cards
(1) The Minister must issue an inspector with an identity card.
(2) The card must --
(a) contain a recent photograph of the inspector; and
(b) be in the form approved by the Minister.
15 423. Return of identity card
(1) A person who stops being an inspector must, as soon as is
practicable, return the person's identity card to the Minister or
to an official specified by the Minister in a written notice given
to the person.
20 (2) A person must not contravene subsection (1) without reasonable
excuse.
Maximum penalty: $100.
page 232
Offshore Minerals Bill 2000
Administration Chapter 4
Licence fees and royalty Part 4.4
s. 424
Part 4.4 -- Licence fees and royalty
Division 1 -- Licence fees
424. Definition
In this Division --
5 "year", in relation to the period when a licence is in force,
means --
(a) the period of 12 months commencing on (and
including) the day on which the provisional grant of
the licence is properly accepted; or
10 (b) a period of 12 months commencing on (and
including) an anniversary of that day; or
(c) a period of less than 12 months that --
(i) commences on (and includes) --
(I) the day on which the provisional
15 grant of the licence is properly
accepted; or
(II) an anniversary of that day;
and
(ii) ends on the expiry of the licence.
20 425. Licence fees
(1) A licence holder must pay a fee to the Minister for each year
during which the licence is in force.
(2) Subject to section 426, the amount of the fee for each kind of
licence is to be as prescribed by the regulations for that kind of
25 licence.
(3) If the licence has 2 or more holders, the holders are jointly and
severally liable to pay the fee.
page 233
Offshore Minerals Bill 2000
Chapter 4 Administration
Part 4.4 Licence fees and royalty
s. 426
426. Limit on amount of fees
(1) The amount of the fee for an exploration licence for a year is not
to exceed whichever is the greater of --
(a) $2 000; or
5 (b) the amount obtained by multiplying $100 by the number
of blocks covered by the licence at the beginning of the
year.
(2) The amount of the fee for a retention licence for a year is not to
exceed the amount obtained by multiplying $1 000 by the number
10 of blocks covered by the licence at the beginning of the year.
(3) The amount of the fee for a mining licence for a year is not to
exceed the amount obtained by multiplying $1 000 by the number
of blocks covered by the licence at the beginning of the year.
(4) The amount of the fee for a works licence for a year is not to
15 exceed $100 for each hectare or part of a hectare of the area
specified in the licence under section 278(1)(c).
427. Time for payment
The fee for a year becomes payable one month after the day on
which the year begins.
20 Division 2 -- Royalty
428. Definition
In this Division --
"royalty period", in relation to a mining licence, means --
(a) the period from (and including) the day on which the
25 licence takes effect to (and including) the next
30 June or 31 December whichever is the earlier; and
(b) each period of 6 months after that period.
page 234
Offshore Minerals Bill 2000
Administration Chapter 4
Licence fees and royalty Part 4.4
s. 429
429. Royalty
A person who is or has been a mining licence holder must pay
to the Minister a royalty for all minerals recovered by the holder
under the licence.
5 430. Rate of royalty
(1) Subject to this section, the Minister may, by instrument in
writing, determine the rate of royalty payable for a mineral of a
kind specified in the instrument.
(2) Without limiting subsection (1), the rates of royalty determined
10 under that subsection may include a rate that is related to the
landed value, or to the quantity, of the mineral.
(3) A rate of royalty determined under subsection (1) applies in
relation to any mineral of the relevant kind recovered under a
mining licence during the period when the rate is in force.
15 (4) A determination of a rate of royalty under subsection (1) takes
effect on the day on which the instrument of determination is
published in the Gazette.
431. Reduction of royalty in certain cases
(1) The Minister may determine a rate of royalty that is lower than
20 the rate determined under section 430 for --
(a) a particular kind of mineral; or
(b) all minerals recovered under a particular mining licence.
(2) A determination is to be made by instrument in writing and is to
specify the period for which the lower rate is to be in force.
25 (3) A determination may only be made under this section if the
Minister is satisfied that recovery of the kind of mineral to
which it applies would be uneconomic at the rate determined
under section 430.
page 235
Offshore Minerals Bill 2000
Chapter 4 Administration
Part 4.4 Licence fees and royalty
s. 432
432. Fixing of landed value
For the purposes of this Division, the landed value of a mineral
is --
(a) an amount agreed between the mining licence holder
5 and the Minister; or
(b) if there is no agreement within such period as the
Minister allows, an amount determined by the Minister
by instrument in writing.
433. Fixing of quantity
10 For the purposes of this Division, the quantity of any mineral
recovered by a mining licence holder during a royalty period
is --
(a) the quantity agreed between the holder and the Minister;
or
15 (b) if there is no agreement within such period as the
Minister allows, the quantity determined by the Minister
by instrument in writing.
434. Time for payment
Royalty for any mineral recovered during a royalty period is
20 payable within one month after the last day of that royalty
period.
435. State to pay 40% of royalties to Commonwealth
(1) The State is to pay to the Commonwealth 40% of royalties
received under this Division.
25 (2) Payments under subsection (1) are to be made not later than the
end of the month that follows the month in which the royalties
were received.
page 236
Offshore Minerals Bill 2000
Administration Chapter 4
Licence fees and royalty Part 4.4
s. 436
(3) In this section --
"royalty" includes any penalty for late payment of royalty.
Division 3 -- Penalties and recovery
436. Penalty if fee or royalty overdue
5 (1) Subject to this section, a licence holder must pay a penalty to
the Minister in respect of any fee or amount of royalty that the
holder fails to pay when it becomes payable.
(2) The penalty is to be calculated --
(a) on the amount of the fee or royalty that remains unpaid;
10 and
(b) at the rate of 0.33% for each day during which the fee or
royalty is unpaid.
(3) A penalty is not payable under subsection (1) on an amount of
royalty in respect of any period until 7 days after --
15 (a) the landed value of the mineral has been agreed or
determined under section 432, where the rate of royalty
is related to the landed value of the mineral; or
(b) the quantity of the mineral has been agreed or
determined under section 433, where the rate of royalty
20 is related to the quantity of the mineral recovered.
437. Fees etc. recoverable as debts
The State may recover the amount of any fee, royalty or penalty
payable under this Part in a court of competent jurisdiction as a
debt due to the State.
page 237
Offshore Minerals Bill 2000
Chapter 5 Miscellaneous
s. 438
Chapter 5 -- Miscellaneous
438. State functions under Part 5.1 of Commonwealth Act
(1) A State court may exercise any jurisdiction that is conferred on
the court by the Commonwealth Act.
5 (2) A State authority may perform any function that it is necessary
for the authority to perform to give effect to Part 5.1 of the
Commonwealth Act.
(3) In this section --
"State authority" means --
10 (a) the Governor in Executive Council;
(b) a Minister of the Crown in right of the State;
(c) a department of the Public Service of the State;
(d) an agency, authority or instrumentality established
under a written law of the State;
15 (e) a person holding or exercising the powers of an office
established under a written law of the State;
(f) an officer or employee of --
(i) an agency, authority or instrumentality
referred to in paragraph (d); or
20 (ii) a person referred to in paragraph (e);
(g) an officer appointed, or a person employed, under
any other written law of the State;
(h) any other person or entity prescribed by the
regulations to be a State authority for the purposes of
25 this section;
"State court" means a court or other tribunal of the State.
page 238
Offshore Minerals Bill 2000
Miscellaneous Chapter 5
s. 439
439. Delegation by Minister
(1) The Minister may by signed instrument delegate to a person the
performance of all or any of the functions of the Minister
under --
5 (a) this Act; or
(b) the Registration Fees Act; or
(c) regulations made under this Act.
Note: See also sections 58 and 59 of the Interpretation Act 1984.
(2) A delegation under this section may be made to the person who
10 holds, or performs the duties of, a specified office under the
Commonwealth or the State.
(3) If the Minister delegates the performance of a function under
this section, the delegation continues in force despite --
(a) a vacancy in the office of Minister; or
15 (b) a change in the identity of the holder of the office of
Minister.
(4) A copy of each instrument making, varying or revoking a
delegation under this section must be published in the Gazette.
440. False statements
20 A person must not in connection with --
(a) any application or request to the Minister; or
(b) the lodgment of any document,
under this Act give any information or make any statement --
(c) that the person knows to be false in a material particular;
25 or
page 239
Offshore Minerals Bill 2000
Chapter 5 Miscellaneous
s. 441
(d) that is false in a material particular and that the person
does not believe to be true.
Penalty: $10 000.
441. Service of documents on licence holders etc.
5 (1) A document that is to be given to a licence holder may be given
to the holder by posting it to the address that is the holder's
registered address for service.
Note: See section 333 for registration of an address for service.
(2) A document that is to be given to an applicant for a licence may
10 be given to the applicant by posting it to the address that the
applicant specified in the applicant's application for the licence.
442. Regulations
(1) The Governor may make regulations prescribing all matters --
(a) required or permitted by this Act to be prescribed; or
15 (b) necessary or convenient to be prescribed for giving
effect to this Act.
(2) Without limiting subsection (1), the regulations may provide
for --
(a) the control of offshore exploration and mining activities;
20 and
(b) procedures for giving notice to persons whose interests
might be affected by the grant of a licence or special
purpose consent; and
(c) the conservation and protection of the mineral resources
25 of coastal waters; and
page 240
Offshore Minerals Bill 2000
Miscellaneous Chapter 5
s. 442
(d) the remedying of --
(i) damage caused to the seabed or subsoil in coastal
waters by offshore exploration and mining
activities; or
5 (ii) damage caused by the escape of substances as a
result of offshore exploration and mining
activities;
and
(e) the protection of the environment; and
10 (f) the keeping of records and samples; and
(g) the giving of records and samples to the Minister for
inspection; and
(h) the making of returns; and
(i) the imposition and recovery of fees for access to reports
15 under section 376.
Note: For "offshore exploration or mining activities" see section 5.
(3) For the purposes of subsection (2), the control of offshore
exploration and mining activities extends to the control of --
(a) the construction, maintenance and operation of
20 installations used in or for use in offshore exploration
and mining activities; and
(b) the flow or discharge of fluids arising from offshore
exploration and mining activities; and
(c) the safety, health and welfare of persons working in
25 offshore exploration and mining activities; and
(d) the maintenance of structures, equipment and property
used in or for use in offshore exploration and mining
activities.
Note: For "offshore exploration or mining activities" see section 5.
page 241
Offshore Minerals Bill 2000
Chapter 5 Miscellaneous
s. 443
(4) For the purposes of subsection (2)(b), interests that might be
affected by the grant of a licence include native title rights and
interests that might be affected by the grant of the licence.
(5) Subject to section 124, the regulations may provide for offences
5 against the regulations.
(6) The penalties provided for offences against the regulations are
not to exceed --
(a) a fine of $1 000; or
(b) a fine of $1 000 for each day on which the offence is
10 taken to continue.
(7) In this section --
"control" includes restrict.
443. Savings and transitional provisions
Schedule 2 has effect.
page 242
Offshore Minerals Bill 2000
Area in which coastal waters are situated Schedule 1
Schedule 1 -- Area in which coastal waters are situated
[s. 16(1)]
The area the boundary of which commences at a point that is the intersection of
the coastline at mean low water by the boundary between the States of South
5 Australia and Western Australia and runs thence southerly along the geodesic to
a point of Latitude 31° 45 6RXWK /RQJLWXGH (DVW WKHQFH VRXWKHUO\ DORQJ
the meridian of Longitude 129° East to its intersection by the parallel of
Latitude 44° South, thence westerly along that parallel to its intersection by the
meridian of Longitude 110° East, thence northerly along that meridian to its
10 intersection by the parallel of Latitude 17° South, thence north-easterly along
the geodesic to a point of Latitude 12° 24 6RXWK /RQJLWXGH (DVW
thence south-easterly along the geodesic to a point of Latitude 12° 56 6RXWK
Longitude 122° 06 (DVW WKHQFH VRXWK-easterly along the geodesic to a point of
Latitude 13° 20 6RXWK /RQJLWXGH (DVW WKHQFH HDVWHUO\ DORQJ WKH
15 geodesic to a point of Latitude 13° 19 6RXWK /RQJLWXGH (DVW
thence easterly along the parallel of Latitude 13° 19 6RXWK WR LWV
intersection by the meridian of Longitude 124° 27 (DVW WKHQFH
north-easterly along the geodesic to a point of Latitude 13° 13 6RXWK
Longitude 124° 36 (DVW WKHQFH QRUWK-easterly along the geodesic to a point
20 of Latitude 12° 46 6RXWK /RQJLWXGH (DVW WKHQFH
north-easterly along the geodesic to a point of Latitude 11° 51 6RXWK
Longitude 125° 27 (DVW WKHQFH QRUWK-easterly along the geodesic to a point
of Latitude 11° 44 6RXWK /RQJLWXGH (DVW WKHQFH
north-easterly along the geodesic to a point of Latitude 10° 21 6RXWK
25 Longitude 126° 10 (DVW WKHQFH QRUWK-easterly along the geodesic to a point
of Latitude 10° 13 6RXWK /RQJLWXGH (DVW WKHQFH QRUWK-easterly
along the geodesic to a point of Latitude 10° 05 6RXWK /RQJLWXGH
East, thence south-easterly along the geodesic to a point of Latitude 11° 13
South, Longitude 127° 32 (DVW WKHQFH VRXWK-easterly along the geodesic to a
30 point of Latitude 11° 48 6RXWK /RQJLWXGH (DVW WKHQFH
south-easterly along the geodesic to a point of Latitude 12° 26 6RXWK
Longitude 128° 22 (DVW WKHQFH VRXWK-easterly along the geodesic to a point of
Latitude 12° 32 6RXWK /RQJLWXGH (DVW WKHQFH VRXWK-easterly
along the geodesic to a point of Latitude 12° 55 6RXWK /RQJLWXGH
35 East, thence southerly along the meridian of Longitude 128° 28 (DVW WR LWV
page 243
Offshore Minerals Bill 2000
Schedule 1 Area in which coastal waters are situated
intersection by the parallel of Latitude 13° 15 6RXWK WKHQFH VRXWK-easterly
along the geodesic to a point of Latitude 13° 39 6RXWK /RQJLWXGH
45 (DVW WKHQFH VRXWK-easterly along the geodesic to a point of Latitude 13° 49
45 6RXWK /RQJLWXGH (DVW WKHQFH VRXWK-easterly along the
5 geodesic to a point of Latitude 14° South, Longitude 128° 42 (DVW WKHQFH
south-easterly along the geodesic to a point of Latitude 14° 19 6RXWK
Longitude 128° 53 (DVW WKHQFH VRXWK-easterly along the geodesic to a point of
Latitude 14° 32 6RXWK /RQJLWXGH (DVW WKHQFH VRXWKHUO\ DORQJ
the geodesic to a point of Latitude 14° 37 6RXWK /RQJLWXGH
10 East, thence southerly along the geodesic to the intersection of the coastline at
mean low water by the boundary between the Northern Territory of Australia
and the State of Western Australia, thence along the coastline of the State of
Western Australia at mean low water to the point of commencement.
page 244
Offshore Minerals Bill 2000
Savings and transitional provisions Schedule 2
Schedule 2 -- Savings and transitional provisions
[s. 443]
1. Interpretation
(1) In this Schedule, unless the contrary intention appears --
5 "Mining Act" means the Mining Act 1978;
"commencement" means the day on which this Act comes into
operation.
(2) References in this Schedule to the limits of the State are to land and
waters to which the Mining Act applies.
10 2. Existing exploration licences under Mining Act for coastal waters
(1) This clause applies to an exploration licence under the Mining Act
that --
(a) is in force immediately before the commencement; and
(b) is applicable only to an area that is within the coastal waters.
15 (2) This clause has effect despite any provision of the licence concerned.
(3) On the commencement, an exploration licence to which this clause
applies ceases to be governed by the Mining Act but has effect as if it
were an exploration licence under this Act.
(4) Despite subclause (3), the holder of such an exploration licence must
20 continue, during the term of the licence, to comply with the provisions
from time to time of regulations made under the Mining Act relating
to expenditure conditions, as defined in section 8(1) of that Act, for
exploration licences under that Act.
(5) The conditions in force immediately before the commencement in
25 respect of a licence to which this clause applies are to be treated, after
the commencement, as if they were licence conditions specified under
section 118 in the exploration licence under this Act referred to in
subclause (3).
page 245
Offshore Minerals Bill 2000
Schedule 2 Savings and transitional provisions
(6) The term of an exploration licence under this Act referred to in
subclause (3) that has been in force for more than 3 years but less than
4 years ends 4 years after the day on which it was granted, and may be
renewed in accordance with section 89.
5 (7) The term of an exploration licence under this Act referred to in
subclause (3) that has been in force for more than 4 years ends 5 years
after the day on which it was granted, and may be renewed as
follows --
(a) for a term of one year after the day on which that 5 years ends;
10 (b) for a term of 2 years after the day on which that one year
ends; and
(c) for a term of 2 years after the day on which that 2 years ends,
but the day on which the term of 2 years referred to in paragraph (b)
ends is not to be treated as a surrender day under section 104.
15 (8) If, before the commencement, section 65(1)(a) of the Mining Act has
not become applicable to an exploration licence to which this clause
applies because the 3rd year of the term of the licence has not ended,
the licence holder must on the day on which the 4th year of the term
of the licence ends comply with section 104 as if that day were a
20 surrender day under that section.
(9) If an application under section 65(1a) of the Mining Act in respect of
an exploration licence to which this clause applies --
(a) has been made; but
(b) has not been determined by the Minister before the
25 commencement,
the application is to be determined under that section as if
sections 4(2) and 8 of the Offshore Minerals (Consequential
Amendments) Act 2000 had not come into force.
(10) If an application referred to in subclause (9) is refused, the holder of
30 the exploration licence is to comply with section 104 not later than the
day provided for by section 65(1b) of the Mining Act as if that day
were a surrender day under section 104.
page 246
Offshore Minerals Bill 2000
Savings and transitional provisions Schedule 2
3. Existing mining leases under Mining Act for coastal waters
(1) This clause applies to a mining lease under the Mining Act that --
(a) is in force immediately before the commencement; and
(b) is applicable only to an area that is within the coastal waters.
5 (2) This clause has effect despite any provision of the lease concerned.
(3) On the commencement, a mining lease to which this clause applies
ceases to be governed by the Mining Act but has effect as if it were a
mining licence under this Act.
(4) Despite subclause (3), the holder of such a mining licence must
10 continue, during the term of the licence, to comply with the provisions
from time to time of regulations made under the Mining Act relating
to expenditure conditions, as defined in section 8(1) of that Act, for
mining leases under that Act.
(5) The conditions in force immediately before the commencement in
15 respect of a mining lease to which this clause applies are to be treated,
after the commencement, as if they were licence conditions specified
under this Act in the mining licence referred to in subclause (3).
(6) The term of a mining licence referred to in subclause (3) expires when
the mining lease would have expired if it had not ceased to be
20 governed by the Mining Act.
4. Existing exploration licences under Mining Act that relate both to
coastal waters and to other areas
(1) This clause applies to an exploration licence under the Mining Act
that --
25 (a) is in force immediately before the commencement; and
(b) is applicable to an area that is partly within coastal waters and
partly within the limits of the State.
(2) On the commencement, an exploration licence to which this clause
applies is to be treated as if it were separate licences in respect of --
30 (a) the part of the coastal waters to which it is applicable; and
page 247
Offshore Minerals Bill 2000
Schedule 2 Savings and transitional provisions
(b) the part of land and waters within the limits of the State to
which it is applicable.
(3) The separate exploration licence created by subclause (2)(a) is to be
treated for the purposes of this Schedule as one to which clause 2
5 applies.
(4) Despite subclause (3) --
(a) a separate exploration licence created by subclause (2) is not
to specify a condition that is inapplicable to the area to which
the licence applies; and
10 (b) the person who holds the exploration licence that by
operation of clause 2 represents the separate exploration
licence created by subclause (2)(a) is not required, in respect
of that licence --
(i) to pay licence fees (or prescribed rent referred to in
15 clause 9(2)); or
(ii) to comply with the provisions referred to in
clause 2(4),
so long as the licence created by subclause (2)(b) is also held
by that person.
20 (5) The Minister must, on production under subclause (6) of a licence to
which this clause applies --
(a) endorse on the licence, and enter in the register of mining
tenements kept under the Mining Act, a memorial showing
the effect of this Schedule on the licence; and
25 (b) issue a separate exploration licence for the coastal waters
concerned.
(6) The holder of a licence to which this clause applies must, at the
request of the Minister, produce the licence to the Minister for the
purposes of subclause (5).
page 248
Offshore Minerals Bill 2000
Savings and transitional provisions Schedule 2
5. Existing mining leases under Mining Act that relate both to
coastal waters and to other areas
(1) This clause applies to a mining lease under the Mining Act that --
(a) is in force immediately before the commencement; and
5 (b) is applicable to an area that is partly within coastal waters and
partly within the limits of the State.
(2) On the commencement, a mining lease to which this clause applies is
to be treated as if it were separate mining leases in respect of --
(a) the part of the coastal waters to which it is applicable; and
10 (b) the part of land and waters within the limits of the State to
which it is applicable.
(3) The separate mining lease created by subclause (2)(a) is to be treated
for the purposes of this Schedule as one to which clause 3 applies.
(4) Despite subclause (3) --
15 (a) a separate mining lease created by subclause (2) is not to
specify a condition that is inapplicable to the area to which
the lease applies; and
(b) the person who holds the mining licence that by operation of
clause 3 represents the separate mining lease created by
20 subclause (2)(a) is not required, in respect of that mining
licence --
(i) to pay licence fees (or prescribed rent referred to in
clause 9(2)); or
(ii) to comply with the provisions referred to in
25 clause 3(4),
so long as the separate mining lease created by
subclause (2)(b) is also held by that person.
page 249
Offshore Minerals Bill 2000
Schedule 2 Savings and transitional provisions
(5) The Minister must, on production under subclause (6) of a mining
lease to which this clause applies --
(a) endorse on the lease and enter in the register of mining
tenements kept under the Mining Act, a memorial showing
5 the effect of this Schedule on the lease; and
(b) issue a separate mining licence for the coastal waters
concerned.
(6) The holder of a mining lease to which this clause applies must, at the
request of the Minister, produce the lease to the Minister for the
10 purposes of subclause (5).
6. Registration
(1) The Minister must, as soon as is practicable after the commencement,
enter in the State Offshore Mining Register provided for by
section 328 --
15 (a) the particulars specified in section 333(1); and
(b) particulars of any instrument or document (including a
caveat) registered under the Mining Act,
in respect of each exploration licence and mining licence that comes
under this Act by virtue of clause 2 or 3, including a licence to which
20 clause 2 or 3 applies by operation of clause 4 or 5.
(2) Section 333(2) to (7) apply for the purposes of registration under this
clause.
(3) Section 88 does not apply to an exploration licence or a mining
licence referred to in subclause (1).
25 7. Document file
The Minister must, as soon as is practicable after the commencement,
establish a document file under Part 3.1 for each exploration licence
and mining licence that comes under this Act by virtue of clause 2 or
3, including a licence to which clause 2 or 3 applies by operation of
30 clause 4 or 5.
page 250
Offshore Minerals Bill 2000
Savings and transitional provisions Schedule 2
8. Securities
(1) The Minister may in writing determine that a licensee is to lodge with
the Minister a new security in respect of --
(a) an exploration licence referred to in clause 4(3); and
5 (b) a mining licence that by operation of clause 3 represents the
separate mining lease referred to in clause 5(3).
(2) A determination under subclause (1) is to specify --
(a) the amount of the security required;
(b) the kind of security required; and
10 (c) the manner and form in which and the time within which the
security is to be lodged.
(3) Sections 399(4) and 400 apply to a security lodged under this clause.
9. Licence fees
(1) Despite clause 2 or 3, Part 4.4 does not apply to an exploration licence
15 or a mining licence that comes under this Act by virtue of clause 2 or
3 (including a licence to which clause 2 or 3 applies by operation of
clause 4 or 5) until the next anniversary, after the commencement, of
the day on which the term of the licence began.
(2) Until that anniversary the prescribed rent is payable under the Mining
20 Act as if that Act continued to apply to the licence.
10. Pending applications under Mining Act that relate only to coastal
waters
(1) This clause applies to an application for an exploration licence or a
mining lease under the Mining Act --
25 (a) that has been made before the commencement and not
withdrawn or finally disposed of by the grant or refusal of the
licence or lease; and
(b) that relates only to an area that is within the coastal waters.
page 251
Offshore Minerals Bill 2000
Schedule 2 Savings and transitional provisions
(2) An application to which this clause applies is to continue to be
governed by the Mining Act as if sections 4(2) and 8 of the Offshore
Minerals (Consequential Amendments) Act 2000 had not come into
force.
5 (3) If an application to which this clause applies results in the grant of an
exploration licence or a mining lease under the Mining Act, the
licence or lease, after it is granted, ceases to be governed by the
Mining Act but has effect as if it were an exploration licence or
mining lease under this Act, and the provisions of this Act apply
10 accordingly.
11. Pending applications under Mining Act that relate both to coastal
waters and other areas
(1) This clause applies to an application for an exploration licence or a
mining lease under the Mining Act --
15 (a) that has been made before the commencement and not
withdrawn or finally disposed of by the grant or refusal of the
licence or lease; and
(b) that relates to an area that is partly within the coastal waters
and partly within the limits of the State.
20 (2) An application to which this clause applies is to continue to be
governed by the Mining Act as if sections 4(2) and 8 of the Offshore
Minerals (Consequential Amendments) Act 2000 had not come into
force.
(3) If an application to which this clause applies results in the grant of an
25 exploration licence or a mining lease under the Mining Act, the
licence or lease is to be treated as if it were a separate licence or lease
in respect of --
(a) the part of the coastal waters to which it is applicable; and
(b) the part of land and waters within the limits of the State to
30 which it is applicable.
page 252
Offshore Minerals Bill 2000
Savings and transitional provisions Schedule 2
(4) A separate exploration licence created by subclause (3)(a), after it is
granted, ceases to be governed by the Mining Act but has effect as if
it were an exploration licence under this Act, and the provisions of
this Act apply accordingly.
5 (5) A separate mining lease created by subclause (3)(a), after it is granted,
ceases to be governed by the Mining Act but has effect as if it were a
mining licence under this Act, and the provisions of this Act apply
accordingly.
12. Powers in relation to transitional provisions
10 (1) If there is no sufficient provision in this Schedule for any matter or
thing necessary or convenient to give effect to the transition from the
Mining Act to this Act the Governor may make that provision by
order published in the Gazette.
(2) If in the opinion of the Minister an anomaly arises in the carrying out
15 of the provisions of this Schedule the Governor may by order
published in the Gazette--
(a) modify those provisions to remove the anomaly; and
(b) make such provision as is necessary or expedient to carry out
the intention of those provisions.
20 (3) An order under this section may be made so as to have effect from the
commencement.
(4) To the extent that a provision of any such order has effect on a day
that is earlier than the day of its publication in the Gazette, the
provision does not operate so as --
25 (a) to affect, in a manner prejudicial to any person (other than the
State) the rights of that person existing before the day of its
publication; or
(b) to impose liabilities on any person (other than the State) in
respect of anything done or omitted to be done before the day
30 of publication.
page 253
Offshore Minerals Bill 2000
Defined Terms
Defined Terms
[This is a list of terms defined and the provisions where they are defined.
The list is not part of the law.]
Defined Term Provision(s)
acquisition of property........................................................49(3), 136(3), 196(3)
approved .......................................................................................................... 5
associate........................................................................................................... 5
associated agent of an associated contractor ...................................................... 5
associated agent of the holder ........................................................................... 5
associated contractor of the holder .................................................................... 5
associated employee of an associated contractor................................................ 5
associated employee of the holder..................................................................... 5
associated revenue Act ................................................................................... 29
baseline......................................................................................................16(8)
block................................................................................................................ 5
caveat............................................................................................................... 5
coastal waters................................................................................................... 5
commencement ............................................................... Schedule 2 clause 1(1)
Commonwealth Act.......................................................................................... 5
Commonwealth Minister .................................................................................. 5
Commonwealth-State offshore area ................................................................ 29
compliance inspection ...................................................................................... 5
confidential information ................................................................................... 5
confidential sample .......................................................................................... 5
consent area ..................................................................................................... 5
conservation Minister ...............................................................................38(11)
control .....................................................................................................442(7)
dealing ............................................................................................................. 5
discrete area ..................................................................................................... 5
disruption period ........................................................................................95(4)
document file ................................................................................................... 5
excluded time.............................................................................................95(4)
exploration ....................................................................................................... 5
fish habitat protection area........................................................................38(11)
fisheries Minister......................................................................................38(11)
grant ..........................................................................................................43(5)
holder of a licence ............................................................................................ 5
hydrocarbon ..................................................................................................... 5
inspector .......................................................................................................... 5
interest ............................................................................................................. 5
page 254
Offshore Minerals Bill 2000
Defined Terms
licence.............................................................................................................. 5
licence area ...................................................................................................... 5
licence holder................................................................................................... 5
marine management area ..........................................................................38(11)
marine Minister ........................................................................................38(11)
marine nature reserve ...............................................................................38(11)
marine park ..............................................................................................38(11)
mineral............................................................................................................. 5
Mining Act...................................................................... Schedule 2 clause 1(1)
offshore exploration or mining activities ........................................................... 5
offshore mining register.................................................................................... 5
petroleum......................................................................................................... 5
primary payment period.................................................................................... 5
property....................................................................................................401(5)
provisional holder............................................................................................. 5
recovery........................................................................................................... 5
registered ......................................................................................................... 5
Registration Fees Act ....................................................................................... 5
reserved block .................................................................................................. 5
responsible Commonwealth Minister ................................................................ 5
restricted area...........................................................................................38(11)
royalty......................................................................................................435(3)
royalty period............................................................................................... 428
sample ............................................................................................................. 5
secondary payment period ................................................................................ 5
share ................................................................................................................ 5
special purpose consent .................................................................................... 5
standard block .................................................................................................. 5
State authority ..........................................................................................438(3)
State court ................................................................................................438(3)
State Minister................................................................................................... 5
subordinate instrument ...............................................................................10(2)
successor licence .............................................................................................. 5
surrender day.................................................................................................... 5
tender block ..................................................................................................... 5
transfer............................................................................................................. 5
vary.................................................................................................................. 5
year.............................................................................................................. 424
[Index] [Search] [Download] [Related Items] [Help]