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This is a Bill, not an Act. For current law, see the Acts databases.


OIL REFINERY (KWINANA) AGREEMENT AMENDMENT BILL 2016

                     Western Australia


Oil Refinery (Kwinana) Agreement Amendment
                  Bill 2016

                         Contents

   1.   Short title                                  2
   2.   Commencement                                 2
   3.   Act amended                                  2
   4.   Section 2 amended                            2
   5.   Section 3A deleted                           2
   6.   Section 3D inserted                          2
        3D.      2016 variation agreement       2
   7.   Schedule 3 inserted                          3
        Schedule 3 -- 2016 variation agreement




                              220--1                 page i
                           Western Australia


                     LEGISLATIVE ASSEMBLY


Oil Refinery (Kwinana) Agreement Amendment
                  Bill 2016

                               A Bill for


An Act to amend the Oil Refinery (Kwinana) Agreement Act 1952.



The Parliament of Western Australia enacts as follows:




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     Oil Refinery (Kwinana) Agreement Amendment Bill 2016



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1    1.       Short title
2             This is the Oil Refinery (Kwinana) Agreement Amendment
3             Act 2016.

4    2.       Commencement
5             This Act comes into operation as follows --
6              (a) sections 1 and 2 -- on the day on which this Act
7                    receives the Royal Assent;
8              (b) the rest of the Act -- on the day after that day.

9    3.       Act amended
10            This Act amends the Oil Refinery (Kwinana) Agreement
11            Act 1952.

12   4.       Section 2 amended
13            In section 2 before the 1st alphabetical definition insert in
14            numerical order:
15

16            2016 variation agreement means the agreement a copy of
17            which is set out in Schedule 3;
18


19   5.       Section 3A deleted
20            Delete section 3A.

21   6.       Section 3D inserted
22            After section 3C insert:
23


24          3D.     2016 variation agreement
25            (1)   The 2016 variation agreement is ratified.



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1         (2)    The implementation of the 2016 variation agreement is
2                authorised.
3         (3)    Without limiting or otherwise affecting the application
4                of the Government Agreements Act 1979, the 2016
5                variation agreement operates and takes effect despite
6                any other Act or law.

7    7.   Schedule 3 inserted
8         After Schedule 2 insert:
9


10              Schedule 3 -- 2016 variation agreement
11                                                                     [s. 2]
12

13                                   2016
14

15          THE HONOURABLE COLIN JAMES BARNETT
16               THE STATE OF WESTERN AUSTRALIA
17                                   and
18        BP REFINERY (KWINANA) PROPRIETARY LIMITED
19                            ACN 008 689 763
20

21

22

23          OIL REFINERY (KWINANA) AGREEMENT 1952
24                RATIFIED VARIATION AGREEMENT
25

26



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1

2                                  [Solicitor's details]
3
4

5    THIS AGREEMENT is made this 5th             day of October   2016
6

7    BETWEEN
8

9    THE HONOURABLE COLIN JAMES BARNETT MLA, Premier of the
10   State of Western Australia, acting for and on behalf of the said State and
11   instrumentalities thereof from time to time (the "State") of the first part,
12   AND
13   BP      REFINERY          (KWINANA)           PROPRIETARY  LIMITED
14   ACN 008 689 763 of Level 17, 717 Bourke Street, Docklands, Victoria,
15   (hereinafter called the "Company" in which term shall be included its
16   successors and permitted assigns) of the second part.
17

18   RECITALS:
19   A.     The parties to this Agreement are now the parties to the agreement
20          (herein called the 1952 Agreement) dated 3 March 1952, the execution
21          of which by the State was ratified by the Oil Refinery Industry
22          (Anglo-Iranian Oil Company Limited) Act 1952 (now known as the Oil
23          Refinery (Kwinana) Agreement Act 1952), as varied by:
24            (a) the agreement dated 10 November 1953;
25            (b) the agreement dated 23 November 1953;
26            (c) the agreement dated 10 September 1954;
27            (d) the agreement dated 22 December 1955;
28            (e) the agreement dated 1 June 1956;
29            (f) the agreement dated 3 October 1956;


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1           (g) the agreement dated 26 March 1959;
2           (h) the agreement dated 1 June 1962;
3           (i) the agreement dated 8 April 1965;
4           (j) the agreement dated 4 October 1965;
5           (k) the agreement dated 19 November 1975;
6           (l) the agreement dated 21 October 1985 which was ratified by the Oil
7               Refinery Industry (Anglo-Iranian Oil Company Limited)
8               Amendment Act 1985.
9         The 1952 Agreement as so varied is hereinafter referred to as the
10        "Principal Agreement".
11   B.   The parties wish to vary the provisions of the Principal Agreement on the
12        terms and conditions set out in this Agreement.
13   THE PARTIES AGREE AS FOLLOWS:
14   1.   Ratification and operation
15    (1) This Agreement, other than this clause, does not come into operation
16        except in accordance with subclause (2).
17    (2) This Agreement, other than this clause, comes into operation on the day
18        on which it is ratified by an Act of the Parliament of Western Australia
19        ("Operative Date") unless, before that day, it terminates under
20        subclauses (4) or (5).
21    (3) The State must introduce in the Parliament of Western Australia before
22        31 December 2016 a Bill to ratify this Agreement and must endeavour to
23        secure its passage as an Act.
24    (4) If by 31 December 2017 this Agreement has not been ratified by an Act
25        of the Parliament of Western Australia then, unless the parties to this
26        Agreement otherwise agree, this Agreement terminates on that day and
27        no party hereto will have any claim against any other party hereto with
28        respect to any matter or thing arising out of, done, performed, or omitted
29        to be done or performed under this Agreement.
30    (5) The parties agree that if the Principal Agreement is otherwise determined
31        in accordance with its provisions on a day prior to the Operative Date,
32        then this Agreement shall also terminate on and from that day and no

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1           party hereto will have any claim against any other party hereto with
2           respect to any matter or thing arising out of, done, performed, or omitted
3           to be done or performed under this Agreement.
4    2.     Variations of the Principal Agreement
5           The Principal Agreement is hereby varied as follows:
6     (1) in clause 1 by inserting in the appropriate alphabetical positions the
7         following new definitions:
8           Minister means the Minister in the Government of Western Australia for
9           the time being responsible for the administration of the Oil Refinery
10          (Kwinana) Agreement Act 1952;
11          Variation Agreement means the variation agreement made on or about
12          7 October 2016 between The Honourable Colin James Barnett, Premier
13          of the State of Western Australia acting for and on behalf of the said State
14          and its instrumentalities from time to time and the Company;
15          Variation Date means the date on which clause 2 of the Variation
16          Agreement comes into operation;
17    (2) in clause 4 by:
18            (a) inserting "and" at the end of paragraph (ii) of subclause (r);
19            (b) inserting "(including usual conservancy dues)" after "usual
20                charges" in paragraph (iii) of subclause (r);
21            (c) deleting "and" at the end of paragraph (iii) of subclause (r); and
22            (d) deleting paragraph (iv) of subclause (r);
23    (3) in clause 5 by:
24            (a) deleting "Treasurer" and substituting "Minister" in subclause (e);
25            (b) deleting "Treasurer" and substituting "Minister" in subclause (f);
26            (c) deleting "a permanent residence is erected" in subclause (n) and
27                inserting:
28                  "is situated the following improvements:
29                    (i) accommodation, recreation or administration facilities and
30                        associated buildings; or

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1            (ii) maintenance workshops existing within 100 metres of
2                 facilities of the type listed in paragraph (i) above";
3    (d) inserting after "State" in subclause (r):
4          "and for the avoidance of doubt reference to:
5            (i) an Act includes the regulations for the time being in force
6                thereunder; and
7            (ii) an Act or regulations includes the amendments to that Act
8                 or regulations and also any Act or regulations passed in
9                 substitution therefor or in lieu thereof";
10   (e) deleting paragraph (i) of subclause (t) and substituting the
11       following new paragraph:
12         "that, subject to paragraph (ii) of this subclause, this Agreement
13         will expire on 1 January 2050; and";
14   (f) deleting subclause (u);
15   (g) inserting after clause (x) the following new subclauses:
16         "(ya)    Local industry participation plan
17                  (i) In this clause, the term "local industry participation
18                      benefits" means:
19                        (a) the use and training of labour available within
20                            the said State;
21                        (b) the use of the services of engineers, surveyors,
22                            architects and other professional consultants,
23                            experts, specialists, project managers and
24                            contractors available within the said State; and
25                        (c) the procurement of works, materials, plant,
26                            equipment and supplies from Western
27                            Australian suppliers, manufacturers and
28                            contractors.
29                  (ii) The Company acknowledges the need for local
30                       industry participation benefits flowing from this
31                       Agreement.


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1                       (iii) The Company agrees that within 3 months after the
2                             Variation Date it shall prepare and provide to the
3                             Minister a plan which contains:
4                             (a) a clear statement on the strategies which the
5                                 Company will use, and require a third party as
6                                 referred to in paragraph (vii) to use, to
7                                 maximise the uses and procurement referred
8                                 to in paragraph (i);
9                             (b) detailed information on the procurement
10                                practices the Company will adopt, and require
11                                a third party as referred to in paragraph (vii)
12                                to adopt, in calling for tenders and letting
13                                contracts for works, materials, plant,
14                                equipment and supplies and how such
15                                practices will provide fair and reasonable
16                                opportunity for suitably qualified Western
17                                Australian suppliers, manufacturers and
18                                contractors to tender or quote for works,
19                                materials, plant, equipment and supplies;
20                            (c) detailed information on the methods the
21                                Company will use, and require a third party as
22                                referred to in paragraph (vii) to use, to have
23                                their respective procurement officers promptly
24                                introduced to Western Australian suppliers,
25                                manufacturers and contractors seeking such
26                                introduction; and
27                            (d) details of the communication strategies the
28                                Company will use, and require a third party as
29                                referred to in paragraph (vii) to use, to alert
30                                Western Australian engineers, surveyors,
31                                architects and other professional consultants,
32                                experts, specialists, project managers and
33                                consultants and Western Australian suppliers,
34                                manufacturers and contractors to services
35                                opportunities and procurement opportunities
36                                respectively as referred to in paragraph (i).




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1          It is acknowledged by the Company that the
2          strategies of the Company referred to in
3          paragraph (iii)(a) will include strategies of the
4          Company in relation to supply of services, labour,
5          works, materials, plant, equipment or supplies for
6          the purposes of this Agreement.
7     (iv) At the request of either of them made at any time
8          and from time to time, the Minister and the
9          Company shall confer as to any amendments desired
10         to any plan provided under this Clause and may
11         agree to the amendment of the plan or the provision
12         of a new plan in substitution for the one previously
13         provided.
14    (v) At least 3 months before the anticipated submission
15        of proposals pursuant to clause 5(x) (or such lesser
16        period as the Minister may, at the request of the
17        Company, approve in respect of any such anticipated
18        proposals), the Company must, unless the Minister
19        otherwise requires, give to the Minister information
20        about the implementation of the plan provided under
21        this clause in relation to the activities to be the
22        subject of such proposals. This obligation operates
23        in relation to all proposals submitted on or after the
24        date that is 4 months after the date when a plan is
25        first provided under this clause.
26    (vi) During the currency of this Agreement the Company
27         shall implement the plan provided under this clause.
28    (vii) The Company shall:
29          (a) in every contract entered into with a third
30              party where the third party has an obligation
31              or right to procure the supply of services,
32              labour, works, materials, plant, equipment or
33              supplies for or in connection with a proposed
34              development, ensure that the contract contains
35              appropriate provisions requiring the third
36              party to undertake procurement activities in



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1                                 accordance with the plan provided under this
2                                 clause; and
3                             (b) use reasonable endeavours to ensure that the
4                                 third party complies with those provisions.
5                (yb)   Use of local labour professional services and materials
6                       (i) Except as otherwise agreed by the Minister the
7                           Company shall, for the purposes of this Agreement:
8                             (a) except in those cases where the Company can
9                                 demonstrate it is not reasonable and
10                                economically practicable so to do, use labour
11                                available within the said State or if such
12                                labour is not available then, except as
13                                aforesaid, use labour otherwise available
14                                within Australia;
15                            (b) as far as it is reasonable and economically
16                                practicable so to do, use the services of
17                                engineers, surveyors, architects and other
18                                professional     consultants     experts    and
19                                specialists, project managers, manufacturers,
20                                suppliers and contractors resident and
21                                available within the said State, or if such
22                                services are not available within the said
23                                State, then, as far as practicable as aforesaid,
24                                use the services of such persons otherwise
25                                available within Australia;
26                            (c) during design and when preparing
27                                specifications, calling for tenders and letting
28                                contracts for works, materials, plant,
29                                equipment and supplies (which shall at all
30                                times, except where it is impracticable so to
31                                do, use or be based upon Australian Standards
32                                and Codes) ensure that suitably qualified
33                                Western Australian and Australian suppliers,
34                                manufacturers and contractors are given fair
35                                and reasonable opportunity to tender or quote;




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1           (d) give proper consideration and, where possible,
2               preference to Western Australian suppliers,
3               manufacturers and contractors when letting
4               contracts or placing orders for works,
5               materials, plant, equipment and supplies
6               where price, quality, delivery and service are
7               equal to or better than that obtainable
8               elsewhere or, subject to the foregoing, give
9               that consideration and, where possible,
10              preference to other Australian suppliers,
11              manufacturers and contracts; and
12          (e) if, notwithstanding the foregoing provisions of
13              this clause, a contract is to be let or an order is
14              to be placed with other than a Western
15              Australian       or     Australian        supplier,
16              manufacturer or contractor, give proper
17              consideration and, where possible, preference
18              to tenders, arrangements or proposals that
19              include Australian participation where price,
20              delivery and service are otherwise equal or
21              better.
22    (ii) Except as otherwise agreed by the Minister, the
23         Company shall, in every contract entered into with a
24         third party for the supply of services, labour, works,
25         materials, plant, equipment or supplies for the
26         purposes of this Agreement require as a condition
27         thereof that such third party shall undertake the same
28         obligations as are referred to in paragraph (i) and
29         shall report to the Company concerning such third
30         party's implementation of that condition.
31    (iii) The Company shall in respect of developments the
32          subject or to be the subject (as the case may be) of
33          proposals submitted under clause 5(x) submit a
34          report to the Minister at quarterly intervals from the
35          date on which it gives notice under clause 5(x) until
36          commissioning of the developments the subject of
37          the proposals approved pursuant to clause 5(x) and
38          thereafter as requested by the Minister from time to
39          time, concerning its implementation of the

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1                           provisions of this clause and of the relevant plan in
2                           connection with the development provided pursuant
3                           to clause 5(ya), together with a copy of any report
4                           received by the Company pursuant to paragraph (ii)
5                           during that quarter or longer period as the case may
6                           be PROVIDED THAT the Minister may agree that
7                           any such reports need not be provided in respect of
8                           contracts of such kind or value as the Minister may
9                           from time to time determine.
10                      (iv) The Company shall keep the Minister informed on a
11                           regular basis as determined by the Minister from
12                           time to time or otherwise as reasonably required by
13                           the Minister during the currency of this Agreement
14                           of any services (including any elements of the
15                           project investigations, design and management) and
16                           any works, materials, plant, equipment and supplies
17                           that it may be proposing to obtain from or have
18                           carried out or permit to be obtained from or carried
19                           out outside Australia, together with its reasons
20                           therefor and shall, as and when required by the
21                           Minister, consult with the Minister with respect
22                           thereto."; and
23          (h) inserting "(including under the Environmental         Protection
24              Act 1986)" after "Act" in subclause (y).




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                                                                            s. 7



1    EXECUTED AS A DEED.
2
3
4    SIGNED by THE HONOURABLE                      )
5    COLIN JAMES BARNETT                           )     [Signature]
6    in the presence of:                           )
7
8
9
10     [Signature]
11      Signature of witness
12
13
14
15     AMY O'SULLIVAN
16      Name of witness
17

18   EXECUTED by BP REFINERY (KWINANA)             )
19   PROPRIETARY LIMITED ACN 008 689 763           )
20   in accordance with section 127(1)) of the     )
21   Corporations Act 2001 (Cth)                   )
22
23
24
25
26     [Signature]                        [Signature]
27     Signature of Director              Signature of Director/Secretary
28
29
30
31     DESMOND THOMAS GILLEN              SUZANNE BROE
32     Full Name                          Full Name
33


34




 


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