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This is a Bill, not an Act. For current law, see the Acts databases.
Western Australia Petroleum Legislation Amendment Bill 2016 Contents Part 1 -- Preliminary 1. Short title 2 2. Commencement 2 Part 2 -- Petroleum and Geothermal Energy Resources Act 1967 amended 3. Act amended 3 4. Section 5 amended 3 5. Section 6A amended 4 6. Section 7A amended 5 7. Section 7B inserted 7 7B. Petroleum pool in, or extending into, other areas 7 8. Section 37B inserted 16 37B. Grant of boundary-change permit 16 9. Section 39 amended 21 10. Section 40 amended 21 11. Section 41 amended 21 12. Section 42B inserted 22 42B. Limits on renewal of boundary-change permits 22 13. Section 43 amended 23 14. Section 47 amended 25 15. Section 48CD inserted 27 48CD. Grant of petroleum retention lease as result of change to boundary of offshore area 27 16. Section 48D amended 30 17. Section 48H amended 30 18. Section 56 amended 31 218--1 page i Petroleum Legislation Amendment Bill 2016 Contents 19. Section 61A inserted 32 61A. Grant of petroleum production licence as result of change to boundary of offshore area 32 20. Section 63 amended 35 21. Section 64 amended 35 22. Section 66 amended 36 23. Section 69 amended 37 24. Section 97A inserted 38 97A. Variation of petroleum title by including area as result of change to boundary of offshore area 38 Part 3 -- Petroleum (Submerged Lands) Act 1982 amended 25. Act amended 46 26. Section 4 amended 46 27. Section 6A amended 47 28. Section 9 amended 47 29. Section 11 amended 53 30. Sections 13 and 14 deleted 53 31. Section 15 replaced 53 15. Public service officers performing functions under Commonwealth Act 53 32. Section 27A inserted 54 27A. Grant of boundary-change permit 54 33. Section 29 amended 59 34. Section 30 amended 59 35. Section 31 amended 59 36. Section 32B inserted 60 32B. Limits on renewal of boundary-change permits 60 37. Section 33 amended 61 38. Section 37 amended 63 39. Section 38CD inserted 65 38CD. Grant of lease as result of change to boundary of offshore area 65 40. Section 38D amended 68 41. Section 38H amended 69 42. Section 46 amended 69 43. Section 51A inserted 70 51A. Grant of licence as result of change to boundary of offshore area 70 page ii Petroleum Legislation Amendment Bill 2016 Contents 44. Section 53 amended 73 45. Section 54 amended 74 46. Section 56 amended 75 47. Section 59 amended 75 48. Section 103A inserted 77 103A. Variation of petroleum title by including area as result of change to boundary of offshore area 77 page iii Western Australia LEGISLATIVE ASSEMBLY Petroleum Legislation Amendment Bill 2016 A Bill for An Act to amend the Petroleum and Geothermal Energy Resources Act 1967 and the Petroleum (Submerged Lands) Act 1982. The Parliament of Western Australia enacts as follows: page 1 Petroleum Legislation Amendment Bill 2016 Part 1 Preliminary s. 1 1 Part 1 -- Preliminary 2 1. Short title 3 This is the Petroleum Legislation Amendment Act 2016. 4 2. Commencement 5 This Act comes into operation as follows -- 6 (a) Part 1 -- on the day on which this Act receives the 7 Royal Assent; 8 (b) the rest of the Act -- on a day fixed by proclamation, 9 and different days may be fixed for different provisions. page 2 Petroleum Legislation Amendment Bill 2016 Petroleum and Geothermal Energy Resources Act 1967 Part 2 amended s. 3 1 Part 2 -- Petroleum and Geothermal Energy Resources 2 Act 1967 amended 3 3. Act amended 4 This Part amends the Petroleum and Geothermal Energy 5 Resources Act 1967. 6 4. Section 5 amended 7 (1) In section 5(1) insert in alphabetical order: 8 9 boundary-change permit means a petroleum 10 exploration permit granted under section 37B; 11 Commonwealth Act means the Offshore Petroleum 12 and Greenhouse Gas Storage Act 2006 13 (Commonwealth); 14 Commonwealth lease means a petroleum retention 15 lease as defined in the Commonwealth Act section 7; 16 Commonwealth licence means a fixed-term petroleum 17 production licence as defined in the Commonwealth 18 Act section 7; 19 Commonwealth permit means a petroleum exploration 20 permit as defined in the Commonwealth Act section 7; 21 granted, in relation to a boundary-change permit, a 22 petroleum retention lease under section 48CD or a 23 petroleum production licence under section 61A, 24 means taken to have been granted; 25 offshore area has the meaning given in the Petroleum 26 (Submerged Lands) Act 1982 section 4; 27 page 3 Petroleum Legislation Amendment Bill 2016 Part 2 Petroleum and Geothermal Energy Resources Act 1967 amended s. 5 1 (2) In section 5(1) in the definition of geothermal exploration 2 permit delete "issued under" and insert: 3 4 that confers the authority referred to in 5 6 (3) In section 5(1) in the definition of petroleum exploration permit 7 delete "issued under" and insert: 8 9 that confers the authority referred to in 10 11 (4) After section 5(8) insert: 12 13 (9) Notes in this Act are provided to assist understanding 14 and do not form part of the Act. 15 16 5. Section 6A amended 17 (1) In section 6A(1) insert in alphabetical order: 18 19 Commonwealth instrument means an instrument under 20 the Commonwealth Act that confers, in relation to the 21 offshore area, some or all of the rights that a permit, 22 lease or licence confers in relation to the inshore area; 23 24 (2) After section 6A(4) insert: 25 26 (5) If -- 27 (a) a Commonwealth instrument has been granted 28 on the basis that an area (the second affected 29 area) is within the offshore area; and page 4 Petroleum Legislation Amendment Bill 2016 Petroleum and Geothermal Energy Resources Act 1967 Part 2 amended s. 6 1 (b) as a result of a change to the boundary of the 2 inshore area the second affected area -- 3 (i) ceases to be within the offshore area; 4 and 5 (ii) falls within the inshore area, 6 then this Act does not apply to the second affected 7 area. 8 (6) Subsection (5) continues to apply in relation to the 9 second affected area only while the Commonwealth 10 instrument remains in force. 11 12 6. Section 7A amended 13 (1) In section 7A(2): 14 (a) delete "which an access" and insert: 15 16 which a geothermal access 17 18 (b) delete "petroleum pool or geothermal resources area, 19 being a pool or" and insert: 20 21 geothermal resources area, being an 22 23 (c) delete "access authority, any petroleum or" and insert: 24 25 geothermal access authority, any 26 27 (d) delete "under the licence" and insert: 28 29 under the geothermal production licence 30 page 5 Petroleum Legislation Amendment Bill 2016 Part 2 Petroleum and Geothermal Energy Resources Act 1967 amended s. 6 1 (2) In section 7A(3): 2 (a) delete "petroleum pool or"; 3 (b) delete "petroleum or" (each occurrence); 4 (c) delete "pool or" (each occurrence); 5 (d) delete "under the licence" and insert: 6 7 under the geothermal production licence 8 9 (3) In section 7A(5): 10 (a) delete "petroleum pool or"; 11 (b) delete "to explore for, or recover, petroleum, or"; 12 (c) delete "petroleum or" (each occurrence); 13 (d) delete "pool or" (each occurrence). 14 (4) In section 7A(7): 15 (a) in paragraph (a) delete "petroleum pool or"; 16 (b) in paragraph (a) delete "to explore for or recover 17 petroleum, or"; 18 (c) in paragraph (c) delete "petroleum or"; 19 (d) in paragraph (c) delete "pool or"; 20 (e) delete "all petroleum or" and insert: 21 22 all 23 24 (5) Delete section 7A(8) and insert: 25 26 (8) In this section -- 27 (a) a reference to a geothermal production licence 28 includes a reference to a geothermal 29 exploration permit and a geothermal retention 30 lease; and page 6 Petroleum Legislation Amendment Bill 2016 Petroleum and Geothermal Energy Resources Act 1967 Part 2 amended s. 7 1 (b) a reference to a licensee is a reference to the 2 registered holder of a geothermal production 3 licence and includes a reference to a geothermal 4 permittee and a geothermal lessee; and 5 (c) a reference to a licence area is a reference to the 6 area constituted by the blocks that are the 7 subject of a geothermal production licence and 8 includes a reference to a geothermal permit area 9 and a geothermal lease area; and 10 (d) a reference to a State includes a reference to the 11 Northern Territory; and 12 (e) a reference to the Supreme Court is a reference 13 to the Supreme Court of the State, or of one of 14 the States, in which the petroleum pool is 15 wholly or partly situated. 16 17 Note: The heading to amended section 7A is to read: 18 Geothermal resources area in, or extending into, other areas 19 7. Section 7B inserted 20 After section 7A insert: 21 22 7B. Petroleum pool in, or extending into, other areas 23 (1) The provisions of this section have effect for the 24 purposes of this Act (including any Act with which this 25 Act is incorporated) and of licences (whether granted 26 before or after the commencement of this section). 27 (2) If a well-head is situated in a licence area or in an area 28 in respect of which a petroleum access authority is in 29 force (in this subsection called an access authority 30 area) and the well from that well-head is inclined so as 31 to enter a petroleum pool, being a pool that does not 32 extend to that licence area or access authority area, at a 33 place within an adjoining licence area of the same page 7 Petroleum Legislation Amendment Bill 2016 Part 2 Petroleum and Geothermal Energy Resources Act 1967 amended s. 7 1 licensee or registered holder of the petroleum access 2 authority, any petroleum recovered through that well is 3 taken to have been recovered in that adjoining licence 4 area under the petroleum production licence in respect 5 of that area. 6 (3) If a petroleum pool is partly in one licence area and 7 partly in an adjoining licence area of the same licensee 8 and petroleum is recovered from that pool through a 9 well or wells in one or both of the licence areas, there 10 is taken to have been recovered in each of the licence 11 areas, under the petroleum production licence in 12 respect of that area, such proportion of all petroleum so 13 recovered as may reasonably be treated as being 14 derived from that area, having regard to the nature and 15 probable extent of the pool, and the respective 16 proportions are to be determined in accordance with 17 subsection (4). 18 (4) The proportions to be determined for the purposes of 19 subsection (3) may be determined by agreement 20 between the licensee and the Minister or, in the 21 absence of agreement, may be determined by the 22 Supreme Court on the application of the licensee or the 23 Minister. 24 (5) If a petroleum pool is partly in a licence area and partly 25 in another area in which the licensee has authority 26 under another written law or a law of another State or 27 the Commonwealth to explore for, or recover, 28 petroleum, and petroleum is recovered from that pool 29 through a well or wells in the licence area, the other 30 area or both, there is taken to have been recovered in 31 the licence area such proportion of all petroleum so 32 recovered as may reasonably be treated as being 33 derived from the licence area, having regard to the 34 nature and probable extent of the pool, and that page 8 Petroleum Legislation Amendment Bill 2016 Petroleum and Geothermal Energy Resources Act 1967 Part 2 amended s. 7 1 proportion is to be determined in accordance with 2 subsection (6). 3 (6) The proportion to be determined for the purposes of 4 subsection (5) may be determined -- 5 (a) in the case of a licensee having authority under 6 another written law, by agreement between -- 7 (i) that licensee; and 8 (ii) the Minister; and 9 (iii) if the other written law is administered 10 by a Minister of the Crown other than 11 the Minister, that Minister of the Crown, 12 or, in the absence of agreement, may be 13 determined by the Supreme Court on the 14 application of that licensee, the Minister, or the 15 Minister of the Crown (if applicable) referred to 16 in subparagraph (iii); or 17 (b) in the case of a licensee having authority under 18 a law of another State, by agreement 19 between -- 20 (i) that licensee; and 21 (ii) the Minister; and 22 (iii) the State Minister administering the law 23 of the other State, 24 or, in the absence of agreement, may be 25 determined by the Supreme Court on the 26 application of that licensee, the Minister or the 27 State Minister referred to in subparagraph (iii); 28 or 29 (c) in the case of a licensee having authority under 30 a law of the Commonwealth, by agreement 31 between -- 32 (i) that licensee; and 33 (ii) the Minister; and page 9 Petroleum Legislation Amendment Bill 2016 Part 2 Petroleum and Geothermal Energy Resources Act 1967 amended s. 7 1 (iii) the Joint Authority, 2 or, in the absence of agreement, may be 3 determined by the Supreme Court on the 4 application of that licensee, the Minister or the 5 Joint Authority. 6 (7) In subsection (6) -- 7 Joint Authority has the meaning given in the 8 Commonwealth Act section 7. 9 (8) If -- 10 (a) an agreement is in force to explore for, or 11 recover, petroleum between -- 12 (i) a licensee, the Minister and, if the other 13 written law mentioned in this 14 subparagraph is administered by a 15 Minister of the Crown other than the 16 Minister, that Minister of the Crown in 17 relation to a petroleum pool that is 18 partly in the licence area and partly in 19 another area (the other area) in which 20 the licensee has authority under another 21 written law; or 22 (ii) a licensee, the Minister and the State 23 Minister administering a law of another 24 State in relation to a petroleum pool that 25 is partly in the licence area and partly in 26 another area (the other area) in which 27 the licensee has authority under the law 28 of the other State; or 29 (iii) a licensee, the Minister and the Joint 30 Authority in relation to a petroleum pool 31 that is partly in the licence area and 32 partly in another area (the other area) in 33 which the licensee has authority under a 34 law of the Commonwealth; 35 and page 10 Petroleum Legislation Amendment Bill 2016 Petroleum and Geothermal Energy Resources Act 1967 Part 2 amended s. 7 1 (b) the agreement contains a provision (the 2 apportionment provision) that provides that, 3 for the purposes of this section, there is taken to 4 be recovered in the licence area a specified 5 proportion of all of the petroleum recovered 6 from the petroleum pool; and 7 (c) assuming that petroleum were recovered from 8 the part of the seabed that is within the areal 9 and vertical extents specified in the agreement, 10 the specified proportion would be consistent 11 with such proportion of all petroleum so 12 recovered as may reasonably be treated as 13 being derived from the licence area, having 14 regard to the nature and probable extent of the 15 petroleum in that part of the seabed; and 16 (d) the agreement contains a provision to the effect 17 that if it becomes apparent that the areal and 18 vertical extents of the petroleum pool, as 19 specified in the agreement, comprise or are 20 likely to comprise more than one petroleum 21 pool, the apportionment set out in the 22 apportionment provision will apply to the 23 petroleum recovered from any or all of those 24 petroleum pools, regardless of their location but 25 within those areal and vertical extents; and 26 (e) after the time of the making of the agreement, it 27 becomes apparent that the areal and vertical 28 extents of the petroleum pool, as specified in 29 the agreement, comprise, or are likely to 30 comprise, 2 or more petroleum pools; and 31 (f) petroleum is recovered from any of those 32 petroleum pools through a well or wells in the 33 licence area, the other area or both, page 11 Petroleum Legislation Amendment Bill 2016 Part 2 Petroleum and Geothermal Energy Resources Act 1967 amended s. 7 1 then -- 2 (g) for the purposes of this Act, there is taken to 3 have been recovered in the licence area such 4 proportion of all petroleum so recovered as is 5 specified in the apportionment provision; and 6 (h) subsection (5) does not apply to any of those 7 petroleum pools. 8 (9) The question of whether there is or was a petroleum 9 pool covered by subsection (8)(a) is to be determined 10 on the basis of information known at the time of the 11 making of the relevant agreement referred to in that 12 provision. 13 (10) The question of whether subsection (8)(c) applies is to 14 be determined on the basis of information known at the 15 time of the commencement of the apportionment 16 provision. 17 (11) The location of any of the 2 or more petroleum pools 18 mentioned in subsection (8)(e) is immaterial. 19 (12) If -- 20 (a) at a particular time after the commencement of 21 this section, a petroleum pool is partly in a 22 licence area and partly in another area (the 23 other area) in which the licensee has authority 24 under another written law or a law of another 25 State or the Commonwealth to explore for, or 26 recover, petroleum; and 27 (b) at that time, an agreement is made between -- 28 (i) if the licensee has authority under 29 another written law -- the licensee, the 30 Minister and, if the other written law is 31 administered by a Minister of the Crown 32 other than the Minister, that Minister of 33 the Crown; or page 12 Petroleum Legislation Amendment Bill 2016 Petroleum and Geothermal Energy Resources Act 1967 Part 2 amended s. 7 1 (ii) if the licensee has authority under a law 2 of another State -- the licensee, the 3 Minister and the State Minister 4 administering the law of the other State; 5 or 6 (iii) if the licensee has authority under a law 7 of the Commonwealth -- the licensee, 8 the Minister and the Joint Authority; 9 and 10 (c) the agreement specifies a part of the seabed by 11 reference to its areal and vertical extents; and 12 (d) the areal and vertical extents of the specified 13 part consist of -- 14 (i) the whole or a part of the licence area; 15 and 16 (ii) the whole or a part of the other area; 17 and 18 (e) the areal and vertical extents of the specified 19 part include the petroleum pool; and 20 (f) the agreement contains a provision (the 21 apportionment provision) that provides that, 22 for the purposes of this section, there is taken to 23 be recovered in the licence area a specified 24 proportion of all of the petroleum recovered 25 from the specified part; and 26 (g) assuming that petroleum were recovered from 27 the specified part, the specified proportion 28 would be consistent with such proportion of all 29 petroleum so recovered as may reasonably be 30 treated as being derived from the licence area, 31 having regard to the nature and probable extent 32 of the petroleum in the specified part; and page 13 Petroleum Legislation Amendment Bill 2016 Part 2 Petroleum and Geothermal Energy Resources Act 1967 amended s. 7 1 (h) petroleum is recovered from the specified part 2 through a well or wells in the licence area, the 3 other area or both, 4 then -- 5 (i) for the purposes of this Act, there is taken to 6 have been recovered in the licence area such 7 proportion of all petroleum so recovered as is 8 specified in the apportionment provision; and 9 (j) subsection (5) does not apply to a petroleum 10 pool located in the specified part. 11 (13) The question of whether there is or was a petroleum 12 pool covered by subsection (12)(a) at a particular time 13 is to be determined on the basis of information known 14 at that time. 15 (14) The question of whether subsection (12)(g) applies is 16 to be determined on the basis of information known at 17 the time of the commencement of the apportionment 18 provision. 19 (15) If -- 20 (a) a petroleum pool is partly in a licence area and 21 partly in another area, whether in the State or 22 not, in respect of which another person has 23 authority, whether under this Act or another 24 written law or under the law of another State or 25 the Commonwealth, to explore for or recover 26 petroleum; and 27 (b) a unit development agreement in accordance 28 with section 69 is in force between the licensee 29 and that other person; and page 14 Petroleum Legislation Amendment Bill 2016 Petroleum and Geothermal Energy Resources Act 1967 Part 2 amended s. 7 1 (c) petroleum is recovered from that pool through a 2 well or wells in the licence area, the other area 3 or both, 4 there is taken to have been recovered in the licence area 5 such proportion of all petroleum so recovered as is 6 specified in, or determined in accordance with, the 7 agreement referred to in paragraph (b). 8 (16) In this section -- 9 (a) a reference to a petroleum production licence 10 includes a reference to a petroleum exploration 11 permit and a petroleum retention lease; and 12 (b) a reference to a licensee is a reference to the 13 registered holder of a petroleum production 14 licence and includes a reference to a petroleum 15 permittee and a petroleum lessee; and 16 (c) a reference to a licence area is a reference to the 17 area constituted by the blocks that are the 18 subject of a petroleum production licence and 19 includes a reference to a petroleum permit area 20 and a petroleum lease area; and 21 (d) a reference to a State includes a reference to the 22 Northern Territory; and 23 (e) a reference to the Supreme Court is a reference 24 to the Supreme Court of the State, or of one of 25 the States, in which the petroleum pool is 26 wholly or partly situated. 27 page 15 Petroleum Legislation Amendment Bill 2016 Part 2 Petroleum and Geothermal Energy Resources Act 1967 amended s. 8 1 8. Section 37B inserted 2 After section 37A insert: 3 4 37B. Grant of boundary-change permit 5 (1) In this section -- 6 section 27 block means -- 7 (a) a block constituted as provided by section 27; 8 or 9 (b) if a graticular section is wholly within the area 10 that was covered by the Commonwealth permit 11 concerned -- the graticular section; or 12 (c) if a part only of a graticular section is within 13 the area that was covered by the 14 Commonwealth permit concerned -- that part 15 of the graticular section. 16 Note for this definition: 17 See also subsection (8). 18 (2) This section applies if -- 19 (a) a Commonwealth permit has been granted on 20 the basis that an area (the relevant area) is 21 within the offshore area; and 22 (b) as a result of a change to the boundary of the 23 offshore area, the relevant area -- 24 (i) ceases to be within the offshore area; 25 and 26 (ii) falls within the inshore area; 27 and 28 (c) either -- 29 (i) the conditions set out in subsection (3) 30 are satisfied; or page 16 Petroleum Legislation Amendment Bill 2016 Petroleum and Geothermal Energy Resources Act 1967 Part 2 amended s. 8 1 (ii) the conditions set out in subsection (4) 2 are satisfied. 3 (3) The conditions mentioned in subsection (2)(c)(i) are -- 4 (a) one or more, but not all, of the section 27 5 blocks that were covered by the 6 Commonwealth permit immediately before the 7 change are in the relevant area; and 8 (b) the Commonwealth permit subsequently ceases 9 to be in force at the same time (the relevant 10 time) -- 11 (i) as to all of the section 27 blocks that 12 were covered by the Commonwealth 13 permit immediately before the change 14 and that are in the offshore area; and 15 (ii) otherwise than as the result of the 16 cancellation or surrender of the 17 Commonwealth permit. 18 (4) The conditions mentioned in subsection (2)(c)(ii) 19 are -- 20 (a) all of the section 27 blocks that were covered 21 by the Commonwealth permit immediately 22 before the change are in the relevant area; and 23 (b) the Commonwealth permit subsequently ceases 24 to be in force at the same time (the relevant 25 time) -- 26 (i) as to all of the section 27 blocks that 27 were covered by the Commonwealth 28 permit immediately before the change; 29 and 30 (ii) otherwise than as the result of the 31 cancellation or surrender of the 32 Commonwealth permit. page 17 Petroleum Legislation Amendment Bill 2016 Part 2 Petroleum and Geothermal Energy Resources Act 1967 amended s. 8 1 (5) If -- 2 (a) assuming that -- 3 (i) the change to the boundary of the 4 offshore area had not occurred; and 5 (ii) the relevant area had remained in the 6 offshore area, 7 the holder of the Commonwealth permit would 8 have been entitled to apply under the 9 Commonwealth Act for the renewal of the 10 Commonwealth permit in relation to all of the 11 section 27 blocks that are -- 12 (iii) covered by the Commonwealth permit; 13 and 14 (iv) in the relevant area; 15 and 16 (b) there are one or more section 27 blocks (the 17 relevant section 27 blocks) that -- 18 (i) correspond to the section 27 blocks 19 covered by paragraph (a); and 20 (ii) are in the inshore area; and 21 (iii) are not the subject of a variation under 22 section 97A, 23 the Minister is taken -- 24 (c) to have granted the holder of the 25 Commonwealth permit a petroleum exploration 26 permit over those relevant section 27 blocks; 27 and 28 (d) to have done so immediately after the relevant 29 time mentioned in whichever of subsection (3) 30 or (4) is applicable. 31 Note for this subsection: 32 For the duration of the petroleum exploration permit, see 33 section 39(1A). page 18 Petroleum Legislation Amendment Bill 2016 Petroleum and Geothermal Energy Resources Act 1967 Part 2 amended s. 8 1 (6) If -- 2 (a) assuming that -- 3 (i) the change to the boundary of the 4 offshore area had not occurred; and 5 (ii) the relevant area had remained in the 6 offshore area, 7 the holder of the Commonwealth permit would 8 not have been entitled to apply under the 9 Commonwealth Act for the renewal of the 10 Commonwealth permit in relation to all of the 11 section 27 blocks that are -- 12 (iii) covered by the Commonwealth permit; 13 and 14 (iv) in the relevant area; 15 and 16 (b) there are one or more section 27 blocks (the 17 relevant section 27 blocks) that -- 18 (i) correspond to the section 27 blocks that 19 were covered by the Commonwealth 20 permit immediately before the change; 21 and 22 (ii) are in the inshore area; and 23 (iii) are not the subject of a variation under 24 section 97A, 25 the Minister is taken -- 26 (c) to have granted the holder of the 27 Commonwealth permit a petroleum exploration 28 permit over those relevant section 27 blocks; 29 and page 19 Petroleum Legislation Amendment Bill 2016 Part 2 Petroleum and Geothermal Energy Resources Act 1967 amended s. 8 1 (d) to have done so immediately after the relevant 2 time mentioned in whichever of subsection (3) 3 or (4) is applicable. 4 Note for this subsection: 5 For the duration of the petroleum exploration permit, see 6 section 39(1B). 7 (7) For the purposes of subsections (5) and (6), the 8 following provisions of the Commonwealth Act are to 9 be disregarded -- 10 (a) the standard halving rules in section 123 of that 11 Act; 12 (b) the modified halving rules in section 124 of that 13 Act; 14 (c) a provision of a kind specified in the 15 regulations. 16 (8) If, after the change to the boundary of the offshore 17 area -- 18 (a) a part of a section 27 block that was covered by 19 the Commonwealth permit immediately before 20 the change is in the offshore area; and 21 (b) the remaining part of the section 27 block is in 22 the inshore area, 23 then, for the purposes of this section (other than this 24 subsection), each of those parts is taken to constitute, 25 and to have always constituted, a section 27 block. 26 (9) An assumption in subsection (5)(a) or (6)(a) does not 27 affect subsection (8). 28 page 20 Petroleum Legislation Amendment Bill 2016 Petroleum and Geothermal Energy Resources Act 1967 Part 2 amended s. 9 1 9. Section 39 amended 2 After section 39(1) insert: 3 4 (1A) Subject to this Part, a boundary-change permit granted 5 under section 37B(5) remains in force for a period of 6 5 years commencing on the day on which the permit is 7 granted. 8 (1B) Subject to this Part, a boundary-change permit granted 9 under section 37B(6) remains in force for a period of 10 12 months commencing on the day on which the permit 11 is granted. 12 13 10. Section 40 amended 14 In section 40(1) delete "sections 41 and 42A," and insert: 15 16 sections 41, 42A and 42B, 17 18 11. Section 41 amended 19 After section 41(6) insert: 20 21 (7) Subsections (1) to (5) do not apply to an application for 22 the renewal of a permit if -- 23 (a) the permit was granted on the basis that an area 24 (the relevant area) was within the inshore area; 25 and 26 (b) as a result of a change to the boundary of the 27 offshore area, the relevant area -- 28 (i) ceased to be within the inshore area; and 29 (ii) fell within the offshore area; 30 and page 21 Petroleum Legislation Amendment Bill 2016 Part 2 Petroleum and Geothermal Energy Resources Act 1967 amended s. 12 1 (c) immediately before the change, the relevant 2 area was a part of the permit area. 3 (8) For the purposes of subsection (7) -- 4 (a) section 6A is to be disregarded; and 5 (b) it is immaterial whether the change occurred 6 before, at or after the commencement day. 7 (9) In subsection (8)(b) -- 8 commencement day means the day on which the 9 Petroleum Legislation Amendment Act 2016 section 11 10 comes into operation. 11 12 12. Section 42B inserted 13 After section 42A insert: 14 15 42B. Limits on renewal of boundary-change permits 16 (1) If -- 17 (a) a boundary-change permit is granted under 18 section 37B(5); and 19 (b) the relevant Commonwealth permit that ceases 20 to be in force, as mentioned in 21 section 37B(3)(b) or (4)(b), was granted 22 otherwise than by way of renewal, 23 then -- 24 (c) section 41 applies to an application for the 25 renewal of the boundary-change permit; and 26 (d) an application must not be made for the 27 renewal of the boundary-change permit if the 28 Minister has previously granted a renewal of 29 the permit. page 22 Petroleum Legislation Amendment Bill 2016 Petroleum and Geothermal Energy Resources Act 1967 Part 2 amended s. 13 1 (2) If -- 2 (a) a boundary-change permit is granted under 3 section 37B(5); and 4 (b) the relevant Commonwealth permit that ceases to 5 be in force, as mentioned in section 37B(3)(b) or 6 (4)(b), was granted by way of renewal, 7 an application must not be made for the renewal of the 8 boundary-change permit. 9 (3) If a boundary-change permit is granted under 10 section 37B(6), an application must not be made for the 11 renewal of the permit. 12 13 13. Section 43 amended 14 (1) After section 43(1) insert: 15 16 (1A) Subsection (1) does not apply to a boundary-change 17 permit. 18 19 (2) After section 43(2) insert: 20 21 (3) The Minister may, by written notice given to the 22 permittee, vary a boundary-change permit by imposing 23 one or more conditions to which the permit is subject. 24 (4) A notice under subsection (3) may only be given within 25 14 days after the grant of the boundary-change permit. 26 (5) A variation under subsection (3) takes effect on the day 27 on which notice of the variation is given to the 28 permittee. 29 (6) If, when a boundary-change permit is granted, the 30 relevant Commonwealth permit that ceases to be in 31 force, as mentioned in section 37B(3)(b) or (4)(b), is of page 23 Petroleum Legislation Amendment Bill 2016 Part 2 Petroleum and Geothermal Energy Resources Act 1967 amended s. 13 1 a kind that corresponds to a petroleum exploration 2 permit granted under section 32(4) or 37, any or all of 3 the conditions mentioned in subsection (7) may be 4 specified in -- 5 (a) the boundary-change permit; or 6 (b) a permit granted by way of the renewal of the 7 boundary-change permit. 8 (7) The following conditions are specified for the purposes 9 of subsection (6) -- 10 (a) conditions requiring the permittee to carry out 11 work in, or in relation to, the permit area 12 (including conditions requiring the permittee to 13 carry out the work during a period of 12 months 14 or longer, or during periods each of which is 15 12 months or longer); 16 (b) conditions relating to the amounts that the 17 permittee must spend in carrying out such 18 work; 19 (c) conditions requiring the permittee to comply 20 with directions that -- 21 (i) relate to the matters covered by 22 paragraphs (a) and (b); and 23 (ii) are given in accordance with the permit. 24 (8) Subsection (6) does not limit subsection (3). 25 (9) If -- 26 (a) a boundary-change permit is granted; and 27 (b) the relevant Commonwealth permit that ceases 28 to be in force, as mentioned in 29 section 37B(3)(b) or (4)(b), is a cash-bid 30 petroleum exploration permit, as defined in the 31 Commonwealth Act section 7, page 24 Petroleum Legislation Amendment Bill 2016 Petroleum and Geothermal Energy Resources Act 1967 Part 2 amended s. 14 1 the conditions mentioned in subsection (10) must not 2 be specified in -- 3 (c) the boundary-change permit; or 4 (d) a permit granted by way of the renewal of the 5 boundary-change permit. 6 (10) The following conditions are specified for the purposes 7 of subsection (9) -- 8 (a) conditions requiring the permittee to carry out 9 work in, or in relation to, the permit area; 10 (b) conditions requiring the permittee to spend 11 particular amounts on the carrying out of work 12 in, or in relation to, the permit area. 13 14 14. Section 47 amended 15 (1) Before section 47(1) insert: 16 17 (1A) In this section -- 18 section 27 block means -- 19 (a) a block constituted as provided by section 27; 20 or 21 (b) if a graticular section is wholly within the area 22 that was covered by the Commonwealth permit 23 concerned -- the graticular section; or 24 (c) if a part only of a graticular section is within 25 the area that was covered by the 26 Commonwealth permit concerned -- that part 27 of the graticular section. 28 page 25 Petroleum Legislation Amendment Bill 2016 Part 2 Petroleum and Geothermal Energy Resources Act 1967 amended s. 14 1 (2) After section 47(2) insert: 2 3 (2A) Subsection (2B) applies if -- 4 (a) a boundary-change permit is granted over one 5 or more section 27 blocks; and 6 (b) immediately before the grant, those 7 section 27 blocks were, or were part of, a 8 location as defined in the Commonwealth Act 9 section 7; and 10 (c) apart from this subsection, those 11 section 27 blocks are not, and are not part of, a 12 location as defined in section 5 of this Act. 13 (2B) The Minister is taken -- 14 (a) to have declared those section 27 blocks to be a 15 location; and 16 (b) to have done so immediately after the grant. 17 (2C) Subsection (2D) applies if -- 18 (a) a permit is varied under section 97A so as to 19 include in the permit area one or more 20 section 27 blocks; and 21 (b) immediately before the variation, those 22 section 27 blocks were, or were part of, a 23 location as defined in the Commonwealth Act 24 section 7; and 25 (c) apart from this subsection, those section 27 26 blocks are not, and are not part of, a location as 27 defined in section 5 of this Act. 28 (2D) The Minister is taken -- 29 (a) to have declared those section 27 blocks to be a 30 location; and 31 (b) to have done so immediately after the variation. 32 page 26 Petroleum Legislation Amendment Bill 2016 Petroleum and Geothermal Energy Resources Act 1967 Part 2 amended s. 15 1 15. Section 48CD inserted 2 After section 48CC insert: 3 4 48CD. Grant of petroleum retention lease as result of 5 change to boundary of offshore area 6 (1) In this section -- 7 section 27 block means -- 8 (a) a block constituted as provided by section 27; 9 or 10 (b) if a graticular section is wholly within the area 11 that was covered by the Commonwealth lease 12 concerned -- the graticular section; or 13 (c) if a part only of a graticular section is within 14 the area that was covered by the 15 Commonwealth lease concerned -- that part of 16 the graticular section. 17 Note for this definition: 18 See also subsection (6). 19 (2) This section applies if -- 20 (a) a Commonwealth lease has been granted on the 21 basis that an area (the relevant area) is within 22 the offshore area; and 23 (b) as a result of a change to the boundary of the 24 offshore area, the relevant area -- 25 (i) ceases to be within the offshore area; 26 and 27 (ii) falls within the inshore area; 28 and 29 (c) either -- 30 (i) the conditions set out in subsection (3) 31 are satisfied; or page 27 Petroleum Legislation Amendment Bill 2016 Part 2 Petroleum and Geothermal Energy Resources Act 1967 amended s. 15 1 (ii) the conditions set out in subsection (4) 2 are satisfied; 3 and 4 (d) there are one or more section 27 blocks (the 5 relevant section 27 blocks) that -- 6 (i) correspond to the section 27 blocks that 7 were covered by the Commonwealth 8 lease immediately before the change; 9 and 10 (ii) are in the inshore area; and 11 (iii) are not the subject of a variation under 12 section 97A. 13 (3) The conditions mentioned in subsection (2)(c)(i) are -- 14 (a) one or more, but not all, of the section 27 15 blocks that were covered by the 16 Commonwealth lease immediately before the 17 change are in the relevant area; and 18 (b) the Commonwealth lease subsequently ceases 19 to be in force at the same time (the relevant 20 time) -- 21 (i) as to all of the section 27 blocks that 22 were covered by the Commonwealth 23 lease immediately before the change 24 and that are in the offshore area; and 25 (ii) otherwise than as the result of the 26 cancellation or surrender of the 27 Commonwealth lease. 28 (4) The conditions mentioned in subsection (2)(c)(ii) 29 are -- 30 (a) all of the section 27 blocks that were covered 31 by the Commonwealth lease immediately 32 before the change are in the relevant area; and page 28 Petroleum Legislation Amendment Bill 2016 Petroleum and Geothermal Energy Resources Act 1967 Part 2 amended s. 15 1 (b) the Commonwealth lease subsequently ceases 2 to be in force at the same time (the relevant 3 time) -- 4 (i) as to all of the section 27 blocks that 5 were covered by the Commonwealth 6 lease immediately before the change; 7 and 8 (ii) otherwise than as the result of the 9 cancellation or surrender of the 10 Commonwealth lease. 11 (5) The Minister is taken -- 12 (a) to have granted the holder of the 13 Commonwealth lease a petroleum retention 14 lease over the relevant section 27 blocks; and 15 (b) to have done so immediately after the relevant 16 time mentioned in whichever of subsection (3) 17 or (4) is applicable. 18 Note for this subsection: 19 For the duration of the petroleum retention lease, see 20 section 48D(2). 21 (6) If, after the change to the boundary of the offshore 22 area -- 23 (a) a part of a section 27 block that was covered by 24 the Commonwealth lease immediately before 25 the change is in the offshore area; and 26 (b) the remaining part of the section 27 block is in 27 the inshore area, 28 then, for the purposes of this section (other than this 29 subsection), each of those parts is taken to constitute, 30 and to have always constituted, a section 27 block. 31 page 29 Petroleum Legislation Amendment Bill 2016 Part 2 Petroleum and Geothermal Energy Resources Act 1967 amended s. 16 1 16. Section 48D amended 2 (1) In section 48D: 3 (a) delete "Subject" and insert: 4 5 (1) Subject 6 7 (b) delete "otherwise)" and insert: 8 9 otherwise and other than a petroleum retention lease 10 granted under section 48CD) 11 12 (2) At the end of section 48D insert: 13 14 (2) Subject to this Part, a petroleum retention lease granted 15 under section 48CD remains in force for a period of 16 5 years commencing on the day on which the lease is 17 granted. 18 19 17. Section 48H amended 20 (1) After section 48H(1) insert: 21 22 (1A) Subsection (1) does not apply to a petroleum retention 23 lease granted under section 48CD. 24 25 (2) After section 48H(4) insert: 26 27 (5) The Minister may, by written notice given to the lessee, 28 vary a petroleum retention lease granted under 29 section 48CD by imposing one or more conditions to 30 which the lease is subject. page 30 Petroleum Legislation Amendment Bill 2016 Petroleum and Geothermal Energy Resources Act 1967 Part 2 amended s. 18 1 (6) A notice under subsection (5) may only be given within 2 14 days after the grant of the petroleum retention lease. 3 (7) A variation under subsection (5) takes effect on the day 4 on which notice of the variation is given to the lessee. 5 6 18. Section 56 amended 7 After section 56(6) insert: 8 9 (7) This section does not apply in relation to a permit if -- 10 (a) the permit has been granted on the basis that an 11 area (the relevant area) is within the inshore 12 area; and 13 (b) as a result of a change to the boundary of the 14 offshore area, the relevant area -- 15 (i) ceases to be within the inshore area; and 16 (ii) falls within the offshore area; 17 and 18 (c) immediately before the change, the relevant 19 area was a part of the permit area. 20 (8) For the purposes of subsection (7) -- 21 (a) section 6A is to be disregarded; and 22 (b) it is immaterial whether the change occurred 23 before, at or after the commencement day. 24 (9) In subsection (8)(b) -- 25 commencement day means the day on which the 26 Petroleum Legislation Amendment Act 2016 section 18 27 comes into operation. 28 page 31 Petroleum Legislation Amendment Bill 2016 Part 2 Petroleum and Geothermal Energy Resources Act 1967 amended s. 19 1 19. Section 61A inserted 2 After section 61 insert: 3 4 61A. Grant of petroleum production licence as result of 5 change to boundary of offshore area 6 (1) In this section -- 7 section 27 block means -- 8 (a) a block constituted as provided by section 27; 9 or 10 (b) if a graticular section is wholly within the area 11 that was covered by the Commonwealth licence 12 concerned -- the graticular section; or 13 (c) if a part only of a graticular section is within 14 the area that was covered by the 15 Commonwealth licence concerned -- that part 16 of the graticular section. 17 Note for this definition: 18 See also subsection (6). 19 (2) This section applies if -- 20 (a) a Commonwealth licence has been granted on 21 the basis that an area (the relevant area) is 22 within the offshore area; and 23 (b) as a result of a change to the boundary of the 24 offshore area, the relevant area -- 25 (i) ceases to be within the offshore area; 26 and 27 (ii) falls within the inshore area; 28 and page 32 Petroleum Legislation Amendment Bill 2016 Petroleum and Geothermal Energy Resources Act 1967 Part 2 amended s. 19 1 (c) either -- 2 (i) the conditions set out in subsection (3) 3 are satisfied; or 4 (ii) the conditions set out in subsection (4) 5 are satisfied; 6 and 7 (d) there are one or more section 27 blocks (the 8 relevant section 27 blocks) that -- 9 (i) correspond to the section 27 blocks that 10 were covered by the Commonwealth 11 licence immediately before the change; 12 and 13 (ii) are in the inshore area; and 14 (iii) are not the subject of a variation under 15 section 97A. 16 (3) The conditions mentioned in subsection (2)(c)(i) are -- 17 (a) one or more, but not all, of the section 27 18 blocks that were covered by the 19 Commonwealth licence immediately before the 20 change are in the relevant area; and 21 (b) the Commonwealth licence subsequently ceases 22 to be in force at the same time (the relevant 23 time) -- 24 (i) as to all of the section 27 blocks that 25 were covered by the Commonwealth 26 licence immediately before the change 27 and that are in the offshore area; and 28 (ii) otherwise than as the result of the 29 cancellation or surrender of the 30 Commonwealth licence. page 33 Petroleum Legislation Amendment Bill 2016 Part 2 Petroleum and Geothermal Energy Resources Act 1967 amended s. 19 1 (4) The conditions mentioned in subsection (2)(c)(ii) 2 are -- 3 (a) all of the section 27 blocks that were covered 4 by the Commonwealth licence immediately 5 before the change are in the relevant area; and 6 (b) the Commonwealth licence subsequently ceases 7 to be in force at the same time (the relevant 8 time) -- 9 (i) as to all of the section 27 blocks that 10 were covered by the Commonwealth 11 licence immediately before the change; 12 and 13 (ii) otherwise than as the result of the 14 cancellation or surrender of the 15 Commonwealth licence. 16 (5) The Minister is taken -- 17 (a) to have granted the holder of the 18 Commonwealth licence a petroleum production 19 licence over the relevant section 27 blocks; and 20 (b) to have done so immediately after the relevant 21 time mentioned in whichever of subsection (3) 22 or (4) is applicable. 23 Note for this subsection: 24 For the duration of the licence, see section 63(3). 25 (6) If, after the change to the boundary of the offshore 26 area -- 27 (a) a part of a section 27 block that was covered by 28 the Commonwealth licence immediately before 29 the change is in the offshore area; and page 34 Petroleum Legislation Amendment Bill 2016 Petroleum and Geothermal Energy Resources Act 1967 Part 2 amended s. 20 1 (b) the remaining part of the section 27 block is in 2 the inshore area, 3 then, for the purposes of this section (other than this 4 subsection), each of those parts is taken to constitute, 5 and to have always constituted, a section 27 block. 6 7 20. Section 63 amended 8 (1) In section 63(2) delete "section 41(3)" and insert: 9 10 section 41(3), other than a petroleum production licence granted 11 under section 61A, 12 13 (2) After section 63(2) insert: 14 15 (3) Subject to this Part, a petroleum production licence 16 granted under section 61A remains in force for the 17 period of 21 years commencing on the day on which 18 the licence is granted. 19 20 21. Section 64 amended 21 (1) Delete section 64(1) and insert: 22 23 (1) Subject to this section, a licensee under a licence to 24 which section 63(1)(a) or (b) or (3) applies may, from 25 time to time, make an application to the Minister for 26 the renewal of the licence. 27 page 35 Petroleum Legislation Amendment Bill 2016 Part 2 Petroleum and Geothermal Energy Resources Act 1967 amended s. 22 1 (2) After section 64(3) insert: 2 3 (4) If -- 4 (a) a petroleum production licence is granted under 5 section 61A; and 6 (b) the relevant Commonwealth licence that ceases 7 to be in force, as mentioned in 8 section 61A(3)(b) or (4)(b), was granted 9 otherwise than by way of renewal, 10 an application must not be made for the renewal of the 11 petroleum production licence if the Minister has 12 previously granted a renewal of the licence. 13 (5) If -- 14 (a) a petroleum production licence is granted under 15 section 61A; and 16 (b) the relevant Commonwealth licence that ceases 17 to be in force, as mentioned in 18 section 61A(3)(b) or (4)(b), was granted by 19 way of renewal, 20 an application must not be made for the renewal of the 21 petroleum production licence. 22 23 22. Section 66 amended 24 After section 66(2) insert: 25 26 (3) Subsection (1) does not apply to a petroleum 27 production licence granted under section 61A. 28 (4) The Minister may, by written notice given to the 29 licensee, vary a petroleum production licence granted 30 under section 61A by imposing one or more conditions 31 to which the licence is subject. page 36 Petroleum Legislation Amendment Bill 2016 Petroleum and Geothermal Energy Resources Act 1967 Part 2 amended s. 23 1 (5) A notice under subsection (4) may only be given within 2 14 days after the grant of the petroleum production 3 licence. 4 (6) A variation under subsection (4) takes effect on the day 5 on which notice of the variation is given to the 6 licensee. 7 8 23. Section 69 amended 9 (1) Before section 69(1) insert: 10 11 (1A) In this section -- 12 Joint Authority and offshore area have the respective 13 meanings given in the Commonwealth Act section 7. 14 15 (2) In section 69(1)(a)(i) delete "State or of the Northern Territory," 16 and insert: 17 18 State, the Northern Territory or the Commonwealth, 19 20 (3) In section 69(11): 21 (a) in paragraph (b) delete "Territory," and insert: 22 23 Territory; or 24 25 (b) after paragraph (b) insert: 26 27 (c) the offshore area, 28 page 37 Petroleum Legislation Amendment Bill 2016 Part 2 Petroleum and Geothermal Energy Resources Act 1967 amended s. 24 1 (c) delete "another State or a Territory referred to in 2 paragraph (a)." and insert: 3 4 the other State or the Territory if paragraph (a) or (b) 5 applies and with the Joint Authority if paragraph (c) 6 applies. 7 8 (4) In section 69(11a) delete "another State or a Territory referred 9 to in paragraph (a)." and insert: 10 11 the other State or the Territory. 12 13 (5) In section 69(12) delete "concerned." and insert: 14 15 concerned and with the approval of the Joint Authority if 16 subsection (11)(c) applies. 17 18 24. Section 97A inserted 19 After section 97 insert: 20 21 97A. Variation of petroleum title by including area as 22 result of change to boundary of offshore area 23 (1) In this section -- 24 Commonwealth title means -- 25 (a) a Commonwealth permit; or 26 (b) a Commonwealth lease; or 27 (c) a Commonwealth licence; 28 fixed-term WA petroleum production licence means a 29 petroleum production licence granted for a fixed period 30 of years; page 38 Petroleum Legislation Amendment Bill 2016 Petroleum and Geothermal Energy Resources Act 1967 Part 2 amended s. 24 1 petroleum title means a petroleum exploration permit, 2 petroleum retention lease or fixed-term WA petroleum 3 production licence; 4 section 27 block means -- 5 (a) a block constituted as provided by section 27; 6 or 7 (b) if a graticular section is wholly within the area 8 that was covered by the Commonwealth title 9 concerned -- the graticular section; or 10 (c) if a part only of a graticular section is within 11 the area that was covered by the 12 Commonwealth title concerned -- that part of 13 the graticular section. 14 Note for this definition: 15 See also subsection (14). 16 (2) This section applies if -- 17 (a) a Commonwealth title has been granted on the 18 basis that an area (the relevant area) is within 19 the offshore area; and 20 (b) as a result of a change to the boundary of the 21 offshore area, the relevant area -- 22 (i) ceases to be within the offshore area; 23 and 24 (ii) falls within the inshore area; 25 and 26 (c) either -- 27 (i) the conditions set out in subsection (3) 28 are satisfied; or 29 (ii) the conditions set out in subsection (4) 30 are satisfied; 31 and page 39 Petroleum Legislation Amendment Bill 2016 Part 2 Petroleum and Geothermal Energy Resources Act 1967 amended s. 24 1 (d) immediately before the relevant time mentioned 2 in whichever of subsection (3) or (4) is 3 applicable -- 4 (i) the Commonwealth title was held by the 5 registered holder of a petroleum title 6 that corresponds to the Commonwealth 7 title; and 8 (ii) at least one section 27 block covered by 9 the petroleum title immediately adjoined 10 at least one other section 27 block that 11 was covered by the Commonwealth title 12 and that is in the relevant area; 13 and 14 (e) before the relevant time mentioned in 15 whichever of subsection (3) or (4) is 16 applicable -- 17 (i) the registered holder of the 18 Commonwealth title; and 19 (ii) the registered holder of the petroleum 20 title, 21 gave the Minister a written notice electing to 22 accept the variation under this section of the 23 petroleum title. 24 Note for this subsection: 25 For when a petroleum title corresponds to a Commonwealth 26 title, see subsection (13). 27 (3) The conditions mentioned in subsection (2)(c)(i) are -- 28 (a) one or more, but not all, of the section 27 29 blocks that were covered by the 30 Commonwealth title immediately before the 31 change are in the relevant area; and page 40 Petroleum Legislation Amendment Bill 2016 Petroleum and Geothermal Energy Resources Act 1967 Part 2 amended s. 24 1 (b) the Commonwealth title subsequently ceases to 2 be in force at the same time (the relevant 3 time) -- 4 (i) as to all of the section 27 blocks that 5 were covered by the Commonwealth 6 title immediately before the change and 7 that are in the offshore area; and 8 (ii) otherwise than as the result of the 9 cancellation or surrender of the 10 Commonwealth title. 11 (4) The conditions mentioned in subsection (2)(c)(ii) 12 are -- 13 (a) all of the section 27 blocks that were covered 14 by the Commonwealth title immediately before 15 the change are in the relevant area; and 16 (b) the Commonwealth title subsequently ceases to 17 be in force at the same time (the relevant 18 time) -- 19 (i) as to all of the section 27 blocks that 20 were covered by the Commonwealth 21 title immediately before the change; and 22 (ii) otherwise than as the result of the 23 cancellation or surrender of the 24 Commonwealth title. 25 (5) If the conditions set out in subsection (2)(d) and (e) are 26 met in relation to only one petroleum title, that 27 petroleum title is the relevant petroleum title for the 28 purposes of this section. 29 (6) If the conditions set out in subsection (2)(d) and (e) 30 would, apart from this subsection, be met in relation to 31 2 or more petroleum titles that have the same registered 32 holder, the Minister must, by written notice given to 33 the registered holder, declare that one of those page 41 Petroleum Legislation Amendment Bill 2016 Part 2 Petroleum and Geothermal Energy Resources Act 1967 amended s. 24 1 petroleum titles is the relevant petroleum title for the 2 purposes of this section. 3 (7) If the relevant petroleum title is a petroleum 4 exploration permit -- 5 (a) the Minister must, by written notice given to 6 the permittee, vary the permit to include in the 7 permit area all of the section 27 blocks that -- 8 (i) correspond to the section 27 blocks that 9 were covered by the Commonwealth 10 title immediately before the change; and 11 (ii) are in the inshore area; 12 and 13 (b) the section 27 blocks included in the permit 14 area because of the variation are, for the 15 remainder of the term of the permit, blocks in 16 relation to which the permit is in force. 17 (8) If the relevant petroleum title is a petroleum retention 18 lease -- 19 (a) the Minister must, by written notice given to 20 the lessee, vary the lease to include in the lease 21 area all of the section 27 blocks that -- 22 (i) correspond to the section 27 blocks that 23 were covered by the Commonwealth 24 title immediately before the change; and 25 (ii) are in the inshore area; 26 and 27 (b) the section 27 blocks included in the lease area 28 because of the variation are, for the remainder 29 of the term of the lease, blocks in relation to 30 which the lease is in force. page 42 Petroleum Legislation Amendment Bill 2016 Petroleum and Geothermal Energy Resources Act 1967 Part 2 amended s. 24 1 (9) If the relevant petroleum title is a petroleum production 2 licence -- 3 (a) the Minister must, by written notice given to 4 the licensee, vary the licence to include in the 5 licence area all of the section 27 blocks that -- 6 (i) correspond to the section 27 blocks that 7 were covered by the Commonwealth 8 title immediately before the change; and 9 (ii) are in the inshore area; 10 and 11 (b) the section 27 blocks included in the licence 12 area because of the variation are, for the 13 remainder of the term of the licence, blocks in 14 relation to which the licence is in force. 15 (10) Subsections (7)(b), (8)(b) and (9)(b) have effect subject 16 to this Part. 17 (11) A variation mentioned in subsection (7)(a), (8)(a) or 18 (9)(a) takes effect immediately after the relevant time 19 mentioned in whichever of subsection (3) or (4) is 20 applicable. 21 (12) For the purposes of this section, a section 27 block 22 immediately adjoins another section 27 block if -- 23 (a) the graticular section that constitutes or 24 includes that section 27 block and the graticular 25 section that constitutes or includes that other 26 section 27 block -- 27 (i) have a side in common; or 28 (ii) are joined together at one point only; 29 or 30 (b) that section 27 block and that other section 27 31 block are in the same graticular section. page 43 Petroleum Legislation Amendment Bill 2016 Part 2 Petroleum and Geothermal Energy Resources Act 1967 amended s. 24 1 (13) For the purposes of this section -- 2 (a) a petroleum exploration permit granted 3 otherwise than by way of renewal corresponds 4 to a Commonwealth permit granted otherwise 5 than by way of renewal; and 6 (b) a petroleum retention lease corresponds to a 7 Commonwealth lease; and 8 (c) a fixed-term WA petroleum production licence 9 granted otherwise than by way of renewal 10 corresponds to a Commonwealth licence 11 granted otherwise than by way of renewal; and 12 (d) a petroleum exploration permit granted by way 13 of first renewal corresponds to a 14 Commonwealth permit granted by way of first 15 renewal; and 16 (e) a fixed-term WA petroleum production licence 17 granted by way of first renewal corresponds to 18 a Commonwealth licence granted by way of 19 first renewal; and 20 (f) a petroleum exploration permit granted by way 21 of second renewal corresponds to a 22 Commonwealth permit granted by way of 23 second renewal; and 24 (g) a fixed-term WA petroleum production licence 25 granted by way of second or subsequent 26 renewal corresponds to a fixed-term petroleum 27 production licence, as defined in the 28 Commonwealth Act section 7, granted by way 29 of second or subsequent renewal. 30 (14) If, after the change to the boundary of the offshore 31 area -- 32 (a) a part of a section 27 block that was covered by 33 the Commonwealth title immediately before the 34 change is in the offshore area; and page 44 Petroleum Legislation Amendment Bill 2016 Petroleum and Geothermal Energy Resources Act 1967 Part 2 amended s. 24 1 (b) the remaining part of the section 27 block is in 2 the inshore area, 3 then, for the purposes of this section (other than this 4 subsection), each of those parts is taken to constitute, 5 and to have always constituted, a section 27 block. 6 page 45 Petroleum Legislation Amendment Bill 2016 Part 3 Petroleum (Submerged Lands) Act 1982 amended s. 25 1 Part 3 -- Petroleum (Submerged Lands) 2 Act 1982 amended 3 25. Act amended 4 This Part amends the Petroleum (Submerged Lands) Act 1982. 5 26. Section 4 amended 6 (1) In section 4 delete "In" and insert: 7 8 (1) In 9 10 (2) In section 4 delete the definition of interstate Minister. 11 (3) In section 4 insert in alphabetical order: 12 13 boundary-change permit means a permit granted 14 under section 27A; 15 Commonwealth lease means a petroleum retention 16 lease as defined in the Commonwealth Act section 7; 17 Commonwealth licence means a fixed-term petroleum 18 production licence as defined in the Commonwealth 19 Act section 7; 20 Commonwealth permit means a petroleum exploration 21 permit as defined in the Commonwealth Act section 7; 22 granted, in relation to a boundary-change permit, a 23 lease under section 38CD or a licence under 24 section 51A, means taken to have been granted; 25 26 (4) In section 4 in the definition of permit delete "Part III;" and 27 insert: 28 29 Part III, including a boundary-change permit; 30 page 46 Petroleum Legislation Amendment Bill 2016 Petroleum (Submerged Lands) Act 1982 amended Part 3 s. 27 1 (5) At the end of section 4 insert: 2 3 (2) Notes in this Act are provided to assist understanding 4 and do not form part of the Act. 5 6 27. Section 6A amended 7 (1) In section 6A(3)(b) delete "waters" and insert: 8 9 area 10 11 (2) In section 6A(5)(b) delete "waters the first" and insert: 12 13 area the second 14 15 28. Section 9 amended 16 (1) Before section 9(1) insert: 17 18 (1A) In this section -- 19 Joint Authority has the meaning given in the 20 Commonwealth Act section 7. 21 22 (2) After section 9(7) insert: 23 24 (7A) If a petroleum pool is partly in a licence area and partly 25 in another area (in this subsection called the other 26 area) in which the licensee has authority, under another 27 written law, to explore for or recover petroleum, and 28 petroleum is recovered from that pool through a well or 29 wells in the licence area, the other area or both, there is 30 taken to have been recovered in the licence area such page 47 Petroleum Legislation Amendment Bill 2016 Part 3 Petroleum (Submerged Lands) Act 1982 amended s. 28 1 proportion of all petroleum so recovered as may 2 reasonably be treated as being derived from that area, 3 having regard to the nature and probable extent of the 4 pool, and that proportion is to be determined in 5 accordance with subsection (7B). 6 (7B) The proportion to be determined for the purposes of 7 subsection (7A) may be determined by agreement 8 between the licensee, the Minister and, if the other 9 written law is administered by a Minister of the Crown 10 other than the Minister, that Minister of the Crown or, 11 in the absence of agreement, may be determined by the 12 Supreme Court on the application of any of those 13 persons. 14 15 (3) After section 9(8) insert: 16 17 (8A) If -- 18 (a) an agreement is in force to explore for, or 19 recover, petroleum between -- 20 (i) a licensee, the Joint Authority and the 21 Minister in relation to a petroleum pool 22 that is partly in the licence area and 23 partly in another area (the other area) in 24 which the licensee has authority under 25 the Commonwealth Act; or 26 (ii) a licensee, the Minister and the Minister 27 administering a corresponding law in 28 relation to a petroleum pool that is 29 partly in the licence area and partly in 30 another area (the other area) in which 31 the licensee has authority under the 32 corresponding law; or 33 (iii) a licensee, the Minister and, if the other 34 written law mentioned in this page 48 Petroleum Legislation Amendment Bill 2016 Petroleum (Submerged Lands) Act 1982 amended Part 3 s. 28 1 subparagraph is administered by a 2 Minister of the Crown other than the 3 Minister, that Minister of the Crown in 4 relation to a petroleum pool that is 5 partly in the licence area and partly in 6 another area (the other area) in which 7 the licensee has authority under another 8 written law; 9 and 10 (b) the agreement contains a provision (the 11 apportionment provision) that provides that, 12 for the purposes of this section, there is taken to 13 be recovered in the licence area a specified 14 proportion of all of the petroleum recovered 15 from the petroleum pool; and 16 (c) assuming that petroleum were recovered from 17 the part of the seabed that is within the areal 18 and vertical extents specified in the agreement, 19 the specified proportion would be consistent 20 with such proportion of all petroleum so 21 recovered as may reasonably be treated as 22 being derived from the licence area, having 23 regard to the nature and probable extent of the 24 petroleum in that part of the seabed; and 25 (d) the agreement contains a provision to the effect 26 that if it becomes apparent that the areal and 27 vertical extents of the petroleum pool, as 28 specified in the agreement, comprise or are 29 likely to comprise more than one petroleum 30 pool, the apportionment set out in the 31 apportionment provision will apply to the 32 petroleum recovered from any or all of those 33 petroleum pools, regardless of their location but 34 within those areal and vertical extents; and 35 (e) after the time of the making of the agreement, it 36 becomes apparent that the areal and vertical page 49 Petroleum Legislation Amendment Bill 2016 Part 3 Petroleum (Submerged Lands) Act 1982 amended s. 28 1 extents of the petroleum pool, as specified in 2 the agreement, comprise, or are likely to 3 comprise, 2 or more petroleum pools; and 4 (f) petroleum is recovered from any of those 5 petroleum pools through a well or wells in the 6 licence area, the other area or both, 7 then -- 8 (g) for the purposes of this Act, there is taken to 9 have been recovered in the licence area such 10 proportion of all petroleum so recovered as is 11 specified in the apportionment provision; and 12 (h) subsection (4), (6) or (7A), as the case requires, 13 does not apply to any of those petroleum pools. 14 (8B) The question of whether there is or was a petroleum 15 pool covered by subsection (8A)(a) is to be determined 16 on the basis of information known at the time of the 17 making of the relevant agreement referred to in that 18 provision. 19 (8C) The question of whether subsection (8A)(c) applies is 20 to be determined on the basis of information known at 21 the time of the commencement of the apportionment 22 provision. 23 (8D) The location of any of the 2 or more petroleum pools 24 mentioned in subsection (8A)(e) is immaterial. 25 (8E) If -- 26 (a) at a particular time after the commencement 27 day, a petroleum pool is partly in a licence area 28 and partly in another area (the other area) in 29 which the licensee has authority under the 30 Commonwealth Act, a corresponding law or 31 another written law to explore for, or recover, 32 petroleum; and page 50 Petroleum Legislation Amendment Bill 2016 Petroleum (Submerged Lands) Act 1982 amended Part 3 s. 28 1 (b) at that time, an agreement is made between -- 2 (i) if the licensee has authority under the 3 Commonwealth Act -- the licensee, the 4 Joint Authority and the Minister; or 5 (ii) if the licensee has authority under a 6 corresponding law -- the licensee, the 7 Minister and the Minister administering 8 the corresponding law; or 9 (iii) if the licensee has authority under 10 another written law -- the licensee, the 11 Minister and, if the other written law is 12 administered by a Minister of the Crown 13 other than the Minister, that Minister of 14 the Crown; 15 and 16 (c) the agreement specifies a part of the seabed by 17 reference to its areal and vertical extents; and 18 (d) the areal and vertical extents of the specified 19 part consist of -- 20 (i) the whole or a part of the licence area; 21 and 22 (ii) the whole or a part of the other area; 23 and 24 (e) the areal and vertical extents of the specified 25 part include the petroleum pool; and 26 (f) the agreement contains a provision (the 27 apportionment provision) that provides that, 28 for the purposes of this section, there is taken to 29 be recovered in the licence area a specified 30 proportion of all of the petroleum recovered 31 from the specified part; and page 51 Petroleum Legislation Amendment Bill 2016 Part 3 Petroleum (Submerged Lands) Act 1982 amended s. 28 1 (g) assuming that petroleum were recovered from 2 the specified part, the specified proportion 3 would be consistent with such proportion of all 4 petroleum so recovered as may reasonably be 5 treated as being derived from the licence area, 6 having regard to the nature and probable extent 7 of the petroleum in the specified part; and 8 (h) petroleum is recovered from the specified part 9 through a well or wells in the licence area, the 10 other area or both, 11 then -- 12 (i) for the purposes of this Act, there is taken to 13 have been recovered in the licence area such 14 proportion of all petroleum so recovered as is 15 specified in the apportionment provision; and 16 (j) subsection (4), (6) or (7A), as the case requires, 17 does not apply to a petroleum pool located in 18 the specified part. 19 (8F) The question of whether there is or was a petroleum 20 pool covered by subsection (8E)(a) at a particular time 21 is to be determined on the basis of information known 22 at that time. 23 (8G) The question of whether subsection (8E)(g) applies is 24 to be determined on the basis of information known at 25 the time of the commencement of the apportionment 26 provision. 27 (8H) In subsection (8E)(a) -- 28 commencement day means the day on which the 29 Petroleum Legislation Amendment Act 2016 section 28 30 comes into operation. 31 page 52 Petroleum Legislation Amendment Bill 2016 Petroleum (Submerged Lands) Act 1982 amended Part 3 s. 29 1 (4) In section 9(9)(a) after "this Act," insert: 2 3 another written law, 4 5 Note: The heading to amended section 9 is to read: 6 Petroleum pool extending into 2 licence areas or other areas 7 29. Section 11 amended 8 (1) In section 11 delete the definition of Designated Authority. 9 (2) In section 11 in the definition of Commonwealth Act 10 paragraph (d) delete "(Commonwealth);" and insert: 11 12 (Commonwealth). 13 14 Note: The heading to amended section 11 is to read: 15 Term used: Commonwealth Act 16 30. Sections 13 and 14 deleted 17 Delete sections 13 and 14. 18 31. Section 15 replaced 19 Delete section 15 and insert: 20 21 15. Public service officers performing functions under 22 Commonwealth Act 23 (1) In this section -- 24 officer means a public service officer employed in the 25 department of the Public Service principally assisting 26 the Minister in the administration of this Act. 27 (2) An officer is to perform any function or duty that the 28 Minister, as a member of the Joint Authority, requires page 53 Petroleum Legislation Amendment Bill 2016 Part 3 Petroleum (Submerged Lands) Act 1982 amended s. 32 1 the officer to perform in relation to a Commonwealth 2 Act. 3 4 32. Section 27A inserted 5 After section 27 insert: 6 7 27A. Grant of boundary-change permit 8 (1) In this section -- 9 section 17 block means -- 10 (a) a block constituted as provided by section 17; 11 or 12 (b) if a graticular section is wholly within the area 13 that was covered by the Commonwealth permit 14 concerned -- the graticular section; or 15 (c) if a part only of a graticular section is within 16 the area that was covered by the 17 Commonwealth permit concerned -- that part 18 of the graticular section. 19 Note for this definition: 20 See also subsection (8). 21 (2) This section applies if -- 22 (a) a Commonwealth permit has been granted on 23 the basis that an area (the relevant area) is 24 within the offshore area; and 25 (b) as a result of a change to the boundary of the 26 offshore area, the relevant area -- 27 (i) ceases to be within the offshore area; 28 and 29 (ii) falls within the adjacent area; 30 and page 54 Petroleum Legislation Amendment Bill 2016 Petroleum (Submerged Lands) Act 1982 amended Part 3 s. 32 1 (c) either -- 2 (i) the conditions set out in subsection (3) 3 are satisfied; or 4 (ii) the conditions set out in subsection (4) 5 are satisfied. 6 (3) The conditions mentioned in subsection (2)(c)(i) are -- 7 (a) one or more, but not all, of the section 17 8 blocks that were covered by the 9 Commonwealth permit immediately before the 10 change are in the relevant area; and 11 (b) the Commonwealth permit subsequently ceases 12 to be in force at the same time (the relevant 13 time) -- 14 (i) as to all of the section 17 blocks that 15 were covered by the Commonwealth 16 permit immediately before the change 17 and that are in the offshore area; and 18 (ii) otherwise than as the result of the 19 cancellation or surrender of the 20 Commonwealth permit. 21 (4) The conditions mentioned in subsection (2)(c)(ii) 22 are -- 23 (a) all of the section 17 blocks that were covered 24 by the Commonwealth permit immediately 25 before the change are in the relevant area; and 26 (b) the Commonwealth permit subsequently ceases 27 to be in force at the same time (the relevant 28 time) -- 29 (i) as to all of the section 17 blocks that 30 were covered by the Commonwealth 31 permit immediately before the change; 32 and page 55 Petroleum Legislation Amendment Bill 2016 Part 3 Petroleum (Submerged Lands) Act 1982 amended s. 32 1 (ii) otherwise than as the result of the 2 cancellation or surrender of the 3 Commonwealth permit. 4 (5) If -- 5 (a) assuming that -- 6 (i) the change to the boundary of the 7 offshore area had not occurred; and 8 (ii) the relevant area had remained in the 9 offshore area, 10 the holder of the Commonwealth permit would 11 have been entitled to apply under the 12 Commonwealth Act for the renewal of the 13 Commonwealth permit in relation to all of the 14 section 17 blocks that are -- 15 (iii) covered by the Commonwealth permit; 16 and 17 (iv) in the relevant area; 18 and 19 (b) there are one or more section 17 blocks (the 20 relevant section 17 blocks) that -- 21 (i) correspond to the section 17 blocks 22 covered by paragraph (a); and 23 (ii) are in the adjacent area; and 24 (iii) are not the subject of a variation under 25 section 103A, 26 the Minister is taken -- 27 (c) to have granted the holder of the 28 Commonwealth permit a permit over those 29 relevant section 17 blocks; and page 56 Petroleum Legislation Amendment Bill 2016 Petroleum (Submerged Lands) Act 1982 amended Part 3 s. 32 1 (d) to have done so immediately after the relevant 2 time mentioned in whichever of subsection (3) 3 or (4) is applicable. 4 Note for this subsection: 5 For the duration of the permit, see section 29(1A). 6 (6) If -- 7 (a) assuming that -- 8 (i) the change to the boundary of the 9 offshore area had not occurred; and 10 (ii) the relevant area had remained in the 11 offshore area, 12 the holder of the Commonwealth permit would 13 not have been entitled to apply under the 14 Commonwealth Act for the renewal of the 15 Commonwealth permit in relation to all of the 16 section 17 blocks that are -- 17 (iii) covered by the Commonwealth permit; 18 and 19 (iv) in the relevant area; 20 and 21 (b) there are one or more section 17 blocks (the 22 relevant section 17 blocks) that -- 23 (i) correspond to the section 17 blocks that 24 were covered by the Commonwealth 25 permit immediately before the change; 26 and 27 (ii) are in the adjacent area; and page 57 Petroleum Legislation Amendment Bill 2016 Part 3 Petroleum (Submerged Lands) Act 1982 amended s. 32 1 (iii) are not the subject of a variation under 2 section 103A, 3 the Minister is taken -- 4 (c) to have granted the holder of the 5 Commonwealth permit a permit over those 6 relevant section 17 blocks; and 7 (d) to have done so immediately after the relevant 8 time mentioned in whichever of subsection (3) 9 or (4) is applicable. 10 Note for this subsection: 11 For the duration of the permit, see section 29(1B). 12 (7) For the purposes of subsections (5) and (6), the 13 following provisions of the Commonwealth Act are to 14 be disregarded -- 15 (a) the standard halving rules in section 123 of that 16 Act; 17 (b) the modified halving rules in section 124 of that 18 Act; 19 (c) a provision of a kind specified in the 20 regulations. 21 (8) If, after the change to the boundary of the offshore 22 area -- 23 (a) a part of a section 17 block that was covered by 24 the Commonwealth permit immediately before 25 the change is in the offshore area; and 26 (b) the remaining part of the section 17 block is in 27 the adjacent area, 28 then, for the purposes of this section (other than this 29 subsection), each of those parts is taken to constitute, 30 and to have always constituted, a section 17 block. page 58 Petroleum Legislation Amendment Bill 2016 Petroleum (Submerged Lands) Act 1982 amended Part 3 s. 33 1 (9) An assumption in subsection (5)(a) or (6)(a) does not 2 affect subsection (8). 3 4 33. Section 29 amended 5 After section 29(1) insert: 6 7 (1A) Subject to this Part, a boundary-change permit granted 8 under section 27A(5) remains in force for a period of 9 5 years commencing on the day on which the permit is 10 granted. 11 (1B) Subject to this Part, a boundary-change permit granted 12 under section 27A(6) remains in force for a period of 13 12 months commencing on the day on which the permit 14 is granted. 15 16 34. Section 30 amended 17 In section 30(1) delete "sections 31 and 32A," and insert: 18 19 sections 31, 32A and 32B, 20 21 35. Section 31 amended 22 After section 31(6) insert: 23 24 (7) Subsections (1) to (5) do not apply to an application for 25 the renewal of a permit if -- 26 (a) the permit was granted on the basis that an area 27 (the relevant area) was within the adjacent 28 area; and page 59 Petroleum Legislation Amendment Bill 2016 Part 3 Petroleum (Submerged Lands) Act 1982 amended s. 36 1 (b) as a result of a change to the boundary of the 2 offshore area, the relevant area -- 3 (i) ceased to be within the adjacent area; 4 and 5 (ii) fell within the offshore area; 6 and 7 (c) immediately before the change, the relevant 8 area was a part of the permit area. 9 (8) For the purposes of subsection (7) -- 10 (a) section 6A is to be disregarded; and 11 (b) it is immaterial whether the change occurred 12 before, at or after the commencement day. 13 (9) In subsection (8)(b) -- 14 commencement day means the day on which the 15 Petroleum Legislation Amendment Act 2016 section 35 16 comes into operation. 17 18 36. Section 32B inserted 19 After section 32A insert: 20 21 32B. Limits on renewal of boundary-change permits 22 (1) If -- 23 (a) a boundary-change permit is granted under 24 section 27A(5); and 25 (b) the relevant Commonwealth permit that ceases 26 to be in force, as mentioned in 27 section 27A(3)(b) or (4)(b), was granted 28 otherwise than by way of renewal, page 60 Petroleum Legislation Amendment Bill 2016 Petroleum (Submerged Lands) Act 1982 amended Part 3 s. 37 1 then -- 2 (c) section 31 applies to an application for the 3 renewal of the boundary-change permit; and 4 (d) an application must not be made for the 5 renewal of the boundary-change permit if the 6 Minister has previously granted a renewal of 7 the permit. 8 (2) If -- 9 (a) a boundary-change permit is granted under 10 section 27A(5); and 11 (b) the relevant Commonwealth permit that ceases 12 to be in force, as mentioned in 13 section 27A(3)(b) or (4)(b), was granted by 14 way of renewal, 15 an application must not be made for the renewal of the 16 boundary-change permit. 17 (3) If a boundary-change permit is granted under 18 section 27A(6), an application must not be made for 19 the renewal of the permit. 20 21 37. Section 33 amended 22 (1) After section 33(1) insert: 23 24 (1A) Subsection (1) does not apply to a boundary-change 25 permit. 26 27 (2) After section 33(2) insert: 28 29 (3) The Minister may, by written notice given to the 30 permittee, vary a boundary-change permit by imposing 31 one or more conditions to which the permit is subject. page 61 Petroleum Legislation Amendment Bill 2016 Part 3 Petroleum (Submerged Lands) Act 1982 amended s. 37 1 (4) A notice under subsection (3) may only be given within 2 14 days after the grant of the boundary-change permit. 3 (5) A variation under subsection (3) takes effect on the day 4 on which notice of the variation is given to the 5 permittee. 6 (6) If -- 7 (a) a boundary-change permit is granted; and 8 (b) the relevant Commonwealth permit that ceases 9 to be in force, as mentioned in 10 section 27A(3)(b) or (4)(b), is of a kind that 11 corresponds to a permit granted under 12 section 22(4) or 27, 13 any or all of the conditions mentioned in subsection (7) 14 may be specified in -- 15 (c) the boundary-change permit; or 16 (d) a permit granted by way of the renewal of the 17 boundary-change permit. 18 (7) The following conditions are specified for the purposes 19 of subsection (6) -- 20 (a) conditions requiring the permittee to carry out 21 work in, or in relation to, the permit area 22 (including conditions requiring the permittee to 23 carry out the work during a period of 12 months 24 or longer, or during periods each of which is 25 12 months or longer); 26 (b) conditions relating to the amounts that the 27 permittee must spend in carrying out such 28 work; 29 (c) conditions requiring the permittee to comply 30 with directions that -- 31 (i) relate to the matters covered by 32 paragraphs (a) and (b); and page 62 Petroleum Legislation Amendment Bill 2016 Petroleum (Submerged Lands) Act 1982 amended Part 3 s. 38 1 (ii) are given in accordance with the permit. 2 (8) Subsection (6) does not limit subsection (3). 3 (9) If -- 4 (a) a boundary-change permit is granted; and 5 (b) the relevant Commonwealth permit that ceases 6 to be in force, as mentioned in 7 section 27A(3)(b) or (4)(b), is a cash-bid 8 petroleum exploration permit, as defined in the 9 Commonwealth Act section 7, 10 the conditions mentioned in subsection (10) must not 11 be specified in -- 12 (c) the boundary-change permit; or 13 (d) a permit granted by way of the renewal of the 14 boundary-change permit. 15 (10) The following conditions are specified for the purposes 16 of subsection (9) -- 17 (a) conditions requiring the permittee to carry out 18 work in, or in relation to, the permit area; 19 (b) conditions requiring the permittee to spend 20 particular amounts on the carrying out of work 21 in, or in relation to, the permit area. 22 23 38. Section 37 amended 24 (1) Before section 37(1) insert: 25 26 (1A) In this section -- 27 declaration includes a declaration that is taken to have 28 been made under subsection (2A) or (2B); page 63 Petroleum Legislation Amendment Bill 2016 Part 3 Petroleum (Submerged Lands) Act 1982 amended s. 38 1 section 17 block means -- 2 (a) a block constituted as provided by section 17; 3 or 4 (b) if a graticular section is wholly within the area 5 that was covered by the Commonwealth permit 6 concerned -- the graticular section; or 7 (c) if a part only of a graticular section is within 8 the area that was covered by the 9 Commonwealth permit concerned -- that part 10 of the graticular section. 11 12 (2) After section 37(2) insert: 13 14 (2A) If -- 15 (a) a boundary-change permit is granted over one 16 or more section 17 blocks; and 17 (b) immediately before the grant, those section 17 18 blocks were, or were part of, a location as 19 defined in the Commonwealth Act section 7; 20 and 21 (c) apart from this subsection, those section 17 22 blocks are not, and are not part of, a location as 23 defined in section 4 of this Act, 24 the Minister is taken -- 25 (d) to have declared those section 17 blocks to be a 26 location; and 27 (e) to have done so immediately after the grant. 28 (2B) If -- 29 (a) a permit is varied under section 103A so as to 30 include in the permit area one or more 31 section 17 blocks; and page 64 Petroleum Legislation Amendment Bill 2016 Petroleum (Submerged Lands) Act 1982 amended Part 3 s. 39 1 (b) immediately before the variation, those 2 section 17 blocks were, or were part of, a 3 location as defined in the Commonwealth Act 4 section 7; and 5 (c) apart from this subsection, those section 17 6 blocks are not, and are not part of, a location as 7 defined in section 4 of this Act, 8 the Minister is taken -- 9 (d) to have declared those section 17 blocks to be a 10 location; and 11 (e) to have done so immediately after the variation. 12 13 39. Section 38CD inserted 14 After section 38CC insert: 15 16 38CD. Grant of lease as result of change to boundary of 17 offshore area 18 (1) In this section -- 19 section 17 block means -- 20 (a) a block constituted as provided by section 17; 21 or 22 (b) if a graticular section is wholly within the area 23 that was covered by the Commonwealth lease 24 concerned -- the graticular section; or 25 (c) if a part only of a graticular section is within 26 the area that was covered by the 27 Commonwealth lease concerned -- that part of 28 the graticular section. 29 Note for this definition: 30 See also subsection (6). page 65 Petroleum Legislation Amendment Bill 2016 Part 3 Petroleum (Submerged Lands) Act 1982 amended s. 39 1 (2) This section applies if -- 2 (a) a Commonwealth lease has been granted on the 3 basis that an area (the relevant area) is within 4 the offshore area; and 5 (b) as a result of a change to the boundary of the 6 offshore area, the relevant area -- 7 (i) ceases to be within the offshore area; 8 and 9 (ii) falls within the adjacent area; 10 and 11 (c) either -- 12 (i) the conditions set out in subsection (3) 13 are satisfied; or 14 (ii) the conditions set out in subsection (4) 15 are satisfied; 16 and 17 (d) there are one or more section 17 blocks (the 18 relevant section 17 blocks) that -- 19 (i) correspond to the section 17 blocks that 20 were covered by the Commonwealth 21 lease immediately before the change; 22 and 23 (ii) are in the adjacent area; and 24 (iii) are not the subject of a variation under 25 section 103A. 26 (3) The conditions mentioned in subsection (2)(c)(i) are -- 27 (a) one or more, but not all, of the section 17 28 blocks that were covered by the 29 Commonwealth lease immediately before the 30 change are in the relevant area; and page 66 Petroleum Legislation Amendment Bill 2016 Petroleum (Submerged Lands) Act 1982 amended Part 3 s. 39 1 (b) the Commonwealth lease subsequently ceases 2 to be in force at the same time (the relevant 3 time) -- 4 (i) as to all of the section 17 blocks that 5 were covered by the Commonwealth 6 lease immediately before the change 7 and that are in the offshore area; and 8 (ii) otherwise than as the result of the 9 cancellation or surrender of the 10 Commonwealth lease. 11 (4) The conditions mentioned in subsection (2)(c)(ii) 12 are -- 13 (a) all of the section 17 blocks that were covered 14 by the Commonwealth lease immediately 15 before the change are in the relevant area; and 16 (b) the Commonwealth lease subsequently ceases 17 to be in force at the same time (the relevant 18 time) -- 19 (i) as to all of the section 17 blocks that 20 were covered by the Commonwealth 21 lease immediately before the change; 22 and 23 (ii) otherwise than as the result of the 24 cancellation or surrender of the 25 Commonwealth lease. 26 (5) The Minister is taken -- 27 (a) to have granted the holder of the 28 Commonwealth lease a lease over the relevant 29 section 17 blocks; and page 67 Petroleum Legislation Amendment Bill 2016 Part 3 Petroleum (Submerged Lands) Act 1982 amended s. 40 1 (b) to have done so immediately after the relevant 2 time mentioned in whichever of subsection (3) 3 or (4) is applicable. 4 Note for this subsection: 5 For the duration of the lease, see section 38D(2). 6 (6) If, after the change to the boundary of the offshore 7 area -- 8 (a) a part of a section 17 block that was covered by 9 the Commonwealth lease immediately before 10 the change is in the offshore area; and 11 (b) the remaining part of the section 17 block is in 12 the adjacent area, 13 then, for the purposes of this section (other than this 14 subsection), each of those parts is taken to constitute, 15 and to have always constituted, a section 17 block. 16 17 40. Section 38D amended 18 (1) In section 38D: 19 (a) delete "Subject" and insert: 20 21 (1) Subject 22 23 (b) delete "otherwise)" and insert: 24 25 otherwise and other than a lease granted under 26 section 38CD) 27 page 68 Petroleum Legislation Amendment Bill 2016 Petroleum (Submerged Lands) Act 1982 amended Part 3 s. 41 1 (2) At the end of section 38D insert: 2 3 (2) Subject to this Part, a lease granted under section 38CD 4 remains in force for a period of 5 years commencing on 5 the day on which the lease is granted. 6 7 41. Section 38H amended 8 (1) After section 38H(1) insert: 9 10 (1A) Subsection (1) does not apply to a lease granted under 11 section 38CD. 12 13 (2) After section 38H(4) insert: 14 15 (5) The Minister may, by written notice given to the lessee, 16 vary a lease granted under section 38CD by imposing 17 one or more conditions to which the lease is subject. 18 (6) A notice under subsection (5) may only be given within 19 14 days after the grant of the lease. 20 (7) A variation under subsection (5) takes effect on the day 21 on which notice of the variation is given to the lessee. 22 23 42. Section 46 amended 24 After section 46(6) insert: 25 26 (7) This section does not apply in relation to a permit if -- 27 (a) the permit has been granted on the basis that an 28 area (the relevant area) is within the adjacent 29 area; and page 69 Petroleum Legislation Amendment Bill 2016 Part 3 Petroleum (Submerged Lands) Act 1982 amended s. 43 1 (b) as a result of a change to the boundary of the 2 offshore area, the relevant area -- 3 (i) ceases to be within the adjacent area; 4 and 5 (ii) falls within the offshore area; 6 and 7 (c) immediately before the change, the relevant 8 area was a part of the permit area. 9 (8) For the purposes of subsection (7) -- 10 (a) section 6A is to be disregarded; and 11 (b) it is immaterial whether the change occurred 12 before, at or after the commencement day. 13 (9) In subsection (8)(b) -- 14 commencement day means the day on which the 15 Petroleum Legislation Amendment Act 2016 section 42 16 comes into operation. 17 18 43. Section 51A inserted 19 After section 51 insert: 20 21 51A. Grant of licence as result of change to boundary of 22 offshore area 23 (1) In this section -- 24 section 17 block means -- 25 (a) a block constituted as provided by section 17; 26 or 27 (b) if a graticular section is wholly within the area 28 that was covered by the Commonwealth licence 29 concerned -- the graticular section; or page 70 Petroleum Legislation Amendment Bill 2016 Petroleum (Submerged Lands) Act 1982 amended Part 3 s. 43 1 (c) if a part only of a graticular section is within 2 the area that was covered by the 3 Commonwealth licence concerned -- that part 4 of the graticular section. 5 Note for this definition: 6 See also subsection (6). 7 (2) This section applies if -- 8 (a) a Commonwealth licence has been granted on 9 the basis that an area (the relevant area) is 10 within the offshore area; and 11 (b) as a result of a change to the boundary of the 12 offshore area, the relevant area -- 13 (i) ceases to be within the offshore area; 14 and 15 (ii) falls within the adjacent area; 16 and 17 (c) either -- 18 (i) the conditions set out in subsection (3) 19 are satisfied; or 20 (ii) the conditions set out in subsection (4) 21 are satisfied; 22 and 23 (d) there are one or more section 17 blocks (the 24 relevant section 17 blocks) that -- 25 (i) correspond to the section 17 blocks that 26 were covered by the Commonwealth 27 licence immediately before the change; 28 and 29 (ii) are in the adjacent area; and 30 (iii) are not the subject of a variation under 31 section 103A. page 71 Petroleum Legislation Amendment Bill 2016 Part 3 Petroleum (Submerged Lands) Act 1982 amended s. 43 1 (3) The conditions mentioned in subsection (2)(c)(i) are -- 2 (a) one or more, but not all, of the section 17 3 blocks that were covered by the 4 Commonwealth licence immediately before the 5 change are in the relevant area; and 6 (b) the Commonwealth licence subsequently ceases 7 to be in force at the same time (the relevant 8 time) -- 9 (i) as to all of the section 17 blocks that 10 were covered by the Commonwealth 11 licence immediately before the change 12 and that are in the offshore area; and 13 (ii) otherwise than as the result of the 14 cancellation or surrender of the 15 Commonwealth licence. 16 (4) The conditions mentioned in subsection (2)(c)(ii) 17 are -- 18 (a) all of the section 17 blocks that were covered 19 by the Commonwealth licence immediately 20 before the change are in the relevant area; and 21 (b) the Commonwealth licence subsequently ceases 22 to be in force at the same time (the relevant 23 time) -- 24 (i) as to all of the section 17 blocks that 25 were covered by the Commonwealth 26 licence immediately before the change; 27 and 28 (ii) otherwise than as the result of the 29 cancellation or surrender of the 30 Commonwealth licence. page 72 Petroleum Legislation Amendment Bill 2016 Petroleum (Submerged Lands) Act 1982 amended Part 3 s. 44 1 (5) The Minister is taken -- 2 (a) to have granted the holder of the 3 Commonwealth licence a licence over the 4 relevant section 17 blocks; and 5 (b) to have done so immediately after the relevant 6 time mentioned in whichever of subsection (3) 7 or (4) is applicable. 8 Note for this subsection: 9 For the duration of the licence, see section 53(3). 10 (6) If, after the change to the boundary of the offshore 11 area -- 12 (a) a part of a section 17 block that was covered by 13 the Commonwealth licence immediately before 14 the change is in the offshore area; and 15 (b) the remaining part of the section 17 block is in 16 the adjacent area, 17 then, for the purposes of this section (other than this 18 subsection), each of those parts is taken to constitute, 19 and to have always constituted, a section 17 block. 20 21 44. Section 53 amended 22 (1) In section 53(2) delete "section 107(3)" and insert: 23 24 section 107(3), other than a licence granted under section 51A, 25 26 (2) After section 53(2) insert: 27 28 (3) Subject to this Part, a licence granted under 29 section 51A remains in force for the period of 21 years 30 commencing on the day on which the licence is 31 granted. 32 page 73 Petroleum Legislation Amendment Bill 2016 Part 3 Petroleum (Submerged Lands) Act 1982 amended s. 45 1 45. Section 54 amended 2 (1) Delete section 54(1) and insert: 3 4 (1) Subject to this section, a licensee under a licence to 5 which section 53(1)(a) or (b) or (3) applies may, from 6 time to time, make an application to the Minister for 7 the renewal of the licence. 8 9 (2) After section 54(3) insert: 10 11 (4) If -- 12 (a) a licence under section 51A (the relevant 13 licence) is granted; and 14 (b) the Commonwealth licence that ceases to be in 15 force, as mentioned in section 51A(3)(b) or 16 (4)(b), was granted otherwise than by way of 17 renewal, 18 an application must not be made for the renewal of the 19 relevant licence if the Minister has previously granted a 20 renewal of the licence. 21 (5) If -- 22 (a) a licence under section 51A (the relevant 23 licence) is granted; and 24 (b) the Commonwealth licence that ceases to be in 25 force, as mentioned in section 51A(3)(b) or 26 (4)(b), was granted by way of renewal, 27 an application must not be made for the renewal of the 28 relevant licence. 29 page 74 Petroleum Legislation Amendment Bill 2016 Petroleum (Submerged Lands) Act 1982 amended Part 3 s. 46 1 46. Section 56 amended 2 (1) In section 56 delete "A licence" and insert: 3 4 (1) A licence 5 6 (2) At the end of section 56 insert: 7 8 (2) Subsection (1) does not apply to a licence granted 9 under section 51A. 10 (3) The Minister may, by written notice given to the 11 licensee, vary a licence granted under section 51A by 12 imposing one or more conditions to which the licence 13 is subject. 14 (4) A notice under subsection (3) may only be given within 15 14 days after the grant of the licence. 16 (5) A variation under subsection (3) takes effect on the day 17 on which notice of the variation is given to the 18 licensee. 19 20 47. Section 59 amended 21 (1) In section 59(11): 22 (a) before paragraph (a) insert: 23 24 (aa) if a petroleum pool extends, or is reasonably 25 believed by the Minister to extend, from the 26 adjacent area into an area to which another 27 written law relating to the exploitation of 28 petroleum resources applies, consult with any 29 other Minister concerned; or 30 page 75 Petroleum Legislation Amendment Bill 2016 Part 3 Petroleum (Submerged Lands) Act 1982 amended s. 47 1 (b) in paragraph (a) after "resources apply," insert: 2 3 or into the adjacent area of an adjoining State or the 4 Northern Territory, 5 6 (c) delete paragraphs (b) and (c) and insert: 7 8 (b) if a petroleum pool extends, or is reasonably 9 believed by the Minister to extend, from the 10 adjacent area into the offshore area of a State 11 (other than Western Australia) within the 12 meaning of the Commonwealth Act, or the 13 offshore area of the Northern Territory, within 14 the meaning of that Act, consult with the Joint 15 Authority, as defined in the Commonwealth 16 Act section 7, in respect of that State or the 17 Northern Territory concerning the exploitation 18 of the petroleum pool; or 19 (c) if a petroleum pool extends, or is reasonably 20 believed by the Minister to extend, from the 21 adjacent area into the offshore area of Western 22 Australia, consult with the Joint Authority 23 concerning the exploitation of the petroleum 24 pool; or 25 (d) if 2 or more of paragraphs (aa), (a), (b) and (c) 26 apply, comply with each of those applicable 27 paragraphs. 28 29 (2) In section 59(12) delete "authority or Designated" and insert: 30 31 Minister, authority or Joint 32 page 76 Petroleum Legislation Amendment Bill 2016 Petroleum (Submerged Lands) Act 1982 amended Part 3 s. 48 1 48. Section 103A inserted 2 After section 103 insert: 3 4 103A. Variation of petroleum title by including area as 5 result of change to boundary of offshore area 6 (1) In this section -- 7 Commonwealth title means -- 8 (a) a Commonwealth permit; or 9 (b) a Commonwealth lease; or 10 (c) a Commonwealth licence; 11 fixed-term WA licence means a licence granted for a 12 fixed period of years; 13 petroleum title means a permit, lease or licence; 14 section 17 block means -- 15 (a) a block constituted as provided by section 17; 16 or 17 (b) if a graticular section is wholly within the area 18 that was covered by the Commonwealth title 19 concerned -- the graticular section; or 20 (c) if a part only of a graticular section is within 21 the area that was covered by the 22 Commonwealth title concerned -- that part of 23 the graticular section. 24 Note for this definition: 25 See also subsection (14). 26 (2) This section applies if -- 27 (a) a Commonwealth title has been granted on the 28 basis that an area (the relevant area) is within 29 the offshore area; and page 77 Petroleum Legislation Amendment Bill 2016 Part 3 Petroleum (Submerged Lands) Act 1982 amended s. 48 1 (b) as a result of a change to the boundary of the 2 offshore area, the relevant area -- 3 (i) ceases to be within the offshore area; 4 and 5 (ii) falls within the adjacent area; 6 and 7 (c) either -- 8 (i) the conditions set out in subsection (3) 9 are satisfied; or 10 (ii) the conditions set out in subsection (4) 11 are satisfied; 12 and 13 (d) immediately before the relevant time mentioned 14 in whichever of subsection (3) or (4) is 15 applicable -- 16 (i) the Commonwealth title was held by the 17 registered holder of a petroleum title 18 that corresponds to the Commonwealth 19 title; and 20 (ii) at least one section 17 block covered by 21 the petroleum title immediately adjoined 22 at least one other section 17 block that 23 was covered by the Commonwealth title 24 and that is in the relevant area; 25 and 26 (e) before the relevant time mentioned in 27 whichever of subsection (3) or (4) is 28 applicable -- 29 (i) the registered holder of the 30 Commonwealth title; and page 78 Petroleum Legislation Amendment Bill 2016 Petroleum (Submerged Lands) Act 1982 amended Part 3 s. 48 1 (ii) the registered holder of the petroleum 2 title, 3 gave the Minister a written notice electing to 4 accept the variation under this section of the 5 petroleum title. 6 Note for this subsection: 7 For when a petroleum title corresponds to a Commonwealth 8 title, see subsection (13). 9 (3) The conditions mentioned in subsection (2)(c)(i) are -- 10 (a) one or more, but not all, of the section 17 11 blocks that were covered by the 12 Commonwealth title immediately before the 13 change are in the relevant area; and 14 (b) the Commonwealth title subsequently ceases to 15 be in force at the same time (the relevant 16 time) -- 17 (i) as to all of the section 17 blocks that 18 were covered by the Commonwealth 19 title immediately before the change and 20 that are in the offshore area; and 21 (ii) otherwise than as the result of the 22 cancellation or surrender of the 23 Commonwealth title. 24 (4) The conditions mentioned in subsection (2)(c)(ii) 25 are -- 26 (a) all of the section 17 blocks that were covered 27 by the Commonwealth title immediately before 28 the change are in the relevant area; and 29 (b) the Commonwealth title subsequently ceases to 30 be in force at the same time (the relevant 31 time) -- 32 (i) as to all of the section 17 blocks that 33 were covered by the Commonwealth 34 title immediately before the change; and page 79 Petroleum Legislation Amendment Bill 2016 Part 3 Petroleum (Submerged Lands) Act 1982 amended s. 48 1 (ii) otherwise than as the result of the 2 cancellation or surrender of the 3 Commonwealth title. 4 (5) If the conditions set out in subsection (2)(d) and (e) are 5 met in relation to only one petroleum title, that 6 petroleum title is the relevant petroleum title for the 7 purposes of this section. 8 (6) If the conditions set out in subsection (2)(d) and (e) 9 would, apart from this subsection, be met in relation to 10 2 or more petroleum titles that have the same registered 11 holder, the Minister must, by written notice given to 12 the registered holder, declare that one of those 13 petroleum titles is the relevant petroleum title for the 14 purposes of this section. 15 (7) If the relevant petroleum title is a permit -- 16 (a) the Minister must, by written notice given to 17 the permittee, vary the permit to include in the 18 permit area all of the section 17 blocks that -- 19 (i) correspond to the section 17 blocks that 20 were covered by the Commonwealth 21 title immediately before the change; and 22 (ii) are in the adjacent area; 23 and 24 (b) the section 17 blocks included in the permit 25 area because of the variation are, for the 26 remainder of the term of the permit, blocks in 27 relation to which the permit is in force. 28 (8) If the relevant petroleum title is a lease -- 29 (a) the Minister must, by written notice given to 30 the lessee, vary the lease to include in the lease 31 area all of the section 17 blocks that -- page 80 Petroleum Legislation Amendment Bill 2016 Petroleum (Submerged Lands) Act 1982 amended Part 3 s. 48 1 (i) correspond to the section 17 blocks that 2 were covered by the Commonwealth 3 title immediately before the change; and 4 (ii) are in the adjacent area; 5 and 6 (b) the section 17 blocks included in the lease area 7 because of the variation are, for the remainder 8 of the term of the lease, blocks in relation to 9 which the lease is in force. 10 (9) If the relevant petroleum title is a licence -- 11 (a) the Minister must, by written notice given to 12 the licensee, vary the licence to include in the 13 licence area all of the section 17 blocks that -- 14 (i) correspond to the section 17 blocks that 15 were covered by the Commonwealth 16 title immediately before the change; and 17 (ii) are in the adjacent area; 18 and 19 (b) the section 17 blocks included in the licence 20 area because of the variation are, for the 21 remainder of the term of the licence, blocks in 22 relation to which the licence is in force. 23 (10) Subsections (7)(b), (8)(b) and (9)(b) have effect subject 24 to this Part. 25 (11) A variation mentioned in subsection (7)(a), (8)(a) or 26 (9)(a) takes effect immediately after the relevant time 27 mentioned in whichever of subsection (3) or (4) is 28 applicable. 29 (12) For the purposes of this section, a section 17 block 30 immediately adjoins another section 17 block if -- 31 (a) the graticular section that constitutes or 32 includes that section 17 block and the graticular page 81 Petroleum Legislation Amendment Bill 2016 Part 3 Petroleum (Submerged Lands) Act 1982 amended s. 48 1 section that constitutes or includes that other 2 section 17 block -- 3 (i) have a side in common; or 4 (ii) are joined together at one point only; 5 or 6 (b) that section 17 block and that other section 17 7 block are in the same graticular section. 8 (13) For the purposes of this section -- 9 (a) a permit granted otherwise than by way of 10 renewal corresponds to a Commonwealth 11 permit granted otherwise than by way of 12 renewal; and 13 (b) a lease corresponds to a Commonwealth lease; 14 and 15 (c) a fixed-term WA licence granted otherwise 16 than by way of renewal corresponds to a 17 Commonwealth licence granted otherwise than 18 by way of renewal; and 19 (d) a permit granted by way of first renewal 20 corresponds to a Commonwealth permit 21 granted by way of first renewal; and 22 (e) a fixed-term WA licence granted by way of 23 first renewal corresponds to a Commonwealth 24 licence granted by way of first renewal; and 25 (f) a permit granted by way of second renewal 26 corresponds to a Commonwealth permit 27 granted by way of second renewal; and 28 (g) a fixed-term WA licence granted by way of 29 second or subsequent renewal corresponds to a 30 Commonwealth licence granted by way of 31 second or subsequent renewal. page 82 Petroleum Legislation Amendment Bill 2016 Petroleum (Submerged Lands) Act 1982 amended Part 3 s. 48 1 (14) If, after the change to the boundary of the offshore 2 area -- 3 (a) a part of a section 17 block that was covered by 4 the Commonwealth title immediately before the 5 change is in the offshore area; and 6 (b) the remaining part of the section 17 block is in 7 the adjacent area, 8 then, for the purposes of this section (other than this 9 subsection), each of those parts is taken to constitute, 10 and to have always constituted, a section 17 block. 11 12
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