April 2015
Update on Legislative and Regulatory Amendments
On 2 April 2015 the following pieces of amendment legislation received Royal Assent and commenced:
· Offshore Petroleum and Greenhouse Gas Storage Amendment (Miscellaneous Matters) Act 2015 (Miscellaneous Matters Act).
· Offshore Petroleum and Greenhouse Gas Storage (Regulatory Levies) Amendment (Miscellaneous Matters) Act 2015 (Regulatory Levies Amendment Act).
Miscellaneous Matters Act
Changes to Coastal Waters Boundaries
As previously advised, in May 2014 the Australian Government announced that the maritime boundaries around Scott and Seringapatam Reefs offshore of Western Australia had changed to reflect the outcomes of a Geoscience Australia review of the area’s most seaward features. This prompted a closer examination of how the Offshore Petroleum and Greenhouse Gas Storage Act 2006 (OPGGS Act) operates to protect the security of tenure of titleholders of blocks that relocate in either direction across jurisdictions following a boundary change.
The Miscellaneous Matters Act makes the following changes to preserve continuity of tenure for titleholders, and provide for the seamless and efficient transition of affected blocks between jurisdictions, in the event of future boundary changes:
· Automatically grant or extend the coverage of titles under the OPGGS Act to ensure security of tenure for titleholders over blocks moving from state/Northern Territory coastal waters into Commonwealth jurisdiction as a result of a change to the boundary of the coastal waters of a State or Territory and
· Provide comprehensive arrangements for the valid granting of renewals of Commonwealth titles over blocks remaining in Commonwealth waters, where part of that title has moved into state/Northern Territory waters as a result of a change to the boundary of the coastal waters of a State or Territory.
These amendments secure tenure of title where title blocks relocate from state/Northern Territory to Commonwealth waters. Further changes to the coastal waters boundary of Australia are likely to occur as a result of a complete remapping exercise. In order to provide similar protection for titleholders where title blocks relocate in the opposite direction, from Commonwealth to state/Northern Territory waters, the state/Northern Territory governments have been advised to introduce a regulatory framework that mirrors these amendments.
Technical Amendments
The Miscellaneous Matters Act also makes the following technical changes:
· Clarifies the arrangements for conferral of functions on NOPSEMA in designated coastal waters under state/Northern Territory legislation.
· Strengthens and clarifies the framework relating to the automatic revocation of certain blocks within a title and of declaration of locations.
· Streamlines and clarifies provisions relating to the suspension, variation, or exemption from compliance with title conditions, and the extension of the term of certain titles when a suspension of a condition is granted.
The Miscellaneous Measures Act, and associated Explanatory Memorandum, is available at: http://www.comlaw.gov.au/Details/C2015B00013
Regulatory Levies Amendment Act
The Regulatory Levies Amendment Act amends the Offshore Petroleum and Greenhouse Gas Storage (Regulatory Levies) Act 2003 to impose annual titles administration levy in relation to a boundary-change petroleum exploration permit. This type of permit is granted if there is a change in the boundary of the coastal waters of a State or Territory which causes an area of a State/Territory petroleum exploration title to cease to be within State/Territory coastal waters and instead fall within Commonwealth waters. Imposition of the levy will enable full cost recovery for the National Offshore Petroleum Titles Administrator for regulatory functions undertaken in relation to a boundary-change petroleum exploration permit.
The Regulatory Levies Amendment Act, and associated Explanatory Memorandum, is available at: http://www.comlaw.gov.au/Details/C2015B00015
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