AUSTRALIA 2013 Offshore Petroleum Exploration Acreage Release OFFSHORE PETROLEUM LEGISLATION AND REGULATORY ARRANGEMENTS In Australia, governments neither undertake petroleum projects nor engage in commercial petroleum exploration or development. Governments seek to establish the macroeconomic climate; provide a sound regulatory framework for petroleum related activities; and reduce commercial risk through collection and dissemination of pre-competitive geoscientific data. Offshore petroleum activities beyond designated state and territory coastal waters are governed by the Offshore Petroleum and Greenhouse Gas Storage Act 2006 (Cwlth) (the OPGGS Act) and associated regulations. The legislation provides for the orderly exploration for, and recovery of, offshore petroleum resources and sets out a basic framework of rights, entitlements and responsibilities of governments and industry. The key matters covered in the legislation are: issue of invitations to apply for exploration permits; granting of permits to successful applicants and determination of conditions of the title; declaring locations where petroleum has been discovered; granting of retention leases over discoveries that are not currently commercial but are expected to become commercial within 15 years; granting of production and pipeline licences; granting of infrastructure licences for various processing activities; renewal of titles (where appropriate); approval of applications for the registration of legal transactions, including farm-ins and transfers of titles; granting of special prospecting authorities, access authorities, and consents for scientific investigations; and variations of title conditions, exemption from title commitments, and cancellation of titles for noncompliance with the conditions of the title. The OPGGS Act is supplemented by a set of regulations and guidelines covering the activities of the petroleum industry, including the: Offshore Petroleum and Greenhouse Gas Storage (Safety) Regulations 2009; Offshore Petroleum and Greenhouse Gas Storage (Environment) Regulations 2009; and Offshore Petroleum and Greenhouse Gas Storage (Resource Management and Administration) Regulations 2011. The regulatory regime for offshore petroleum exploration in Commonwealth waters is jointly administered by the Commonwealth and the state/Northern Territory Governments through a Joint Authority arrangement. The National Offshore Petroleum Titles Administrator (NOPTA) and the National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA) perform regulatory functions related to offshore petroleum activities under the jurisdiction of a Joint Authority. NOPTA and NOPSEMA operate on a full cost recovery basis; cost recovery is accomplished through a system of fees and levies on title holders/duty holders. www.petroleum-acreage.gov.au DISCLAIMER: This fact sheet has been developed as a guide only. It does not replace or amend information provided in the Offshore Petroleum Legislation, Regulations and Guidelines available at: www.ret.gov.au/offshoreresourceslegislation and www.nopta.gov.au/legislation. In the event that there is a discrepancy between this fact sheet and the legislation, the legislation has precedence. Explorers should not rely solely on this information when making commercial decisions. Image courtesy of Woodside Energy Ltd. 1 Joint Authority The Joint Authority for each State (except Tasmania) and the Northern Territory comprises the responsible Commonwealth Minister and the relevant State or Northern Territory Minister. The Joint Authority for the Eastern Greater Sunrise offshore area, the offshore area of each external territory (e.g. the Territory of Ashmore and Cartier Islands) and for the Tasmanian offshore area, is the responsible Commonwealth Minister only. The Joint Authority may delegate any or all of its functions and powers to the respective Commonwealth and state/Northern Territory Resources Department. The Joint Authorities make the major policy decisions under the OPGGS Act concerning the granting of petroleum titles, the imposition of title conditions and the cancelling of titles, as well as core decisions about resource management and resource security. Other key functions and powers of the Joint Authority include the release of offshore petroleum exploration areas and assessment of bids for these areas. National Offshore Petroleum Titles Administrator National Offshore Petroleum Safety and Environmental Management Authority NOPSEMA is the regulator of occupational health and safety; integrity of facilities, wells and well related equipment; environmental management; and day-to-day petroleum operations in Commonwealth offshore areas. For more information, see the NOPSEMA website at www.nopsema.gov.au. Further Information An electronic compendium of all current legislation, regulations and guidelines governing the offshore petroleum industry can be found at: www.ret.gov.au/offshoreresourceslegislation. Industry may also subscribe to receive regular updates on regulatory developments, and general information on the regulation of the Australian petroleum industry through the free occasional newsletter, Australian Petroleum News, by emailing: petroleum.exploration@ret.gov.au. NOPTA is responsible for the day-to-day administration of petroleum titles, including exploration permits, in all offshore areas. NOPTA acts as a single point of contact for all matters pertaining to offshore titles administration in Australian waters. Key functions include: providing information, assessments, analysis, reports and advice to members of the Offshore Petroleum Joint Authorities; managing the collection, administration and release of data; facilitating life of title administration, including Joint Authority consideration of changes to permit conditions, and approval and registration of transfers and dealings associated with offshore petroleum permits; and maintaining the registers of petroleum and greenhouse gas storage titles in accordance with the legislation. For more information, see the NOPTA website at www.nopta.gov.au. For administrative guidelines outlining titles administration matters, visit: http://www.nopta.gov.au/legislation/guidelines.html www.petroleum-acreage.gov.au AUSTRALIA 2013 2 Offshore Petroleum Exploration Acreage Release