THE HON MARTIN FERGUSON AM MP·
MINISTER FOR RESOURCES AND ENERGY
MINISTER FOR TOURlSM
PO BOX 6022
PARLIAMENT HOUSE
CANBERRA ACT 2600
Mr Graeme Waters
General Manager
National Offshore Petroleum Titles Administrator
Level 11, Alluvion Building .
58 Mounts Bay Road
PERTH WA ·6000
Dear Mr Graeme
I am writing to provide you with a Statement of Expectations for the newly established
National Offshore Petroleum Titles Administrator (NOPTA).
The Statement sets out my expectations in relation to the ·exercise by NOPTA of its
functions and powers under the Offshore Petroleum and Greenhouse Gas Storage Act
2006 (OPGGS Act) and the associated resource management and administration
regulations. .
NOPTA's role under the OPGGS Act and regulations, have been reflected in the
Statement of Expectations and it accords with the principles of best practice regulatory
administration.
Yours sincerely
[Signature]
Martin Ferguson
NATIONAL OFFSHORE PETROLEUM TITLES
ADMINISTRATOR
STATEMENT OF EXPECTATIONS
The-Statement of Expectations sets out my expectations, as the responsible
Commonwealth Minister for the Offshore Petroleum and Greenhouse Gas Storage Act
2006 (the OPGGSA.) as to the exercise by the National Offshore Petroleum Titles
Administrator (NOPTA) of the functions and powers conferred on it under the OPGGSA
and associated regulations.
Guiding principles
1

Undertake petroleum and greenhouse gas storage titles administration and
regulatory activities in accordance with the principles of best practice regulatory
administration1.

Ensure resource management risks are identified and managed in accordance
with good oil-field-practice and ensure that petroleum development activities are
carried out in accordance with the approved Field Development Plan.

Ensure greenhouse gas storage processing and transport risks are identified and
managed in accordance with good processing and transport practice-and ensure that greenhouse gas storage activities are carried out in accordance with the
approved Site Development Plan.

Pursue a consistent, cost effective approach to offshore resource management
regulation in waters where NOPTA has jurisdiction.

Have in place a well-documented, systematic risk management framework to
assist in the identification, evaluation and mitigation of regulatory risks2. In
accordance with this framework, ensure NOPTA resources are allocated
appropriately to match identified priorities.

Ensure approval and administrative processes for resource and data management
activities are streamlined and timely, without compromise to best regulatory
practice.

Work cooperatively with Geoscience Australia and relevant state governmentagencies to support an effective geological data repository system and core library
that is accessible to industry and research organisations.

Have in place sound information management systems that record key aspects of
decisions, including the rationale and supporting evidence for the decision.
Australian National Audit Office: Administering Regulation, Better Practice Guide, March 2007
2
Regulatory risk is an actual or potential event or circumstance that interferes with the achievement of a
regulation policy objective or administrative outcome, It can be categorised into two broad groups:

risk that affects a regulator's ability to effectively administer regulation; and

risk that decreases a regulated entity's ability or willingness to comply with regulatory
requirements.

Have in place effective communication mechanisms to facilitate dialogue and
encourage information sharing and exchange between NOPTA and industry, other
relevant regulators, the Commonwealth and state government agencies.

Maintain appropriate staffing numbers with the necessary competency, technical
proficiency, and resources to fulfil regulatory responsibilities.

Perform functions in accordance with the National Legislative Compliance
Framework.

Provide guidance to industry on how to comply with the regulatory regime.

Ensure titleholders/operators address areas of non-compliance.

Undertake appropriate action in response to suspected non-compliance or
evidence of non-compliance with the requirements of the Act or associated
regulations, and report to the responsible Commonwealth Minister on action taken
or recommended action where required.

Maintain a publicly available register of petroleum titles with Geographic
Information System (GIS) support.

Maintain publicly available information on petroleum wells and surveys.

Operate on a full cost recovery basis from industry levies and fees in accordance
with the purposes of the NOPTA Special Account and the requirements of the
Financial Management and Accountability Act1997.

Assist the Commonwealth in the maintenance of the OPGGSA associated Acts,
relevant regulations, policy and guidelines relating to offshore petroleum and
greenhouse gas storage activities.
Specifically, the NOPTA functions are to:

Undertake the day to day management of resource management, data
management and petroleum and greenhouse gas storage title administration and
regulatory activities in Commonwealth waters (on behalf of the Joint Authority) in
accordance with the Act and its applicable regulations. This includes monitoring
and enforcing compliance of titleholder and operators activities in accordance with
the Act, applicable regulations, directions and approved plans.

.Provide advice to the Joint Authority on key petroleum title decisions and to the
responsible Commonwealth Minister for greenhouse gas storage title decisions in
accordance with the Act, and its applicable regulations.

In a timely fashion encourage and facilitate responsible exploration, development
and exploitation of petroleum resources and greenhouse gas storage reservoirs in
Commonwealth offshore areas.

Consult with the Upstream Petroleum and Offshore Mining (UPOM) members to
encourage consistency of legislation and regulatory standards across all
Australian jurisdictions.

Consult with the UPOM in preparation of Protocols and Guidelines.

Work cooperatively with the Offshore Resources Branch of the Commonwealth
Department of Resources, Energy and Tourism, and state and Northern Territory
resources departments to ensure the responsible Commonwealth Minister and
relevant State Minister are kept appropriately informed of: regulatory activities as
required under the Act; and the occurrence of significant incidents (e.g. any
relevant issue likely to be picked-up by the media and/or which the State/Territory
responsible Minister is to be informed of, including an activity-with significant
resource management implications or shut-in of production that may have an,
energy security implication), doing so in a timely-manner (as soon as reasonably
possible) given the nature of the incident.

Undertake the functions conferred on it by or under a state Petroleum (Submerged
Lands) Act (PSLA) or territory PSLA in relation to offshore petroleum, mining or
offshore greenhouse gas storage operations in the designated coastal waters of
that state or territory.