PETROLEUM ACT 1998

Table of Provisions

PART 1--PRELIMINARY MATTERS

• 1 Purpose  
• 2 Commencement  
• 3 Objectives  
• 4 General definitions  
• 5 Reference provisions  
• 6 Meaning of petroleum  
• 7 Meaning of petroleum exploration  
• 8 Meaning of petroleum production  
• 9 Act binds the Crown  
• 10 Relationship of this Act to certain other Acts  

PART 2--GENERAL MATTERS

• 11 Application of this Act  
• 12 Minister may exempt land from the application of this Act  
• 13 Petroleum is the property of the Crown  
• 14 Crown retains Crown land petroleum rights  
• 15 Offence to explore for petroleum unless authorised  
• 16 Offence to produce petroleum unless authorised  
• 16A Offence to carry out hydraulic fracturing  
• 17 Petroleum becomes the property of the person extracting it  
• 17A Moratorium on petroleum exploration and petroleum production  

PART 3--EXPLORATION PERMITS

Division 1--Rights conferred by permit

• 18 Rights conferred by permit  

Division 2--Process for granting permits

• 19 Minister may invite tender applications for exploration permits  
• 20 Application for permits  
• 20A Grant of exploration permit  
• 20B Chief factors to be considered when there is only one application  
• 21 Chief factors to be considered in deciding between competing offers  
• 22 Notice to be given to applicants  
• 23 Minister may make new grant if former grant refused  
• 24 Procedure if initial invitation does not result in the granting of a permit  
• 25 Permit area for exploration permits  
• 26 Term of permit  
• 27 Key objects of work programs  

Division 3--Renewals

• 28 Renewal of permit  
• 29 Application for renewal  
• 30 Other factors to be considered in renewing permits  
• 31 Permit not to be renewed if key objects not achieved  
• 32 Renewed permit area to be reduced  
• 33 Key objects of work programs  
• 34 Variation of work programs for renewed permits  

Division 4--Ministerial directions if petroleum discovered

• 35 Minister may give directions if petroleum discovered  

PART 4--RETENTION LEASES

• 36 Purpose of a retention lease  
• 37 Rights conferred by lease  
• 38 Right to apply for lease  
• 39 Details to be supplied with application  
• 40 Factors determining grant of application  
• 41 Restrictions on area to which lease applies  
• 42 Term of lease  
• 43 Procedure if lease not to be granted  
• 44 Minister may require review of commercial viability  
• 45 Minister may give directions if extraction viable  

PART 5--PRODUCTION LICENCES

Division 1--Rights conferred by licence

• 46 Rights conferred by licence  

Division 2--Issue of licences to holders of permits or leases

• 47 Right to apply for licence  
• 48 Details to be supplied with application  
• 49 Factors determining grant of application  

Division 3--Grant of licences by tender

• 50 Minister may invite tender applications  
• 51 Applications  
• 52 Procedure for deciding between competing bids  
• 53 Notice to be given to applicants  
• 54 Refund of deposits  
• 55 Minister may make new grant if former grant refused  
• 56 Extension of time in which to make licence payment  
• 57 Minister must not issue licence unless cash bid paid  

Division 4--General provisions

• 58 Restrictions on area to which licence applies  
• 59 Term of licence  

Division 5--Directions concerning the rate of extraction or recovery of petroleum

• 60 Direction if petroleum not being extracted/recovered to the Minister's satisfaction  
• 61 Form of direction  
• 62 Licence holder must comply with directions  

Division 6--Petroleum production development plan

• 63 Petroleum production development plan  
• 64 Development plan to be lodged before production can start  
• 65 Development plan must be adhered to  
• 66 Minister may require variation of development plan  
• 67 Minister may permit variation of development plan  

Division 7--Underground storage of petroleum

• 68 Storage development plan  
• 69 Storage development plan to be lodged before operations can start  
• 70 Storage development plan must be adhered to  
• 71 Minister may require variation of storage development plan  
• 72 Minister may permit variation of development plan  

Division 8--Underground storage of petroleum by third party

• 73 Application of this Division  
• 74 Application to excise reservoir from a licence area  
• 75 Minister must seek comments from licence holder  
• 76 Restrictions on ability of Minister to grant application  
• 77 Minister may refer application to advisory panel  
• 78 Procedure if application granted  

Division 9--Unit development

• 79 Unit development  
• 80 Consultation concerning unit development must take place if part of pool interstate  
• 81 Minister may amend licence for unit development  

Division 10--Gathering lines

• 82 Meaning of gathering line  
• 83 Minister may exempt gathering line from Pipelines Act  

PART 6--SPECIAL ACCESS AUTHORISATIONS

• 84 Special access authorisation  
• 85 Application for authorisation  
• 86 General criteria the Minister must consider  
• 87 Criteria that apply to permit, lease and licence areas  
• 88 Exception to section 87  
• 89 Minister may vary area to which authorisation applies  
• 90 Authorisation does not give exclusive rights  
• 91 Term of authorisation  
• 92 Extension of term of authorisation  
• 93 Permit, lease or licence holder not liable for actions of authorisation holder  
• 94 Authorisation holder must give data to the Minister  
• 95 Authorisation holder must give data to permit, lease or licence holder  

PART 6A--SPECIAL DRILLING AUTHORISATIONS

• 95A Special drilling authorisation  
• 95B Application for special drilling authorisation  
• 95C General criteria the Minister must consider  
• 95D Criteria that apply to permit, lease and licence areas  
• 95E Exception to section 95D  
• 95F Minister may vary area to which authorisation applies  
• 95G Authorisation does not give exclusive rights  
• 95H Term of authorisation  
• 95I Existing permit, lease or licence holder not liable for actions of authorisation holder  
• 95J Authorisation holder must give data to the Minister  
• 95K Authorisation holder must give data to permit, lease or licence holder  

PART 7--PROVISIONS APPLYING TO AUTHORITIES GENERALLY

Division 1--Applications

• 96 Application for authorities  
• 97 Work programs  
• 98 Applications are not transferable  
• 99 Existing permits and leases continue until renewal applications etc. decided  

Division 2--Conditions

• 100 Conditions that may apply to authorities  
• 101 Statutory condition of authority  
• 101B Further statutory condition of authority—agreements under Traditional Owner Settlement Act 2010  
• 102 Minister may vary conditions unilaterally  
• 103 Minister may vary conditions by consent  
• 104 Variation of conditions on renewal, consolidation or transfer  
• 105 Suspension of conditions  
• 106 Term of authority may be extended if condition suspended  

Division 3--Transfers of authorities

• 107 Transfers  
• 107A Transfers in relation to special drilling authorisations  
• 108 Matters Minister must consider in assessing transfer application  
• 109 Execution of transfer document insufficient to create interest  
• 110 Partial transfers of permits and licences  

Division 4--Surrender or cancellation of authorities

• 111 Surrender of authority  
• 112 Partial surrender of authority  
• 113 Cancellation of authority  
• 113A Special drilling authorisation surrendered, suspended or cancelled if primary authorisation surrendered, suspended or cancelled  
• 113B Special drilling authorisation expires or is terminated if primary authorisation expires or is terminated  
• 114 Additional grounds for the cancellation or partial cancellation of production licence  
• 115 Procedure to be followed before authority cancelled  
• 116 Minister may give directions if authority expires or is surrendered or cancelled  

Division 5--Planning matters

• 117 Definition of planning scheme  
• 118 Exploration under authority overrides planning schemes  
• 119 Production operations also override planning schemes  
• 120 Alternative approvals  
• 121 Amendments to planning schemes to facilitate exploration and production  

Division 6--Miscellaneous matters

• 122 Minister must publish certain details if authority granted  
• 123 Variation of an authority  
• 124 Consolidation of adjoining authorities  
• 125 Excision of area does not affect authority  
• 126 Expedited procedure for replacement of invalidated title  
• 127 Occupiers liability  
• 127A Authorities not personal property  

PART 8--COMPENSATION

• 128 Consent of, or compensation agreement with, owner etc. needed before operation on private land starts  
• 129 What compensation is payable for—private/native title land  
• 130 Limit on total amount of compensation  
• 131 Compensation not payable for petroleum  
• 132 What compensation is payable for—Crown land  
• 133 Time limit on compensation claims  
• 134 Determination of disputes—private/native title land  
• 135 Determination of disputes—Crown land  
• 136 Native Title Act rights prevail  

PART 9--CONSENT/NOTICE REQUIRED BEFORE OPERATIONS ALLOWED ON LAND[1]

Division 1--Wilderness Crown land[2]

• 137 Petroleum operations on wilderness land barred  

Division 2--Operations requiring prior consent

• 138 Consent of Minister needed to carry out petroleum operations on any land  
• 139 Petroleum operations on restricted Crown land  
• 140 Petroleum operations on water authority land  
• 141 Petroleum operations on highways, roads etc.  
• 142 Provisions applying to consents  
• 143 Right to seek review of refusal to give consent  

Division 3--Operations requiring notice

• 144 Operations on unrestricted Crown land  
• 145 Notice to be given before operation carried out on any land  

Division 4--Other matters

• 146 Areas of aboriginal significance  

Division 5--Statement of pre-operation requirements

• 147 Requirements to be complied with before petroleum operation carried out  

PART 10--ROYALTIES AND RENT

• 148 Application of this Part  
• 149 Liability for, and rate of, royalty  
• 150 Rate of royalty  
• 151 Meaning of well-head  
• 152 How value to be determined  
• 153 How quantity to be determined  
• 154 When royalty must be paid  
• 155 Circumstances in which royalty is not payable  
• 156 Minister may vary royalty  
• 157 Minister may increase royalty rate to 10%  
• 158 Royalty payable if excess petroleum recovered from reservoir  
• 159 Penalty for late payment  
• 160 Rent payable in relation to Crown land  

PART 11--OTHER OBLIGATIONS ON THE HOLDERS OF AUTHORITIES

Division 1--Conduct of operations etc.

• 161 Operation plan to be prepared  
• 162 Plan must be observed in carrying out operation  
• 163 Minister may permit variation of operation plan  
• 164 Operation to be conducted in proper manner  
• 165 Other specific obligations concerning conduct of operations  
• 166 Maintenance etc. of property  
• 167 Authority holder must not interfere with other rights  
• 168 Equipment must be removed once authority ceases  
• 169 Minister may remove equipment  
• 170 Rehabilitation  
• 171 Insurance must be held  

Division 2--Rehabilitation bond

• 172 Definition of rehabilitation bond  
• 173 Requirement to take out rehabilitation bond  
• 174 Minister may require increased rehabilitation bond  
• 175 Minister may carry out rehabilitation  
• 176 Return of bond if rehabilitation satisfactory  

Division 3--Information to be given to the Minister

• 177 Minister must be told if petroleum discovered  
• 178 Minister may require certain information if petroleum discovered  
• 179 Authority holder must provide information to Minister  
• 180 Minister may require position of wells etc. to be surveyed  
• 181 Minister may require person to provide information on petroleum operation  
• 182 False information not to be given  

PART 12--RELEASE OF INFORMATION OBTAINED OR GIVEN UNDER THIS ACT

• 183 Meaning of release and information  
• 184 Meaning of interpretive information  
• 185 Meaning of information collection date  
• 186 Information that is not to be released  
• 187 Information about applications that may be released  
• 188 Release of information about area that is no longer an authority area  
• 189 Release of factual information concerning licence areas  
• 190 Release of factual information concerning other authority areas  
• 191 Restriction on release of information collected so that it could be sold  
• 192 Earlier release of information if consent given  
• 193 Release of interpretive information relating to current authorities  
• 194 Procedure to be followed before interpretive information is released  
• 195 Right to seek review of disputed release decision  
• 196 Minister may give information etc. to other Ministers  
• 197 Restriction on obtaining information to meet work program obligation  

PART 13--ENFORCEMENT

Division 1--Inspections

• 198 Authorisation of inspectors  
• 199 Monitoring compliance with this Act  
• 200 Emergencies  
• 201 Offence-related searches and seizures  
• 202 Occupier to be given copy of consent  
• 203 Search warrant  
• 204 Announcement before entry  
• 205 Copy of warrant to be given to occupier  
• 206 Receipt must be given for any thing seized  
• 207 Copies of certain seized things to be given  
• 208 Use of equipment to examine or process things  
• 209 Use or seizure of electronic equipment at premises  
• 210 Compensation for damage  
• 211 Return of seized things  
• 212 Magistrates' Court may extend period  
• 213 Power of inspector to require information or documents  
• 214 Protection against self-incrimination  
• 215 Offence to obstruct inspector  

Division 2--Improvement and prohibition notices

• 216 Improvement notice  
• 217 Prohibition notice  
• 218 Minister may obtain enforcement order  
• 219 Form of notices  
• 220 Right to review  
• 221 Defences to charge of failing to comply with a notice  
• 222 Minister may remedy failure to comply with improvement notice  

Division 3--Offences concerning corporations etc.

• 223 Increased maximum fine for corporations  
• 224 Corporation deemed to have the knowledge of its officers  
• 225 Certain offences by corporations may also be offences by officers  
• 226 Offences by partners  
• 227 Offences by joint venturers  
• 228 Offences by employees and agents  
• 229 Default penalties  

PART 14--ADMINISTRATIVE MATTERS

Division 1--Petroleum register

• 230 Establishment of register  
• 231 Need for registration  
• 232 Other documents to be registered  
• 233 Entries in register on devolution of title  
• 234 Registration  
• 235 Effect of registration  
• 236 Inspection of register and documents  
• 237 Minister's certificates  
• 238 Minister may make corrections to register  
• 239 Right to review of register entries  
• 240 Offences relating to the register  

Division 2--Other administrative matters

• 241 Minister may require further information  
• 242 Form of documents  
• 243 Pecuniary interest statement  
• 244 Department surveys  
• 245 Delegation  
• 246 Applications not to be processed unless fee paid  

PART 15--MISCELLANEOUS MATTERS

• 247 Officials must not disclose information  
• 248 Fees and penalties debts due to the State  
• 249 Minister may vary geodetic system  
• 250 Codes of practice  
• 251 Use of codes of practice in proceedings  
• 251A State liability  
• 251B Minister may pay for surrender of authority  

PART 16--REGULATIONS

• 252 Regulations  

PART 17--CONSEQUENTIAL, SAVINGS AND TRANSITIONAL PROVISIONS

Division 1--Transitional provisions--Repeal of Petroleum Act 1958

• 253 Repeal of former Act  
• 254 Effect of repeal on existing permits  
• 255 Effect of repeal on existing leases  
• 256 Release of information provided under the Petroleum Act 1958  

Division 2--Transitional provisions--Petroleum Legislation Amendment Act 2020

• 257 Definitions  
• 258 Suspension of conditions  
• 259 Term of authority may be extended if condition suspended  
• 260 New work programs  
ENDNOTES