Bill returned from the Senate with an amendment.

Ordered that the amendment be taken into consideration forthwith.

Senate's amendment—

(1) Schedule 1, page 7 (after line 21), before item 40, insert:

39A After section 38BA

Insert:

38BB Application by licensee for lease

(1) If:

(a) a licence is in force under paragraph 53(1)(c) or subsection 53(2) in respect of a block or blocks; and

(b) no operations for the recovery of petroleum are being carried on under the licence in respect of an area (the unused area ):

(i) that consists of, or consists of part of, the block or blocks; and

(ii) in which petroleum has been found to exist;

the licensee may, within the application period, apply to the Designated Authority for the grant by the Joint Authority of a lease in respect of the unused area.

(2) An application under subsection (1):

(a) is to be in accordance with an approved form; and

(b) is to be made in an approved manner; and

(c) is to be accompanied by particulars of:

(i) the proposals of the applicant for work and expenditure in respect of the unused area; and

(ii) the commercial viability of the recovery of petroleum from the unused area at the time of the application, and particulars of the possible future commercial viability of the recovery of petroleum from that area; and

(d) may set out any other matters that the applicant wishes to be considered; and

(e) is to be accompanied by the prescribed fee.

(3) The Designated Authority may, at any time, by written notice served on the applicant, require the applicant to give, within the period stated in the notice, further written information in connection with the application.

(4) The application period in respect of an application under this section by a licensee is the period of 5 years that began on:

(a) the day on which the licence was granted; or

(b) if any operations for the recovery of petroleum have been carried on under the licence in respect of the unused area—the last day on which any such operations were so carried on.

38BC Grant or refusal of lease in relation to application by licensee

(1) If:

(a) an application has been made under section 38BB; and

(b) the applicant has given any further information as and when required by the Designated Authority under subsection 38BB(3); and

(c) the Joint Authority is satisfied that recovery of petroleum from the unused area:

(i) is not, at the time of the application, commercially viable; and

(ii) is likely to become commercially viable within the period of 15 years after that time;

the Joint Authority must, by written notice served on the applicant, inform the applicant that it is prepared to grant to the applicant a lease in respect of the unused area.

(2) If an application has been made under section 38BB and:

(a) the applicant has not given further information as and when required by the Designated Authority under subsection 38BB(3); or

(b) the Joint Authority is not satisfied as to the matters referred to in paragraph (1)(c) in relation to the unused area;

the Joint Authority must, by written notice served on the applicant, refuse to grant a lease to the applicant.

(3) A notice under subsection (1) must contain:

(a) a summary of the conditions subject to which the lease is to be granted; and

(b) a statement to the effect that the application will lapse if the applicant does not make a request under subsection (4) in respect of the grant of the lease.

(4) An applicant on whom a notice has been served under subsection (1) may, within one month after the date on which the notice was served, or within such further period, not exceeding one month, as the Designated Authority, on written application made to the Designated Authority before the end of the first-mentioned period of one month, allows, request the Joint Authority in writing to grant the lease to the applicant.

(5) If an applicant on whom a notice has been served under subsection (1) has made a request under subsection (4) within the period applicable under subsection (4), the Joint Authority must grant to the applicant a retention lease in respect of the unused area.

(6) If an applicant on whom a notice has been served under subsection (1) has not made a request under subsection (4) within the period applicable under subsection (4), the application lapses at the end of that period.

(7) On the day on which a lease granted under this section in respect of an unused area comes into force, the licence in respect of the block or blocks of which the area consists or in which the area is included ceases to be in force in respect of the area.

38BD Application of sections 38BB and 38BC where licence is transferred

If:

(a) after an application has been made under subsection 38BB(1) in relation to an area consisting of or included in a block or blocks in respect of which a licence is in force; and

(b) before a decision has been made by the Joint Authority under subsection 38BC(1) or (2) in relation to the application;

a transfer of the licence is registered under section 78, sections 38BB and 38BC have effect, after the time of the transfer, as if any reference in those sections to the applicant were a reference to the transferee.

39B Section 53

After "licence" (first occurring), insert "granted before the commencement of subsection (2)".

39C Paragraph 53(c)

Repeal the paragraph, substitute:

(c) in the case of a licence granted by way of the second renewal of a licence—indefinitely.

39D At the end of section 53

Add:

(2) Subject to this Part, a licence granted after the commencement of this subsection remains in force indefinitely.

39E After section 53

Insert:

53A Termination of licence if no operations for 5 years

(1) If no operations for the recovery of petroleum under a licence referred to in paragraph 53(1)(c) or subsection 53(2) have been carried on for a continuous period of at least 5 years, the Joint Authority may, by written notice served on the licensee, inform the licensee that the Joint Authority proposes to terminate the licence after the end of one month after the notice is served.

(2) At any time after the end of one month after the notice referred to in subsection (1) is served on the licensee, the Joint Authority may, by written notice served on the licensee, terminate the licence.

(3) In working out for the purposes of subsection (1) the duration of the period in which no operations for the recovery of petroleum were carried on under a licence, any period in which no such operations were carried on because of circumstances beyond the licensee's control is to be disregarded.

39F Subsection 54(1)

After "licensee", insert "under a licence to which paragraph 53(1)(a) or (b) applies".

39G Paragraph 55(1)(c) and (d)

Repeal the paragraphs, substitute:

(c) must if:

(i) the application is in respect of the first renewal of the licence; or

(ii) the application is in respect of a renewal of the licence other than the first renewal and operations for the recovery of petroleum have been carried on in the licence area within 5 years before the application for the renewal was made; or

(d) may in any other case;

39H Compensation—constitutional safety-net

(1) If:

(a) apart from this item, the operation of any of items 39A to 39G would result in the acquisition of property from a person otherwise than on just terms; and

(b) the acquisition would be invalid because of paragraph 51(xxxi) of the Constitution;

the Commonwealth is liable to pay compensation of a reasonable amount to the person in respect of the acquisition.

(2) If the Commonwealth and the person do not agree on the amount of the compensation, the person may institute proceedings in the Federal Court of Australia for the recovery from the Commonwealth of such reasonable amount of compensation as the Court determines.

(3) In this section:

acquisition of property has the same meaning as in paragraph 51(xxxi) of the Constitution.

just terms has the same meaning as in paragraph 51(xxxi)of the Constitution.