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Wednesday, 6 July 2011
Page: 7738


Mr MARTIN FERGUSON (BatmanMinister for Resources and Energy and Minister for Tourism) (11:41): I present a supplementary explanatory memorandum to the bill. I ask leave of the House to move government amendments (1) to (17), as circulated, together.

Leave granted.

Mr MARTIN FERGUSON: I move:

(1)   Schedule 1, page 3 (before line 4), before item 1, insert:

1A Section 4

Insert:

State Minister means the responsible State Minister of Western Australia.

(2)   Schedule 1, item 1, page 3 (line 5), omit "Titles Administrator", substitute "State Minister".

(3)   Schedule 1, item 2, page 3 (line 7), omit "Titles Administrator's", substitute "State Minister's".

(4)   Schedule 1, item 3, page 3 (lines 8 to 10), omit the item, substitute:

3 Subsection 9(1)

Omit "Designated Authority", substitute "State Minister".

(5)   Schedule 1, page 3 (before line 11), before item 4, insert:

3A Paragraph 10(1)(a)

Omit "Designated Authority", substitute "State Minister".

3B Paragraphs 10(1)(b) and (c)

Repeal the paragraphs, substitute:

   (b)   is not payable in relation to petroleum if:

      (i)   the State Minister is satisfied that the petroleum was used by the registered holder of the petroleum exploration permit, petroleum retention lease or petroleum production licence for the purposes of petroleum exploration operations or operations for the recovery of petroleum; and

      (ii)   the use did not contravene the Offshore Petroleum and Greenhouse Gas Storage Act 2006 or regulations under that Act; and

   (c)   is not payable in relation to petroleum if:

      (i)   the State Minister is satisfied that the petroleum has been flared or vented in connection with operations for the recovery of petroleum; and

      (ii)   the flaring or venting did not contravene the Offshore Petroleum and Greenhouse Gas Storage Act 2006 or regulations under that Act.

3C Subsection 10(2)

Repeal the subsection, substitute:

(2)   If petroleum has been recovered by the registered holder of:

   (a)   a petroleum exploration permit; or

   (b)   a petroleum retention lease; or

   (c)   a petroleum production licence;

royalty under this Act is not payable in relation to the petroleum because of that recovery if:

   (d)   the State Minister is satisfied that the petroleum has been returned to a natural reservoir; and

   (e)   the return of the petroleum to the reservoir did not contravene the Offshore Petroleum and Greenhouse Gas Storage Act 2006 or regulations under that Act.

(6)   Schedule 1, page 3, after proposed item 3C, insert:

3D Section 11

Omit "Designated Authority" (wherever occurring), substitute "State Minister".

(7)   Schedule 1, page 3, after proposed item 3D, insert:

3E Section 12

Omit "Designated Authority" (wherever occurring), substitute "State Minister".

(8)   Schedule 1, page 3, after proposed item 3E, insert:

3F Section 13

Omit "Designated Authority" (wherever occurring), substitute "State Minister".

(9)   Schedule 1, page 3, after proposed item 3F, insert:

3G Section 14

Omit "Designated Authority" (wherever occurring), substitute "State Minister".

10)   Schedule 1, page 3, after proposed item 3G, insert:

3H Subsection 15(1)

Omit "Designated Authority", substitute "State Minister".

(11)   Schedule 1, page 3, after proposed item 3H, insert:

3J After section 16

Insert:

16A Delegation by State Minister

      The State Minister may, by written instrument, delegate to an employee of Western Australia any or all of the powers or functions of the State Minister under this Act.

(12)   Schedule 1, item 4, page 3 (line 18), at the end of paragraph (1)(b), add "(other than paragraph 10(1)(b) or (c) or subsection 10(2))".

(13)   Schedule 1, item 4, page 3 (line 21), omit "Titles Administrator", substitute "State Minister".

(14)   Schedule 1, item 5, page 3 (line 25), omit "Titles Administrator", substitute "State Minister".

(15)   Schedule 1, item 5, page 3 (line 31), at the end of paragraph (1)(b), add "(other than paragraph 10(1)(b) or (c) or subsection 10(2))".

(16)   Schedule 1, item 5, page 4 (line 3), omit "Titles Administrator", substitute "State Minister".

(17)   Schedule 1, page 4 (after line 5), at the end of the Schedule, add:

6 Application of amendments—exemptions from royalty

(1)   The amendments of section 10 of the Offshore Petroleum (Royalty) Act 2006 made by this Schedule, in so far as the amendments relate to a use of petroleum, apply to a use that occurs after the commencement of this item.

(2)   The amendments of section 10 of the Offshore Petroleum (Royalty) Act 2006 made by this Schedule, in so far as the amendments relate to the flaring or venting of petroleum, apply to flaring or venting that occurs after the commencement of this item.

(3)   The amendments of section 10 of the Offshore Petroleum (Royalty) Act 2006 made by this Schedule, in so far as the amendments relate to the return of petroleum to a natural reservoir, apply to a return that occurs after the commencement of this item.

In moving these amendments, the Australian government is responding to a recom­mendation of the House Standing Committee on Agriculture, Resources, Fisheries and Forestry. The committee has recommended replacing the functions of the designated authority in the Offshore Petroleum (Royalty) Act 2006 with the responsible state minister. This amendment was sought by the Western Australian government to continue its role in the administration of offshore petroleum royalties from the North West Shelf project area. I note that offshore petroleum royalties only apply to the North West Shelf project area off Western Australia. In accordance with revenue sharing arrangements in the offshore legis­lation, the Western Australian government receives approximately two-thirds of the revenue collected. The government amend­ments propose to continue the Western Australian government's direct role in the administration of offshore petroleum royal­ties from Commonwealth waters. These waters currently raise significant revenue, estimated to be around $900 million for Western Australia and $450 million for the Commonwealth in 2010-11. The government amendments will enable the continued use of specialist royalty expertise in the Western Australian department. This amendment does not adversely impact on the integrity of the other reforms and the package of bills to establish a national offshore petroleum regulator. I commend the amendments to the House.

Question agreed to.

Bill, as amended, agreed to.