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Offshore Petroleum Amendment (Greenhouse Gas Storage) Bill 2008

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5620 REVISED

2008

 

The Parliament of the

Commonwealth of Australia

 

THE SENATE

 

 

 

 

 

Offshore Petroleum Amendment (Greenhouse Gas Storage) Bill 2008

 

 

(1)     Schedule 1, page 7 (after line 3), after item 10, insert:

10A  Section 6

Insert:

closure assurance period has the meaning given by section 249CZN.

[closure assurance period]

(2)     Schedule 1, item 169, page 103 (after line 32), after section 249AJ, insert:

249AJA   Retention lessee or production licensee to be notified of proposal to advertise blocks

Scope

             (1)  This section applies if:

                     (a)  the responsible Commonwealth Minister proposes to publish a notice under subsection 249AJ(1) specifying a block that is the subject of a retention lease or production licence; and

                     (b)  at the time of the proposal, the lessee or licensee is entitled to make an application for the grant of a greenhouse gas holding lease over the block.

Notification

             (2)  The responsible Commonwealth Minister must, at least 60 days before the proposed publication of the subsection 249AJ(1) notice, notify the lessee or licensee of the proposed publication.

Deferral of publication of notice

             (3)  If, during the period:

                     (a)  beginning when the lessee or licensee is given the notification under subsection (2); and

                     (b)  ending at the end of the day of proposed publication of the subsection 249AJ(1) notice;

the lessee or licensee makes such an application, the responsible Commonwealth Minister must not publish the subsection 249AJ(1) notice until:

                     (c)  the application lapses; or

                     (d)  the lessee withdraws the application; or

                     (e)  the responsible Commonwealth Minister refuses to grant the greenhouse gas holding lease or greenhouse gas injection licence.

[advertising of blocks for greenhouse gas assessment permits]

(3)     Schedule 1, item 169, page 104 (after line 21), at the end of section 249AK, add:

Decision must be made within 12 months

             (3)  The responsible Commonwealth Minister must make a decision under subsection (2) within 12 months after the end of the period specified in the relevant notice under subsection 249AJ(1).

[decision on application for greenhouse gas assessment permit]

(4)     Schedule 1, item 169, page 111 (after line 12), after section 249AP, insert:

249APA   Retention lessee or production licensee to be notified of proposal to advertise blocks

Scope

             (1)  This section applies if:

                     (a)  the responsible Commonwealth Minister proposes to publish a notice under subsection 249AP(1) specifying a block that is the subject of a retention lease or production licence; and

                     (b)  at the time of the proposal, the lessee or licensee is entitled to make an application for the grant of a greenhouse gas holding lease or a greenhouse gas injection licence over the block.

Notification

             (2)  The responsible Commonwealth Minister must, at least 60 days before the proposed publication of the subsection 249AP(1) notice, notify the lessee or licensee of the proposed publication.

Deferral of publication of notice

             (3)  If, during the period:

                     (a)  beginning when the lessee or licensee is given the notification under subsection (2); and

                     (b)  ending at the end of the day of proposed publication of the subsection 249AP(1) notice;

the lessee or licensee makes such an application, the responsible Commonwealth Minister must not publish the subsection 249AP(1) notice until:

                     (c)  the application lapses; or

                     (d)  the lessee withdraws the application; or

                     (e)  the responsible Commonwealth Minister refuses to grant the greenhouse gas holding lease or greenhouse gas injection licence.

[advertising of blocks for greenhouse gas assessment permits]

(5)     Schedule 1, item 169, page 189 (lines 30 to 34), omit paragraph 249CR(c), substitute:

                     (c)  either:

                              (i)  the responsible Commonwealth Minister is satisfied that all of the greenhouse gas substance injected into the identified greenhouse gas storage formation or formations concerned will be obtained as a by-product of petroleum recovery operations carried on under the production licence; or

                             (ii)  the responsible Commonwealth Minister is satisfied that some or all of the greenhouse gas substance injected into the identified greenhouse gas storage formation or formations concerned will be obtained as a by-product of petroleum recovery operations carried on under any production licence, and that the grant of the greenhouse gas injection licence is in the public interest; and

[application for greenhouse gas injection licence]

(6)     Schedule 1, item 169, page 219 (lines 13 and 14), omit subsection 249CZF(8), substitute:

Decision must be made within 5 years

             (8)  If an application for a site closing certificate has been made under section 249CZE, the responsible Commonwealth Minister must make a decision on the application within 5 years after the application was made.

[pre-certificate notice]

(7)     Schedule 1, item 169, page 219 (lines 15 to 22), omit section 249CZFA.

[pre-certificate notice]

(8)     Schedule 1, item 169, page 219 (before line 23), before section 249CZG, insert:

249CZFB  Acknowledgement of receipt of application for site closing certificate

Scope

             (1)  This section applies if an application has been made under section 249CZE for a site closing certificate.

Acknowledgement of receipt of application

             (2)  The responsible Commonwealth Minister must give the applicant notice of receipt of the application.

[application for site closing certificate]

(9)     Schedule 1, item 169, page 223 (after line 16), at the end of Part 2A.4, add:

Division 8 Long-term liabilities

249CZN   Closure assurance period

             (1)  If:

                     (a)  a site closing certificate is in force in relation to an identified greenhouse gas storage formation; and

                     (b)  the responsible Commonwealth Minister is satisfied that operations for the injection of a greenhouse gas substance into the formation ceased on a day (the cessation day ) before the application for the site closing certificate was made; and

                     (c)  on a day (the decision day ) that is at least 15 years after the issue of the site closing certificate, the responsible Commonwealth Minister is satisfied that:

                              (i)  the greenhouse gas substance injected into the formation is behaving as predicted in Part A of the approved site plan for the formation; and

                             (ii)  there is no significant risk that a greenhouse gas substance injected into the formation will have a significant adverse impact on the geotechnical integrity of the whole or a part of a geological formation or geological structure; and

                            (iii)  there is no significant risk that a greenhouse gas substance injected into the formation will have a significant adverse impact on the environment; and

                            (iv)  there is no significant risk that a greenhouse gas substance injected into the formation will have a significant adverse impact on human health or safety; and

                             (v)  since the cessation day, there have not been any operations for the injection of a greenhouse gas substance into the formation;

the responsible Commonwealth Minister may, by writing, declare that the period:

                     (d)  beginning at the end of the cessation day; and

                     (e)  ending at the end of the decision day;

is the closure assurance period in relation to the formation for the purposes of this Act.

             (2)  A copy of a declaration under subsection (1) is to be given to the holder of the site closing certificate.

249CZO   Indemnity—long-term liability

Scope

             (1)  This section applies if:

                     (a)  a site closing certificate is in force in relation to an identified greenhouse gas storage formation; and

                     (b)  when the application for the certificate was made, the formation was specified in a greenhouse gas injection licence; and

                     (c)  there is a closure assurance period in relation to the formation; and

                     (d)  the following conditions are satisfied in relation to a liability of an existing person who is or has been the registered holder of the licence (whether or not the licence is in force):

                              (i)  the liability is a liability for damages;

                             (ii)  the liability is attributable to an act done or omitted to be done in the carrying out of operations authorised by the licence in relation to the formation;

                            (iii)  the liability is incurred or accrued after the end of the closure assurance period in relation to the formation;

                            (iv)  such other conditions (if any) as are specified in the regulations.

Indemnity

             (2)  The Commonwealth must indemnify the person against the liability.

249CZP   Commonwealth to assume long-term liability if licensee has ceased to exist

Scope

             (1)  This section applies if:

                     (a)  a site closing certificate is in force in relation to an identified greenhouse gas storage formation; and

                     (b)  when the application for the certificate was made, the formation was specified in a greenhouse gas injection licence; and

                     (c)  there is a closure assurance period in relation to the formation; and

                     (d)  a person who has been the registered holder of the licence (whether or not the licence is in force) has ceased to exist; and

                     (e)  if the person had continued in existence, the following conditions would have been satisfied in relation to a liability of the person:

                              (i)  the liability is a liability for damages;

                             (ii)  the liability is attributable to an act done or omitted to be done in the carrying out of operations authorised by the licence in relation to the formation;

                            (iii)  the liability is incurred or accrued after the end of the closure assurance period in relation to the formation;

                            (iv)  such other conditions (if any) as are specified in the regulations; and

                      (f)  apart from this section, the damages are irrecoverable because the person has ceased to exist.

Commonwealth to assume liability

             (2)  The liability is taken to be a liability of the Commonwealth.

[long-term liability]

(10)   Schedule 1, item 274B, page 372 (before line 12), before subparagraph 435B(2)(f)(i), insert:

                            (ia)  the powers conferred by section 249AK;

                            (ib)  the powers conferred by section 249AL;

[decision on application for greenhouse gas assessment permit]

(11)   Schedule 1, item 274B, page 372 (after line 23), after subparagraph 435B(2)(f)(ix), insert:

                          (ixa)  the making of a declaration under section 249CZN;

[closure assurance period]