Part 1 Preliminary
1 Name of Regulation
This Regulation is the Petroleum (Onshore) Regulation 2002.
2 Commencement
This Regulation commences on 1 September 2002.Note—This Regulation replaces the Petroleum (Onshore) Regulation 1997 which is repealed on 1 September 2002 under section 10 (2) of the Subordinate Legislation Act 1989.
3 Definitions and notes
(1) In this Regulation:fixed agenda means a fixed agenda referred to in clause 5 (3) or 6 (1) or (2).the Act means the Petroleum (Onshore) Act 1991.work program means a work program referred to in section 14 of the Act.(2) Notes included in this Regulation do not form part of this Regulation.
Part 2 Petroleum titles
4 Drawing of plans: section 13
(1) A map or plan accompanying an application for a petroleum exploration licence must be drawn on or overlay the Department of Mineral Resources New South Wales Block Identification Map Series 1 (1:1 500 000) showing blocks.(2) A map or plan accompanying an application for any other petroleum title, or otherwise prepared for the purposes of the Act, must be drawn on or overlay:(a) the Identification Map referred to in subclause (1), if the area to which the proposed title relates is larger than one block, or(b) the Department of Mineral Resources New South Wales Block Identification Map Series 3 (1:100 000) showing units, or(c) a standard topographical map or maps at a scale of 1:100 000, 1:50 000 or 1:25 000 or at such larger scale as the Minister may determine for that application, showing the co-ordinates (by reference to Map Grid of Australia co-ordinates) of all points where there is a change in direction of the boundaries of the land concerned.(3) In this clause, Map Grid of Australia means a rectangular co-ordinate system using a Transverse Mercator projection with zones 6 degrees wide and based on the Geocentric Datum of Australia (within the meaning of the Survey (Geocentric Datum of Australia) Act 1999).
5 Work programs: section 14
(1) The work program supporting an application for an exploration licence or assessment lease may be prepared in either of two formats.(2) Under one format, it may consist of a fixed agenda describing in detail the nature and extent of operations to be carried on under the licence or lease during the whole of its term.(3) Under the other format (the two-part format), it may be divided into two parts, namely:(a) a fixed agenda describing in detail the nature and extent of operations to be carried on during an initial period (at least the first two years) of the term of the licence or lease, and(b) a summary of intended operations during the remainder of the term.(4) If prepared in the two-part format, it is a condition of the petroleum title, if granted, that the holder of the title will provide progressive agendas in accordance with clause 6.(5) The work program for a special prospecting authority is to be a fixed agenda describing in detail the nature and extent of operations to be carried on under the authority during the whole of its term.
6 Progressive agendas
(1) If the work program supporting the application for a petroleum title was prepared using the two-part format, the holder of the title must, not later than 30 days before the end of the period covered by the fixed agenda supporting the application, lodge another fixed agenda of operations for the next period of two years or for the remainder of the term of the title.(2) In the same way, further fixed agendas must be lodged, each not later than 30 days before the end of the period covered by the last agenda, until the entire term of the petroleum title is accounted for.
7 Details to be provided
A fixed agenda must include details of:(a) the objectives of any proposed exploration, and(b) the methods of exploration proposed to be employed, and(c) the expenditure, estimated on a yearly basis, required by the relevant work program.
8 Commencement of exploration activity
Not later than 14 days before starting work on any exploration borehole, seismic survey or other exploration within the area of a petroleum title, the holder of the title must advise the Minister of the intention to commence it.Maximum penalty: 100 penalty units.
9 Work program to be adhered to
It is a condition of every petroleum title that the holder of the title will carry out the operations, and only the operations, described in the work program, as for the time being in force, in respect of the title.
10 Variation of work program
(1) The holder of a petroleum title who wishes to vary the work program in force in respect of the title must lodge a submission with the Minister providing adequate details of the variation proposed to be made and setting out the reasons for making it.(2) The Minister may approve of the variation if the Minister is satisfied that there is just and sufficient cause for making the variation and if the revised work program meets the Minister’s requirements.(3) The variation becomes effective when the Minister signifies approval of it by a notice in writing served on the holder of the title.(4) The Minister’s approval of a variation may also, to any extent the Minister considers necessary or convenient, vary the requirements of this Division in so far as it applies to the holder of the title concerned.
11 Applications for low-impact prospecting titles: section 45D
(1) A low-impact prospecting title is not to be granted during the period of 4 months following service of notice of the application for the title on the representative bodies referred to in section 45D (1) (c) of the Act.(2) This clause extends to applications made, but not granted, before the commencement of this clause.
12 Records of titles: section 95
For the purposes of section 95 (2) of the Act, the record required to be kept:(a) must be kept in written form or by means of computer equipment, and(b) must contain the following particulars:(i) the type of petroleum title and the identifying number or code allocated to it,(ii) the date on which the petroleum title was first granted,(iii) the name and address of each person who is a holder of the petroleum title,(iv) a description of the land over which the petroleum title is in force,(v) the period for which the petroleum title is to have effect,(vi) the current status of the petroleum title (that is, “current”, “expired” or “cancelled”),(vii) any interest registered under section 97 of the Act in relation to the petroleum title.
Part 3 Reports
13 Report on operations in accordance with agenda
(1) Within 6 months after the completion of:(a) a seismic program, or(b) the drilling of an exploration borehole, orthe holder of a petroleum title must forward to the Director-General, in the format specified in the conditions of the title, a report on operations carried out in the activity concerned, together with all raw and processed data and the main conclusions drawn from it.(c) any activity described in the conditions of the title as a significant component of a work program,(2) After the end of the period covered by a fixed agenda, the holder of the title must forward to the Director-General:(a) within 30 days, a summary of operations carried out during the period covered by the agenda, and(b) within 6 months, a full report on operations carried out during that period.Maximum penalty: 100 penalty units.
14 Geological plans and records: section 131
(1) The holder of a petroleum title must, in accordance with directions issued from time to time by the Director-General, keep geological plans and records relating to work carried out in connection with the title.(2) For the purposes of section 131 (1) of the Act, the prescribed form is any form that shows a summary of the operations conducted during the period to which the record relates, together with details of expenditure in respect of each such operation.(3) The requirements of this clause are in addition to the other requirements of this Part.(4) The holder of a petroleum title who does not keep geological plans and records as required by this clause, or who does not furnish to the Minister any record required to be furnished under section 131 of the Act within the time allowed under that section, is guilty of an offence.Maximum penalty (subclause (4)): 100 penalty units.
15 Scale of plans accompanying annual record of operations: section 131
For the purposes of section 131 (1) of the Act, the prescribed scale for any plan accompanying an annual record of operations is any of the following scales, namely, 1:25 000, 1:100 000 or 1:250 000.
Part 4 Compensation
16 Time allowed for parties to agree: section 108
For the purposes of section 108 (2) of the Act, the prescribed time is 30 days after the service by either party on the other of a notice requiring an agreement as to the amount of compensation payable.
17 Manner of assessing and determining compensation: section 110
(1) If compensation is to be assessed by the warden, 7 days’ notice must be given to all persons appearing to the warden to be interested in the assessment.(2) Proceedings may be conducted for the purposes of the assessment in the warden’s court or on the land concerned.
18 Manner of payment
(1) The warden may order that compensation be paid into court in one amount or in instalments.(2) The order is to fix the time within which any such payment is required to be made.
Part 5 Agents
19 Agents: section 134
(1) The following persons may appoint one or more agents for the purposes of the Act and this Regulation:(a) the holder of a petroleum title,(b) an applicant for a petroleum title,(c) any person who owns or occupies land over which a petroleum title is in force or to which an application for a petroleum title relates.(2) The Director-General may refuse to deal with a person who claims to be acting as an agent unless notice of the person’s appointment as an agent, and of the agent’s powers and functions in relation to the Act and this Regulation, have been served on the Director-General.(3) The appointment of a person as an agent for the service of documents on the principal does not render invalid the service of any document otherwise than on the agent.
Part 6 Fees
20 Fees
(1) The fees prescribed in Schedule 1 are payable in connection with the matters indicated in that Schedule.(2) Copies of or extracts from any record may be obtained from the Department on payment of such charge as the Director-General may determine.
21 Remission or waiver
The Minister may remit or waive payment of the whole or part of any fee payable under this Regulation in relation to a particular person or class of persons, but only if the Minister is satisfied that there is sufficient cause to do so.
Part 7 Royalty
22 Rate of royalty: section 85
For the purposes of section 85 (2) of the Act, the prescribed annual rate of royalty is as follows:(a) for the first 5 years of commercial production—nil,(b) for the 6th, 7th, 8th and 9th years of commercial production—6%, 7%, 8% and 9%, respectively, of the value at the well-head of the petroleum,(c) for the 10th and subsequent years of commercial production—10% of the value at the well-head of the petroleum.
23 Rate of royalty: Mining Act 1992 section 286
(1) For the purposes of Division 3 of Part 14 of the Mining Act 1992, the prescribed rate of royalty for petroleum recovered under a mining lease for coal is as follows:(a) for the first 5 years of commercial production—nil,(b) for the 6th, 7th, 8th and 9th years of commercial production—6%, 7%, 8% and 9%, respectively, of the value at the well head of the petroleum,(c) for the 10th and subsequent years of commercial production—10% of the value at the well-head of the petroleum.(2) For the purposes of this clause:(a) the number of years of commercial production of petroleum under a mining lease for coal over land in a single holding is to be calculated from the first year of commercial production of petroleum under that or any other mining lease for coal over that or any other land in the same holding, and(b) if at any time there has been no commercial production of petroleum under a mining lease for coal over land in that holding for a period of 5 years or more, any period during which there has been commercial production of petroleum under such a lease prior to that period of 5 years is to be ignored.(3) In this clause:holding, in relation to a mining lease for coal, means the whole of the land the subject of the lease and, if that land forms part of a colliery holding registered under the Mining Act 1992, includes all land within the colliery holding.mining lease has the same meaning as it has in the Mining Act 1992.
Part 8 Miscellaneous
24 Non-compliance notices
(1) If the Director-General is of the opinion that the holder of a petroleum title has contravened a provision of this Regulation in relation to the title, the Director-General may serve a notice (a non-compliance notice) requiring the holder of the title to comply with the provision within the time limited by the notice.(2) It is a condition of every petroleum title that the holder of the title must comply with the terms of any non-compliance notice.(3) The provisions of this clause are in addition to any provision of this Regulation imposing a penalty for its contravention, and do not affect the liability of any person to pay any such penalty.
25 Environmental practices
(1) All exploration or other activity carried out under the authority of a petroleum title is to be carried out in conformity with the Code of Environmental Practice—Onshore published by the Australian Petroleum Production and Exploration Association Limited in 1996, as amended from time to time.(2) It is a condition of every petroleum title that the holder of the title will comply with the requirements of subclause (1).(3) A copy of the Code, together with any amendments made to it from time to time, is to be made available at the main office of the Department of Mineral Resources in Sydney, and at such other offices as the Director-General may appoint, for inspection by any person without fee.(4) Copies of or extracts from the Code and any such amendments may be made or taken by any person on payment of the fee fixed by the Director-General.(5) To avoid doubt, this clause applies despite any disclaimer or other statement in or attached to the Code to the effect that the Code has no legal force or effect or that the Code has not been reviewed or approved by Government bodies.
26 Safety practices
(1) Subject to section 128 of the Act, all exploration or other activity carried out under the authority of a petroleum title is to be carried out in conformity with the Schedule of Onshore Petroleum Exploration and Production Safety Requirements published by the Department of Mineral Resources in August 1992, as amended from time to time.(2) It is a condition of every petroleum title that the holder of the title will comply with the requirements of subclause (1).(3) A copy of the Schedule, together with any amendments made to it from time to time, is to be made available at the main office of the Department of Mineral Resources in Sydney, and at such other offices as the Director-General may appoint, for inspection by any person without fee.(4) Copies of or extracts from the Schedule and any such amendments may be made or taken by any person on payment of the fee fixed by the Director-General.
27 Certificates of authority: section 101
(1) For the purpose of authorising a person to exercise a power conferred by Part 9 of the Act, the Director-General may issue the person with a certificate of authority.(2) The certificate must be signed by the Director-General (or by the Director-General’s delegate, if issued under delegation) and must include the following particulars:(a) a statement to the effect that it is issued under the Petroleum (Onshore) Act 1991,(b) the name of the person to whom it is issued,(c) the nature of the powers it confers.(3) Such a certificate is the form of evidence required for the purposes of section 101 (1) (b) of the Act.
28 (Repealed)
cl 28: Rep 2005 No 64, Sch 1.25.
29 Penalty notices for contravention of petroleum title: section 137A
For the purposes of section 137A (2) of the Act, the prescribed penalty for an offence under section 136A of the Act that consists of a contravention of or failure to comply with a condition described in Column 2 of Schedule 2 in respect of a petroleum title referred to in Column 1 of that Schedule is the penalty specified in Column 3 of that Schedule opposite the description of the condition.
30 References to officers in petroleum titles: section 138B
Pursuant to section 138B of the Act, a reference in any petroleum title to any of the following officers is, for the purpose of the performance of a function involving rehabilitation or environmental requirements, taken to be a reference to the Minister:District Inspector,Inspector of Petroleum.
31 Savings
Any act, matter or thing that, immediately before the repeal of the Petroleum (Onshore) Regulation 1997, had effect under that Regulation continues to have effect under this Regulation.
Schedule 1 Fees
(Clause 20)
Matter | Fee |
On application for a petroleum title (section 12) | $1,000 |
On grant of a petroleum exploration licence (section 93): | |
(a) for a term of less than 3 years | $10,000 |
(b) for a term of not less than 3 years | $15,000 |
On renewal of a petroleum exploration licence (section 93): | |
(a) for a term of less than 3 years | $10,000 |
(b) for a term of not less than 3 years | $15,000 |
On grant of a petroleum assessment lease (section 93): | |
(a) for a term of less than 3 years | $10,000 |
(b) for a term of not less than 3 years | $15,000 |
On renewal of a petroleum assessment lease (section 93): | |
(a) for a term of less than 3 years | $10,000 |
(b) for a term of not less than 3 years | $15,000 |
On grant of a petroleum production lease (section 93): | |
(a) if associated with methane drainage in or over a colliery | $5,000 |
(b) in any other case | $40,000 |
On renewal of a petroleum production lease (section 93): | |
(a) if associated with methane drainage in or over a colliery | $5,000 |
(b) in any other case | $40,000 |
On grant of a special prospecting authority (section 93) | $1,000 |
On application for the appointment of an arbitrator under section 69G | $180 |
On application for approval of a transfer of a title, for each title | $1,000 |
On registration of a transfer | $180 |
On lodgment of a caveat | $250 |
Registration of any instrument under section 97 | $250 |
Release of information in accordance with a request under section 118 | 120% of the cost to the Department of making available the information to which the request relates |
Inspection of cores, cuttings or samples in accordance with a request under section 119 | 120% of the cost to the Department of making available the cores, cuttings or samples to which the request relates |
Release of information in accordance with a request under section 120 | 120% of the cost to the Department of making available the information to which the request relates |
On application by a person on whom the rights of the registered holder of a title have devolved by operation of law to have the person’s name recorded as the registered holder of the title, for each title | $250 |
For noting a change of name of the registered holder of a title, for each title | $250 |
Schedule 2 Penalty notice offences
(Clause 29)
Column 1 | Column 2 | Column 3 |
Type of petroleum title | Nature of condition | Penalty for contravention or failure to comply |
Exploration licence or assessment lease | Requirement to lodge report of exploration activity | $5,500 |
Exploration licence or assessment lease | Requirement to leave exploration site in clean and tidy condition | $5,500 |
Exploration licence or assessment lease | Requirement to make safe any drillholes or other excavations | $5,500 |
Exploration licence or assessment lease | Requirement to comply with direction given by Inspector or Environmental Officer | $5,500 |
Production lease | Requirement to lodge report | $5,500 |
Production lease | Requirement to comply with direction given by Inspector or Environmental Officer | $5,500 |
Production lease | Requirement to ensure operations are conducted so as to provide safety to persons and stock | $5,500 |
Production lease | Requirement to maintain lease area in clean and tidy condition | $5,500 |