Offshore Petroleum and Greenhouse Gas Storage Act 2010 (Victorian Offshore Act)

Jurisdiction(s)
Instrument Date
2006
Effective Date
See Section 2
Instrument Type
Primary
Relevant Regulatory Authority
Victorian Department of Primary Industries
Purpose and Context
The purpose of the Victorian Offshore Act, as stated in section 3, is “to provide an effective regulatory framework for petroleum exploration and recovery, and the injection and storage of greenhouse gas substances, in the Victorian offshore area.” To this end, the Act establishes systems for regulating the following activities in offshore areas: 1. exploration for, and recovery of, petroleum; 2. construction and operation of infrastructure facilities relating to petroleum or greenhouse gas substances, including pipelines; 3. exploration for potential greenhouse gas storage formations; and 4. injection and storage of greenhouse gas substances.
Relevant links
Instrument Access Date
11 September 2012
I. Regulatory scope and definitions
Definitions

Article/Section No.

Section 6

Instrument Text

6  Definitions

1) In this Act —

 

approved

(a) when used in any of the following provisions—

(i)         Chapter 3;

(ii) Chapter 5;

(iii) Chapter 8;

(iv) section 791—

means approved in writing by the Minister; or

(b)       in any other case—means approved in writing by the Minister— but does not apply to the expression approved site plan;

approved site plan means a site plan in respect of which an approval is in force under the regulations;

Note See section 492.

authority area

(a)       when used in relation to a petroleum special prospecting authority—means the area constituted by the block or blocks that are the subject of the petroleum special prospecting authority; or

(b)       when used in relation to a petroleum access authority—means the area to which the petroleum access authority relates; or

(c)        when used in relation to a greenhouse gas search authority—means the area constituted by the block or blocks that are the subject of the greenhouse gas search authority; or

(d)       when used in relation to a greenhouse gas special authority—means the area to which the greenhouse gas special authority relates;

block means a block constituted as provided by section 37;

cash-bid greenhouse gas assessment permit means a greenhouse gas assessment permit granted under Division 3 of Part 3.2;

cash-bid petroleum exploration permit means—

(a)       a petroleum exploration permit granted under Division 3 of Part 2.2 of this Act; or (b)           a petroleum exploration permit granted under Division 5 of Part 2.2 of this Act by way of the renewal of a permit referred to in paragraph (a);

charge, when used in relation to the assets of a body corporate, has the same meaning as in section 263 of the Corporations Act;

COAG Reform Fund means the COAG Reform Fund established by section 5 of the COAG Reform Fund Act 2008 of the Commonwealth;

Commonwealth Act means the Offshore Petroleum and Greenhouse Gas Storage Act 2006 of the Commonwealth;

Commonwealth defined offshore area means the offshore area of Victoria as defined by section 8 of the Commonwealth Act;

construct includes place;

corresponding State law means an Act of another State giving effect to the agreement between the Commonwealth, the States and the Northern Territory referred to in the preamble to this Act;

datum means a reference frame for defining geographic coordinates;

Note If the position on the surface of the Earth of a particular point is identified by a coordinate that is determined by reference to a particular datum, the use of a different datum will result in the same point being identified by a different coordinate.

debenture has the same meaning as in section 263 of the Corporations Act;

declared greenhouse gas facility has the meaning given by section 20;

declared petroleum exploration permit has the meaning given by section 83;

declared petroleum production licence has the meaning given by section 161;

declared petroleum retention lease has the meaning given by section 127;

designated agreement has the meaning given by section 33;

Designated Authority has the meaning given to that term for Victoria by section 70 of the Common- wealth Act;

Note

detection agent means a substance, whether in a gaseous or liquid state, that— (a) when added to— (i)         another substance; or (ii)     a mixture of other substances— facilitates the monitoring of the behaviour of that other substance or that mixture, as the case may be; and (b)            is specified in the regulations;

eligible greenhouse gas storage formation has the meaning given by section 23;

engage in conduct means—

(a)       do an act; or

(b)       omit to perform an act;

expert advisory committee means a committee established under section 767;

expert advisory committee member means a member of an expert advisory committee, and includes the Chair of an expert advisory committee;

expiry date

(a)       when used in relation to a petroleum exploration permit, petroleum retention lease or petroleum production licence—has the meaning given by section 9; or

(b)       when used in relation to a greenhouse gas assessment permit or a greenhouse gas holding lease (other than a special greenhouse gas holding lease)—has the meaning given by section 10;

explore— (a) when used in relation to petroleum—has a meaning affected by section 21(1); or (b)                when used in relation to a potential greenhouse gas storage formation—has a meaning

affected by section 21(2) and (3); or (c)    when used in relation to a potential greenhouse gas injection site—has a meaning

affected by section 21(4);

fundamental suitability determinants

(a)       when used in relation to an eligible greenhouse gas storage formation—has the meaning given by section 23(8); or

(b)       when used in relation to an identified greenhouse gas storage formation—has the meaning given by section 318(1);

geographic coordinate includes— (a)       a meridian of longitude by itself; and (b)  a parallel of latitude by itself;

geological formation includes— (a)          any seal or reservoir of a geological formation; and (b)   any associated geological attributes or features of a geological formation;

good oilfield practice means all those things that are generally accepted as good and safe in— (a) the carrying on of exploration for petroleum; or (b) petroleum recovery operations;

good processing and transport practice means all those things that are generally accepted as good and safe in—

(a)       the processing, conveyance, transport and storage of petroleum; and

(b)       the preparation of petroleum for transport;

graticular section has the meaning given by section 37;

greenhouse gas assessment permit means a greenhouse gas assessment permit granted under Part 3.2;

greenhouse gas assessment permit area means the permit area of a greenhouse gas assessment permit;

greenhouse gas assessment permittee means the registered holder of a greenhouse gas assessment permit;

 

greenhouse gas facility line means  a pipe, or system of pipes, that is—

(a) for conveying a greenhouse gas substance; and

 

greenhouse gas holding lease means a greenhouse gas holding lease granted under Part 3.3; 

greenhouse gas holding lease area means the lease area of a greenhouse gas holding lease;

greenhouse gas holding lessee means the registered holder of a greenhouse gas holding lease;

greenhouse gas infrastructure line means a pipe, or system of pipes, that is—(a) for conveying a greenhouse gas substance; and (b)  part of an infrastructure facility;

greenhouse gas injection licence means a greenhouse gas injection licence granted under Part 3.4;

greenhouse gas injection licence area means the licence area of a greenhouse gas injection licence;

greenhouse gas injection licensee means the registered holder of a greenhouse gas injection licence;

greenhouse gas injection line means a pipe, or system of pipes, for—

(a) conveying a greenhouse gas substance to be compressed, processed or otherwise prepared for injection into an identified greenhouse gas storage formation; or

(b) conveying a greenhouse gas substance for storage prior to being injected into an identified greenhouse gas storage formation; or

(c) conveying a greenhouse gas substance for injection into an identified greenhouse gas storage formation—

so long as the greenhouse gas substance does not pass through a terminal point on the pipe, or system of pipes, as the case may be, before it is injected into the identified greenhouse gas storage formation;

 
 

greenhouse gas pipeline means— (a)       a pipe, or system of pipes, in the offshore area for conveying a greenhouse gas

substance, other than— (i)  a greenhouse gas injection line; or (ii)        a greenhouse gas infrastructure line; or (iii)        a greenhouse gas facility line; or (iv)    a pipe, or a system of pipes, that is specified in the regulations; or

(b)       a part of a pipe covered by paragraph (a); or

(c)        a part of a system of pipes covered by paragraph (a);

greenhouse gas project inspector means a person appointed as a greenhouse gas project inspector under

section 656;

greenhouse gas pumping station means equipment for pumping a greenhouse gas substance or water, and includes any structure associated with that equipment;

 

greenhouse gas research consent means a greenhouse gas research consent granted under Part 3.7;

greenhouse gas search authority means a greenhouse gas search authority granted under Part 3.5;

greenhouse gas special authority means a greenhouse gas special authority granted under Part 3.6;

greenhouse gas substance means—

(a) carbon dioxide, whether in a gaseous or liquid state; or

(b) a prescribed greenhouse gas, whether in a gaseous or liquid state; or

(c) a mixture of any or all of the following substances—

(i)         carbon dioxide, whether in a gaseous or liquid state; (ii) one or more prescribed greenhouse gases, whether in a gaseous or liquid state;

(iii)       one or more incidental greenhouse gas-related substances, whether in a gaseous or liquid state, that relate to either or both of the substances mentioned in

subparagraphs (i) and (ii);

(iv)      a prescribed detection agent, whether in a gaseous or liquid state— so long as—

(v)       the mixture consists overwhelmingly of either or both of the substances

mentioned in subparagraphs (i) and (ii); and

(vi)      if the mixture includes a prescribed detection agent—the concentration of the

prescribed detection agent in the mixture is not more than the concentration

prescribed in relation to that detection agent;

greenhouse gas tank station means a tank, or system of tanks, for holding or storing a greenhouse gas

substance, and includes any structure associated with that tank or system of tanks;

greenhouse gas valve station means equipment for regulating the flow of a greenhouse gas substance, and includes any structure associated with that equipment;

identified greenhouse gas storage formation has the meaning given by section 315;

incidental greenhouse gas-related substance has the meaning given by section 25;

infrastructure facility has the meaning given by section 17;

infrastructure licence means an infrastructure licence granted under Part 2.5 of this Act; infrastructure licence area means the licence area of an infrastructure licence; infrastructure licensee means the registered holder of an infrastructure licence; Joint Authority has the meaning given to that term for Victoria by section 56 of the Commonwealth Act; key greenhouse gas operation means—

(a)       an operation to make a well; or (b)            an operation to inject, on an appraisal basis, a greenhouse gas substance into a part of a

geological formation; or (c) an operation to store, on an appraisal basis, a greenhouse gas substance in a part of a

geological formation; or (d)             an operation to inject, on an appraisal basis, air, petroleum or water into a part of a

geological formation; or (e) an operation to store, on an appraisal basis, air, petroleum or water in a part of a

geological formation; or (f) an operation to carry out a seismic survey or any other kind of survey; or (g)     an operation to monitor the behaviour of—

(i) a greenhouse gas substance; or

(ii) air; or

(iii) petroleum; or

(iv) water—

stored in a part of a geological formation; or

(h)       an operation to carry out baseline investigations relating to the storage of a greenhouse gas substance in a part of the geological formation; or

(i)         an operation to take samples of the seabed or subsoil of the offshore area; or

(j)        an operation specified in the regulations; key petroleum operation means—

(a)       an operation to make a well; or (b)            an operation to inject a substance into a part of a geological formation; or (c)              an operation to store a substance in a part of a geological formation; or (d)        an operation to carry out a seismic survey or any other kind of survey; or (e) an operation to monitor the behaviour of a substance stored in a part of a geological

formation; or (f)        an operation to take samples of the seabed or subsoil of the offshore area; or (g)          an operation specified in the regulations;

lease area

(a) when used in relation to a petroleum retention lease—means the area constituted by the

block or blocks that are the subject of the petroleum retention lease; or

(b)       when used in relation to a greenhouse gas holding lease—means the area constituted by

the block or blocks that are the subject of the greenhouse gas holding lease;

lessee

(a)       when used in relation to a petroleum retention lease—means the registered holder of the petroleum retention lease; or

(b)       when used in relation to a greenhouse gas holding lease—means the registered holder of the greenhouse gas holding lease;

licence area— (a)     when used in relation to an infrastructure licence—means the place in relation to which

the infrastructure licence is in force; or (b)            when used in relation to a petroleum production licence—means the area constituted by

the block or blocks that are the subject of the petroleum production licence; or (c)   when used in relation to a greenhouse gas injection licence—means the area constituted

by the block or blocks that are the subject of the greenhouse gas injection licence;

Note The place in relation to which an infrastructure licence is in force must be a place in the offshore area—see section 193(2) and section 194.

licensee

(a) when used in relation to a petroleum production licence—means the registered holder of the petroleum production licence; or

(b) when used in relation to an infrastructure licence—means the registered holder of the infrastructure licence; or

(c) when used in relation to a pipeline licence—means the registered holder of the pipeline licence; or

(d) when used in relation to a greenhouse gas injection licence—means the registered holder of the greenhouse gas injection licence;

life-of-field petroleum production licence means a petroleum production licence;

listed OHS laws has the meaning given by section 700;

location means a block or blocks in relation to which a declaration under section 114 is in force;

marine national park has the same meaning as in the National Parks Act 1975marine sanctuary has the same meaning as in the National Parks Act 1975;

natural resources has the same meaning as in the Commonwealth Act;

offshore area means—

(a)       that part of the scheduled area for Victoria that consists of the territorial sea; and (b)            any waters that are—

(i)         on the landward side of the territorial sea; and

(ii)        not within the limits of Victoria; and (c)    if at any time the breadth of the territorial sea of Australia is determined or declared to

be greater than 3 nautical miles, the offshore area continues to have effect as if the

breadth of the territorial sea of Australia had continued to be 3 nautical miles;

Note The offshore area corresponds to the term the adjacent area under the repealed Petroleum (Submerged Lands) Act 1982.

OHS inspector means a person appointed as an OHS inspector under section 680 of the Commonwealth Act;

original greenhouse gas assessment permit means a greenhouse gas assessment permit that was granted otherwise than by way of renewal;

original petroleum exploration permit means a petroleum exploration permit granted otherwise than by way of renewal;

original petroleum production licence means a petroleum production licence granted otherwise than by way of renewal;

original petroleum retention lease means a petroleum retention lease granted otherwise than by way of renewal;

part of a geological formation includes a part of a combination of geological formations; partly cancelled means—

(a)       in relation to a petroleum exploration permit or petroleum production licence— cancelled as to one or more, but not all, of the blocks the subject of the permit or licence; and

(b)       in relation to a pipeline licence—cancelled as to a part of the pipeline the subject of the licence;

partly revoked, in relation to a petroleum exploration permit or petroleum retention lease, means revoked as to one or more, but not all, of the blocks the subject of the permit or lease; partly surrendered, in relation to a petroleum exploration permit, petroleum production licence or

greenhouse gas injection licence, means surrendered as to one or more, but not all, of the blocks

the subject of the permit or licence; partly terminated, in relation to a pipeline licence, means terminated as to a part of the pipeline the

subject of the licence; permit area

(a)       when used in relation to a petroleum exploration permit—means the area constituted by the block or blocks that are the subject of the petroleum exploration permit; or

(b)  when used in relation to a greenhouse gas assessment permit—means the area constituted by the block or blocks that are the subject of the greenhouse gas assessment permit;

permittee

(a) when used in relation to a petroleum exploration permit—means the registered holder of the petroleum exploration permit; or

(b) when used in relation to a greenhouse gas assessment permit—means the registered holder of the greenhouse gas assessment permit;

petroleum means— (a)        any naturally occurring hydrocarbon, whether in a gaseous, liquid or solid state; or (b)     any naturally occurring mixture of hydrocarbons, whether in a gaseous, liquid or solid

state; or (c)     any naturally occurring mixture of—

(i)         one or more hydrocarbons, whether in a gaseous, liquid or solid state; and (ii)          one or more of the following, that is to say, hydrogen sulphide, nitrogen,

helium and carbon dioxide—

and— (d)        includes any petroleum as defined by paragraph (a), (b) or (c) that has been returned to

a natural reservoir; and (e)  for the purposes of the pipeline provisions, also includes any petroleum as defined by

paragraph (a), (b), (c) or (d), where— (i)    one or more things have been added; or (ii)        one or more things have been wholly or partly removed— or both; and

(f)        for the purposes of the pipeline provisions, also includes any mixture that— (i)       has been recovered from a well; and (ii)            includes petroleum as defined by paragraph (a), (b), (c) or (d)— whether or not—

(iii)       one or more things have been added; or (iv)         one or more things have been wholly or partly removed— or both;

petroleum access authority means a petroleum access authority granted under Part 2.8 of this Act; petroleum exploration permit means—

(a)       a work-bid petroleum exploration permit; or (b)  a cash-bid petroleum exploration permit; or (c)        a special petroleum exploration permit;

petroleum exploration permit area means the permit area of a petroleum exploration permit; petroleum exploration permittee means the registered holder of a petroleum exploration permit; petroleum pipeline means—

(a)       a pipe, or system of pipes, in the offshore area for conveying petroleum (whether or not the petroleum is recovered from the offshore area), other than a secondary line; or

(b)       a part of a pipe covered by paragraph (a); or

(c)        a part of a system of pipes covered by paragraph (a); petroleum pool means a naturally occurring discrete accumulation of petroleum; petroleum production licence means a petroleum production licence granted under Part 2.4 of this Act; petroleum production licence area means the licence area of a petroleum production licence; petroleum production licensee means the registered holder of a petroleum production licence; petroleum project inspector means a person appointed as a petroleum project inspector under sec-

tion 647; petroleum pumping station means equipment for pumping petroleum or water, and includes any

structure associated with that equipment; petroleum retention lease means a petroleum retention lease granted under Part 2.3 of this Act; petroleum retention lease area means the lease area of a petroleum retention lease;

petroleum retention lessee means the registered holder of a petroleum retention lease; petroleum scientific investigation consent means a petroleum scientific investigation consent granted

under Part 2.9 of this Act; petroleum special prospecting authority means a petroleum special prospecting authority granted under

Part 2.7 of this Act; petroleum tank station means a tank, or system of tanks, for holding or storing petroleum, and includes

any structure associated with that tank or system of tanks; petroleum valve station means equipment for regulating the flow of petroleum, and includes any

structure associated with that equipment; pipeline means—

(a)       a petroleum pipeline; or

(b)       a greenhouse gas pipeline; pipeline licence means a pipeline licence granted under Part 2.6 of this Act; pipeline licensee means the registered holder of a pipeline licence; pipeline provisions means the following—

(a)       Part 2.6; (b)    the definition of greenhouse gas pipeline in this section; (c)     the definition of greenhouse gas pumping station in this section; (d)          the definition of greenhouse gas tank station in this section; (e)         the definition of greenhouse gas valve station in this section; (f)           the definition of petroleum pipeline in this section; (g)   the definition of petroleum pumping station in this section; (h)            the definition of petroleum tank station in this section; (i)         the definition of petroleum valve station in this section; (j)           the definition of pipeline in this section; (k)    item 3 of the table in section 616(1);

post-commencement petroleum exploration permit means— (a)        an original petroleum exploration permit that was granted after the commencement of

this section; or (b)     a petroleum exploration permit that was granted by way of renewal, where the original

petroleum exploration permit was granted after the commencement of this section; post-commencement petroleum production licence means—

(a)       a petroleum production licence that was granted to the registered holder of— (i)     a post-commencement petroleum exploration permit; or (ii)  a post-commencement petroleum retention lease— that was in force over the block or blocks to which the petroleum production licence relates; or

(b)       a petroleum production licence granted under section 177; or (c)          a petroleum production licence granted under section 179, where the initial petroleum

production licence mentioned in section 178 was a post-commencement petroleum

production licence; post-commencement petroleum retention lease means—

(a)       an original petroleum retention lease that was granted to the registered holder of— (i)            a post-commencement petroleum exploration permit; or (ii)     a post-commencement petroleum production licence— that was in force over the block or blocks to which the original petroleum retention lease relates; or

(b)       a petroleum retention lease that was granted by way of renewal, where the original petroleum retention lease was granted to the registered holder of— (i)      a post-commencement petroleum exploration permit; or (ii)   a post-commencement petroleum production licence—

that was in force over the block or blocks to which the original petroleum retention lease related;

post-commencement petroleum title means— (a)           a post-commencement petroleum exploration permit; or (b) a post-commencement petroleum retention lease; or (c)            a post-commencement petroleum production licence;

potential greenhouse gas injection site has the meaning given by section 24; potential greenhouse gas storage formation has the meaning given by section 22; pre-commencement petroleum exploration permit means a petroleum exploration permit other than a

post-commencement petroleum exploration permit; pre-commencement petroleum production licence means a petroleum production licence other than a

post-commencement petroleum production licence; pre-commencement petroleum retention lease means a petroleum retention lease other than a post-

commencement petroleum retention lease; pre-commencement petroleum title means—

(a)       a pre-commencement petroleum exploration permit; or (b)       a pre-commencement petroleum retention lease; or (c)  a pre-commencement petroleum production licence;

pumping station means— (a)         a greenhouse gas pumping station; or (b)  a petroleum pumping station;

Register— (a)            when used in Chapter 4—has the meaning given by section 503; or (b)            when used in Chapter 5—has the meaning given by section 561;

registered holder, in relation to a title, means the person whose name is shown in the Register kept under section 505 or 563 as the holder of the title;

regulated operation means— (a)  an activity to which Chapter 2 applies; or (b)       an activity to which Chapter 3 applies;

Note See also subsection (2).

renewal

(a)       when used in relation to a petroleum exploration permit, petroleum retention lease or petroleum production licence—has the meaning given by section 11; or

(b)       when used in relation to a greenhouse gas assessment permit or greenhouse gas holding lease—has the meaning given by section 12;

Safety Authority means the National Offshore Petroleum Safety Authority continued in existence by section 645 of the Commonwealth Act;

scheduled area for Victoria means the area set out in Schedule 1; secondary line means a pipe, or system of pipes, for—

(a)       returning petroleum to a natural reservoir; or (b)  conveying petroleum for use for petroleum exploration operations; or (c)            conveying petroleum for use for petroleum recovery operations; or (d)           conveying petroleum that is to be flared or vented; or (e)        conveying petroleum from a well, wherever located, to a terminal station in the offshore

area without passing through another terminal station; serious situation, in relation to an identified greenhouse gas storage formation, has the meaning given

by section 405; significant risk has a meaning affected by section 27, 28, 29, 30 or 31; site closing certificate means a certificate issued under section 427; site plan, in relation to an identified greenhouse gas storage formation, has the meaning given by

section 26; spatial extent of an eligible greenhouse gas storage formation has the meaning given by section 23(3); special greenhouse gas holding lease means a greenhouse gas holding lease granted under section 352; special petroleum exploration permit means—

(a)       a petroleum exploration permit granted under Division 4 of Part 2.2 of this Act; or

(b)       a petroleum exploration permit granted under Division 5 of Part 2.2 of this Act by way of the renewal of a permit referred to in paragraph (a);

tank station means— (a)    a greenhouse gas tank station; or (b)         a petroleum tank station;

term

(a)       when used in relation to a petroleum exploration permit, petroleum retention lease, petroleum production licence, infrastructure licence, pipeline licence, petroleum special prospecting authority or petroleum access authority—has the meaning given by sec- tion 9; or

(b)       when used in relation to a greenhouse gas assessment permit, greenhouse gas holding lease, greenhouse gas injection licence, greenhouse gas search authority or greenhouse gas special authority—has the meaning given by section 10;

terminal point has the meaning given by section 19; terminal station has the meaning given by section 18; tied, in relation to a greenhouse gas holding lease or greenhouse gas injection licence, has the meaning  given by section 15;

title

(a)       when used in the definition of registered holder—means a petroleum exploration permit, petroleum retention lease, petroleum production licence, infrastructure licence, pipeline licence, petroleum special prospecting authority, petroleum access authority, greenhouse gas assessment permit, greenhouse gas holding lease, greenhouse gas injection licence, greenhouse gas search authority or greenhouse gas special authority; or

(b)       when used in Division 2 of Part 1.2—has the meaning given by section 39; or (c)    when used in Division 3 of Part 1.2—has the meaning given by section 49; or (d)           when used in section 498—has the meaning given by section 498(6); or (e)                when used in Chapter 4—has the meaning given by section 503; or

(f)        when used in section 623—has the meaning given by section 623(1); or (g)   when used in Chapter 5—has the meaning given by section 561; or (h)     when used in section 629—has the meaning given by section 629(1);

title area— (a)          when used in Division 3 of Part 1.2—has the meaning given by section 50; or (b)           when used in section 621—has the meaning given by section 621(1); or (c)          when used in section 635—has the meaning given by section 635(6);

titleholder— (a)        when used in Division 3 of Part 1.2—has the meaning given by section 50; or (b)           when used in section 621—has the meaning given by section 621(1);

vacated area has the meaning given by section 16; valve station means—

(a)       a greenhouse gas valve station; or

(b)       a petroleum valve station; vessel means a vessel used in navigation, other than air navigation, and includes a barge, lighter or other

floating vessel; Victorian Minister means a Minister of the Crown in right of the State; water line means a pipe, or system of pipes, for conveying water in connection with—

(a)       petroleum exploration operations; or (b)   petroleum recovery operations; or (c)      exploration for potential greenhouse gas storage formations; or (d)     exploration for potential greenhouse gas injection sites; or

(e)        the injection of a greenhouse gas substance into an identified greenhouse gas storage formation; or

(f) the injection, on an appraisal basis, of a greenhouse gas substance into a part of a geological formation; or

(g) the injection, on an appraisal basis, of air, petroleum or water into a part of a geological formation;

well means a hole in the seabed or subsoil made by drilling, boring or any other means in connection with—

(a)       exploration for petroleum; or (b)    petroleum recovery operations; or (c)        exploration for potential greenhouse gas storage formations; or (d)     exploration for potential greenhouse gas injection sites; or (e)   the injection of a greenhouse gas substance into an identified greenhouse gas storage

formation; or (f)        the injection, on an appraisal basis, of a greenhouse gas substance into a part of a

geological formation; or (g) the injection, on an appraisal basis, of air, petroleum or water into a part of a geological

formation— but does not include a seismic shot hole;

wholly cancelled, in relation to a petroleum exploration permit, petroleum production licence or pipeline licence, means cancelled as to all the blocks, or as to the whole of the pipeline, the subject of the permit or licence;

wholly revoked, in relation to a petroleum exploration permit or petroleum retention lease, means revoked as to all the blocks the subject of the permit or lease;

work-bid greenhouse gas assessment permit means a greenhouse gas assessment permit granted under Division 2 of Part 3.2;

work-bid petroleum exploration permit means— (a)    a petroleum exploration permit granted under Division 2 of Part 2.2 of this Act; or (b)       a petroleum exploration permit granted under Division 5 of Part 2.2 of this Act by way

of the renewal of a permit referred to in paragraph (a). (2)         For the purposes of paragraph (b) of the definition of regulated operation, assume that each reference in

section 371 to a substance were a reference to a greenhouse gas substance.

Composition of CO2 stream

Summary

The Victorian Offshore Act requires COstreams for injection to be either pure or consist “overwhelmingly” of CO2 (see definition of “greenhouse gas substance” in section 6).

CO2 streams may, however, also contain incidental related substances (as defined in section 25) and detection agents, provided that, where the CO2 stream contains a prescribed detection agent, the concentration of that agent does not exceed the prescribed level.

The section 6 “greenhouse gas substance” definition also applies to prescribed greenhouse gases other than CO2 that may be considered for injection and storage.

Under section 488, it is an offence to add waste or other matter to a greenhouse gas substance for injection into the offshore area seabed or subsoil for disposal purposes.

Article/Section No.

Sections 6
Section 25
Section 488

Instrument Text

 

6  Definitions

1) In this Act -

[…]

greenhouse gas substance means:

(a) carbon dioxide, whether in a gaseous or liquid state; or

(b) a prescribed greenhouse gas, whether in a gaseous or liquid state; or

(c) a mixture of any or all of the following substances:

(i) carbon dioxide, whether in a gaseous or liquid state;

(ii) one or more prescribed greenhouse gases, whether in a gaseous or liquid state;

(iii) one or more incidental greenhouse gas‑related substances, whether in a gaseous or liquid state, that relate to either or both of the substances mentioned in subparagraphs (i) and (ii);

(iv) a prescribed detection agent, whether in a gaseous or liquid state;

so long as:

(v) the mixture consists overwhelmingly of either or both of the substances mentioned in subparagraphs (i) and (ii); and

(vi) if the mixture includes a prescribed detection agent—the concentration of the prescribed detection agent in the mixture is not more than the concentration prescribed in relation to that detection agent.

[…]

25        Incidental greenhouse gas-related substance

(1)       This section applies if either or both of the following substances (primary greenhouse gas substances) are captured from a particular source material—

(a)       carbon dioxide;

(b)       one or more prescribed greenhouse gases. (2)       For the purposes of this Act, the following are incidental greenhouse gas-related substances in relation

to a primary greenhouse gas substance— (a)       any substance that is incidentally derived from the source material; (b)          any substance that is incidentally derived from the capture; (c)       if the primary greenhouse gas substance, whether in a pure form or in a mixture with

other substances, is transported—any substance that is incidentally derived from the

transportation; (d)    if the primary greenhouse gas substance, whether in a pure form or in a mixture with

other substances, is injected into a part of a geological formation—any substance that is

incidentally derived from the injection; (e)           if the primary greenhouse gas substance, whether in a pure form or in a mixture with other substances, is stored in a part of a geological formation—any substance that is incidentally derived from the storage.

[…]

 

488     Disposing of waste or other matter

(1)       A person who adds waste or other matter to a greenhouse gas substance with the intention of disposing of the waste or other matter and the resulting mixture is injected into the seabed or subsoil of the offshore area is guilty of an offence and liable to a term of imprisonment not exceeding 5 years.

(2)       Subsection (1) does not apply if— (a)       the waste or other matter resulted from petroleum recovery operations carried on under

a petroleum production licence; and (b)    the injection takes place at a well situated in the licence area of the petroleum

production licence; and (c)  the injection is carried out—

(i)         with the written consent of the Minister or the Designated Authority; and

(ii)        in accordance with the conditions (if any) specified in that consent. (3)           The Minister may—

(a)       refuse to give a consent under subsection (2)(c); or (b)   make a consent under subsection (2)(c) subject to such conditions as are specified in the

consent.

Geographical coverage, exclusions and prohibitions

Summary

 

The Victorian Offshore Act applies to CO2 sequestration activities in Victoria’s “offshore area”.

The offshore are is defined in section 6 as:

(a)          that part of the scheduled area for Victoria [as defined in Schedule 1] that consists of the territorial sea; and

(b)         any waters that are—

(i)           on the landward side of the territorial sea; and

(ii)         not within the limits of Victoria; and

(c)          if at any time the breadth of the territorial sea of Australia is determined or declared to be greater than 3 nautical miles, the offshore area continues to have effect as if the breadth of the territorial sea of Australia had continued to be 3 nautical miles.

 

Under section 8, the offshore area also includes the spaces above and below the area, or a part of the area.

Under section 23, only COstorage formations with the capacity to hold 100,000 tonnes or more of CO2 (or another greenhouse gas) will be eligible for sequestration activities.

Under section 495, the Minister may reserve blocks that are not subject to any greenhouse gas title or infrastructure licence, or host to a pipeline or pipeline licence (in each case whether existing or pending), in which case the reserved blocks will not be eligible to become, while the reservation remains in force, subject to any of these titles or infrastructure. 

Article/Section No.

Section 6
Section 8
Section 23
Section 495
Schedule 1

Instrument Text

6  Definitions

1) In this Act -

[…]

offshore area means—

(a)       that part of the scheduled area for Victoria that consists of the territorial sea; and

(b)       any waters that are—

(i)         on the landward side of the territorial sea; and

(ii)        not within the limits of Victoria; and

(c)    if at any time the breadth of the territorial sea of Australia is determined or declared to

be greater than 3 nautical miles, the offshore area continues to have effect as if the

breadth of the territorial sea of Australia had continued to be 3 nautical miles;

Note The offshore area corresponds to the term the adjacent area under the repealed Petroleum (Submerged Lands) Act 1982.

[…]

8          Spaces above and below offshore area

For the purposes of this Act— (a)   the space above or below the offshore area is taken to be in that area; and (b)      the space above or below an area that is part of the offshore area is taken to be in that

part.

[…]

23        Eligible greenhouse gas storage formation

(1)       For the purposes of this Act, an eligible greenhouse gas storage formation is a part of a geological formation, where that part—

(a)           is suitable, without engineering enhancements, for the permanent storage of a particular amount of a particular greenhouse gas substance injected at a particular point or points into that part over a particular period; or

(b)       is suitable, with engineering enhancements, for the permanent storage of a particular amount of a particular greenhouse gas substance injected at a particular point or points into that part over a particular period.

(2)       An amount referred to in subsection (1)(a) or (b) must be at least 100 000 tonnes.

(3)            For the purposes of this Act, the spatial extent of an eligible greenhouse gas storage formation is the

expected migration pathway or pathways, over the period— (a)          beginning at the start of the particular period referred to in whichever of subsec-

tion (1)(a) or (b) is applicable; and (b)       ending at the notional site closing certificate time—

of the particular amount of the particular greenhouse gas substance injected as mentioned in whichever

of subsection (1)(a) or (b) is applicable. (4)           In determining the spatial extent of an eligible greenhouse gas storage formation, regard must be had

to—

(a)       the fundamental suitability determinants; and

(b)       such other matters as are relevant. (5)       The regulations may provide that the expected migration pathway or pathways are to be ascertained on

the basis of— (a)      one or more assumptions (if any) specified in the regulations; and (b)               a level of probability specified in the regulations; and (c)   a methodology (if any) specified in the regulations.

(6)       For the purposes of the application of this section to a part of a geological formation covered by subsection (1)(a), the notional site closing certificate time is worked out as follows—

(a)       assume that the particular amount of the particular greenhouse gas substance referred to in that paragraph was injected at the particular point or points referred to in that paragraph over the particular period referred to in that paragraph;

(b)       assume that, throughout that period, that part was an identified greenhouse gas storage formation;

(c)        assume that, throughout that period, operations for the injection of the greenhouse gas substance into that part—

(i)         were authorised by a greenhouse gas injection licence; and

(ii)        complied with the requirements of this Act and the regulations; (d)      assume that, at the end of that period, operations for the injection of the greenhouse gas

substance into that part ceased; (e)            estimate the earliest time after the end of that period when the Minister would be in a

position to issue a site closing certificate in relation to the identified greenhouse gas

storage formation; (f)         that time is the notional site closing certificate time.

(7)       For the purposes of the application of this section to a part of a geological formation covered by subsection (1)(b), the notional site closing certificate time is worked out as follows—

(a)       assume that the engineering enhancements referred to in that paragraph had been made; (b)              assume that the particular amount of the particular greenhouse gas substance referred to in that paragraph was injected at the particular point or points referred to in that

paragraph over the particular period referred to in that paragraph; (c)             assume that, throughout that period, that part was an identified greenhouse gas storage

formation; (d)            assume that, throughout that period, operations for the injection of the greenhouse gas

substance into that part— (i)           were authorised by a greenhouse gas injection licence; and (ii)   complied with the requirements of this Act and the regulations;

(e)        assume that, at the end of that period, operations for the injection of the greenhouse gas substance into that part ceased;

(f)            estimate the earliest time after the end of that period when the Minister would be in a position to issue a site closing certificate in relation to the identified greenhouse gas storage formation;

(g)        that time is the notional site closing certificate time. (8)           For the purposes of this Act, the following are the fundamental suitability determinants of an eligible

greenhouse gas storage formation— (a)    the particular amount referred to in whichever of subsection (1)(a) or (b) is applicable; (b)     the particular greenhouse gas substance referred to in whichever of subsection (1)(a) or

(b) is applicable; (c)  the particular point or points referred to in whichever of subsection (1)(a) or (b) is

applicable; (d)           the particular period referred to in whichever of subsection (1)(a) or (b) is applicable; (e)              if subsection (1)(b) is applicable—the engineering enhancements referred to in that

paragraph; (f)            the effective sealing feature, attribute or mechanism that enables the permanent storage

referred to in whichever of subsection (1)(a) or (b) is applicable.

[…]

495     Reservation of blocks

(1)       If the following conditions are satisfied in relation to a particular block— (a)           there is no greenhouse gas assessment permit, greenhouse gas holding lease or

greenhouse gas injection licence over the block; (b)     there is no place in the block that is an infrastructure licence area;

(c)        there is no pipeline over or in the block; (d)           there are no pending applications for the grant of a greenhouse gas assessment permit

or greenhouse gas injection licence over the block; (e)    there are no pending applications for the grant of an infrastructure licence relating to a

place in the block; (f)           there are no pending applications for the grant of a pipeline licence relating to a

pipeline, or proposed pipeline, over or in the block— the Minister may, by notice published in the Government Gazette, declare that—

(g)        the block is not to be the subject of a greenhouse gas assessment permit, greenhouse gas holding lease, greenhouse gas injection licence, greenhouse gas search authority or greenhouse gas special authority; and

(h)       an infrastructure licence is not to be granted in relation to a place within the block; and

(i)         a pipeline licence is not to be granted in relation to a pipeline over or in the block. (2)             If a declaration under subsection (1) is in force in relation to a block—

(a)       a greenhouse gas assessment permit, greenhouse gas holding lease, greenhouse gas injection licence, greenhouse gas search authority or greenhouse gas special authority must not be granted over that block; and

(b)       an infrastructure licence must not be granted in relation to a place within that block; and

(c)           a pipeline licence must not be granted in relation to a pipeline over or in that block. (3)      Subsection (2) has effect despite any other provision of this Act.

[…]

SCHEDULE 1

SCHEDULED AREA FOR VICTORIA Note   See section 6 (for datum, see section 41).

The scheduled area for Victoria is the area the boundary of which commences at a point that is the intersection of the coastline at mean low water by the boundary between the States of New South Wales and Victoria and runs thence south-easterly along the geodesic to a point of Latitude 37° 34’ 54.39�� South, Longitude 150° 10’ 04.43�� East:

 (a)      thence south-easterly along the geodesic to a point of Latitude 40° 39’ 54.14�� South, Longitude 158° 53’ 03.98�� East; and

(b)       thence south-westerly along the geodesic to a point of Latitude 41° 29’ 54.17�� South, Longitude 158° 13’ 04.08�� East; and

(c)        thence north-westerly along the geodesic to a point of Latitude 39° 11’ 54.42�� South, Longitude 150° 00’ 04.52�� East; and

(d)       thence westerly along the loxodrome to a point of Latitude 39° 11’ 54.71�� South to its intersection by the meridian of Longitude 142° 30’ 04.95�� East; and

(e)        thence south-westerly along the geodesic to a point of Latitude 39° 49’ 54.74�� South, Longitude 142° 00’ 05.02�� East; and

(f)        thence south-westerly along the geodesic to a point of Latitude 43° 59’ 55.11�� South, Longitude 136° 29’ 05.64�� East; and

(g)        thence north-easterly along the geodesic to a point of Latitude 38° 40’ 42.76�� South, Longitude 140° 40’ 49.00�� East; and

(h)       thence north-easterly along the geodesic to a point of Latitude 38° 35’ 24.75�� South, Longitude 140° 44’ 41.98�� East; and

(i)         thence north-easterly along the geodesic to a point of Latitude 38° 25’ 54.75�� South, Longitude 140° 53’ 04.96�� East; and

(j)        thence north-easterly along the geodesic to a point of Latitude 38° 14’ 54.73�� South, Longitude 140° 57’ 04.94�� East; and

(k)       thence north-easterly along the geodesic to a point that is the intersection of the parallel of Latitude 38° 09’ 54.73�� South by the meridian passing through the intersection of the coastline at mean low water by the boundary between the States of South Australia and Victoria; and

(l)         thence north along that meridian to its intersection by the coastline at mean low water; and

(m)      thence along the coastline of the State of Victoria at mean low water to the point of commencement.

Enhanced oil recovery (EOR)

Summary

The Victorian Offshore Act accommodates, where appropriate, CO2 transport and injection for EOR purposes, for example in relation to pipeline licensing. 

Article/Section No.

Section 217
Section 220
Section 222

Instrument Text

217     Rights of petroleum production licensees following application for greenhouse gas-related pipeline licences by other persons

(1)       If—

(a)       a person applies for a pipeline licence in relation to the construction, in the offshore area, of a greenhouse gas pipeline for— (i)  the conveyance of a greenhouse gas substance within a petroleum production

licence area in the offshore area; or (ii)     the conveyance of a greenhouse gas substance from a place outside a petro-

leum production licence area to a place in the petroleum production licence area; and

(b)       either— (i)      if paragraph (a)(i) applies—the greenhouse gas substance is a by-product of

petroleum recovery operations carried on under the petroleum production

licence; or (ii) if paragraph (a)(ii) applies—the greenhouse gas substance is to be injected into

the seabed or subsoil for the purpose of enhancing petroleum recovery

operations carried on under the petroleum production licence; and (c)             the person is not the petroleum production licensee—

the petroleum production licensee may, within— (d)      90 days after the publication in the Government Gazette of notice of the application; or (e)     such longer period, not more than 180 days, as the Minister allows—

apply under section 215 for such a pipeline licence and, in the application, request that the application

mentioned in the Government Gazette notice be rejected. Note            For publication in the Government Gazette of notice of the application, see section 731. (2)      If a pipeline licence is granted to the petroleum production licensee as a result of an application covered

by subsection (1), the Minister must, by written notice given to the person mentioned in subsec-

tion (1)(a), reject the application mentioned in subsection (1)(d). (3)    The Minister may allow a longer period under subsection (1)(e) only on written application made by the

petroleum production licensee within the period of 90 days mentioned in subsection (1)(d).

[…]

220     Grant of greenhouse gas-related pipeline licence—offer document

(1)       This section applies if an application for a pipeline licence has been made under section 215. (2)        If—

(a)       the application is for a pipeline licence in relation to the construction, in the offshore area, of a greenhouse gas pipeline for— (i)            the conveyance of a greenhouse gas substance within a petroleum production

licence area in the offshore area; or (ii)     the conveyance of a greenhouse gas substance from a place outside a petro-

leum production licence area to a place in the petroleum production licence area; and

(b)       either— (i)      if paragraph (a)(i) applies—the greenhouse gas substance is a by-product of

petroleum recovery operations carried on under the petroleum production

licence; or (ii) if paragraph (a)(ii) applies—the greenhouse gas substance is to be injected into

the seabed or subsoil for the purpose of enhancing petroleum recovery

operations carried on under the petroleum production licence; and (c)             the applicant is not the petroleum production licensee; and (d)            the application has not been rejected under section 217(2)—

the Minister may give the applicant a written notice (called an offer document) telling the applicant that

the Minister is prepared to grant the applicant the pipeline licence. (3) If—

(a)       the application is for a pipeline licence in relation to the construction, in the offshore area, of a greenhouse gas pipeline for— (i)            the conveyance of a greenhouse gas substance within a petroleum production

licence area in the offshore area; or (ii)     the conveyance of a greenhouse gas substance from a place outside a petro-

leum production licence area to a place in the petroleum production licence area; and

(b)       either— (i)      if paragraph (a)(i) applies—the greenhouse gas substance is a by-product of

petroleum recovery operations carried on under the petroleum production

licence; or (ii) if paragraph (a)(ii) applies—the greenhouse gas substance is to be injected into

the seabed or subsoil for the purpose of enhancing petroleum recovery operations carried on under the petroleum production licence; and

(c) the applicant is the petroleum production licensee; and

(d) each of the following has been complied with—

(i) the conditions to which the petroleum production licence is, or has from time to time been, subject;

(ii) the provisions of this Chapter, Chapter 4, Chapter 6 and Part 7.1;

(iii) the regulations—

the Minister must give the applicant a written notice (called an offer document) telling the applicant that the Minister is prepared to grant the applicant the pipeline licence.

(4)       If—

(a)       the application is for a pipeline licence in relation to the construction, in the offshore area, of a greenhouse gas pipeline for— (i)            the conveyance of a greenhouse gas substance within a petroleum production

licence area in the offshore area; or (ii)     the conveyance of a greenhouse gas substance from a place outside a petro-

leum production licence area to a place in the petroleum production licence area; and

(b)       either— (i)      if paragraph (a)(i) applies—the greenhouse gas substance is a by-product of

petroleum recovery operations carried on under the petroleum production

licence; or (ii) if paragraph (a)(ii) applies—the greenhouse gas substance is to be injected into

the seabed or subsoil for the purpose of enhancing petroleum recovery

operations carried on under the petroleum production licence; and (c)             the applicant is the petroleum production licensee; and

(d)       any of—

(i) the conditions to which the petroleum production licence is, or has from time to time been, subject; or

(ii) the provisions of this Chapter, Chapter 4, Chapter 6 and Part 7.1; or

(iii) the provisions of the regulations—

have not been complied with; and

(e)        the Minister is satisfied that there are sufficient grounds to warrant the granting of the pipeline licence—

the Minister may give the applicant a written notice (called an offer document) telling the applicant that

the Minister is prepared to grant the applicant the pipeline licence. (5) If—

(a)       the application is for a pipeline licence in relation to the construction, in the offshore area, of a greenhouse gas pipeline for— (i)            the conveyance of a greenhouse gas substance within a greenhouse gas

injection licence area in the offshore area; or (ii) the conveyance of a greenhouse gas substance from a place outside a green-

house gas injection area to a place in the greenhouse gas injection licence area;

and (b)            the greenhouse gas substance is to be injected into an identified greenhouse gas storage

formation that is wholly situated in the greenhouse gas injection licence area; and (c)        the applicant is not the greenhouse gas injection licensee; and (d)        the application has not been rejected under section 218(2)—

the Minister may give the applicant a written notice (called an offer document) telling the applicant that

the Minister is prepared to grant the applicant the pipeline licence.

(6)       If—

 (a)      the application is for a pipeline licence in relation to the construction, in the offshore area, of a greenhouse gas pipeline for— (i)            the conveyance of a greenhouse gas substance within a greenhouse gas

injection licence area in the offshore area; or

(ii)        the conveyance of a greenhouse gas substance from a place outside a green- house gas injection area to a place in the greenhouse gas injection licence area; and

(b)       the greenhouse gas substance is to be injected into an identified greenhouse gas storage formation that is wholly situated in the greenhouse gas injection licence area; and

(c)        the applicant is the greenhouse gas injection licensee; and (d)   each of the following has been complied with—

(i) the conditions to which the greenhouse gas injection licence is, or has from time to time been, subject;

(ii) the provisions of this Chapter, Chapter 5, Chapter 6 and Part 8.1;

(iii) the regulations—

the Minister must give the applicant a written notice (called an offer document) telling the applicant that the Minister is prepared to grant the applicant the pipeline licence.

(7)       If—

(a)       the application is for a pipeline licence in relation to the construction, in the offshore area, of a greenhouse gas pipeline for— (i)            the conveyance of a greenhouse gas substance within a greenhouse gas

injection licence area in the offshore area; or (ii) the conveyance of a greenhouse gas substance from a place outside a green-

house gas injection area to a place in the greenhouse gas injection licence area;

and (b)            the greenhouse gas substance is to be injected into an identified greenhouse gas storage

formation that is wholly situated in the greenhouse gas injection licence area; and (c)        the applicant is the greenhouse gas injection licensee; and (d)        any of—

(i) the conditions to which the greenhouse gas injection licence is, or has from time to time been, subject; or

(ii) the provisions of this Chapter, Chapter 5, Chapter 6 and Part 8.1; or

(iii) the provisions of the regulations—

have not been complied with; and

(e)        the Minister is satisfied that there are sufficient grounds to warrant the granting of the pipeline licence—

the Minister may give the applicant a written notice (called an offer document) telling the applicant that

the Minister is prepared to grant the applicant the pipeline licence. (8) An offer document under this section must specify the route to be followed by the greenhouse gas

pipeline, and that route must be— (a)       the route shown in the plan accompanying the application; or (b) if the Minister is of the opinion that, for any reason, that route is not appropriate—a

route that, in the opinion of the Minister, is appropriate.

Notes

1 Section 255 sets out additional requirements for offer documents (for example, a requirement that an offer document must contain a summary of conditions).

2 If the applicant breaches a requirement under section 254 to provide further information, the Minister may refuse to give the applicant an offer document—see section 254(3).

[…]

222 Refusal to grant greenhouse gas-related pipeline licence

(1) This section applies if an application for a pipeline licence has been made under section 215.

(2) If—

(a)       the application is for a pipeline licence in relation to the construction, in the offshore area, of a greenhouse gas pipeline for— (i)            the conveyance of a greenhouse gas substance within a petroleum production

licence area in the offshore area; or (ii)     the conveyance of a greenhouse gas substance from a place outside a petro-

leum production licence area to a place in the petroleum production licence area; and

(b)       either— (i)      if paragraph (a)(i) applies—the greenhouse gas substance is a by-product of

petroleum recovery operations carried on under the petroleum production

licence; or (ii) if paragraph (a)(ii) applies—the greenhouse gas substance is to be injected into

the seabed or subsoil for the purpose of enhancing petroleum recovery

operations carried on under the petroleum production licence; and (c)             the applicant is the petroleum production licensee; and

(d)       any of—

(i) the conditions to which the petroleum production licence is, or has from time to time been, subject; or

(ii) the provisions of this Chapter, Chapter 4, Chapter 6 and Part 7.1; or

(iii) the provisions of the regulations—

have not been complied with; and

(e)        the Minister is not satisfied that there are sufficient grounds to warrant the granting of a pipeline licence—

the Minister must, by written notice given to the applicant, refuse to grant the pipeline licence.

Note Consultation procedures apply—see section 258.

(3) If—

(a)       the application is for a pipeline licence in relation to the construction, in the offshore area, of a greenhouse gas pipeline for— (i)            the conveyance of a greenhouse gas substance within a petroleum production

licence area in the offshore area; or (ii)     the conveyance of a greenhouse gas substance from a place outside a petro-

leum production licence area to a place in the petroleum production licence area; and

(b)       either—

(i)         if paragraph (a)(i) applies—the greenhouse gas substance is a by-product of petroleum recovery operations carried on under the petroleum production licence; or

(ii)        if paragraph (a)(ii) applies—the greenhouse gas substance is to be injected into the seabed or subsoil for the purpose of enhancing petroleum recovery operations carried on under the petroleum production licence; and

(c) the applicant is not the petroleum production licensee—

the Minister may, by written notice given to the applicant, refuse to grant the pipeline licence.

(4) If—

(a)       the application is for a pipeline licence in relation to the construction, in the offshore area, of a greenhouse gas pipeline for— (i)            the conveyance of a greenhouse gas substance within a greenhouse gas

injection licence area in the offshore area; or (ii) the conveyance of a greenhouse gas substance from a place outside a green-

house gas injection area to a place in the greenhouse gas injection licence area;

and (b)            the greenhouse gas substance is to be injected into an identified greenhouse gas storage

formation that is wholly situated in the greenhouse gas injection licence area; and (c)        the applicant is the greenhouse gas injection licensee; and (d)        any of—

(i)  the conditions to which the greenhouse gas injection licence is, or has from time to time been, subject; or

(ii)                 the provisions of this Chapter, Chapter 5, Chapter 6 and Part 8.1; or

(iii)                the provisions of the regulations—

have not been complied with; and

(e)        the Minister is not satisfied that there are sufficient grounds to warrant the granting of a pipeline licence—

the Minister must, by written notice given to the applicant, refuse to grant the pipeline licence.

Note Consultation procedures apply—see section 258.

(5) If—

(a)       the application is for a pipeline licence in relation to the construction, in the offshore area, of a greenhouse gas pipeline for— (i)            the conveyance of a greenhouse gas substance within a greenhouse gas

injection licence area in the offshore area; or (ii) the conveyance of a greenhouse gas substance from a place outside a green-

house gas injection licence area to a place in the greenhouse gas injection

licence area; and (b) the greenhouse gas substance is to be injected into an identified greenhouse gas storage

formation that is wholly situated in the greenhouse gas injection licence area; and (c)        the applicant is not the greenhouse gas injection licensee—

the Minister may, by written notice given to the applicant, refuse to grant the pipeline licence.

II. The scope and management of rights
Competition with other Interests

Summary

 

Section 494 of the Victorian Offshore Act  states that the Act does not prevent a greenhouse gas title (such as a greenhouse gas assessment permit, holding lease or injection licence) from being in force over all or part of an area in which a petroleum title (such as a petroleum exploration permit, retention lease or production licence) is already in force, and vice versa.

Where such titles may or do overlap, the Act requires analysis of the risk and potential impacts of greenhouse gas operations on petroleum operations, as a basis for determining whether the greenhouse gas operations should be allowed to proceed.

Specifically, where authorisation for certain key greenhouse gas operations is sought under section 291 or 329 and the Minister is satisfied that there is a significant risk that those operations will have a significant adverse impact on petroleum operations, in deciding whether to authorise the contemplated greenhouse gas operations the Minister must have regard to:

  1. whether the relevant petroleum operator has agreed in writing to the greenhouse gas operations being undertaken;
  2. if so, the terms of that agreement; and
  3. the public interest.

Similar requirements apply under sections 382, 383 and 395, when the Minister considering whether to offer an applicant a greenhouse gas injection licence.

Where a greenhouse gas assessment permit, holding lease or injection licence has been issued, the Minister has the power under sections 322, 366 and 401 respectively to direct the title holder to eliminate, mitigate or manage risks posed to petroleum operations.

Ultimately, the Act provides for petroleum interests to prevail over greenhouse gas interests. Under section 410, where:

  1. a greenhouse injection licence area overlaps with a pre‑commencement petroleum title;
  2. petroleum is discovered in the area of overlap and the Minister is satisfied that recovery of the petroleum is either commercially viable or will become commercially viable at some time in the future;
  3. there is a significant risk that the greenhouse gas operations will have a significant adverse impact on the petroleum operations; and
  4. the petroleum title holder has not agreed to the greenhouse gas operations,

the Minister must either:

  1. direct the greenhouse gas title holder to, if possible, eliminate risk, or otherwise manage, mitigate or remediate the risk (failure to comply constitutes an offence);
  2. suspend all or part of the greenhouse gas title; or
  3. cancel the greenhouse gas title entirely.  

Persons undertaking activities under a greenhouse gas title are also required under section 496 to do so in a manner that does not interfere, to a greater extent than is necessary, with navigation, fishing, conservation of sea and seabed resources, mineral exploration, recovery and conveyance, pipeline construction and operation and native title rights. 

Article/Section No.

Section 27
Section 28
Section 29
Section 30
Section 31
Section 291
Section 292
Section 293
Section 322
Section 323
Section 329
Section 330
Section 331
Section 366
Section 367
Section 382
Section 383
Section 388
Section 401
Section 402
Section 403
Section 404
Section 410
Section 411
Section 412
Section 413
Section 494
Section 496

Instrument Text

27        Significant risk of a significant adverse impact—approval of key petroleum operations

(1)       For the purposes of sections 79, 80, 83, 123, 124, 127, 157, 158, 161 and 768(2)(a), the question of whether there is a significant risk that a key petroleum operation will have a significant adverse impact on—

(a)           operations for the injection of a greenhouse gas substance; or (b)            operations for the storage of a greenhouse gas substance—

is to be determined in a manner ascertained in accordance with the regulations. (2)  A manner ascertained in accordance with regulations made for the purposes of subsection (1) must take

into account— (a)    the probability, or range of probabilities, of the occurrence of the adverse impact; and (b)           the economic consequences of the adverse impact; and (c)       the economic consequences of the adverse impact relative to the potential economic

value of the operations referred to in whichever of subsection (1)(a) or (b) is applicable. (3)              Subsection (2) does not limit the matters that may be taken into account.

(4)       Subsections (1) and (2) have effect subject to subsections (5) and (6). (5)       For the purposes of sections 79, 80, 83, 123, 124, 127, 157, 158, 161 and 768(2)(a), a key petroleum

operation will have an adverse impact on— (a)  operations for the injection of a greenhouse gas substance; or (b)     operations for the storage of a greenhouse gas substance—

(the relevant greenhouse gas operations) if, and only if, the key petroleum operation will result in— (c)       an increase in the capital costs (other than prescribed costs) of the relevant greenhouse

gas operations; or (d)            an increase in the operating costs (other than prescribed costs) of the relevant

greenhouse gas operations; or (e)   a reduction in the rate of injection of the greenhouse gas substance; or (f)              a reduction in the quantity of the greenhouse gas substance that will be able to be

stored. (6)       For the purposes of sections 79, 80, 83, 123, 124, 127, 157, 158, 161 and 768(2)(a), if there is a risk that

a key petroleum operation will have an adverse impact on— (a)         operations for the injection of a greenhouse gas substance; or (b)            operations for the storage of a greenhouse gas substance—

then that risk is not to be treated as significant, and that adverse impact is not to be treated as significant, if the amount that, under the regulations, is taken to be the probability-weighted impact cost of the key petroleum operation is less than the amount that, under the regulations, is taken to be the threshold amount.

28        Significant risk of a significant adverse impact—grant of petroleum production licence

(1)       For the purposes of sections 167 and 168, the question of whether there is a significant risk that any of the operations that could be carried on under a petroleum production licence will have a significant adverse impact on operations that are being, or could be, carried on under—

(a)       a greenhouse gas assessment permit; or (b)           a greenhouse gas holding lease; or (c)          a greenhouse gas injection licence—

is to be determined in a manner ascertained in accordance with the regulations. (2)  A manner ascertained in accordance with regulations made for the purposes of subsection (1) must take

into account— (a)    the probability, or range of probabilities, of the occurrence of the adverse impact; and (b)           the economic consequences of the adverse impact; and (c)       the economic consequences of the adverse impact relative to the potential economic

value of the operations that are being, or could be, carried on under the permit, lease or

licence referred to in whichever of subsection (1)(a), (b) or (c) is applicable. (3)          Subsection (2) does not limit the matters that may be taken into account.

(4)       Subsections (1) and (2) have effect subject to subsections (5) and (6). (5)       For the purposes of sections 167 and 168, an operation that could be carried on under a petroleum

production licence (the petroleum production licence operation) will have an adverse impact on operations (the relevant greenhouse gas operations) that are being, or could be, carried on under—

(a)       a greenhouse gas assessment permit; or (b)           a greenhouse gas holding lease; or (c)          a greenhouse gas injection licence—

if, and only if, the petroleum production licence operation will result in— (d) an increase in the capital costs (other than prescribed costs) of the relevant greenhouse gas operations; or

(e)        an increase in the operating costs (other than prescribed costs) of the relevant greenhouse gas operations; or

(f)        a reduction in the rate of injection of the greenhouse gas substance; or (g)     a reduction in the quantity of the greenhouse gas substance that will be able to be

stored. (6)       For the purposes of sections 167 and 168, if there is a risk that an operation that could be carried on

under a petroleum production licence (the petroleum production licence operation) will have an adverse impact on operations that are being, or could be, carried on under—

(a)       a greenhouse gas assessment permit; or (b)           a greenhouse gas holding lease; or (c)          a greenhouse gas injection licence—

then that risk is not to be treated as significant, and that adverse impact is not to be treated as significant, if the amount that, under the regulations, is taken to be the probability-weighted impact cost of the petroleum production licence operation is less than the amount that, under the regulations, is taken to be the threshold amount.

29        Significant risk of a significant adverse impact—approval of key greenhouse gas operations

(1)       For the purposes of sections 292, 293, 330, 331 and 768(2)(b), the question of whether there is a significant risk that a key greenhouse gas operation will have a significant adverse impact on petroleum exploration operations, or petroleum recovery operations, that are being, or could be, carried on under—

(a)       an existing petroleum exploration permit; or (b)  an existing petroleum retention lease; or (c)               an existing petroleum production licence; or (d)     a future petroleum exploration permit; or (e)        a future petroleum retention lease; or

(f)        a future petroleum production licence— is to be determined in a manner ascertained in accordance with the regulations.

(2)       A manner ascertained in accordance with regulations made for the purposes of subsection (1) must take into account—

(a)       the probability, or range of probabilities, of the occurrence of the adverse impact; and (b)    the economic consequences of the adverse impact; and (c)       the economic consequences of the adverse impact relative to the potential economic

value of the petroleum exploration operations, or petroleum recovery operations, that are being, or could be, carried on under the permit, lease or licence referred to in whichever of subsection (1)(a), (b), (c), (d), (e) or (f) is applicable.

(3)       Subsection (2) does not limit the matters that may be taken into account. (4)          Subsections (1) and (2) have effect subject to subsections (5) and (6). (5)  For the purposes of sections 292, 293, 330, 331 and 768(2)(b), a key greenhouse gas operation will have

an adverse impact on petroleum exploration operations, or petroleum recovery operations, that are being, or could be, carried on under—

(a)       an existing petroleum exploration permit; or (b)  an existing petroleum retention lease; or (c)               an existing petroleum production licence; or (d)     a future petroleum exploration permit; or (e)        a future petroleum retention lease; or

(f)        a future petroleum production licence— if, and only if, the key greenhouse gas operation will result in—

(g)        an increase in the capital costs (other than prescribed costs) of the petroleum explora- tion operations or petroleum recovery operations; or

(h)       an increase in the operating costs (other than prescribed costs) of the petroleum exploration operations or petroleum recovery operations; or

(i)            a reduction in the rate of recovery of the petroleum; or

(j)        a reduction in the quantity of the petroleum that will be able to be recovered. (6)    For the purposes of sections 292, 293, 330, 331 and 768(2)(b), if there is a risk that a key greenhouse gas operation will have an adverse impact on petroleum exploration operations, or petroleum recovery

operations, that are being, or could be, carried on under— (a)   an existing petroleum exploration permit; or (b)           an existing petroleum retention lease; or (c)            an existing petroleum production licence; or (d)   a future petroleum exploration permit; or (e)       a future petroleum retention lease; or

(f)        a future petroleum production licence— then that risk is not to be treated as significant, and that adverse impact is not to be treated as significant, if the amount that, under the regulations, is taken to be the probability-weighted impact cost of the key greenhouse gas operation is less than the amount that, under the regulations, is taken to be the threshold amount.

30        Significant risk of a significant adverse impact—grant of greenhouse gas injection licence

(1)       For the purposes of sections 382, 383, 395 and 768(2)(c), the question of whether there is a significant risk that any of the operations that could be carried on under a greenhouse gas injection licence will have a significant adverse impact on operations that are being, or could be, carried on under—

(a)       an existing petroleum exploration permit; or (b)  an existing petroleum retention lease; or (c)               an existing petroleum production licence; or (d)     a future petroleum exploration permit; or (e)        a future petroleum retention lease; or

(f)        a future petroleum production licence— is to be determined in a manner ascertained in accordance with the regulations.

(2)       A manner ascertained in accordance with regulations made for the purposes of subsection (1) must take into account—

(a)       the probability, or range of probabilities, of the occurrence of the adverse impact; and (b)    the economic consequences of the adverse impact; and (c)       the economic consequences of the adverse impact relative to the potential economic

value of the operations that are being, or could be, carried on under the permit, lease or licence referred to in whichever of subsection (1)(a), (b), (c), (d), (e) or (f) is applicable.

(3)       Subsection (2) does not limit the matters that may be taken into account. (4)          Subsections (1) and (2) have effect subject to subsections (5) and (6). (5)  For the purposes of sections 382, 383, 395 and 768(2)(c), an operation that could be carried on under a

greenhouse gas injection licence (the injection licence operation) will have an adverse impact on operations (the relevant petroleum operations) that are being, or could be, carried on under—

(a)       an existing petroleum exploration permit; or (b)  an existing petroleum retention lease; or (c)               an existing petroleum production licence; or (d)     a future petroleum exploration permit; or (e)        a future petroleum retention lease; or

(f)            a future petroleum production licence— if, and only if, the injection licence operation will result in—

(g)        an increase in the capital costs (other than prescribed costs) of the relevant petroleum operations; or

(h)       an increase in the operating costs (other than prescribed costs) of the relevant petroleum operations; or

(i)            a reduction in the rate of recovery of the petroleum; or (j)         a reduction in the quantity of the petroleum that will be able to be recovered.

(6)       For the purposes of sections 382, 383, 395 and 768(2)(c), if there is a risk that an operation that could be carried on under a greenhouse gas injection licence (the injection licence operation) will have an adverse impact on operations that are being, or could be, carried on under—

(a)       an existing petroleum exploration permit; or (b)  an existing petroleum retention lease; or (c)               an existing petroleum production licence; or (d)     a future petroleum exploration permit; or (e)        a future petroleum retention lease; or

(f)        a future petroleum production licence— then that risk is not to be treated as significant, and that adverse impact is not to be treated as significant, if the amount that, under the regulations, is taken to be the probability-weighted impact cost of the injection licence operation is less than the amount that, under the regulations, is taken to be the threshold amount.

31        Significant risk of a significant adverse impact—power of Minister to protect petroleum

(1)       For the purposes of sections 410 and 768(2)(d), the question of whether there is a significant risk that any of the operations that are being, or could be, carried on under a greenhouse gas injection licence will have a significant adverse impact on—

(a)       operations to recover petroleum; or

(b)       the commercial viability of the recovery of petroleum— is to be determined in a manner ascertained in accordance with the regulations.

(2)       A manner ascertained in accordance with regulations made for the purposes of subsection (1) must take into account—

(a)       the probability, or range of probabilities, of the occurrence of the adverse impact; and (b)    the economic consequences of the adverse impact; and (c)       the economic consequences of the adverse impact relative to the potential economic

value of the operations or recovery referred to in whichever of subsection (1)(a) or (b)

is applicable. (3)        Subsection (2) does not limit the matters that may be taken into account.

(4)       Subsections (1) and (2) have effect subject to subsections (5) and (6). (5)       For the purposes of sections 410 and 768(2)(d), an operation that could be carried on under a greenhouse

gas injection licence (the injection licence operation) will have an adverse impact on— (a)             operations to recover petroleum; or (b)            the commercial viability of the recovery of petroleum—

if, and only if, the injection licence operation will result in— (c)            an increase in the capital costs (other than prescribed costs) of the recovery of the

petroleum; or (d)       an increase in the operating costs (other than prescribed costs) of the recovery of the

petroleum; or (e)       a reduction in the rate of recovery of the petroleum; or (f)         a reduction in the quantity of the petroleum that will be able to be recovered.

(6)       For the purposes of sections 410 and 768(2)(d), if there is a risk that an operation that is being, or could be, carried on under a greenhouse gas injection licence (the injection licence operation) will have an adverse impact on—

(a)       operations to recover petroleum; or

(b)           the commercial viability of the recovery of petroleum— then that risk is not to be treated as significant, and that adverse impact is not to be treated as significant, if the amount that, under the regulations, is taken to be the probability-weighted impact cost of the injection licence operation is less than the amount that, under the regulations, is taken to be the threshold amount.

[…]

291     Approval by Minister of key greenhouse gas operations

(1)       A greenhouse gas assessment permittee may apply to the Minister for approval to carry on one or more key greenhouse gas operations under the permit.

(2)       If an application for approval is made under subsection (1), the Minister may— (a)              give the approval, with or without conditions to which the approval is subject; or (b)           by written notice given to the applicant, refuse to give the approval.

(3)       In deciding whether to give the approval, the Minister must comply with sections 292 and 293. (4)    For the purposes of this section, a suspension of rights under section 262 must be disregarded. (5)         To avoid doubt, section 286 does not imply that a greenhouse gas assessment permittee who applies for

approval under this section is entitled to be given the approval.

292     Minister must have regard to certain matters before approving key greenhouse gas operations

(1)       The Minister must have regard to the impact (if any) that any of the key greenhouse gas operations to which an application for approval under section 291 relates could have on petroleum exploration operations, or petroleum recovery operations, that are being, or could be, carried on under—

(a)       an existing petroleum exploration permit; or (b)  an existing petroleum retention lease; or (c)               an existing petroleum production licence; or (d)     a future petroleum exploration permit; or (e)        a future petroleum retention lease; or

(f)        a future petroleum production licence. (2)             If the Minister is satisfied that there is a significant risk that any of the key greenhouse gas operations to

which an application for approval under section 291 relates will have a significant adverse impact on petroleum exploration operations, or petroleum recovery operations, that are being, or could be, carried on under—

(a) an existing petroleum exploration permit held by a person other than the applicant; or

(b) an existing petroleum retention lease held by a person other than the applicant; or

(c) an existing petroleum production licence held by a person other than the applicant—

the Minister must have regard to—

(d) whether the registered holder of the petroleum exploration permit, petroleum retention lease or petroleum production licence, as the case may be, has agreed, in writing, to the applicant carrying on the key greenhouse gas operations in respect of which the Minister is so satisfied; and

(e)           if so—the terms of that agreement.

(3)           If—

(a)           the Minister is satisfied that there is a significant risk that any of the key greenhouse gas operations to which an application for approval under section 291 relates will have a significant adverse impact on petroleum exploration operations, or petroleum recovery operations, that could be carried on under—

(i)  a future petroleum exploration permit over a block or blocks; or

(ii) a future petroleum retention lease over a block or blocks; or

(iii) a future petroleum production licence over a block or blocks; and

(b)       a petroleum exploration permit, petroleum retention lease or petroleum production licence is in force over the block or any of the blocks; and

(c)        the petroleum exploration permit, petroleum retention lease or petroleum production licence is held by a person other than the applicant—

the Minister must have regard to— (d)      whether the registered holder of the petroleum exploration permit, petroleum retention

lease or petroleum production licence covered by paragraph (b) has agreed, in writing, to the applicant carrying on the key greenhouse gas operations in respect of which the Minister is so satisfied; and

(e)        if so—the terms of that agreement. (4)      If any of the key greenhouse gas operations to which an application for approval under section 291

relates is— (a)            an operation to inject, on an appraisal basis, a substance into a part of a geological

formation; or (b)       an operation to store, on an appraisal basis, a substance in a part of a geological

formation— the Minister must have regard to the composition of the substance.

(5)       The Minister must have regard to the public interest. (6)             Subsections (1), (2), (3) and (4) do not limit subsection (5). (7)      This section does not limit the matters to which the Minister may have regard to in deciding whether to

give an approval under section 291.

293     Circumstances in which approval of key greenhouse gas operations must not be given

(1)       If the Minister is satisfied that there is a significant risk that any of the key greenhouse gas operations to which an application for approval under section 291 relates will have a significant adverse impact on petroleum exploration operations, or petroleum recovery operations, that are being, or could be, carried on under—

(a)       an existing pre-commencement petroleum title held by a person other than the applicant; or

(b)       an existing post-commencement petroleum production licence held by a person other than the applicant—

the Minister must not give the approval under section 291 unless the registered holder of the pre-commencement petroleum title, or the post-commencement petroleum production licence, as the case may be, has agreed, in writing, to the applicant carrying on the key greenhouse gas operations in respect of which the Minister is so satisfied.

(2)           If—

(a)       the Minister is satisfied that there is a significant risk that any of the key greenhouse gas operations to which an application for approval under section 291 relates will have a significant adverse impact on petroleum exploration operations, or petroleum recovery operations, that could be carried on under a future pre-commencement petroleum title over a block or blocks; and

(b)       the existing pre-commencement petroleum title in force over the block or any of the blocks is held by a person other than the applicant—

the Minister must not give the approval under section 291 unless the registered holder of the existing pre-commencement petroleum title has agreed, in writing, to the applicant carrying on the key greenhouse gas operations in respect of which the Minister is so satisfied.

[…]

322     Minister may give directions to greenhouse gas assessment permittees

(1)       The Minister may, by written notice given to a greenhouse gas assessment permittee, give the permittee a direction for the purpose of—

(a) eliminating; or

(b) mitigating; or

(c) managing—

the risk that operations carried on under the permit could have a significant adverse impact on petroleum exploration operations, or petroleum recovery operations, that are being, or could be, carried on under—

(d) an existing petroleum exploration permit; or

(e) an existing petroleum retention lease; or

(f) an existing petroleum production licence; or

(g) a future petroleum exploration permit; or

(h) a future petroleum retention lease; or

(i) a future petroleum production licence.

(2)           A direction under this section has effect, and must be complied with, despite—

(a) any previous direction under this section; and

(b) anything in the regulations or the applied provisions.

(3)       A direction under this section may make provision in relation to a matter by applying, adopting or incorporating (with or without modification) a code of practice or standard contained in an instrument—

(a)       as in force or existing at the time when the direction takes effect; or

(b)       as in force or existing from time to time— so long as the code of practice or standard is relevant to that matter.

(4)       To avoid doubt, subsection (3) applies to an instrument, whether issued or made in Australia or outside Australia.

(5)       A direction under this section may prohibit the doing of an act or thing— (a) unconditionally; or

(b)       subject to conditions, including conditions requiring the consent or approval of a person specified in the direction.

323     Compliance with directions

A person who is given a direction under section 322 must not without reasonable excuse contravene the direction. 120 penalty units.

[…]

329     Approval by Minister of key greenhouse gas operations

(1)       A greenhouse gas holding lessee may apply to the Minister for approval to carry on one or more key greenhouse gas operations under the lease.

(2)       If an application for approval is made under subsection (1), the Minister may— (a)              give the approval, with or without conditions to which the approval is subject; or (b)           by written notice given to the applicant, refuse to give the approval.

(3)           In deciding whether to give the approval, the Minister must comply with sections 330 and 331. (4) For the purposes of this section, a suspension of rights under section 262 must be disregarded.

(5)       To avoid doubt, section 325 does not imply that a greenhouse gas holding lessee who applies for

approval under subsection (1) of this section is entitled to be given the approval.

330     Minister must have regard to certain matters

(1)       The Minister must have regard to the impact (if any) that any of the key greenhouse gas operations to which an application under section 329 relates could have on petroleum exploration operations, or petroleum recovery operations, that are being, or could be, carried on under—

(a)       an existing petroleum exploration permit; or (b)  an existing petroleum retention lease; or (c)               an existing petroleum production licence; or (d)     a future petroleum exploration permit; or (e)        a future petroleum retention lease; or

(f)        a future petroleum production licence. (2)             If the Minister is satisfied that there is a significant risk that any of the key greenhouse gas operations to

which an application under section 329 relates will have a significant adverse impact on petroleum exploration operations, or petroleum recovery operations, that are being, or could be, carried on under—

(a)       an existing petroleum exploration permit held by a person other than the applicant; or (b)    an existing petroleum retention lease held by a person other than the applicant; or (c) an existing petroleum production licence held by a person other than the applicant—

the Minister must have regard to— (d)      whether the registered holder of the petroleum exploration permit, petroleum retention

(3)       If—

lease or petroleum production licence, as the case may be, has agreed, in writing, to the applicant carrying on the key greenhouse gas operations in respect of which the Minister is so satisfied; and

(e)        if so—the terms of that agreement.

(a)           the Minister is satisfied that there is a significant risk that any of the key greenhouse gas operations to which an application under section 329 relates will have a significant adverse impact on petroleum exploration operations, or petroleum recovery operations, that could be carried on under—

(i) a future petroleum exploration permit over a block or blocks; or

(ii) a future petroleum retention lease over a block or blocks; or

(iii) a future petroleum production licence over a block or blocks; and

(b)       a petroleum exploration permit, petroleum retention lease or petroleum production licence is in force over the block or any of the blocks; and

(c)        the petroleum exploration permit, petroleum retention lease or petroleum production licence is held by a person other than the applicant—

the Minister must have regard to— (d)      whether the registered holder of the petroleum exploration permit, petroleum retention

lease or petroleum production licence covered by paragraph (b) has agreed, in writing, to the applicant carrying on the key greenhouse gas operations in respect of which the Minister is so satisfied; and

(e)        if so—the terms of that agreement. (4)      If any of the key greenhouse gas operations to which an application under section 329 relates is—

(a)       an operation to inject, on an appraisal basis, a substance into a part of a geological formation; or

(b)       an operation to store, on an appraisal basis, a substance in a part of a geological formation—

the Minister must have regard to the composition of the substance. (5)           The Minister must have regard to the public interest. (6)            Subsections (1), (2), (3) and (4) do not limit subsection (5).

(7)           This section does not limit the matters to which the Minister may have regard to in deciding whether to give an approval under section 329.

331     Circumstances in which the approval must not be given

(1)       If the Minister is satisfied that there is a significant risk that any of the key greenhouse gas operations to which an application under section 329 relates will have a significant adverse impact on petroleum exploration operations, or petroleum recovery operations, that are being, or could be, carried on under—

(a)       an existing pre-commencement petroleum title held by a person other than the applicant; or

(b)       an existing post-commencement petroleum production licence held by a person other than the applicant—

the Minister must not give the approval unless the registered holder of the pre-commencement petroleum title, or the post-commencement petroleum production licence, as the case may be, has agreed, in writing, to the applicant carrying on the key greenhouse gas operations in respect of which the Minister is so satisfied.

(2)       If—

(a)       the Minister is satisfied that there is a significant risk that any of the key greenhouse gas operations to which an application under section 329 relates will have a significant adverse impact on petroleum exploration operations, or petroleum recovery operations, that could be carried on under a future pre-commencement petroleum title over a block or blocks; and

(b)       the existing pre-commencement petroleum title in force over the block or any of the blocks is held by a person other than the applicant—

the Minister must not give the approval under section 329 unless the registered holder of the existing pre-commencement petroleum title has agreed, in writing, to the applicant carrying on the key greenhouse gas operations in respect of which the Minister is so satisfied.

[…]

366     Minister may give directions to greenhouse gas holding lessees

(1)       The Minister may, by written notice given to a greenhouse gas holding lessee, give the lessee a direction for the purpose of—

(a)       eliminating; or (b)     mitigating; or (c)        managing—

the risk that operations carried on under the lease could have a significant adverse impact on petroleum exploration operations, or petroleum recovery operations, that are being, or could be, carried on under—

(d) an existing petroleum exploration permit; or

(e) an existing petroleum retention lease; or

(f) an existing petroleum production licence; or

(g) a future petroleum exploration permit; or

(h) a future petroleum retention lease; or

(i) a future petroleum production licence.

(2)       A direction under this section has effect, and must be complied with, despite—

(a) any previous direction under this section; and

(b) anything in the regulations or the applied provisions.

(3)       A direction under this section may make provision in relation to a matter by applying, adopting or

incorporating (with or without modification) a code of practice or standard contained in an instrument— (a)              as in force or existing at the time when the direction takes effect; or (b)            as in force or existing from time to time—

so long as the code of practice or standard is relevant to that matter. (4)         To avoid doubt, subsection (3) applies to an instrument, whether issued or made in Australia or outside

Australia. (5)  A direction under this section may prohibit the doing of an act or thing—

(a)       unconditionally; or (b)          subject to conditions, including conditions requiring the consent or approval of a person

specified in the direction.

367     Compliance with directions

A person who is given a direction under section 366 must not without reasonable excuse contravene the direction. 120 penalty units.

[…]

382     Offer document for application by permittee

(1)       If—

(a)       an application for the grant of a greenhouse gas injection licence has been made under section 379 by a greenhouse gas assessment permittee; and

(b)       the Minister is satisfied that, if the greenhouse gas injection licence were granted to the applicant, the applicant will, within 5 years after the grant, commence operations to— (i)      inject a greenhouse gas substance into the identified greenhouse gas storage formation, or at least one of the identified greenhouse gas storage formations, concerned; and

(ii)        permanently store the greenhouse gas substance in the identified greenhouse gas storage formation, or at least one of the identified greenhouse gas storage formations, concerned; and

(c)        if the Minister is satisfied that there is a significant risk that any of the operations that could be carried on under the greenhouse gas injection licence will have a significant

adverse impact on petroleum exploration operations, or petroleum recovery operations, that are being, or could be, carried on under—

(i) an existing post-commencement petroleum exploration permit; or

(ii) an existing post-commencement petroleum retention lease (other than a petro- leum retention lease granted under section 139); or

(iii) a future post-commencement petroleum production licence over the block or any of the blocks to which an existing post-commencement petroleum explora- tion permit, or an existing post-commencement petroleum retention lease (other than a petroleum retention lease granted under section 139), relates—

the Minister is satisfied that the grant of the greenhouse gas injection licence is in the

public interest; and (d)         if the Minister is satisfied that there is a significant risk that any of the operations that

could be carried on under the greenhouse gas injection licence will have a significant adverse impact on petroleum exploration operations, or petroleum recovery operations, that are being, or could be, carried on under— (i) an existing pre-commencement petroleum title held by a person other than the

applicant; or (ii)         an existing petroleum production licence held by a person other than the

applicant— the Minister is satisfied that—

(iii)       the registered holder of the pre-commencement petroleum title or the petro- leum production licence, as the case may be, has agreed, in writing, to the grant of the greenhouse gas injection licence; and

(iv)      to the extent to which the agreement is a dealing to which Part 4.6 applies—the dealing has been approved under section 528 or is reasonably likely to be approved under that section; and

(v)       to the extent to which the agreement is a dealing to which Part 5.6 would apply if the greenhouse gas injection licence were to come into existence—it is reasonably likely that the dealing would, after the greenhouse gas injection licence comes into existence, be approved under section 585; and

(e)        if— (i) the Minister is satisfied that there is a significant risk that any of the operations

that could be carried on under the greenhouse gas injection licence will have a significant adverse impact on petroleum exploration operations, or petroleum recovery operations, that could be carried on under a future pre-commencement petroleum title over a block or blocks; and

(ii)        the existing pre-commencement petroleum title in force over the block or any of the blocks is held by a person other than the applicant—

the Minister is satisfied that— (iii)  the registered holder of the existing pre-commencement petroleum title has

agreed, in writing, to the grant of the greenhouse gas injection licence; and (iv)          to the extent to which the agreement is a dealing to which Part 4.6 applies—the dealing has been approved under section 528 or is reasonably likely to be

approved under that section; and (v)         to the extent to which the agreement is a dealing to which Part 4.6 would apply

if the future pre-commencement petroleum title were to come into exist- ence—it is reasonably likely that the dealing would, after the future pre- commencement petroleum title comes into existence, be approved under section 528; and

(vi)      to the extent to which the agreement is a dealing to which Part 5.6 would apply if the greenhouse gas injection licence were to come into existence—it is reasonably likely that the dealing would, after the greenhouse gas injection licence comes into existence, be approved under section 585; and

(f)        if— (i) the Minister is satisfied that the area comprised in the block, or any one or

more of the blocks, specified in the application contains petroleum; and (ii)  the block or blocks as to which the Minister is so satisfied are within the licence area of a petroleum production licence, the permit area of a pre- commencement petroleum exploration permit or the lease area of a pre-

commencement petroleum retention lease; and (iii)        the recovery of the petroleum passes the commercial viability test set out in

section 385— the Minister is satisfied that there is no significant risk that any of the operations that could be carried on under the greenhouse gas injection licence will have a significant adverse impact on operations to recover the petroleum; and

(g)        the Minister is satisfied that—

(i) the technical qualifications of the applicant and of the applicant’s employees; and

(ii) the technical advice available to the applicant; and

(iii) the financial resources available to the applicant—

(h)       the Minister is satisfied that the draft site plan that accompanied the application satisfies the criteria specified in the regulations—

the Minister must give the applicant a written notice (called an offer document) telling the applicant that the Minister is prepared to grant the applicant a greenhouse gas injection licence over the block or blocks specified in the application, on the basis that the matters to be specified in the greenhouse gas injection licence as mentioned in section 374(1)(d) to (k) will be in accordance with the application.

(2)       This section has effect subject to section 388.

383     Offer document for application by lessee

(1)       If—

(a)       an application for the grant of a greenhouse gas injection licence has been made under section 379 by a greenhouse gas holding lessee; and

(b)       the Minister is satisfied that, if the greenhouse gas injection licence were granted to the applicant, the applicant will, within 5 years after the grant, commence operations to— (i)      inject a greenhouse gas substance into the identified greenhouse gas storage

formation, or at least one of the identified greenhouse gas storage formations,

concerned; and (ii)    permanently store the greenhouse gas substance in the identified greenhouse

gas storage formation, or at least one of the identified greenhouse gas storage

formations, concerned; and (c)       if the Minister is satisfied that there is a significant risk that any of the operations that

could be carried on under the greenhouse gas injection licence will have a significant adverse impact on petroleum exploration operations, or petroleum recovery operations, that are being, or could be, carried on under— (i) an existing post-commencement petroleum exploration permit; or

(ii)        an existing post-commencement petroleum retention lease (other than a petro- leum retention lease granted under section 139); or

(iii)       a future post-commencement petroleum production licence over the block or any of the blocks to which an existing post-commencement petroleum explora- tion permit, or an existing post-commencement petroleum retention lease (other than a petroleum retention lease granted under section 139), relates—

the Minister is satisfied that the grant of the greenhouse gas injection licence is in the public interest; and

(d)       if the Minister is satisfied that there is a significant risk that any of the operations that could be carried on under the greenhouse gas injection licence will have a significant adverse impact on petroleum exploration operations, or petroleum recovery operations, that are being, or could be, carried on under—

(i)         an existing pre-commencement petroleum title held by a person other than the applicant; or

(ii)        an existing petroleum production licence held by a person other than the applicant—

the Minister is satisfied that— (iii)  the registered holder of the pre-commencement petroleum title or the petro-

leum production licence, as the case may be, has agreed, in writing, to the

grant of the greenhouse gas injection licence; and (iv)    to the extent to which the agreement is a dealing to which Part 4.6 applies—the

dealing has been approved under section 528 or is reasonably likely to be

approved under that section; and (v)         to the extent to which the agreement is a dealing to which Part 5.6 would apply

if the greenhouse gas injection licence were to come into existence—it is reasonably likely that the dealing would, after the greenhouse gas injection licence comes into existence, be approved under section 585; and

(e)        if— (i) the Minister is satisfied that there is a significant risk that any of the operations

that could be carried on under the greenhouse gas injection licence will have a significant adverse impact on petroleum exploration operations, or petroleum recovery operations, that could be carried on under a future pre-commencement petroleum title over a block or blocks; and

(ii)        the existing pre-commencement petroleum title in force over the block or any of the blocks is held by a person other than the applicant—

the Minister is satisfied that— (iii)  the registered holder of the existing pre-commencement petroleum title has

agreed, in writing, to the grant of the greenhouse gas injection licence; and (iv)          to the extent to which the agreement is a dealing to which Part 4.6 applies—the dealing has been approved under section 528 or is reasonably likely to be

approved under that section; and (v)         to the extent to which the agreement is a dealing to which Part 4.6 would apply

if the future pre-commencement petroleum title were to come into exist- ence—it is reasonably likely that the dealing would, after the future pre- commencement petroleum title comes into existence, be approved under section 528; and

(vi)      to the extent to which the agreement is a dealing to which Part 5.6 would apply if the greenhouse gas injection licence were to come into existence—it is reasonably likely that the dealing would, after the greenhouse gas injection licence comes into existence, be approved under section 585; and

(f)        if— (i) the Minister is satisfied that the area comprised in the block, or any one or

more of the blocks, specified in the application contains petroleum; and (ii)  the block or blocks as to which the Minister is so satisfied are within the licence area of a petroleum production licence, the permit area of a pre- commencement petroleum exploration permit or the lease area of a pre-

commencement petroleum retention lease; and (iii)        the recovery of the petroleum passes the commercial viability test set out in

section 385— the Minister is satisfied that there is no significant risk that any of the operations that

could be carried on under the greenhouse gas injection licence will have a significant

adverse impact on operations to recover the petroleum; and (g)           the Minister is satisfied that—

(i) the technical qualifications of the applicant and of the applicant’s employees; and

(ii) the technical advice available to the applicant; and

(iii) the financial resources available to the applicant—

are adequate; and

(h) the Minister is satisfied that the draft site plan that accompanied the application satisfies the criteria specified in the regulations—

the Minister must give the applicant a written notice (called an offer document) telling the applicant that the Minister is prepared to grant the applicant a greenhouse gas injection licence over the block or blocks specified in the application, on the basis that the matters to be specified in the greenhouse gas injection licence as mentioned in section 374(1)(d) to (k) will be in accordance with the application.

(2)       This section has effect subject to section 388.

[…]

388     Deferral of decision to grant greenhouse gas injection licence—pending application for post-commencement petroleum exploration permit

(1)       This section applies if— (a) an application for the grant of a greenhouse gas injection licence has been made under

section 379; and (b) when the application for the greenhouse gas injection licence was made, an application

for a post-commencement petroleum exploration permit was being considered by the

Minister; and (c)        the Minister considers that it would be in the public interest to defer taking any action

under section 382, 383 or 386 in relation to the application for the grant of the greenhouse gas injection licence until the application for the post-commencement petroleum exploration permit is finalised.

(2)       The Minister must not take any action under section 382, 383 or 386 in relation to the application for the greenhouse gas injection licence until 24 hours after whichever of the following events happens first—

(a)       the Minister grants the post-commencement petroleum exploration permit to the applicant for the permit;

(b)       the application for the post-commencement petroleum exploration permit lapses; (c)            the Minister refuses to grant the post-commencement petroleum exploration permit to

the applicant for the permit.

[…]

401     Minister may give greenhouse gas injection licensee directions to protect geological formations containing petroleum pools etc.

(1)       The Minister may, by written notice given to a greenhouse gas injection licensee, give the licensee a direction for the purpose of—

(a)       eliminating; or (b)     mitigating; or (c)        managing—

the risk that operations carried out under the licence could—

(d) have a significant adverse impact on a geological formation, or a part of a geological formation, that contains, or is likely to contain, a petroleum pool; or

(e) otherwise compromise the exploitation of any petroleum that occurs as a natural resource.

(2)       A direction under this section may require the licensee to do something—

(a) in the licence area; or

(b) in the offshore area but outside the licence area.

(3)       A direction under this section has effect, and must be complied with, despite—

(a) any previous direction under this section; and

(b) anything in the regulations or the applied provisions.

(4)       A direction under this section prevails over—

(a) anything in an approved site plan for an identified greenhouse gas storage formation specified in the licence; or

(b)       anything specified in the licence as mentioned in any of section 374(1)(c) to (k)— to the extent of any inconsistency.

(5)       A direction under this section may make provision in relation to a matter by applying, adopting or incorporating (with or without modification) a code of practice or standard contained in an instrument—

(a)       as in force or existing at the time when the direction takes effect; or

(b)       as in force or existing from time to time— so long as the code of practice or standard is relevant to that matter.

(6)       To avoid doubt, subsection (5) applies to an instrument, whether issued or made in Australia or outside Australia.

(7)       A direction under this section may prohibit the doing of an act or thing— (a) unconditionally; or

(b)       subject to conditions, including conditions requiring the consent or approval of a person specified in the direction.

402     Variation of matters inconsistent with direction to protect geological formations

(1)       If—

(a)       a direction under section 401 is in force in relation to a greenhouse gas injection licence; and

(b)       apart from section 401(4), the direction would be inconsistent with a matter specified in the licence as mentioned in any of section 374(1)(c) to (k)—

the Minister may, by written notice given to the licensee, vary the matter for the purposes of removing

that inconsistency. (2)          A variation of a matter under subsection (1) takes effect on the day on which notice of the variation is

published in the Government Gazette. Note         For publication in the Government Gazette of notice of the variation, see section 754. (3)            The regulations may provide that, if—

(a)       a direction under this section is in force in relation to a greenhouse gas injection licence; and

(b)       apart from section 401(4), the direction would be inconsistent with anything in an approved site plan for an identified greenhouse gas storage formation specified in the licence—

then—

(c)        the licensee must, within the period ascertained in accordance with the regulations— (i)        prepare a draft variation of the approved site plan for the purposes of removing

that inconsistency; and (ii)  give the draft variation to the Minister; and

(d)       the Minister must, by written notice given to the licensee— (i)   approve the variation; or

(ii)        refuse to approve the variation; and (e)    if the Minister approves the variation—the approved site plan is varied accordingly.

(4)       If an approved site plan is varied, a reference in this Act to the approved site plan is a reference to the approved site plan as varied.

403     Consultation—directions to do something outside the licence area

(1)       This section applies if— (a) the Minister proposes to give a direction under section 401 to a greenhouse gas

injection licensee; and (b)    the direction requires the licensee to do something in an area (the action area) in the

offshore area but outside the licence area; and (c)          the action area is, to any extent, the subject of—

(i) a greenhouse gas assessment permit; or

(ii) a greenhouse gas holding lease; or

(iii) a greenhouse gas injection licence; or

(iv) a greenhouse gas search authority; or

(v) a petroleum exploration permit; or

(vi) a petroleum retention lease; or

(vii) a petroleum production licence; or

(viii) a petroleum special prospecting authority; and

(d) the licensee mentioned in paragraph (a) is not the registered holder of the permit, lease, licence or authority mentioned in paragraph (c); and

(e) the registered holder of the permit, lease, licence or authority mentioned in para-graph (c) has not given written consent to the giving of the direction.

(2)       Before giving the direction, the Minister must—

(a)       by written notice given to the registered holder of the permit, lease, licence or authority mentioned in subsection (1)(c), give at least 30 days notice of the Minister’s intention to give the direction; and

(b)       give a copy of the notice to such other persons (if any) as the Minister thinks fit. (3)               The notice must—

(a)       set out details of the direction that is proposed to be given; and (b)      invite a person to whom the notice, or a copy of the notice, has been given to make a

written submission to the Minister about the proposal; and (c)  specify a time limit for making that submission.

(4)       In deciding whether to give the direction, the Minister must take into account any submissions made in accordance with the notice.

(5)       However, if the Minister is satisfied that the direction is required to deal with an emergency— (a)       subsections (2), (3) and (4) do not apply to the direction; and (b)  as soon as practicable after the direction is given, the Minister must give a copy of the

direction to the registered holder of the permit, lease, licence or authority mentioned in subsection (1)(c).

404     Compliance with directions

A person who is given a direction under section 401 must not without reasonable excuse contravene the direction. 120 penalty units.

[…]

410     Powers of Minister to protect petroleum discovered in the title area of a pre-commencement petroleum title

(1)       If—

(a)       the licence area of a greenhouse gas injection licence overlaps, in whole or in part— (i)         the permit area of a pre-commencement petroleum exploration permit held by a person other than the registered holder of the greenhouse gas injection licence;

or (ii)   the lease area of a pre-commencement petroleum retention lease held by a

person other than the registered holder of the greenhouse gas injection licence;

or (iii)  the licence area of a pre-commencement petroleum production licence held by

a person other than the registered holder of the greenhouse gas injection

licence; and (b)          petroleum is discovered in the area of overlap; and

(c)        the Minister is satisfied that— (i)    the recovery of the petroleum is commercially viable; or (ii)           the recovery of the petroleum is not commercially viable, but is likely to

become commercially viable at some time in the future; and (d)          the Minister is satisfied that there is a significant risk that any of the operations that are being, or could be, carried on under the greenhouse gas injection licence will have a

significant adverse impact on— (i)             operations to recover the petroleum; or (ii)          the commercial viability of the recovery of the petroleum; and

(e)        the registered holder of the petroleum exploration permit, petroleum retention lease or petroleum production licence, as the case may be, has not agreed, in writing, to the registered holder of the greenhouse gas injection licence carrying on those operations; and

(f)        the Minister is satisfied that it is practicable to eliminate the risk that any of the operations that are being, or could be, carried on under the greenhouse gas injection licence will have a significant adverse impact on— (i) operations to recover the petroleum; or

(ii)        the commercial viability of the recovery of the petroleum— the Minister must, by written notice given to the registered holder of the greenhouse gas injection licence—

(g) give the registered holder of the greenhouse gas injection licence a direction for the purpose of eliminating the risk that operations that are being, or could be, carried on under the greenhouse gas injection licence could have a significant adverse impact on— (i)  operations to recover the petroleum; or

(ii)        the commercial viability of the recovery of the petroleum; or (h) suspend, either— (i)            for a specified period; or (ii)            indefinitely—

any or all of the rights conferred by the greenhouse gas injection licence; or

(i) cancel the greenhouse gas injection licence.

(2)       A direction under subsection (1)(g) may require the licensee to do something—

(a) in the licence area; or

(b) in the offshore area but outside the licence area.

(3)       If—

(a) the licence area of a greenhouse gas injection licence overlaps, in whole or in part—

(i)         the permit area of a pre-commencement petroleum exploration permit held by a person other than the registered holder of the greenhouse gas injection licence; or

(ii)        the lease area of a pre-commencement petroleum retention lease held by a person other than the registered holder of the greenhouse gas injection licence; or

(iii)       the licence area of a pre-commencement petroleum production licence held by a person other than the registered holder of the greenhouse gas injection licence; and

(b)       petroleum is discovered in the area of overlap; and (c)   the Minister is satisfied that—

(i)         the recovery of the petroleum is commercially viable; or (ii)      the recovery of the petroleum is not commercially viable, but is likely to

become commercially viable at some time in the future; and (d)          the Minister is satisfied that there is a significant risk that any of the operations that are being, or could be, carried on under the greenhouse gas injection licence will have a

significant adverse impact on— (i)             operations to recover the petroleum; or (ii)          the commercial viability of the recovery of the petroleum; and

(e)        the registered holder of the petroleum exploration permit, petroleum retention lease or petroleum production licence, as the case may be, has not agreed, in writing, to the registered holder of the greenhouse gas injection licence carrying on those operations; and

(f)        the Minister is satisfied that it is not practicable to eliminate the risk that any of the operations that are being, or could be, carried on under the greenhouse gas injection licence will have a significant adverse impact on— (i) operations to recover the petroleum; or

(ii)        the commercial viability of the recovery of the petroleum— the Minister must, by written notice given to the registered holder of the greenhouse gas injection licence—

(g) give the registered holder of the greenhouse gas injection licence a direction for the purpose of mitigating, managing or remediating the risk that operations that are being, or could be, carried on under the greenhouse gas injection licence could have a significant adverse impact on—

(i)         operations to recover the petroleum; or (ii)            the commercial viability of the recovery of the petroleum; or (h) suspend, either— (i)         for a specified period; or (ii)             indefinitely— any or all of the rights conferred by the greenhouse gas injection licence; or

(i) cancel the greenhouse gas injection licence.

(4)       A direction under subsection (3)(g) may require the licensee to take action—

(a) in the licence area; or

(b) in the offshore area but outside the licence area.

(5)       A direction under this section has effect, and must be complied with, despite—

(a) any previous direction under this section; and

(b) anything in the regulations or the applied provisions.

(6)       A direction under this section prevails over— (a) anything in an approved site plan for an identified greenhouse gas storage formation specified in the greenhouse gas injection licence; or

(b) anything specified in the greenhouse gas injection licence as mentioned in any of section 374(1)(c) to (k)—

to the extent of any inconsistency.

(7)       A direction under this section may make provision in relation to a matter by applying, adopting or incorporating (with or without modification) a code of practice or standard contained in an instrument—

(a)       as in force or existing at the time when the direction takes effect; or

(b)       as in force or existing from time to time— so long as the code of practice or standard is relevant to that matter.

(8)       To avoid doubt, subsection (7) applies to an instrument, whether issued or made in Australia or outside Australia.

(9)       A direction under this section may prohibit the doing of an act or thing— (a) unconditionally; or

(b)       subject to conditions, including conditions requiring the consent or approval of a person specified in the direction.

411     Variation of matters inconsistent with direction to protect petroleum discovered in the title area of a pre-commencement petroleum title

(1)       If—

(a)       a direction under section 410 is in force in relation to a greenhouse gas injection licence; and

(b)       apart from section 410(6), the direction would be inconsistent with a matter specified in the licence as mentioned in any of section 374(1)(c) to (k)—

the Minister may, by written notice given to the licensee, vary the matter for the purposes of removing

that inconsistency. (2)          A variation of a matter under subsection (1) takes effect on the day on which notice of the variation is

published in the Government Gazette.

Note    For publication in the Government Gazette of notice of the variation, see section 754. (3)    The regulations may provide that, if—

(a)       a direction under section 410 is in force in relation to a greenhouse gas injection licence; and

(b)       apart from section 410(6), the direction would be inconsistent with anything in an approved site plan for an identified greenhouse gas storage formation specified in the licence—

then—

(c) the licensee must, within the period ascertained in accordance with the regulations—

(i) prepare a draft variation of the approved site plan for the purposes of removing that inconsistency; and

(ii) give the draft variation to the Minister; and

(d)       the Minister must, by written notice given to the licensee—

(i) approve the variation; or

(ii) refuse to approve the variation; and

(e)        if the Minister approves the variation—the approved site plan is varied accordingly.

412     Consultation—directions to do something outside the licence area

(1)       This section applies if— (a) the Minister proposes to give a direction under section 410 to a greenhouse gas injection licensee; and

(b)       the direction requires the licensee to do something in an area (the action area) in the

offshore area but outside the licence area; and (c)          the action area is, to any extent, the subject of—

(i)         a greenhouse gas assessment permit; or (ii)           a greenhouse gas holding lease; or (iii)         a greenhouse gas injection licence; or (iv)      a greenhouse gas search authority; or (v)  a petroleum exploration permit; or

(vi) a petroleum retention lease; or

(vii) a petroleum production licence; or

(viii) a petroleum special prospecting authority; and

(d)       the licensee mentioned in paragraph (a) is not the registered holder of the permit, lease, licence or authority mentioned in paragraph (c); and

(e)        the registered holder of the permit, lease, licence or authority mentioned in para- graph (c) has not given written consent to the giving of the direction.

(2)       Before giving the direction, the Minister must— (a)         by written notice given to the registered holder of the permit, lease, licence or authority

mentioned in subsection (1)(c), give at least 30 days notice of the Minister’s intention

to give the direction; and (b)            give a copy of the notice to such other persons (if any) as the Minister thinks fit.

(3)       The notice must— (a)           set out details of the direction that is proposed to be given; and (b)           invite a person to whom the notice, or a copy of the notice, has been given to make a

written submission to the Minister about the proposal; and (c)  specify a time limit for making that submission.

(4)       In deciding whether to give the direction, the Minister must take into account any submissions made in accordance with the notice.

(5)       However, if the Minister is satisfied that the direction is required to deal with an emergency— (a)       subsections (2), (3) and (4) do not apply to the direction; and (b)  as soon as practicable after the direction is given, the Minister must give a copy of the

direction to the registered holder of the permit, lease, licence or authority mentioned in subsection (1)(c).

413     Compliance with directions

A person who is given a direction under section 410 must not without reasonable excuse contravene the direction. 120 penalty units.

[…]

494     Co-existence of greenhouse gas titles and petroleum titles

(1)       This Act does not prevent—

(a) a greenhouse gas assessment permit; or

(b) a greenhouse gas holding lease; or

(c) a greenhouse gas injection licence; or

(d) a greenhouse gas search authority; or

(e) a greenhouse gas special authority—

from being in force over the whole or a part of an area in respect of which any of the following is in force—

(f) a petroleum exploration permit;

(g) a petroleum retention lease;

(h) a petroleum production licence;

(i) a petroleum special prospecting authority;

(j) a petroleum access authority.

(2)       This Act does not prevent—

(a) a petroleum exploration permit; or

(b) a petroleum retention lease; or

(c) a petroleum production licence; or

(d) a petroleum special prospecting authority; or

(e) a petroleum access authority—

from being in force over the whole or a part of an area in respect of which any of the following is in force—

(f) a greenhouse gas assessment permit; or

(g) a greenhouse gas holding lease; or

(h) a greenhouse gas injection licence; or

(i) a greenhouse gas search authority; or

(j) a greenhouse gas special authority.

[…]

496     Interference with other rights

(1)       This section applies to the following— (a)             a greenhouse gas assessment permit;

(b)       a greenhouse gas holding lease; (c)             a greenhouse gas injection licence; (d)     a greenhouse gas search authority; (e)            a greenhouse gas special authority; (f)          a greenhouse gas research consent.

(2)       A person (the first person) carrying on activities in the offshore area under the permit, lease, licence, authority or consent must carry on those activities in a manner that does not interfere with—

(a)       navigation; or (b)      fishing; or (c) the conservation of the resources of the sea and seabed; or (d)      any activities of another person being lawfully carried on by way of—

(i)         exploration for, recovery of or conveyance of a mineral (other than petroleum); or

(ii)        construction or operation of a pipeline; or (e)       the enjoyment of native title rights and interests (within the meaning of the Native Title

Act 1993 of the Commonwealth)— to a greater extent than is necessary for the reasonable exercise of the rights and performance of the

duties of the first person. 120 penalty units.

Preferential rights between CCS operators

Summary

The Victorian Offshore Act provides only for holders of existing greenhouse gas assessment permits or holding leases to apply for greenhouse injection licences in respect of identified greenhouse gas formation within the relevant title areas (see sections 379 and 392 respectively).

These parties therefore effectively have preference in applying for greenhouse gas injection licences within their respective title areas.

Article/Section No.

Section 379
Section 392

Instrument Text

379     Application for greenhouse gas injection licence by greenhouse gas assessment permittee or greenhouse gas holding lessee

(1)       This section applies if— (a) a greenhouse gas assessment permit or greenhouse gas holding lease is in force; and (b)      one or more identified greenhouse gas storage formations are wholly situated in the

permit area or lease area. (2)           If a single identified greenhouse gas storage formation extends to—

(a)       only one block in the permit area or lease area; or

(b) 2 or more blocks in the permit area or lease area— the permittee or lessee may apply to the Minister for the grant of a greenhouse gas injection licence over the block or blocks to which the identified greenhouse gas storage formation extends.

(3)          If—

(a)       2 or more identified greenhouse gas storage formations, when considered together, extend to only one block in the permit area or lease area; and

(b)       a vertical line would not pass through a point in each of those identified greenhouse gas storage formations—

the permittee or lessee may apply to the Minister for the grant of a greenhouse gas injection licence over

the block to which the identified greenhouse gas storage formations extend. (4)        If—

(a)       2 or more identified greenhouse gas storage formations, when considered together, extend to—

(i)         only one block in the permit area or lease area; or

(ii)        2 or more blocks in the permit area or lease area; and (b)          a vertical line would pass through a point in each of those identified greenhouse gas

storage formations— the permittee or lessee may apply to the Minister for the grant of a greenhouse gas injection licence over the block or blocks to which the identified greenhouse gas storage formations, when considered together, extend.

(5)          If—

(a)       2 or more identified greenhouse gas storage formations, when considered together, extend to 2 or more blocks in the permit area or lease area; and

(b)       a vertical line would not pass through a point in each of those identified greenhouse gas storage formations; and

(c)        for each identified greenhouse gas storage formation, at least one of the blocks to which the identified greenhouse gas storage formation extends immediately adjoins a block to which the other, or another, of those identified greenhouse gas storage formations extends—

the permittee or lessee may apply to the Minister for the grant of a greenhouse gas injection licence over

the blocks to which the identified greenhouse gas storage formations, when considered together, extend. (6)                For the purposes of subsection (5), a block immediately adjoins another block if the graticular section that constitutes or includes that block and the graticular section that constitutes or includes that other block—

(a) have a side in common; or

(b)       are joined together at one point only. (7)  If a greenhouse gas holding lease was granted under section 360 (or was granted by way of renewal of

such a lease), the lessee is not entitled to make an application under this section unless— (a)           the greenhouse gas holding lease is tied to a petroleum production licence; and (b)    the lessee is the registered holder of the petroleum production licence.

[…]

392     Application for greenhouse gas injection licence by the holder of a petroleum production licence

(1) This section applies if— (a)          a petroleum production licence is in force; and

(b) one or more identified greenhouse gas storage formations are wholly situated in the licence area.

(2)          If—

(a) a single identified greenhouse gas storage formation extends to— (i)         only one block in the licence area; or (ii)               2 or more blocks in the licence area; and

(b) none of the following is in force over the block or blocks to which the identified greenhouse gas storage formation extends—

(i) a greenhouse gas injection licence;

(ii) a greenhouse gas holding lease;

(iii) a greenhouse gas assessment permit—

the petroleum production licensee may apply to the Minister for the grant of a greenhouse gas injection licence over the block or blocks to which the identified greenhouse gas storage formation extends.

(3)       If—

(a) 2 or more identified greenhouse gas storage formations, when considered together, extend to only one block in the licence area; and

(b) a vertical line would not pass through a point in each of those identified greenhouse gas storage formations; and

(c) none of the following is in force over the block to which the identified greenhouse gas storage formations, when considered together, extend—

(i) a greenhouse gas injection licence;

(ii) a greenhouse gas holding lease;

(iii) a greenhouse gas assessment permit—

the petroleum production licensee may apply to the Minister for the grant of a greenhouse gas injection licence over the block to which the identified greenhouse gas storage formations, when considered together, extend.

(4)       If—

(a) 2 or more identified greenhouse gas storage formations, when considered together, extend to— (i)            only one block in the licence area; or (ii)     2 or more blocks in the licence area; and

(b) a vertical line would pass through a point in each of those identified greenhouse gas storage formations; and

(c) none of the following is in force over the block or blocks to which the identified greenhouse gas storage formations, when considered together, extend—

(i) a greenhouse gas injection licence;

(ii) a greenhouse gas holding lease;

(iii) a greenhouse gas assessment permit—

the petroleum production licensee may apply to the Minister for the grant of a greenhouse gas injection licence over the block or blocks to which the identified greenhouse gas storage formations, when considered together, extend.

(5)       If—

(a)       2 or more identified greenhouse gas storage formations, when considered together, extend to 2 or more blocks in the licence area; and

(b)       a vertical line would not pass through a point in each of those identified greenhouse gas storage formations; and

(c)        for each identified greenhouse gas storage formation, at least one of the blocks to which the identified greenhouse gas storage formation extends immediately adjoins a block to which the other, or another, of those identified greenhouse gas storage formations extends; and

(d)       none of the following is in force over the blocks to which the identified greenhouse gas storage formations, when considered together, extend—

(i) a greenhouse gas injection licence;

(ii) a greenhouse gas holding lease;

(iii) a greenhouse gas assessment permit—

the petroleum production licensee may apply to the Minister for the grant of a greenhouse gas injection licence over the blocks to which the identified greenhouse gas storage formations, when considered together, extend.

(6)       For the purposes of subsection (5), a block immediately adjoins another block if the graticular section that constitutes or includes that block and the graticular section that constitutes or includes that other block—

(a)           have a side in common; or (b)          are joined together at one point only.

Third party access to storage sites

Summary

Section 375 of the Victorian Offshore Act provides that regulations made under the Act may establish a regime for third parties to use:
  1. identified greenhouse gas storage formations;
  2. wells, equipment or structures for injection of greenhouse gas substances; and
  3. equipment or structures for processing, compressing or storing greenhouse gas substances prior to injection.

Under section 375(2), all greenhouse gas injection licences are subject to the condition that, if such regulations are made, the licensee will comply with them. This condition does not, however, need to be specified in the licence. 

Article/Section No.

Section 375

Instrument Text

375     Other standard conditions of greenhouse gas injection licences

(1)       A greenhouse gas injection licence is subject to the condition that, if the licensee is given a notice under section 489, the licensee will comply with the notice.

(2)       A greenhouse gas injection licence is subject to the condition that, if— (a)     regulations are made for the purposes of subsection (3); and (b)            those regulations impose requirements on the licensee—

the licensee will comply with those requirements.

(3) The regulations may establish a regime for third party

access to services provided by means of the use of—

(a)       identified greenhouse gas storage formations; or (b)       wells, equipment or structures for use in injecting greenhouse gas substances into

identified greenhouse gas storage formations; or (c)        equipment or structures for use in the processing, compressing or storing of greenhouse

gas substances prior to the injection of the substances into identified greenhouse gas

storage formations.

(4) Despite section 373(2), the conditions in this section do

not need to be specified in the licence.

(5) Subsections (1) and (2) do not limit sections 373(1) or

376(1).

Public participation

Summary

<div> </div> <div> <p>The Victorian Offshore Act requires the Minister to maintain registers of:</p> <ol> <li>formations declared as identified greenhouse gas storage formations under section 318, which register must be accessible via the internet (see section 321); and</li> <li>titles, including greenhouse gas assessment permits, holding leases, injection licences, special authorities and search authorities, which register must be available for inspection at convenient  times subject to payment of a fee (see sections 505 and 550). </li> </ol></div> <p>Section 501 of the Act also enables the making of regulations permitting the Minister to make public the monitoring information regarding stored greenhouse gas substances collected under section 500. </p>

Article/Section No.

Section 321
Section 501
Section 505
Section 550

Instrument Text

321     Register of Identified Greenhouse Gas Storage Formations

(1)           The Minister is to maintain a register, to be known as the Register of Identified Greenhouse Gas Storage Formations, in which the Minister includes particulars of—

(a) declarations made under section 318; and

(b) variations of such declarations; and

(c) revocations of such declarations.

(2)           The Register may be maintained by electronic means. (3)         The Register is to be made available for inspection on the Internet.

[…]

501     Monitoring information may be made publicly available

(1)       This section applies to information that— (a)      is held by the State; and

(b)       relates to the monitoring of the behaviour of a greenhouse gas substance stored in a part of a geological formation, where the part is wholly or partly situated in one or more offshore areas.

(2)           The regulations may authorise the Minister to make the information publicly available.

[…]

505     Register to be kept

The Minister must keep a Register of— (a)           titles; and

(b)           petroleum special prospecting authorities— relating to the offshore area.

[…]

550     Inspection of Register and instruments

(1)       The Minister must ensure that the Register is open for inspection, at all convenient times, by any person on payment of the prescribed fee.

(2)           The Minister must ensure that all instruments, or copies of instruments, subject to inspection under this Chapter are open for inspection, at all convenient times, by any person on payment of the prescribed fee.

III. Permitting storage site exploration, project development and CO2 injection
Controls on site selection

Summary

 

Section 23 of the Victorian Offshore Act specifies that only offshore storage formations that are suitable, with or without engineering enhancements, for the permanent storage of at least 100,000 tonnes of CO2 or another greenhouse gas, injected at a particular point or points over a particular period, are eligible to host COsequestration activities under the Act.

Potential injection sites are limited under section 24 to places that are:

  1. suitable for making a well or wells for greenhouse gas injection into a geological formation; and
  2. wholly within the offshore area.

If a party holding a greenhouse gas assessment permit, holding lease or injection licence, or a petroleum production licence, believes that part of a geological formation covered by the title is an eligible greenhouse storage formation for the purposes of section 23, the party must first apply to the Minister for a declaration under section 318 that the formation is an identified greenhouse gas formation for the purposes of the Act, before applying for a greenhouse gas holding lease or injection licence for the formation (see sections 334 and 379).

If the applicable eligibility and spatial requirements are met, the Minister must declare the formation an identified greenhouse gas formation in accordance with section 319. This declaration may, however, be varied or revoked by the Minister under certain circumstances, under section 320. 

Article/Section No.

Section 23
Section 24
Section 318
Section 319
Section 320

Instrument Text

23        Eligible greenhouse gas storage formation

(1)       For the purposes of this Act, an eligible greenhouse gas storage formation is a part of a geological formation, where that part—

(a) is suitable, without engineering enhancements, for the permanent storage of a particular amount of a particular greenhouse gas substance injected at a particular point or points into that part over a particular period; or

(b)       is suitable, with engineering enhancements, for the permanent storage of a particular amount of a particular greenhouse gas substance injected at a particular point or points into that part over a particular period.

(2)       An amount referred to in subsection (1)(a) or (b) must be at least 100 000 tonnes. (3)            For the purposes of this Act, the spatial extent of an eligible greenhouse gas storage formation is the

expected migration pathway or pathways, over the period— (a)          beginning at the start of the particular period referred to in whichever of subsec-

tion (1)(a) or (b) is applicable; and (b)       ending at the notional site closing certificate time—

of the particular amount of the particular greenhouse gas substance injected as mentioned in whichever

of subsection (1)(a) or (b) is applicable. (4)           In determining the spatial extent of an eligible greenhouse gas storage formation, regard must be had

to—

(a)       the fundamental suitability determinants; and

(b)       such other matters as are relevant. (5)       The regulations may provide that the expected migration pathway or pathways are to be ascertained on

the basis of— (a)      one or more assumptions (if any) specified in the regulations; and (b)               a level of probability specified in the regulations; and (c)   a methodology (if any) specified in the regulations.

(6)       For the purposes of the application of this section to a part of a geological formation covered by subsection (1)(a), the notional site closing certificate time is worked out as follows—

(a)       assume that the particular amount of the particular greenhouse gas substance referred to in that paragraph was injected at the particular point or points referred to in that paragraph over the particular period referred to in that paragraph;

(b)       assume that, throughout that period, that part was an identified greenhouse gas storage formation;

(c)        assume that, throughout that period, operations for the injection of the greenhouse gas substance into that part—

(i)         were authorised by a greenhouse gas injection licence; and

(ii)        complied with the requirements of this Act and the regulations; (d)      assume that, at the end of that period, operations for the injection of the greenhouse gas

substance into that part ceased; (e)            estimate the earliest time after the end of that period when the Minister would be in a

position to issue a site closing certificate in relation to the identified greenhouse gas

storage formation; (f)           that time is the notional site closing certificate time.

(7)       For the purposes of the application of this section to a part of a geological formation covered by subsection (1)(b), the notional site closing certificate time is worked out as follows—

(a)       assume that the engineering enhancements referred to in that paragraph had been made; (b)              assume that the particular amount of the particular greenhouse gas substance referred to in that paragraph was injected at the particular point or points referred to in that

paragraph over the particular period referred to in that paragraph; (c)             assume that, throughout that period, that part was an identified greenhouse gas storage

formation; (d)            assume that, throughout that period, operations for the injection of the greenhouse gas

substance into that part— (i)           were authorised by a greenhouse gas injection licence; and (ii)   complied with the requirements of this Act and the regulations;

(e)        assume that, at the end of that period, operations for the injection of the greenhouse gas substance into that part ceased;

(f) estimate the earliest time after the end of that period when the Minister would be in a position to issue a site closing certificate in relation to the identified greenhouse gas storage formation;

(g)        that time is the notional site closing certificate time. (8)           For the purposes of this Act, the following are the fundamental suitability determinants of an eligible

greenhouse gas storage formation— (a)    the particular amount referred to in whichever of subsection (1)(a) or (b) is applicable; (b)     the particular greenhouse gas substance referred to in whichever of subsection (1)(a) or

(b) is applicable; (c)  the particular point or points referred to in whichever of subsection (1)(a) or (b) is

applicable; (d)           the particular period referred to in whichever of subsection (1)(a) or (b) is applicable; (e)              if subsection (1)(b) is applicable—the engineering enhancements referred to in that

paragraph; (f)            the effective sealing feature, attribute or mechanism that enables the permanent storage

referred to in whichever of subsection (1)(a) or (b) is applicable.

24        Potential greenhouse gas injection site

For the purposes of this Act, a potential greenhouse gas injection site is a place that— (a)              is a suitable place to make a well or wells to inject a greenhouse gas substance into a

part of a geological formation; and (b)           is wholly situated in the offshore area.

[…]

318     Declaration of identified greenhouse gas storage formation

(1)       If—

(a)       an application is made under section 315 in relation to a part of a geological formation; and

(b)       the Minister is satisfied that, using the fundamental suitability determinants set out in the application—

(i) that part is an eligible greenhouse gas storage formation; and

(ii)        the estimate of the spatial extent set out in the application is a reasonable estimate of the spatial extent of the eligible greenhouse gas storage formation—

the Minister must, by writing— (c) declare that part to be an identified greenhouse gas storage formation for the purposes

of this Act; and (d)   declare that, for the purposes of this Act, the spatial extent of the identified greenhouse

gas storage formation is the spatial extent estimated in the application; and (e)        declare that the fundamental suitability determinants specified in the application are the fundamental suitability determinants of the identified greenhouse gas storage forma-

tion for the purposes of this Act. (2)           A declaration under subsection (1)(d) must set out the estimate of the spatial extent specified in the

application. (3)          A declaration under subsection (1)(e) must set out the fundamental suitability determinants specified in

the application. (4)   A copy of a declaration under subsection (1) must be published in the Government Gazette. (5)                If—

(a)       an application is made under section 315 in relation to a part of a geological formation; and

(b)       the Minister is not required by subsection (1) to make declarations under that subsection in relation to that part—

the Minister must, by written notice given to the applicant, refuse to declare that part to be an identified greenhouse gas storage formation.

319     Variation of declaration of identified greenhouse gas storage formation

(1)       This section applies if a declaration is in force under section 318 in relation to a part of a geological formation.

(2)       The Minister may, by writing, vary the declaration. (3)   A variation of the declaration may be made—

(a)       if the part is wholly situated in— (i)            the permit area of a greenhouse gas assessment permit; or (ii)           the lease area of a greenhouse gas holding lease; or (iii)          the licence area of a greenhouse gas injection licence; or (iv)          the licence area of a petroleum production licence; or (v)     the lease area of a petroleum retention lease— on the application of the registered holder of the permit, lease or licence; or

(b) on the Minister’s own initiative. (4)             An application for a variation of the declaration must—

(a) set out the proposed variation; and

(b) specify the reasons for the proposed variation.

(5)       In deciding whether to vary the declaration, the Minister must have regard to—

(a) any new information; and

(b) any new analysis; and

(c) any relevant scientific or technological developments; and

(d) such other matters (if any) as the Minister considers relevant.

(6)       Before varying a declaration under subsection (2) on the Minister’s own initiative, the Minister must consult—

(a)       if the part is wholly situated in the permit area of a greenhouse gas assessment permit—the permittee; or

(b)       if the part is wholly situated in the lease area of a greenhouse gas holding lease—the lessee; or

(c) if the part is wholly situated in the licence area of a greenhouse gas injection licence—the licensee; or

(d) if the part is wholly situated in the licence area of a petroleum production licence—the licensee; or

(e) if the part is wholly situated in the lease area of a petroleum retention lease—the lessee.

(7)       A copy of a variation under subsection (2) must be published in the Government Gazette. (8)             If a declaration in force under section 318 is varied, a reference in this Act to the declaration is a

reference to the declaration as varied.

320     Revocation of declaration of identified greenhouse gas storage formation

(1)       This section applies if a declaration is in force under section 318 in relation to a part of a geological formation.

(2)       The Minister may revoke the declaration if the Minister is satisfied that, using any set of fundamental suitability determinants, the part is not an eligible greenhouse gas storage formation.

(3)       A copy of a revocation under subsection (2) must be published in the Government Gazette. (4)          Before revoking a declaration under subsection (2), the Minister must consult—

(a)       if the part is wholly situated in the permit area of a greenhouse gas assessment permit—the permittee; or

(b)       if the part is wholly situated in the lease area of a greenhouse gas holding lease—the lessee; or

(c)        if the part is wholly situated in the licence area of a greenhouse gas injection licence—the licensee; or

(d)       if the part is wholly situated in the licence area of a petroleum production licence—the licensee; or

(e)        if the part is wholly situated in the lease area of a petroleum retention lease—the lessee. (5) If the Minister proposes to revoke a declaration under subsection (2), the Minister must consider

whether the Minister should instead vary the declaration under section 319.

Environmental protection and impact assessment

Summary

 

The Victorian Offshore Act includes a number of environmental protection mechanisms, linked mainly to site closure and remediation following the cessation of injection.

Section 422 provides that the Minister may refuse to issue a pre-certificate notice for an identified greenhouse gas storage formation if the Minister is satisfied that there is a significant risk that an injected greenhouse gas will have a significant adverse impact on, among other things, the environment or human health or safety.

Division 2 of Part 6.4 of the Act empowers the Minister to give remedial directions to greenhouse gas titleholders or former greenhouse gas titleholders in relation to:

  1. the removal of property from the site;
  2. the plugging or closing of wells;
  3. the conservation and protection of natural resources;  
  4. the making good of damage to the seabed or subsoil; and
  5. eliminating, mitigating, managing or remediating risks of significant adverse impact on the environment or human health or safety.

Failure to comply with such a direction is in each case subject to penalty, and if the recipient of the direction does not comply with it, the Minister may do any or all of the things required to be done under the direction, including by removing and disposing of property and recovering its costs from the proceeds of any sale (see sections 644 and 645).

 

In addition, section 61 explicitly states that it is the intention of the Victorian Parliament that, in the administration of the Act, regard should be given to the principles of sustainable development. These principles include, among others:

  1. biological diversity should be protected and ecological integrity maintained;
  2. there should be recognition of the need to develop a strong, growing, diversified and

internationally competitive economy that can enhance the capacity for environmental protection;

  1. both long-term and short-term economic, environmental, social and equity considerations should be effectively integrated into decision-making;
  2. if there are threats of serious or irreversible environmental damage, lack of full scientific certainty should not be used as a reason for postponing measures to prevent environmental degradation; and
  3. decision-making should be guided by a careful evaluation to avoid serious or irreversible damage to the environment wherever practicable, and an assessment of the risk-weighted consequences of various options.

Article/Section No.

Section 61
Section 422
Section 639
Section 640
Section 641
Section 642
Section 643
Section 644
Section 645

Instrument Text

61        Principles of sustainable development

(1)       It is the intention of Parliament that in the administration of this Act regard should be given to the principles of sustainable development.

(2)       For the purposes of this Act, the principles of sustainable development are that— (a)            individual and community wellbeing and welfare should be enhanced by following a

path of economic development that safeguards the welfare of future generations; (b)       there should be equity within and between generations; (c)          biological diversity should be protected and ecological integrity maintained; (d)             there should be recognition of the need to develop a strong, growing, diversified and

internationally competitive economy that can enhance the capacity for environmental

protection; (e)            measures to be adopted should be cost-effective and flexible, not disproportionate to the

issues being addressed, including improved valuation, pricing and incentive

mechanisms; (f)        both long-term and short-term economic, environmental, social and equity consider-

ations should be effectively integrated into decision-making; (g)          if there are threats of serious or irreversible environmental damage, lack of full

scientific certainty should not be used as a reason for postponing measures to prevent

environmental degradation; (h)      decision-making should be guided by—

(i)         a careful evaluation to avoid serious or irreversible damage to the environment wherever practicable; and

(ii)        an assessment of the risk-weighted consequences of various options; (i)         key petroleum operations and key greenhouse gas operations should make a positive contribution to regional development and respect the aspirations of the community and

of Indigenous peoples;

(j)        decisions and actions should provide for community involvement in issues that affect them.

[…]

422     Circumstances in which a pre-certificate notice may be refused

(1)       The Minister may refuse to give the applicant a pre-certificate notice in relation to the identified greenhouse gas storage formation if—

(a) the Minister is not satisfied that the greenhouse gas substance injected into the identified greenhouse gas storage formation is behaving as predicted in Part A of the approved site plan for the identified greenhouse gas storage formation; or

(b)

the Minister is satisfied that there is a significant risk that a greenhouse gas substance injected into the identified greenhouse gas storage formation will have a significant adverse impact on— (i)          the conservation or exploitation of natural resources (whether in the offshore

area or elsewhere); or (ii)      the geotechnical integrity of the whole or a part of a geological formation or

geological structure; or (iii)  the environment; or

(iv)      human health or safety. (2) Subsection (1) does not limit the matters to which the Minister may have regard in deciding whether to

refuse to give the applicant a pre-certificate notice.

[…]

Division 2—Greenhouse gas

639     Simplified outline

(1)       This section sets out a simplified outline of this Division.

(2) The Minister may give remedial directions to greenhouse gas titleholders or former greenhouse gas titleholders about the following matters—

(a) the removal of property;

(b) the plugging or closing off of wells;

(c) the conservation and protection of natural resources;

(d) the making good of damage to the seabed or subsoil.

(3)       The Minister may give site closing directions to greenhouse gas injection licensees. (4)           If there is noncompliance with a direction, the Minister may do anything required by the direction to be

done. (5)         If property has not been removed in accordance with a direction, the Minister may direct the owner to

remove or dispose of the property. (6)       This section is intended only as a guide to readers as to the general scheme and effect of this Division.

640     Remedial directions to current holders of permits, leases and licences

(1)       This section applies to— (a)            a greenhouse gas assessment permit; or

(b)       a greenhouse gas holding lease; or (c)        a greenhouse gas injection licence, if no operations for the injection of a greenhouse

gas substance into an identified greenhouse gas storage formation have been carried on

under the licence. (2)            The Minister may, by written notice given to the registered holder of the permit, lease or licence, direct the holder to do any or all of the following things on or before the applicable date— (a)           to—

(i)         remove, or cause to be removed, from the title area all property brought into that area by any person engaged or concerned in the operations authorised by the permit, lease or licence; or

(ii)        make arrangements that are satisfactory to the Minister in relation to that property—

(b)       to plug or close off, to the satisfaction of the Minister, all wells made in the title area by any person engaged or concerned in those operations;

(c)        to provide, to the satisfaction of the Minister, for the conservation and protection of the natural resources in the title area;

(d) to make good, to the satisfaction of the Minister, any damage to the seabed or subsoil in the title area caused by any person engaged or concerned in those operations.

Notes

1 For applicable date and title area, see subsection (6). 2 For variation and revocation, see section 41A of the Interpretation of Legislation Act 1984. (3)         Subsection (2)(c) has effect subject to—

(a) Chapter 3; and

(b) this Chapter; and

(c) the regulations.

(4)       In attaining a state of satisfaction for the purposes of subsection (2)(b), the Minister must have regard to the principle that plugging or closing off wells should be carried out in a way that minimises damage to the petroleum-bearing qualities of geological formations.

(5) A person who is given a direction under subsection (2) must not without reasonable excuse contravene the direction. 120 penalty units.

(6) For the purposes of this section, the table has effect—

[INSERT]

(7)       A notice under subsection (2) need not identify the applicable date as a particular calendar date.

641     Site closing directions to current holders of greenhouse gas injection licences

(1)       This section applies if— (a) an identified greenhouse gas storage formation is specified in a greenhouse gas injection

licence; and (b)          operations for the injection of a greenhouse gas substance into the identified greenhouse

gas storage formation have been carried on under the licence; and (c)             the Minister is satisfied that operations for the injection of a greenhouse gas substance

into the identified greenhouse gas storage formation have ceased; and (d)     any of the following conditions is satisfied—

(i)         an application has been made for a site closing certificate in relation to the identified greenhouse gas storage formation;

(ii)        the licensee has breached the requirement imposed by section 415(1) to make an application for a site closing certificate in relation to the identified green- house gas storage formation;

(iii)       the licensee has not complied with a direction under section 416(1) to make an application for a site closing certificate in relation to the identified greenhouse gas storage formation.

(2) The Minister may, by written notice given to the registered holder of the licence, direct the holder to do any or all of the following things within the period specified in the notice—

(a)       to— (i)            remove, or cause to be removed, from the licence area all property brought into

that area by any person engaged or concerned in the operations authorised by

the licence; or (ii)       make arrangements that are satisfactory to the Minister in relation to that

property; (b)  to plug or close off, to the satisfaction of the Minister, all wells made in the licence

area, whether or not those wells were made by a person engaged or concerned in those

operations; (c)           to provide, to the satisfaction of the Minister, for the conservation and protection of the

natural resources in the licence area; (d)   to make good, to the satisfaction of the Minister, any damage to the seabed or subsoil in

the licence area (whether or not caused by any person engaged or concerned in those

operations); (e)          to carry out such operations as are specified in the notice for the monitoring of the

behaviour of a greenhouse gas substance stored in the identified greenhouse gas storage

formation concerned; (f)     to undertake such activities as are specified in the notice for the purpose of—

(i) eliminating; or

(ii)        mitigating; or (iii)       managing; or (iv)      remediating— the risk that a greenhouse gas substance injected into the identified greenhouse gas storage formation will have a significant adverse impact on—

(v)       navigation; or (vi)     fishing; or (vii)           any activities being lawfully carried on, or that could be lawfully carried on, by

way of the construction or operation of a pipeline; or (viii)        the enjoyment of native title rights (within the meaning of the Native Title Act

1993 of the Commonwealth); or (ix)         the conservation or exploitation of natural resources (whether in the offshore

area or elsewhere); or (x)     the geotechnical integrity of the whole or a part of a geological formation or

geological structure; or (xi)  the environment; or

(xii)     human health or safety; (g) to undertake such activities as are specified in the notice for the purpose of—

(i)         ensuring; or (ii)           increasing the likelihood— that a greenhouse gas substance injected into the identified greenhouse gas storage formation will behave as predicted in Part A of the approved site plan for the identified greenhouse gas storage formation.

Note    For variation and revocation, see section 41A of the Interpretation of Legislation Act 1984. (3)       The period specified in the notice must be reasonable. (4)        Subsection (2)(c) has effect subject to—

(a)       Chapter 3; and (b)    this Chapter; and (c)             the regulations.

(5)       Subsection (2)(a), (b), (c), (d) and (e) do not limit subsection (2)(f) or (g). (6)   In attaining a state of satisfaction for the purposes of subsection (2)(b), the Minister must have regard to

the principle that plugging or closing off wells should be carried out in a way that minimises damage to

the petroleum-bearing qualities of geological formations. (7)    A subsection (2)(f) or (g) direction may require the registered holder of the licence to do something—

(a)       in the licence area; or

(b)       in the offshore area but outside the licence area. (8)       A person who is given a direction under subsection (2) must not without reasonable excuse contravene

the direction.

120 penalty units. (9)           To avoid doubt, the powers conferred on the Minister by this section do not limit the powers conferred

on the Minister by any other provision of this Act.

642     Consultation—directions to do something outside the licence area

(1)       This section applies if— (a) the Minister proposes to give a direction under section 641 to a greenhouse gas

injection licensee; and (b)    the direction requires the licensee to do something in an area (the action area) in the

offshore area but outside the licence area; and (c)          the action area is, to any extent, the subject of—

(i) a greenhouse gas assessment permit; or (ii)                a greenhouse gas holding lease; or (iii)            a greenhouse gas injection licence; or (iv) a greenhouse gas search authority; or

(v) a petroleum exploration permit; or

(vi) a petroleum retention lease; or

(vii) a petroleum production licence; or

(viii) a petroleum special prospecting authority; and

(d) the licensee mentioned in paragraph (a) is not the registered holder of the permit, lease, licence or authority mentioned in paragraph (c); and

(e) the registered holder of the permit, lease, licence or authority mentioned in para-graph (c) has not given written consent to the giving of the direction.

(2)       Before giving the direction, the Minister must—

(a)       by written notice given to the registered holder of the permit, lease, licence or authority mentioned in subsection (1)(c), give at least 30 days notice of the Minister’s intention to give the direction; and

(b)       give a copy of the notice to such other persons (if any) as the Minister thinks fit. (3)               The notice must—

(a)       set out details of the direction that is proposed to be given; and (b)      invite a person to whom the notice, or a copy of the notice, has been given to make a

written submission to the Minister about the proposal; and (c)  specify a time limit for making that submission.

(4)       In deciding whether to give the direction, the Minister must take into account any submissions made in accordance with the notice.

(5)       However, if the Minister is satisfied that the direction is required to deal with an emergency— (a)       subsections (2), (3) and (4) do not apply to the direction; and (b)  as soon as practicable after the direction is given, the Minister must give a copy of the

direction to the registered holder of the permit, lease, licence or authority mentioned in subsection (1)(c).

643     Remedial directions to former holders of permits, leases, licences and authorities etc.

(1) This section applies if an event specified in the table has happened—

[INSERT]

(2) The Minister may, by written notice given to the person who was, or is, as the case may be, the registered holder of the permit, lease, licence or authority, direct the person to do any or all of the following things within the period specified in the notice—

(a)       to— (i)            remove, or cause to be removed, from the vacated area all property brought

into that area by any person engaged or concerned in the operations authorised

by the permit, lease, licence or authority; or

(ii) make arrangements that are satisfactory to the Minister in relation to that property;

(b)       to plug or close off, to the satisfaction of the Minister, all wells made in the vacated area by any person engaged or concerned in those operations;

(c)        to provide, to the satisfaction of the Minister, for the conservation and protection of the natural resources in the vacated area;

(d)       to make good, to the satisfaction of the Minister, any damage to the seabed or subsoil in the vacated area caused by any person engaged or concerned in those operations.

(3)       The period specified in the notice must be reasonable. (4)          Subsection (2)(c) has effect subject to—

(a)       Chapter 3; and (b)    this Chapter; and (c)             the regulations.

(5)       In attaining a state of satisfaction for the purposes of subsection (2)(b), the Minister must have regard to the principle that plugging or closing off wells should be carried out in a way that minimises damage to the petroleum-bearing qualities of geological formations.

(6)       A person who is given a direction under subsection (2) must not without reasonable excuse contravene the direction.

120 penalty units.

644     Minister may take action if a direction has not been complied with

(1)       This section applies if a direction is given under section 641 or 643. (2)           If—

(a)       a direction under section 641 has not been complied with; or (b)          an arrangement under section 641 has not been carried out in relation to the licence

area; or (c)     a direction under section 643 has not been complied with in relation to the vacated

area; or (d)     an arrangement under section 643 has not been carried out in relation to the vacated

area— the Minister may do any or all of the things required by the direction or arrangement to be done.

(3)          If—

(a)       a direction is given under section 641; and (b)      any property brought into the licence area by any person engaged or concerned in the

operations authorised by the licence has not been removed in accordance with— (i)          the direction; or (ii)              an arrangement under section 641 in relation to the licence area—

the Minister may, by written notice published in the Government Gazette, direct the owner or owners of that property to—

(c)        remove the property from the licence area; or

(d)       dispose of the property to the satisfaction of the Minister— within the period specified in the notice.

Note    For sanctions, see section 645. (4)  If—

(a)       a direction is given under section 643; and (b)      any property brought into the vacated area by any person engaged or concerned in the

operations authorised by the permit, lease, licence or authority has not been removed in accordance with— (i)           a direction under section 643 in relation to the vacated area; or (ii)            an arrangement under section 643 in relation to the vacated area—

the Minister may, by written notice published in the Government Gazette, direct the owner or owners of that property to—

(c)        remove the property from the vacated area; or

(d) dispose of the property to the satisfaction of the Minister— within the period specified in the notice.

Note    For sanctions, see section 645. (5)  The period specified in the notice must be reasonable. (6)               If a direction is given under subsection (3) or (4) in relation to property, the Minister must give a copy

of the notice to each person whom the Minister believes to be an owner of the property or of any part of the property.

645     Removal, disposal or sale of property by Minister—noncompliance with a direction

(1)       If a direction under section 644(3) or (4) in relation to property has not been complied with, the Minister may do any or all of the following things—

(a)       in the case of a direction under section 644(3)—remove, in such manner as the Minister thinks fit, any or all of that property from the licence area concerned;

(b)       in the case of a direction under section 644(4)—remove, in such manner as the Minister thinks fit, any or all of that property from the vacated area concerned;

(c)        dispose of, in such manner as the Minister thinks fit, any or all of that property; (d)               if, under section 644(6), a person was given a copy of the notice of the direction—sell, by public auction or otherwise, as the Minister thinks fit, any or all of that property that

belongs, or that the Minister believes to belong, to that person. (2)       The Minister may deduct, from the proceeds of a sale under subsection (1) of property that belongs (or

that the Minister believes to belong) to a particular person, the whole or a part of— (a)      any costs and expenses incurred by the Minister under that subsection in relation to that

property; and (b)       any costs and expenses incurred by the Minister in relation to the doing of any thing

required by a direction under section 641 or 643 to be done by that person; and (c) any fees or amounts payable by that person under this Act, so long as the fee or amount

concerned is due and payable. (3)  The proceeds of a sale of property under subsection (1), less any deductions under subsection (2), are to

be paid to the owner of the property. (4)   If the Minister incurs any costs or expenses under subsection (1) in relation to the removal, disposal or

sale of property, the costs or expenses— (a)         are a debt due by the owner of the property to the State; and (b)      to the extent to which they are not recovered under subsection (2)—are recoverable in a

court of competent jurisdiction. (5)            If the Minister incurs costs or expenses in relation to the doing of anything required by a direction under

section 641 or 643 to be done by a person who is or was the registered holder of a greenhouse gas assessment permit, greenhouse gas holding lease, greenhouse gas injection licence, greenhouse gas search authority or greenhouse gas special authority, the costs or expenses—

(a)       are a debt due by the person to the State; and (b)            to the extent to which they are not recovered under subsection (2)—are recoverable in a

court of competent jurisdiction.

Permitting CO2 injection and storage

Summary

Issue and content of greenhouse gas injection licences

 

It is an offence under section 371 of the Victorian Offshore Act to inject a substance into the seabed or subsoil of the offshore area, or store a substance in such locations, unless:

  1. authorised under a greenhouse gas injection licence; or
  2. otherwise authorised under under the Act or other applicable law or regulation.

 

The holder of a greenhouse gas assessment permit, greenhouse gas holding lease or petroleum production licence may only apply for a greenhouse gas injection licence in respect of a formation following a declaration under section 318 that the formation is an identified greenhouse gas storage formation. 

 

The applicant may be offered the licence if the Minister is satisfied in accordance with section 382 or 383 (as applicable) that, among other things:

  1. the applicant will, within five years of receiving the licence, commence commercial injection and permanent storage of CO2 or another greenhouse gas within the area to be licenced;
  2. any significant risk that the injection and storage activities will have a significant impact on petroleum activities has been addressed in accordance with the terms of the Act; and
  3. the applicant has access to adequate technical and financial resources.

 

Under section 389, once issued, a greenhouse gas injection licence replaces the greenhouse gas assessment permit or holding lease which previously applied in respect of the relevant storage formation(s).

 

Section 372 specifies the rights conferred under greenhouse gas injection licences, which include (subject to licence conditions) the right to:

  1. inject and permanently store CO2 or another a greenhouse gas into an identified greenhouse gas storage formation (as defined in section 318*) within the licence area;
  2. explore in the licence area for potential CO2 storage formations and injection sites;
  3. inject and store CO2 in a potential storage formation, on an appraisal basis,
  4. inject and store air, petroleum and water in a potential storage formation, for the purposes of exploration;
  5. subject to obtaining the Minister’s consent, recover petroleum in the licence area in order to appraise a petroleum discovery incidental to the exploration (although any petroleum recovered will not become the property of the permit holder).

 

Greenhouse gas injection licences are in each case subject to the following conditions under section 374:

  1. only greenhouse gases specifically authorised in the licence may be injected and stored;
  2. injection may only be undertaken using  wells located within the licence area and specified in the licence; and
  3. formations for injection and storage must be wholly within the licence area, and specified in the licence.

 

Greenhouse gas injection licences will be subject to further conditions under sections 375 and 376, for example in relation to financial security.

 

Subject to cancellation or surrender (as discussed below), under section 377 greenhouse gas injection licences remain valid indefinitely.

 

Surrender of injection licences

 

A holder of a greenhouse gas injection licence may apply to the Minister under section 473 to surrender the licence.

 

Under section 474, the Minister may consent (and must not unreasonably refuse) to the surrender if the licence holder has:

  1. paid all fees and amounts payable in respect of the licence;
  2. complied with the conditions to which the licence is subject, and with the provisions of the Act and any regulations;
  3. removed all property brought into the surrender area;
  4. satisfactorily plugged or closed off all wells in the surrender area;
  5. satisfactorily provided for the conservation and protection of the natural resources in the surrender area;
  6. made good any damage to the seabed or subsoil in the surrender area; and
  7. obtained a site closing certificate for each identified greenhouse gas storage formation specified covered by the licence to be surrendered.

 

If the Minister consents to the surrender, the licence holder may then confirm the surrender by written notice to the Minister, in which case under section 478 the surrender will take effect upon its publication in the Government Gazette.

 

Cancellation and termination of injection licences

 

Under section 482, the Minister may, subject to certain notice and consultation requirements, cancel a greenhouse gas injection licence for the following reasons (set out in section 481):

  1. the licence holder has not complied with a condition of the licence;
  2. the licence holder has not complied with a direction given by the Minister;
  3. the licence holder has not complied with a provision of the Act or any regulations;
  4. the licence holder has not paid an amount due in respect of the licence; or
  5. a declaration of a storage formation as an identified greenhouse gas storage formation is revoked under section 320*.

 

In addition, greenhouse gas injection licences may be terminated by the Minister under section 378 if no greenhouse gas has been injected into the storage formation(s) in the licence area for a continuous period of five years or more.

Article/Section No.

Section 370
Section 371
Section 372
Section 373
Section 374
Section 375
Section 376
Section 377
Section 378
Section 379
Section 380
Section 381
Section 382
Section 383
Section 384
Section 385
Section 386
Section 387
Section 388
Section 389
Section 390
Section 391
Section 392
Section 393
Section 394
Section 395
Section 396
Section 397
Section 398
Section 399
Section 400
Section 473
Section 474
Section 475
Section 476
Section 477
Section 478
Section 481
Section 482
Section 483
Section 484
Section 492
Section 493

Instrument Text

PART 3.4—GREENHOUSE GAS INJECTION LICENCES Division 1—General provisions

370     Simplified outline

(1)       This section sets out a simplified outline of this Part. (2) It is an offence to—

(a)       inject a substance into the seabed or subsoil of the offshore area; or (b)         store (whether on a permanent basis or otherwise) a substance in the seabed or subsoil

of the offshore area—

except— (c)   under a greenhouse gas injection licence; or (d)   as otherwise authorised or required by or under this Act or any other law of the

Commonwealth; or (e)         if the injection or storage operations are specified in the regulations.

(3)       This Part provides for the grant of greenhouse gas injection licences over blocks in the offshore area. (4)          A greenhouse gas injection licence authorises the licensee to carry out operations for the injection and permanent storage of greenhouse gas substances in the licence area, so long as the greenhouse gas

substance is injected into, or permanently stored in, an identified greenhouse gas storage formation. (5)        There are 2 ways in which a greenhouse gas injection licence can be granted—

(a)       grant of a greenhouse gas injection licence as a result of an application made by a greenhouse gas assessment permittee or greenhouse gas holding lessee;

(b)       grant of a greenhouse gas injection licence as a result of an application made by a petroleum production licensee.

(6)       This section is intended only as a guide to readers as to the general scheme and effect of this Part.

371     Prohibition of unauthorised injection and storage of substances in offshore area

A person must not intentionally carry on operations— (a)         to inject a substance into the seabed or subsoil of the offshore area; or (b)            to store (whether on a permanent basis or otherwise) a substance in the seabed or

subsoil of the offshore area— unless the operations are authorised by a greenhouse gas injection licence or are otherwise authorised or required by or under this Act, a law of the State or the regulations. Imprisonment for 5 years.

372     Rights conferred by greenhouse gas injection licence

(1)       A greenhouse gas injection licence authorises the licensee, in accordance with the conditions (if any) to which the licence is subject—

(a) to inject a greenhouse gas substance into an identified greenhouse gas storage formation that is wholly situated in the licence area, so long as the relevant well is situated in the licence area; and

(b)       to permanently store a greenhouse gas substance in an identified greenhouse gas storage formation that is wholly situated in the licence area, so long as the injection of the stored greenhouse gas substance takes place at a well situated in the licence area; and

(c)        to explore in the licence area for a potential greenhouse gas storage formation; and (d)         to explore in the licence area for a potential greenhouse gas injection site; and (e)    to inject, on an appraisal basis, a greenhouse gas substance into a part of a geological

formation, so long as the relevant well is situated in the licence area; and (f)  to store, on an appraisal basis, a greenhouse gas substance in a part of a geological formation, so long as the injection of the stored greenhouse gas substance takes place at

a well situated in the licence area; and (g)      to inject, on an appraisal basis—

(i) air; or

(ii) petroleum;

(iii) or water—

into a part of a geological formation for purposes in connection with the exploration authorised by paragraph (c) or (d), so long as the relevant well is situated in the licence area; and

(h) to store, on an appraisal basis—

(i) air; or

(ii) petroleum;

(iii) or water—

in a part of a geological formation for purposes in connection with the exploration authorised by paragraph (c) or (d), so long as the injection of the stored air, petroleum or water takes place at a well situated in the licence area; and

(i)         with the written consent of the Minister, to recover petroleum in the licence area for the sole purpose of appraising a discovery of petroleum that was made as an incidental consequence of— (i)           the injection authorised by paragraph (a), (e) or (g); or

(ii)        the exploration authorised by paragraph (c) or (d); and (j)         to carry on such operations, and execute such works, in the licence area as are

necessary for those purposes. (2)    The rights conferred on the licensee by subsection (1) are subject to this Act and the regulations. (3)            If petroleum is recovered by the licensee in the licence area as authorised by subsection (1)(i), the

petroleum does not become the property of the licensee. (4)     A greenhouse gas injection licence does not authorise the licensee to make a well outside the licence

area.

373     Conditions of greenhouse gas injection licences

(1)       The Minister may grant a greenhouse gas injection licence subject to whatever conditions the Minister thinks appropriate.

(2)       The conditions (if any) must be specified in the licence. (3)       This section applies subject to section 497.

374     Injection and storage of greenhouse gas substance

(1)       A greenhouse gas injection licence is subject to the condition that the licensee will not— (a) inject a greenhouse gas substance into an identified greenhouse gas storage formation

that is wholly situated in the licence area; or (b)  permanently store a greenhouse gas substance in an identified greenhouse gas storage

formation that is wholly situated in the licence area—

unless— (c)    the identified greenhouse gas storage formation is specified in the licence; and (d)     the greenhouse gas substance is of a kind that is specified in the licence; and (e)           the greenhouse gas substance complies with such requirements (if any) as are specified

in the licence; and

(f)        the origin or origins of the greenhouse gas substance are as specified in the licence; and (g)   the greenhouse gas substance is injected at a potential greenhouse gas injection site or

sites specified in the licence; and (h)          the greenhouse gas substance is injected during a period specified in the licence; and (i)          the sum of—

(i)         the total amount of greenhouse gas substance that has already been injected into the identified greenhouse gas storage formation; and

(ii)        the total amount of greenhouse gas substance that is proposed to be injected into the identified greenhouse gas storage formation—

does not exceed the amount specified in the licence; and (j)     the rate, or range of rates, of injection of the greenhouse gas substance is as specified in

the licence; and (k)   in a case where the fundamental suitability determinants of the identified greenhouse

gas storage formation include particular engineering enhancements—those engineering

enhancements have been made. (2)          The matters specified in the licence as mentioned in subsection (1)(d) to (k) must not be inconsistent

with the fundamental suitability determinants of the identified greenhouse gas storage formation

concerned. (3)            To avoid doubt, 2 or more identified greenhouse gas storage formations may be specified in a

greenhouse gas injection licence as mentioned in subsection (1)(c). (4)            If 2 or more identified greenhouse gas storage formations are specified in a greenhouse gas injection

licence, different matters may be specified in the licence as mentioned in subsection (1)(d) to (j) for

different identified greenhouse gas storage formations. (5)        For the purposes of subsection (1)(f), disregard any incidental greenhouse gas-related substances in

determining the origin of a greenhouse gas substance. (6)          If a greenhouse gas injection licence is granted under section 397 to the registered holder of a petroleum

production licence, the origin or origins specified under subsection (1)(f) of this section must be situated

in the licence area of the petroleum production licence. (7)        If a greenhouse gas injection licence is tied to a petroleum production licence, the origin or origins

specified under subsection (1)(f) of this section must be situated in the licence area of the petroleum

production licence. (8)          The condition mentioned in subsection (1) must be specified in the licence. (9)   Subsection (1) does not limit sections 373 or 376.

375     Other standard conditions of greenhouse gas injection licences

(1)       A greenhouse gas injection licence is subject to the condition that, if the licensee is given a notice under section 489, the licensee will comply with the notice.

(2)       A greenhouse gas injection licence is subject to the condition that, if— (a)     regulations are made for the purposes of subsection (3); and (b)            those regulations impose requirements on the licensee—

the licensee will comply with those requirements. (3)       The regulations may establish a regime for third party access to services provided by means of the use

(a)       identified greenhouse gas storage formations; or (b)       wells, equipment or structures for use in injecting greenhouse gas substances into

identified greenhouse gas storage formations; or (c)        equipment or structures for use in the processing, compressing or storing of greenhouse

gas substances prior to the injection of the substances into identified greenhouse gas

storage formations. (4)         Despite section 373(2), the conditions in this section do not need to be specified in the licence. (5) Subsections (1) and (2) do not limit sections 373(1) or 376(1).

376     Imposition of additional conditions

(1) The Minister may, by written notice given to the registered holder of a greenhouse gas injection licence, vary the licence by imposing one or more conditions to which the licence is subject.

(2)       A variation of a greenhouse gas injection licence under subsection (1) takes effect on the day on which notice of the variation is given to the licensee.

(3)       If—

(a)       a greenhouse gas injection licence is subject to a condition; and

(b)       the condition was imposed under subsection (1)— the Minister may, by written notice given to the licensee, vary or revoke the condition.

(4)       A variation of a greenhouse gas injection licence under subsection (3) takes effect on the day on which notice of the variation is given to the licensee.

(5)       Subsection (4) does not limit section 468.

377     Duration of greenhouse gas injection licence

(1)       A greenhouse gas injection licence remains in force indefinitely. (2)     Subsection (1) has effect subject to this Chapter. Notes 1 For a special rule about when a greenhouse gas injection licence ceases to be in force following the grant of a greenhouse gas holding lease, see section 347.

2 For the termination of a greenhouse gas injection licence if there have been no injection operations for 5 years, see section 378.

3 For the surrender of a greenhouse gas injection licence, see Part 3.10. 4 For the cancellation of a greenhouse gas injection licence, see Part 3.11.

378     Termination of greenhouse gas injection licence if no injection operations for 5 years

(1)       This section applies to a greenhouse gas injection licence if— (a)         both—

(i)         a single identified greenhouse gas storage formation is specified in the licence; and

(ii)        no operations to inject a greenhouse gas substance into the identified green- house gas storage formation have been carried on under the licence at any time during a continuous period of at least 5 years; or

(b)       both— (i)        2 or more identified greenhouse gas storage formations are specified in the

licence; and (ii)          no operations to inject a greenhouse gas substance into any of those identified

greenhouse gas storage formations have been carried on under the licence at

any time during a continuous period of at least 5 years. (2)       The Minister may, by written notice given to the licensee, tell the licensee that the Minister proposes to

terminate the licence after the end of 30 days after the notice is given. (3)      At any time after the end of 30 days after the notice is given to the licensee, the Minister may, by

written notice given to the licensee, terminate the licence. Note For remedial directions following termination, see section 643. (4)           In working out, for the purposes of this section, the period in which no operations to inject a greenhouse

gas substance into an identified greenhouse gas storage formation were carried on under a greenhouse gas injection licence—

(a)       any period in which no such operations were carried on because of circumstances beyond the licensee’s control; and

(b)       any period in which no such operations were carried on because of a suspension under section 410—

must be disregarded. (5)       For the purposes of subsection (4)(a), the failure to obtain a greenhouse gas substance for injection into

an identified greenhouse gas storage formation is not a circumstance beyond the licensee’s control. (6)         The Minister may give a copy of a notice under subsection (2) to such other persons (if any) as the

Minister thinks fit. (7)         A notice under subsection (2) must—

(a)       invite a person to whom the notice, or a copy of the notice, has been given to make a written submission to the Minister about the proposal to terminate the licence; and

(b)       specify a time limit for making that submission. (8)        In deciding whether to terminate the licence, the Minister must take into account any submissions made

in accordance with the notice.

Division 2—Obtaining a greenhouse gas injection licence

Subdivision 1—Application for greenhouse gas injection licence by the holder of a greenhouse gas assessment permit or greenhouse gas holding lease

379     Application for greenhouse gas injection licence by greenhouse gas assessment permittee or greenhouse gas holding lessee

(1)       This section applies if— (a) a greenhouse gas assessment permit or greenhouse gas holding lease is in force; and (b)      one or more identified greenhouse gas storage formations are wholly situated in the

permit area or lease area. (2)           If a single identified greenhouse gas storage formation extends to—

(a)       only one block in the permit area or lease area; or

(b) 2 or more blocks in the permit area or lease area— the permittee or lessee may apply to the Minister for the grant of a greenhouse gas injection licence over the block or blocks to which the identified greenhouse gas storage formation extends.

(3)          If—

(a) 2 or more identified greenhouse gas storage formations, when considered together, extend to only one block in the permit area or lease area; and

(b)       a vertical line would not pass through a point in each of those identified greenhouse gas storage formations—

the permittee or lessee may apply to the Minister for the grant of a greenhouse gas injection licence over

the block to which the identified greenhouse gas storage formations extend. (4)        If—

(a)       2 or more identified greenhouse gas storage formations, when considered together, extend to—

(i)         only one block in the permit area or lease area; or

(ii)        2 or more blocks in the permit area or lease area; and (b)          a vertical line would pass through a point in each of those identified greenhouse gas

storage formations— the permittee or lessee may apply to the Minister for the grant of a greenhouse gas injection licence over the block or blocks to which the identified greenhouse gas storage formations, when considered together, extend.

(5)          If—

(a)       2 or more identified greenhouse gas storage formations, when considered together, extend to 2 or more blocks in the permit area or lease area; and

(b)       a vertical line would not pass through a point in each of those identified greenhouse gas storage formations; and

(c)        for each identified greenhouse gas storage formation, at least one of the blocks to which the identified greenhouse gas storage formation extends immediately adjoins a block to which the other, or another, of those identified greenhouse gas storage formations extends—

the permittee or lessee may apply to the Minister for the grant of a greenhouse gas injection licence over

the blocks to which the identified greenhouse gas storage formations, when considered together, extend. (6)                For the purposes of subsection (5), a block immediately adjoins another block if the graticular section that constitutes or includes that block and the graticular section that constitutes or includes that other block—

(a) have a side in common; or

(b)       are joined together at one point only. (7)  If a greenhouse gas holding lease was granted under section 360 (or was granted by way of renewal of

such a lease), the lessee is not entitled to make an application under this section unless— (a)           the greenhouse gas holding lease is tied to a petroleum production licence; and (b)           the lessee is the registered holder of the petroleum production licence.

380     Applications under section 379

(1)       An application under section 379 must set out, for each identified greenhouse gas storage formation, each of the matters which the applicant seeks to have specified in the licence as mentioned in section 374(1)(d) to (k).

(2)       The matters set out in the application in accordance with subsection (1) must not be inconsistent with the fundamental suitability determinants of the identified greenhouse gas storage formation concerned.

(3)       An application under this section must be accompanied by— (a)         a draft site plan for the identified greenhouse gas storage formation or draft site plans

(1)       If—

Amended to:

(a)       an application for the grant of a greenhouse gas injection licence has been made under section 379 by a greenhouse gas assessment permittee; and

(b)       the Minister is satisfied that, if the greenhouse gas injection licence were granted to the applicant, the applicant will, within 5 years after the grant, commence operations to— (i)      inject a greenhouse gas substance into the identified greenhouse gas storage

for each of the identified greenhouse gas storage formations; and (b) details of the applicant’s proposals for work and expenditure in relation to—

(i)         if there is a single identified greenhouse gas storage formation—the block or blocks, as the case may be, to which the identified greenhouse gas storage formation extends; or

(ii)        if there are 2 or more identified greenhouse gas storage formations—the block or blocks, as the case may be, to which the identified greenhouse gas storage formations, when considered together, extend; and

(c) details of—

(i) the technical qualifications of the applicant and of the applicant’s employees; and

(ii) the technical advice available to the applicant; and

(iii) the financial resources available to the applicant; and

(d)       such other information (if any) as is specified in the regulations.

Notes

1 Part 3.8 contains additional provisions about application procedures. 2 Section 459 requires the application to be accompanied by an application fee. 3 Section 461 enables the Minister to require the applicant to give further information.

381     Variation of applications under section 379

(1)       At any time before an offer document, or a notice of refusal, relating to an application under section 379 is given to the applicant, the applicant may, by written notice given to the Minister, vary the application.

(2)       A variation of an application must be made in the approved manner. (3)       A variation of an application may be made—

(a)       on the applicant’s own initiative; or

(b)       at the request of the Minister. (4)    A variation of an application may set out any additional matters that the applicant wishes to be

considered. (5)           If an application under section 379 is varied, a reference in this Act to the application is a reference to

the application as varied.

382 Offer document for application by permittee

(1)          If—

(a)       an application for the grant of a greenhouse gas injection licence has been made under section 379 by a greenhouse gas assessment permittee; and

(b) the Minister is satisfied that, if the greenhouse gas injection licence were granted to the applicant, the applicant will, within 5 years after the grant, commence operations to— (i)               inject a greenhouse gas substance into the identified greenhouse gas storage formation, or at least one of the identified greenhouse gas storage formations, concerned; and

(ii)        permanently store the greenhouse gas substance in the identified greenhouse gas storage formation, or at least one of the identified greenhouse gas storage formations, concerned; and

(c)        if the Minister is satisfied that there is a significant risk that any of the operations that could be carried on under the greenhouse gas injection licence will have a significant adverse impact on petroleum exploration operations, or petroleum recovery operations, that are being, or could be, carried on under—

(i) an existing post-commencement petroleum exploration permit; or

(ii) an existing post-commencement petroleum retention lease (other than a petro- leum retention lease granted under section 139); or

(iii) a future post-commencement petroleum production licence over the block or any of the blocks to which an existing post-commencement petroleum explora- tion permit, or an existing post-commencement petroleum retention lease (other than a petroleum retention lease granted under section 139), relates—

the Minister is satisfied that the grant of the greenhouse gas injection licence is in the

public interest; and

(d)       if the Minister is satisfied that there is a significant risk that any of the operations that

could be carried on under the greenhouse gas injection licence will have a significant adverse impact on petroleum exploration operations, or petroleum recovery operations, that are being, or could be, carried on under— (i) an existing pre-commencement petroleum title held by a person other than the

applicant; or (ii)         an existing petroleum production licence held by a person other than the

applicant— the Minister is satisfied that—

(iii)       the registered holder of the pre-commencement petroleum title or the petro- leum production licence, as the case may be, has agreed, in writing, to the grant of the greenhouse gas injection licence; and

(iv)      to the extent to which the agreement is a dealing to which Part 4.6 applies—the dealing has been approved under section 528 or is reasonably likely to be approved under that section; and

(v)       to the extent to which the agreement is a dealing to which Part 5.6 would apply if the greenhouse gas injection licence were to come into existence—it is reasonably likely that the dealing would, after the greenhouse gas injection licence comes into existence, be approved under section 585; and

(e)        if— (i) the Minister is satisfied that there is a significant risk that any of the operations

that could be carried on under the greenhouse gas injection licence will have a significant adverse impact on petroleum exploration operations, or petroleum recovery operations, that could be carried on under a future pre-commencement petroleum title over a block or blocks; and

(ii)        the existing pre-commencement petroleum title in force over the block or any of the blocks is held by a person other than the applicant—

the Minister is satisfied that— (iii)  the registered holder of the existing pre-commencement petroleum title has

agreed, in writing, to the grant of the greenhouse gas injection licence; and (iv)          to the extent to which the agreement is a dealing to which Part 4.6 applies—the dealing has been approved under section 528 or is reasonably likely to be

approved under that section; and (v)         to the extent to which the agreement is a dealing to which Part 4.6 would apply

if the future pre-commencement petroleum title were to come into exist- ence—it is reasonably likely that the dealing would, after the future pre- commencement petroleum title comes into existence, be approved under section 528; and

(vi)      to the extent to which the agreement is a dealing to which Part 5.6 would apply if the greenhouse gas injection licence were to come into existence—it is reasonably likely that the dealing would, after the greenhouse gas injection licence comes into existence, be approved under section 585; and

(f)        if— (i) the Minister is satisfied that the area comprised in the block, or any one or

more of the blocks, specified in the application contains petroleum; and (ii)  the block or blocks as to which the Minister is so satisfied are within the licence area of a petroleum production licence, the permit area of a pre- commencement petroleum exploration permit or the lease area of a pre-

commencement petroleum retention lease; and (iii)        the recovery of the petroleum passes the commercial viability test set out in

section 385— the Minister is satisfied that there is no significant risk that any of the operations that could be carried on under the greenhouse gas injection licence will have a significant adverse impact on operations to recover the petroleum; and

(g) the Minister is satisfied that—

(i) the technical qualifications of the applicant and of the applicant’s employees; and

(ii) the technical advice available to the applicant; and

(iii) the financial resources available to the applicant—

are adequate; and

(h)       the Minister is satisfied that the draft site plan that accompanied the application satisfies the criteria specified in the regulations—

the Minister must give the applicant a written notice (called an offer document) telling the applicant that the Minister is prepared to grant the applicant a greenhouse gas injection licence over the block or blocks specified in the application, on the basis that the matters to be specified in the greenhouse gas injection licence as mentioned in section 374(1)(d) to (k) will be in accordance with the application.

(2)       This section has effect subject to section 388.

383     Offer document for application by lessee

(1)       If—

(a)       an application for the grant of a greenhouse gas injection licence has been made under section 379 by a greenhouse gas holding lessee; and

(b)       the Minister is satisfied that, if the greenhouse gas injection licence were granted to the applicant, the applicant will, within 5 years after the grant, commence operations to— (i)      inject a greenhouse gas substance into the identified greenhouse gas storage

formation, or at least one of the identified greenhouse gas storage formations,

concerned; and (ii)    permanently store the greenhouse gas substance in the identified greenhouse

gas storage formation, or at least one of the identified greenhouse gas storage

formations, concerned; and (c)       if the Minister is satisfied that there is a significant risk that any of the operations that

could be carried on under the greenhouse gas injection licence will have a significant adverse impact on petroleum exploration operations, or petroleum recovery operations, that are being, or could be, carried on under— (i) an existing post-commencement petroleum exploration permit; or

(ii)        an existing post-commencement petroleum retention lease (other than a petro- leum retention lease granted under section 139); or

(iii)       a future post-commencement petroleum production licence over the block or any of the blocks to which an existing post-commencement petroleum explora- tion permit, or an existing post-commencement petroleum retention lease (other than a petroleum retention lease granted under section 139), relates—

the Minister is satisfied that the grant of the greenhouse gas injection licence is in the public interest; and

(d)       if the Minister is satisfied that there is a significant risk that any of the operations that could be carried on under the greenhouse gas injection licence will have a significant adverse impact on petroleum exploration operations, or petroleum recovery operations, that are being, or could be, carried on under—

(i)         an existing pre-commencement petroleum title held by a person other than the applicant; or

(ii)        an existing petroleum production licence held by a person other than the applicant—

the Minister is satisfied that— (iii)  the registered holder of the pre-commencement petroleum title or the petro-

leum production licence, as the case may be, has agreed, in writing, to the

grant of the greenhouse gas injection licence; and (iv)    to the extent to which the agreement is a dealing to which Part 4.6 applies—the

dealing has been approved under section 528 or is reasonably likely to be

approved under that section; and (v)         to the extent to which the agreement is a dealing to which Part 5.6 would apply

if the greenhouse gas injection licence were to come into existence—it is reasonably likely that the dealing would, after the greenhouse gas injection licence comes into existence, be approved under section 585; and

(e)        if— (i) the Minister is satisfied that there is a significant risk that any of the operations

that could be carried on under the greenhouse gas injection licence will have a significant adverse impact on petroleum exploration operations, or petroleum recovery operations, that could be carried on under a future pre-commencement petroleum title over a block or blocks; and

(ii)        the existing pre-commencement petroleum title in force over the block or any of the blocks is held by a person other than the applicant—

the Minister is satisfied that— (iii)  the registered holder of the existing pre-commencement petroleum title has

agreed, in writing, to the grant of the greenhouse gas injection licence; and (iv)          to the extent to which the agreement is a dealing to which Part 4.6 applies—the dealing has been approved under section 528 or is reasonably likely to be

approved under that section; and (v)         to the extent to which the agreement is a dealing to which Part 4.6 would apply

if the future pre-commencement petroleum title were to come into exist- ence—it is reasonably likely that the dealing would, after the future pre- commencement petroleum title comes into existence, be approved under section 528; and

(vi)      to the extent to which the agreement is a dealing to which Part 5.6 would apply if the greenhouse gas injection licence were to come into existence—it is reasonably likely that the dealing would, after the greenhouse gas injection licence comes into existence, be approved under section 585; and

(f)        if— (i) the Minister is satisfied that the area comprised in the block, or any one or

more of the blocks, specified in the application contains petroleum; and (ii)  the block or blocks as to which the Minister is so satisfied are within the licence area of a petroleum production licence, the permit area of a pre- commencement petroleum exploration permit or the lease area of a pre-

commencement petroleum retention lease; and (iii)        the recovery of the petroleum passes the commercial viability test set out in

section 385— the Minister is satisfied that there is no significant risk that any of the operations that

could be carried on under the greenhouse gas injection licence will have a significant

adverse impact on operations to recover the petroleum; and (g)               the Minister is satisfied that—

(i) the technical qualifications of the applicant and of the applicant’s employees; and

(ii) the technical advice available to the applicant; and

(iii) the financial resources available to the applicant—

are adequate; and

(h) the Minister is satisfied that the draft site plan that accompanied the application satisfies the criteria specified in the regulations—

the Minister must give the applicant a written notice (called an offer document) telling the applicant that the Minister is prepared to grant the applicant a greenhouse gas injection licence over the block or blocks specified in the application, on the basis that the matters to be specified in the greenhouse gas injection licence as mentioned in section 374(1)(d) to (k) will be in accordance with the application.

(2)       This section has effect subject to section 388.

384     Public interest in grant of greenhouse gas injection licence

(1)       For the purposes of sections 382(1)(c) and 383(1)(c), in considering whether the grant of the greenhouse gas injection licence is in the public interest, the Minister must have regard to—

(a)       whether the registered holder of the existing post-commencement petroleum exploration permit or existing post-commencement petroleum retention lease, as the case may be, has agreed, in writing, to the grant of the greenhouse gas injection licence; and

(b)       if so—the terms of that agreement. (2)      Subsection (1) does not limit the matters to which the Minister may have regard.

385     Commercial viability test

For the purposes of sections 382(1)(f)(iii) and 383(1)(f)(iii), the recovery of petroleum passes the commercial viability test if, and only if, the Minister is satisfied that—

(a)       the recovery is commercially viable; or (b)            the recovery is not commercially viable, but is likely to become commercially viable

within 15 years.

386     Refusal to grant greenhouse gas injection licence

(1)       This section applies if— (a) an application for a greenhouse gas injection licence has been made under section 379;

and (b)            the Minister is not required by section 382 or 383 to give the applicant an offer

document. (2)            The Minister must, by written notice given to the applicant, refuse to grant the applicant a greenhouse

gas injection licence. (3)       This section has effect subject to section 388.

387 Grant of greenhouse gas injection licence

If—

(a)       an applicant has been given an offer document under section 382 or 383; and (b) the applicant has made a request under section 463 in relation to the offer document

within the period applicable under that section; and (c)  if the offer document specified the form and amount of a security to be lodged by the

applicant—the applicant has lodged the security within the period applicable under

section 465— the Minister must grant the applicant a greenhouse gas injection licence over the block or blocks specified in the offer document.

Notes

1 If the applicant does not make a request under section 463 within the period applicable under that section, the application lapses at the end of that period—see section 463(4).

2 If the applicant has not lodged the security within the period applicable under section 465, the application lapses at the end of that period—see section 465.

388     Deferral of decision to grant greenhouse gas injection licence—pending application for post-commencement petroleum exploration permit

(1)       This section applies if— (a) an application for the grant of a greenhouse gas injection licence has been made under

section 379; and (b) when the application for the greenhouse gas injection licence was made, an application

for a post-commencement petroleum exploration permit was being considered by the

Minister; and (c)        the Minister considers that it would be in the public interest to defer taking any action

under section 382, 383 or 386 in relation to the application for the grant of the greenhouse gas injection licence until the application for the post-commencement petroleum exploration permit is finalised.

(2)       The Minister must not take any action under section 382, 383 or 386 in relation to the application for the greenhouse gas injection licence until 24 hours after whichever of the following events happens first—

(a)       the Minister grants the post-commencement petroleum exploration permit to the applicant for the permit;

(b)       the application for the post-commencement petroleum exploration permit lapses; (c)            the Minister refuses to grant the post-commencement petroleum exploration permit to

the applicant for the permit.

389     Greenhouse gas assessment permit or greenhouse gas holding lease ceases to be in force when greenhouse gas injection licence comes into force When a greenhouse gas injection licence under section 387 comes into force in relation to one or more blocks, a greenhouse gas assessment permit or greenhouse gas holding lease ceases to be in force to the extent to which it relates to those blocks.

390     Greenhouse gas assessment permit transfer—transferee to be treated as applicant

(1)       This section applies if a transfer of a greenhouse gas assessment permit is registered under section 572— (a)   after an application has been made under section 379 for the grant of a greenhouse gas injection licence over a block or blocks in relation to which the greenhouse gas

assessment permit is in force; and (b)        before any action has been taken by the Minister under section 382, 383 or 386 in

relation to the application. (2)         After the transfer, sections 379 to 387 and Part 3.8 have effect in relation to the application as if any

reference in those sections and that Part to the applicant were a reference to the transferee.

391     Greenhouse gas holding lease transfer—transferee to be treated as applicant

(1)       This section applies if a transfer of a greenhouse gas holding lease is registered under section 572— (a)             after an application has been made under section 379 for the grant of a greenhouse gas injection licence over a block or blocks in relation to which the greenhouse gas holding

lease is in force; and (b)       before any action has been taken by the Minister under section 382, 383 or 386 in

relation to the application. (2)         After the transfer, sections 379 to 387 and Part 3.8 have effect in relation to the application as if any

reference in those sections and that Part to the applicant were a reference to the transferee.

Subdivision 2—Application for greenhouse gas injection licence by the holder of a petroleum production licence

392     Application for greenhouse gas injection licence by the holder of a petroleum production licence

(1)       This section applies if— (a) a petroleum production licence is in force; and

(2)       If—

(b) one or more identified greenhouse gas storage formations are wholly situated in the licence area.

(a) a single identified greenhouse gas storage formation extends to— (i)         only one block in the licence area; or (ii)               2 or more blocks in the licence area; and

(b) none of the following is in force over the block or blocks to which the identified greenhouse gas storage formation extends—

(i) a greenhouse gas injection licence; a

(ii) greenhouse gas holding lease;

(iii) a greenhouse gas assessment permit—

the petroleum production licensee may apply to the Minister for the grant of a greenhouse gas injection

licence over the block or blocks to which the identified greenhouse gas storage formation extends.

(3)          If—

(a) 2 or more identified greenhouse gas storage formations, when considered together, extend to only one block in the licence area; and

(b) a vertical line would not pass through a point in each of those identified greenhouse gas storage formations; and

(c) none of the following is in force over the block to which the identified greenhouse gas storage formations, when considered together, extend—

(i) a greenhouse gas injection licence; a

(ii) greenhouse gas holding lease;

(iii) a greenhouse gas assessment permit—

the petroleum production licensee may apply to the Minister for the grant of a greenhouse gas injection licence over the block to which the identified greenhouse gas storage formations, when considered together, extend.

(4)          If—

(a) 2 or more identified greenhouse gas storage formations, when considered together, extend to— (i)            only one block in the licence area; or (ii)     2 or more blocks in the licence area; and

(b) a vertical line would pass through a point in each of those identified greenhouse gas storage formations; and
(c) none of the following is in force over the block or blocks to which the identified greenhouse gas storage formations, when considered together, extend—

(i) a greenhouse gas injection licence; a

(ii) greenhouse gas holding lease;

(iii) a greenhouse gas assessment permit—

the petroleum production licensee may apply to the Minister for the grant of a greenhouse gas injection licence over the block or blocks to which the identified greenhouse gas storage formations, when considered together, extend.

(5)          If—

(a)       2 or more identified greenhouse gas storage formations, when considered together, extend to 2 or more blocks in the licence area; and

(b)       a vertical line would not pass through a point in each of those identified greenhouse gas storage formations; and

(c)        for each identified greenhouse gas storage formation, at least one of the blocks to which the identified greenhouse gas storage formation extends immediately adjoins a block to which the other, or another, of those identified greenhouse gas storage formations extends; and

(d) none of the following is in force over the blocks to which the identified greenhouse gas storage formations, when considered together, extend—

(i) a greenhouse gas injection licence; a

(ii) greenhouse gas holding lease;

(iii) a greenhouse gas assessment permit—

the petroleum production licensee may apply to the Minister for the grant of a greenhouse gas injection licence over the blocks to which the identified greenhouse gas storage formations, when considered together, extend.

(6)       For the purposes of subsection (5), a block immediately adjoins another block if the graticular section that constitutes or includes that block and the graticular section that constitutes or includes that other block—

(a)       have a side in common; or (b)        are joined together at one point only.

393     Applications under section 392

(1)       An application under section 392 must set out, for each identified greenhouse gas storage formation, each of the matters which the applicant seeks to have specified in the licence as mentioned in section 374(1)(d) to (k).

(2)       The matters set out in the application in accordance with subsection (1) must not be inconsistent with the fundamental suitability determinants of the identified greenhouse gas storage formation concerned.

(3)       An application under this section must be accompanied by— (a)         a draft site plan for the identified greenhouse gas storage formation or draft site plans

for each of the identified greenhouse gas storage formations; and (b) details of the applicant’s proposals for work and expenditure in relation to—

(i)         if there is a single identified greenhouse gas storage formation—the block or blocks, as the case may be, to which the identified greenhouse gas storage formation extends; or

(ii)        if there are 2 or more identified greenhouse gas storage formations—the block or blocks, as the case may be, to which the identified greenhouse gas storage formations, when considered together, extend; and

(c) details of—

(i) the technical qualifications of the applicant and of the applicant’s employees; and

(ii) the technical advice available to the applicant; and

(iii) the financial resources available to the applicant; and

(d)       such other information (if any) as is specified in the regulations.

Notes

1 Part 3.8 contains additional provisions about application procedures. 2 Section 459 requires the application to be accompanied by an application fee. 3 Section 461 enables the Minister to require the applicant to give further information.

394     Variation of applications under section 392

(1)       At any time before an offer document, or a notice of refusal, relating to an application under section 392 is given to the applicant, the applicant may, by written notice given to the Minister, vary the application.

(2)       A variation of an application must be made in the approved manner. (3)       A variation of an application may be made—

(a)       on the applicant’s own initiative; or

(b)       at the request of the Minister. (4)    A variation of an application may set out any additional matters that the applicant wishes to be

considered. (5)           If an application under section 392 is varied, a reference in this Act to the application is a reference to

the application as varied.

395 Grant of greenhouse gas injection licence—offer document

If—

(a)       an application for a greenhouse gas injection licence has been made under section 392 by the registered holder of a petroleum production licence; and

(b) the Minister is satisfied that, if the greenhouse gas injection licence were granted to the applicant, the applicant will, within 5 years after the grant, commence operations to—

(i)         inject a greenhouse gas substance into the identified greenhouse gas storage formation or formations concerned; and

(ii)        permanently store the greenhouse gas substance in the identified greenhouse gas storage formation or formations concerned; and

(c)        either— (i)      the 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 petroleum production licence; or

(ii)        the 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 petroleum production licence, and that the grant of the greenhouse gas injection licence is in the public interest; and

(d)       if the Minister is satisfied that there is a significant risk that any of the operations that could be carried on under the greenhouse gas injection licence will have a significant adverse impact on petroleum exploration operations, or petroleum recovery operations, that are being, or could be, carried on under—

(i)         an existing post-commencement petroleum exploration permit; or (ii) an existing post-commencement petroleum retention lease (other than a petro-

leum retention lease granted under section 139); or (iii)  a future post-commencement petroleum production licence over the block or

any of the blocks to which an existing post-commencement petroleum explora- tion permit, or an existing post-commencement petroleum retention lease (other than a petroleum retention lease granted under section 139), relates—

the Minister is satisfied that— (iv)  the grant of the greenhouse gas injection licence is in the public interest; or (v)       the registered holder of the petroleum exploration permit or petroleum reten-

tion lease, as the case may be, has agreed, in writing, to the grant of the

greenhouse gas injection licence to the applicant; and (e)          if the Minister is satisfied that there is a significant risk that any of the operations that

could be carried on under the greenhouse gas injection licence will have a significant adverse impact on petroleum exploration operations, or petroleum recovery operations, that are being, or could be, carried on under an existing pre-commencement petroleum title—the Minister is satisfied that the registered holder of the pre-commencement petroleum title has agreed, in writing, to the grant of the greenhouse gas injection licence to the applicant; and

(f)        if— (i) the Minister is satisfied that there is a significant risk that any of the operations

that could be carried on under the greenhouse gas injection licence will have a significant adverse impact on petroleum exploration operations, or petroleum recovery operations, that could be carried on under a future pre-commencement petroleum title over a block or blocks; and

(ii)        a petroleum exploration permit, petroleum retention lease or petroleum produc- tion licence is in force over the block or any of the blocks—

the Minister is satisfied that the registered holder of the petroleum exploration permit, petroleum retention lease or petroleum production licence covered by subparagraph (ii) has agreed, in writing, to the grant of the greenhouse gas injection licence; and

(g)        if the Minister is satisfied that there is a significant risk that any of the operations that could be carried on under the greenhouse gas injection licence will have a significant adverse impact on— (i)            petroleum explorations operations; or

(ii)        petroleum recovery operations— that are being, or could be, carried on under an existing petroleum production licence held by a person other than the applicant—the Minister is satisfied that the registered holder of the petroleum production licence has agreed, in writing, to the grant of the

greenhouse gas injection licence to the applicant; and (h)          the Minister is satisfied that—

(i) the technical qualifications of the applicant and of the applicant’s employees; and

(ii) the technical advice available to the applicant; and

(iii) the financial resources available to the applicant—

are adequate; and

(i)         the Minister is satisfied that the draft site plan that accompanied the application satisfies the criteria specified in the regulations—

the Minister may give the applicant a written notice (called an offer document) telling the applicant that the Minister is prepared to grant the applicant a greenhouse gas injection licence over the block or blocks specified in the application, on the basis that the matters to be specified in the greenhouse gas injection licence as mentioned in section 374(1)(d) to (k) will be in accordance with the application.

396     Refusal to grant greenhouse gas injection licence

(1)       This section applies if— (a) an application for a greenhouse gas injection licence has been made under section 392;

and (b)            the Minister refuses to give the applicant an offer document.

(2)       The Minister must, by written notice given to the applicant, refuse to grant the applicant a greenhouse gas injection licence.

397     Grant of greenhouse gas injection licence

If—

(a)       an applicant has been given an offer document under section 395; and (b)   the applicant has made a request under section 463 in relation to the offer document

within the period applicable under that section; and (c)  if the offer document specified the form and amount of a security to be lodged by the

applicant—the applicant has lodged the security within the period applicable under

section 465— the Minister must grant the applicant a greenhouse gas injection licence over the block or blocks specified in the offer document.

Notes

1 If the applicant does not make a request under section 463 within the period applicable under that section, the application lapses at the end of that period—see section 463(4). 2 If the applicant has not lodged the security within the period applicable under section 465, the application lapses at the end of that period—see section 465.

398     Petroleum production licence transferred—transferee to be treated as applicant

(1)       This section applies if a transfer of a petroleum production licence is registered under section 514— (a)            after an application has been made under section 392 for the grant of a greenhouse gas injection licence over a block or blocks in relation to which the petroleum production

licence is in force; and (b)    before any action has been taken by the Minister under section 395 or 396 in relation to

the application. (2)   After the transfer, sections 392 to 397 and Part 3.8 have effect in relation to the application as if any

reference in those sections and that Part to the applicant were a reference to the transferee.

Division 3—Variations

399     Variation of matters specified in greenhouse gas injection licence—general

(1)       A greenhouse gas injection licensee may apply to the Minister for the variation by the Minister of a matter specified in the licence as mentioned in any of section 374(1)(c) to (k).

Notes

1 Consultation procedures apply—see section 466.

2 Part 3.8 contains additional provisions about application procedures. 3 Section 459 requires the application to be accompanied by an application fee. 4 Section 461 enables the Minister to require the applicant to give further information. (2)   An application under subsection (1) must—

(a)       set out the proposed variation; and

(b)       specify the reasons for the proposed variation. (3)          If an application is made under subsection (1), the Minister may, by written notice given to the

licensee— (a) vary the matter in accordance with the application; or (b)         refuse to vary the matter in accordance with the application.

(4)       If a matter specified in the licence as mentioned in any of section 374(1)(c) to (k) is varied under this section, the varied matter must not be inconsistent with the fundamental suitability determinants of the identified greenhouse gas storage formation concerned.

(5)       A variation of a matter under this section takes effect on the day on which notice of the variation is published in the Government Gazette.

Note    For publication in the Government Gazette of notice of the variation, see section 754.

400     Variation of matters specified in greenhouse gas injection licence—declaration of identified greenhouse gas storage formation varied

(1)       This section applies in relation to a greenhouse gas injection licence if— (a)   a declaration is in force under section 318 in relation to an identified greenhouse gas

storage formation that is wholly situated in the licence area; and (b)   the declaration is varied under section 319; and (c)         apart from this section, a matter specified in the declaration would be inconsistent with

a matter specified in the licence as mentioned in any of section 374(1)(c) to (k). (2) The Minister must, by written notice given to the licensee, vary the matter specified in the licence as

mentioned in any of section 374(1)(c) to (k) for the purposes of removing that inconsistency. (3)    A variation of a matter under this section takes effect on the day on which notice of the variation is

published in the Government Gazette. Note  For publication in the Government Gazette of notice of the variation, see section 754.

[…]

PART 3.10—SURRENDER OF TITLES

Division 1—Surrender of greenhouse gas assessment permits, greenhouse gas holding leases and greenhouse gas injection licences

473     Application for consent to surrender title

(1) The table has effect—

[INSERT]

(2) An application under subsection (1) must be in writing.

474     Consent to surrender title

(1)       This section applies if an application is made under section 473 for a consent. (2)  The Minister may, by written notice given to the applicant—

(a)       give consent; or

(b) refuse to consent. (3)     The Minister may consent to the surrender sought by the application only if—

(a) the registered holder of the permit, lease or licence has paid all fees and amounts payable by the holder under this Act or has made arrangements that are satisfactory to the Minister for the payment of those fees and amounts; and

(b)       the registered holder of the permit, lease or licence has complied with the conditions to which the permit, lease or licence is subject and with the provisions of— (i)       this Chapter; and (ii)             Chapter 5; and

(iii)       Chapter 6; and (iv)   Part 8.1; and (v)        the regulations; and

(c)        the registered holder of the permit, lease or licence has— (i)      to the satisfaction of the Minister, removed or caused to be removed from the

surrender area (defined by section 477) all property brought into the surrender area by any person engaged or concerned in the operations authorised by the permit, lease or licence; or

(ii)        made arrangements that are satisfactory to the Minister in relation to that property; and

(d)       the registered holder of the permit, lease or licence has, to the satisfaction of the Minister, plugged or closed off all wells made in the surrender area by any person engaged or concerned in the operations authorised by the permit, lease or licence; and

(e)        the registered holder of the permit, lease or licence has provided, to the satisfaction of the Minister, for the conservation and protection of the natural resources in the surrender area; and

(f)        the registered holder of the permit, lease or licence has, to the satisfaction of the Minister, made good any damage to the seabed or subsoil in the surrender area caused by any person engaged or concerned in the operations authorised by the permit, lease or licence; and

(g)        in the case of an application for consent to surrender a greenhouse gas injection licence as to all of the blocks in relation to which the licence is in force—a site closing certificate is in force in relation to each identified greenhouse gas storage formation specified in the licence; and

(h)       in the case of an application for consent to surrender a greenhouse gas injection licence as to some of the blocks in relation to which the licence is in force—a site closing certificate is in force in relation to each identified greenhouse gas storage formation that—

(i) is specified in the licence; and (ii) extends to those blocks.

(4)          If—

(a)       the registered holder has complied with the requirements mentioned in subsection (3)(a) to (f); and

(b)       in the case of an application for consent to surrender a greenhouse gas injection licence as to all of the blocks in relation to which the licence is in force—the requirement mentioned in subsection (3)(g) has been met; and

(c) in the case of an application for consent to surrender a greenhouse gas injection licence as to some of the blocks in relation to which the licence is in force—the requirement mentioned in subsection (3)(h) has been met—

the Minister must not unreasonably refuse consent to the surrender.

(5) Subsection (3)(e) has effect subject to—

(a)       this Chapter; and (b)             Chapter 6; and (c)    the regulations.

(6)       In attaining a state of satisfaction for the purposes of subsection (3)(d), the Minister must have regard to the principle that plugging or closing off wells should be carried out in a way that minimises damage to the petroleum-bearing qualities of geological formations.

475     Sufficient grounds for surrender of title

Despite section 474(3), if—

(a) any of—

(i) the conditions to which the permit, lease or licence is subject; or

(ii) the provisions of this Chapter, Chapter 5, Chapter 6 and Part 8.1; or

(iii) the provisions of the regulations—

have not been complied with; and

(b)       the Minister is satisfied that there are sufficient grounds to warrant the giving of consent to the surrender sought by the application—

the Minister may give consent under section 474(2) to the surrender sought by the application.

476     Work-bid greenhouse gas assessment permit—compliance with work condition

For the purposes of section 474, if—

(a) the application for consent relates to a work-bid greenhouse gas assessment permit; and

(b) a condition of the permit requires the registered holder to carry out specified work during a period specified in the permit; and

(c) the application is made during such a period—

the registered holder of the permit is taken not to have complied with the condition unless the holder has completed the work specified for the period mentioned in paragraph (c).

477     Surrender area

For the purposes of section 474, the surrender area for a surrender of a title referred to in column 2 for an item of the table is the area referred to in column 3 for that item of the table—

[INSERT]

478     Surrender of title

(1)       This section applies if the Minister consents under section 474 to— (a)           the surrender of a greenhouse gas assessment permit; or

(b)       the surrender of a greenhouse gas holding lease; or

(c)        the surrender, in whole or in part, of a greenhouse gas injection licence. (2)     The registered holder of the permit, lease or licence may, by written notice given to the Minister,

surrender— (a)          in the case of a permit or lease—the permit or lease; or (b)        in the case of a licence—the whole or the part, as the case may be, of the licence.

(3) The surrender takes effect on the day on which notice of the surrender is published in the Government Gazette.

[…]

PART 3.11—CANCELLATION OF TITLES

Division 1—Cancellation of greenhouse gas assessment permits, greenhouse gas holding leases and greenhouse gas injection licences

481     Grounds for cancellation of title

For the purposes of this Division, each of the following is a ground for cancelling a greenhouse gas assessment permit, greenhouse gas holding lease or greenhouse gas injection licence—

(a)       the registered holder has not complied with a condition to which the permit, lease or licence is subject;

(b)       the registered holder has not complied with a direction given to the holder by the Minister under this Chapter, Chapter 6 or Part 8.1;

(c)        the registered holder has not complied with a provision of— (i)             this Chapter; or

(ii)        Chapter 5; or (iii)       Chapter 6; or (iv)      Part 8.1; or (v)           the regulations;

(d)       the registered holder has not paid an amount payable by the holder under this Act within the period of 90 days after the day on which the amount became payable;

(e)        in the case of a greenhouse gas injection licence— (i)     if a single identified greenhouse gas storage formation is wholly situated in the

licence area—the declaration under section 318 that relates to the identified

greenhouse gas storage formation is revoked under section 320; or (ii)            if 2 or more identified greenhouse gas storage formations are wholly situated in the licence area—each of the declarations under section 318 that relate to those

identified greenhouse gas storage formations is revoked under section 320; (f)          in the case of a greenhouse gas holding lease—

(i)         if a single identified greenhouse gas storage formation is wholly situated in the lease area—the declaration under section 318 that relates to the identified greenhouse gas storage formation is revoked under section 320; or

(ii) if 2 or more identified greenhouse gas storage formations are wholly situated in the lease area—each of the declarations under section 318 that relate to those identified greenhouse gas storage formations is revoked under section 320.

482     Cancellation of title

(1) The table has effect—

[INSERT]

Note    Consultation procedures apply—see section 483. (2)      In exercising a power conferred by subsection (1), the Minister must take into account any action taken

by the registered holder— (a)          to remove the ground of cancellation; or (b)        to prevent the recurrence of similar grounds.

(3)       A cancellation takes effect on the day on which notice of the cancellation is published in the Government Gazette.

483     Consultation

(1)       Before making a decision under section 482(1), the Minister must— (a)         by written notice given to the registered holder, give at least 30 days notice of the

Minister’s intention to make the decision; and (b)           give a copy of the notice to such other persons (if any) as the Minister thinks fit.

(2) The notice must—

(a) set out details of the decision that is proposed to be made; and

(b) set out the reasons for the proposal; and

(c) invite a person to whom the notice, or a copy of the notice, has been given to make a written submission to the Minister about the proposal; and

(d) specify a time limit for making that submission.

(3)       In deciding whether to make the decision, the Minister must take into account any submissions made in accordance with the notice.

484     Cancellation of title not affected by other provisions

(1)       If—

(a)       the registered holder of a greenhouse gas assessment permit, greenhouse gas holding lease or greenhouse gas injection licence has not complied with a provision of— (i)       this Chapter; or (ii)    Chapter 5; or

(iii)       Chapter 6; or (iv)      Part 8.1; or (v)           the regulations; and

(b)       the holder has been convicted of an offence relating to that noncompliance— the Minister may exercise a power of cancellation under section 482(1) on the ground of that noncompliance, even though the holder has been convicted of that offence.

(2)       If—

(a)       a person who was the registered holder of a greenhouse gas assessment permit, greenhouse gas holding lease or greenhouse gas injection licence has not complied with a provision of— (i)       this Chapter; or

(ii)        Chapter 5; or (iii)       Chapter 6; or (iv)      Part 8.1; or (v)           the regulations; and

(b)       the Minister has exercised a power of cancellation under section 482(1) on the ground of that noncompliance—

the person may be convicted of an offence relating to the noncompliance, even though the Minister has

exercised that power of cancellation. (3)        If—

(a)       the registered holder of a greenhouse gas assessment permit, greenhouse gas holding lease or greenhouse gas injection licence has not paid an amount payable by the holder under this Act within the period of 90 days after the day on which the amount became payable; and

(b)       either— (i)      judgment for the amount has been obtained; or (ii)        the amount, or any part of the amount, has been paid or recovered—

the Minister may exercise a power of cancellation under section 482(1) on the ground of that nonpayment, even though—

(c) judgment for the amount has been obtained; or (d)                the amount, or a part of the amount, has been paid or recovered.

(4)          If—

(a)       a person who was the registered holder of a greenhouse gas assessment permit, greenhouse gas holding lease or greenhouse gas injection licence has not paid an amount payable by the person under this Act within the period of 90 days after the day on which the amount became payable; and

(b) the Minister has exercised a power of cancellation under section 482(1) on the ground of that nonpayment—

the person continues to be liable to pay— (c)       that amount; and

(d)       any prescribed late payment penalty relating to that amount— even though the Minister has exercised that power of cancellation.

Division 2—Cancellation of greenhouse gas search authorities

485     Cancellation of greenhouse gas search authority

The Minister may, by written notice given to the registered holder of a greenhouse gas search authority, cancel the greenhouse gas search authority if the holder has breached a condition of the greenhouse gas search authority.

[…]

492     Approved site plans

(1)       The regulations may provide that a greenhouse gas injection licensee must not carry on any operations in relation to an identified greenhouse gas storage formation specified in the licence unless an approved site plan is in force in relation to the formation.

(2)       The regulations may provide that, if an approved site plan is in force in relation to an identified greenhouse gas storage formation specified in a greenhouse gas injection licence, the licensee must comply with the approved site plan.

(3)       The regulations may make provision for the Minister to approve draft site plans. (4)              The regulations may provide that, if the Minister approves a draft site plan, the approved site plan—

(a) comes into force at the time of the approval; and (b)            remains in force—

(i)         if, under the regulations, the Minister withdraws approval of the approved site plan—until the withdrawal; or

(ii)        otherwise—indefinitely. (5) The regulations may make provision for the Minister to withdraw approval of approved site plans.

493     Variation of approved site plans

(1)       The regulations may make provision for and in relation to the variation of approved site plans. (2)    Regulations made for the purposes of subsection (1) may—

(a) require the registered holder of a greenhouse gas injection licence to prepare a draft variation of an approved site plan—

(i) periodically; or

(ii) in such circumstances as are specified in the regulations; or

(iii) when required to do so by the Minister; and

(b)       require the registered holder of a greenhouse gas injection licence to give the draft variation to the Minister; and

(c)        make provision for the Minister to approve the variation; and (d)        provide that, if the Minister approves the variation, the approved site plan is varied

accordingly. (3)         If an approved site plan is varied, a reference in this Act to the approved site plan is a reference to the

approved site plan as varied.

IV. Operating and closing storage facilities
Monitoring, reporting and verification

Summary

Section 500 of the Victorian Offshore Act empowers the Minister to monitor the behaviour of greenhouse gases stored in a part of a geological formation in the offshore area and, where regulations made under section 501 so provide, report this information publicly.

 

The Minister has the power under under section 743 to direct greenhouse gas title holders to:

  1. keep specified accounts, records and other documents;
  2. collect and retain specified cores, cuttings and samples; and
  3. submit specified reports, returns, other documents, cores, cuttings and samples,

in connection with greenhouse gas operations. Failure to comply with such a direction is subject to penalty.

 

Regulations addressing such data and information may also be made under section 744 of the Act, and in particular may require title holders to prepare and submit a data management plan.

 

Finally, under section 414, applications for site closing certificates must include, among other things, the applicant’s suggested approach for the Commonwealth in monitoring the stored greenhouse gas after issuance of the site closure certificate.

  

Article/Section No.

Section 414
Section 500
Section 501
Section 743
Section 744

Instrument Text

Division 7—Site closing certificates

414     Application for site closing certificate

(1)       A greenhouse gas injection licensee may apply to the Minister for a site closing certificate in relation to a particular identified greenhouse gas storage formation specified in the licence.

Notes

1 Part 3.8 contains additional provisions about application procedures. 2 Section 459 requires the application to be accompanied by an application fee. 3 Section 461 enables the Minister to require the applicant to give further information.

(2) An application under this section must be accompanied by— (a)      a written report that sets out—

(i) the applicant’s modelling of the behaviour of the greenhouse gas substance injected into the identified greenhouse gas storage formation; and

(ii) information relevant to that modelling; and

(iii) the applicant’s analysis of that information; and

(b)       a written report that sets out the applicant’s assessment of—

(i)         the behaviour of the greenhouse gas substance injected into the identified greenhouse gas storage formation; and

(ii)        the expected migration pathway or pathways of that greenhouse gas substance; and

(iii)       the short-term consequences of the migration of that greenhouse gas substance; and

(iv) the long-term consequences of the migration of that greenhouse gas substance; and

(c) the applicant’s suggestions for the approach to be taken by the Commonwealth, after the issue of the certificate, to the monitoring of the behaviour of a greenhouse gas substance stored in the identified greenhouse gas storage formation; and

(d) such other information (if any) as is specified in the regulations.

(3)       Subsection (2) does not apply if there have not been any operations for the injection of a greenhouse gas

substance into the identified greenhouse gas storage formation.

 

[…]

500     Minister may monitor the behaviour of a greenhouse gas substance stored in a part of a geological formation

(1)       The Minister may carry out in the offshore area operations for the purposes of monitoring the behaviour of a greenhouse gas substance stored in a part of a geological formation.

(2)       Subsection (1) does not limit the executive power of the Minister.

501     Monitoring information may be made publicly available

(1)       This section applies to information that— (a)      is held by the State; and

(b)       relates to the monitoring of the behaviour of a greenhouse gas substance stored in a part of a geological formation, where the part is wholly or partly situated in one or more offshore areas.

(2) The regulations may authorise the Minister to make the information publicly available.

[…]

Division 2—Data management

743     Direction to keep records

(1)       This section applies if a person is carrying on operations in the offshore area under— (a)      a greenhouse gas assessment permit; or

(b)       a greenhouse gas holding lease; or (c)        a greenhouse gas injection licence; or (d)                a greenhouse gas search authority; or (e)            a greenhouse gas special authority; or (f)  a greenhouse gas research consent.

(2)       The Minister may, by written notice given to the person, direct the person to do any or all of the following things—

(a)       to keep such accounts, records and other documents in connection with those operations as are specified in the notice;

(b)       to collect and retain such cores, cuttings and samples in connection with those operations as are specified in the notice;

(c)        to give to— (i)            the Minister; or

(ii)        a person specified in the notice— in the manner specified in the notice, such reports, returns, other documents, cores, cuttings and samples in connection with those operations as are specified in the notice.

(3)       A person who is given a direction under subsection (2) must not without reasonable excuse contravene the direction.

120 penalty units.

744     Regulations about data management s. 744

(1)       The regulations may make provision for and in relation to— (a)          the keeping of accounts, records and other documents in connection with operations in

the offshore area under— (i)           a greenhouse gas assessment permit; or (ii)           a greenhouse gas holding lease; or (iii)       a greenhouse gas injection licence; or (iv) a greenhouse gas search authority; or (v)  a greenhouse gas special authority; or (vi)         a greenhouse gas research consent; and

(b)       the collection and retention of cores, cuttings and samples in connection with those operations; and

(c)        the giving to the Minister, or a specified person, of reports, returns, other documents, cores, cuttings and samples in connection with those operations.

(2)       In particular, the regulations may establish a scheme that— (a)           applies in relation to operations in the offshore area under—

s. 744

(i)         a greenhouse gas assessment permit; or (ii)           a greenhouse gas holding lease; or (iii)         a greenhouse gas injection licence; or (iv)      a greenhouse gas search authority; or (v)  a greenhouse gas special authority; or (vi)              a greenhouse gas research consent—

held by a person (the holder); and (b)       requires the holder to prepare and submit a plan (a data management plan) that deals

with any or all of the following— (i)                the keeping of accounts, records and other documents in connection with those operations;

(ii)        the collection and retention of cores, cuttings and samples in connection with those operations;

(iii)       the giving to the Minister, or to a person specified in the data management plan, of reports, returns, other documents, cores, cuttings and samples in connection with those operations; and

(c)        empowers the Minister to make decisions about the approval of— (i) a data management plan; and (ii)          variations of a data management plan; and

(d)       requires the holder to comply with an approved data management plan submitted by the holder.

(3)       A scheme referred to in subsection (2) may provide that the holder must not commence the relevant operations unless—

(a)       an approved data management plan is in force; or

(b)       the Minister gives consent to the commencement of those operations. (4)      Subsections (2) and (3) do not limit subsection (1).

(5) A requirement under section 743 is in addition to a requirement under regulations made for the purposes of this section.

Inspections

Summary

Under section 656 of the Victorian Offshore Act, the Minister has the power to appoint greenhouse gas inspectors with the powers specified in section 658, which include the power to:

  1. access any part of the offshore area or any structure, vessel, aircraft or building in an offshore area, the use of which is believed to be connected to exploration, pre-injection processing, injection, storage or transport in offshore CO2 sequestration operations;
  2. inspect and test any equipment the use of which is believed to be connected to any of those operations; and
  3. enter any structure, vessel, aircraft, building or place believed to contain documents relating to any of those operations.

 

Under section 659, inspectors can only exercise the above powers to enter residential premises if the occupier has voluntarily consented to such entry, or otherwise in accordance with a warrant issued under section 662.

 

Obstructing or hindering an inspector in the exercise of the above powers is subject to penalty under section 661.

 

Article/Section No.

Section 655
Section 656
Section 657
Section 658
Section 659
Section 660
Section 661
Section 662
Section 663

Instrument Text

Division 2—Greenhouse gas

655     Simplified outline s. 655

(1)       This section sets out a simplified outline of this Division. (2)      The Minister may appoint greenhouse gas project inspectors, and the greenhouse gas project inspectors

may exercise powers of access, inspection and entry for the purposes of this Act and the regulations. (3)      A person must not interfere with greenhouse gas installations or operations. (4)         This section is intended only as a guide to readers as to the general scheme and effect of this Division.

656     Appointment of greenhouse gas project inspectors s. 656

The Minister may, by writing, appoint a person to be a greenhouse gas project inspector if— (a)     the person is an officer, or employee, of—

(i)         the Commonwealth, the State, another State or a Territory; or

(ii)        an authority of the Commonwealth, the State, another State or a Territory; or (b)  the person is not covered by paragraph (a), but the Minister is satisfied that the person

has the knowledge, skills and experience to be a greenhouse gas project inspector.

657     Identity cards of greenhouse gas project inspectors

(1)       The Minister must issue an identity card to a greenhouse gas project inspector. (2)  An identity card issued under subsection (1) must contain a recent photograph of the greenhouse gas

project inspector. (3)           A person who ceases to be a greenhouse gas project inspector must immediately return the identity card to -

(a)       the Minister; or (b)    if the Minister, by written notice given to the person, specifies another person to whom

the card is to be returned—that other person.

5 penalty units. (4)    Subsection (3) does not apply if the identity card was lost or destroyed.

(5)       A greenhouse gas project inspector must carry the identity card at all times when exercising powers, or performing functions, under this Act or the regulations as a greenhouse gas project inspector.

658     Monitoring powers of greenhouse gas project inspectors s. 658

(1)       For the purposes of this Act and the regulations, a greenhouse gas project inspector may, at all reasonable times and on production of the greenhouse gas project inspector’s identity card, exercise the powers conferred by subsection (2).

(2)           The powers a greenhouse gas project inspector may exercise under this section are as follows— (a)                to have access to any part of the offshore area;

(b)       to have access to any structure, vessel, aircraft or building in the offshore area that the greenhouse gas project inspector has reasonable grounds to believe has been, is being or is to be used in connection with any of the following operations in the offshore area—

(i)         operations relating to exploration for a potential greenhouse gas storage formation or a potential greenhouse gas injection site;

(ii)        operations relating to the injection of a greenhouse gas substance into the seabed or subsoil;

(iii)       operations relating to the storage of a greenhouse gas substance in the seabed or subsoil;

(iv)      operations relating to the processing, compression or pre-injection storage of a greenhouse gas substance;

(v)       operations relating to the preparation of a greenhouse gas substance for transport;

(c)        to inspect and test any equipment that the greenhouse gas project inspector has reasonable grounds to believe has been, is being or is to be used in the offshore area in connection with any of those operations;

(d)       to enter any structure, vessel, aircraft, building or place that is in— (i) the offshore area; or

(ii)        the State— and in which the greenhouse gas project inspector has reasonable grounds to believe there are any documents relating to any of those operations, and to inspect, take extracts from and make copies of any of those documents.

659     Entry into residential premises s. 659

(1)           A greenhouse gas project inspector may exercise powers under section 658(2)(d) to enter residential premises only—

(a) in accordance with a warrant issued under section 662; or (b)             after obtaining the consent of the occupier of the premises.

(2)           If—

(a)       a greenhouse gas project inspector enters residential premises in accordance with a warrant issued under section 662; and

(b)       the occupier of the premises is present at the premises— the greenhouse gas project inspector must make available to the occupier a copy of the warrant or a copy of the form of the warrant.

(3)       Before obtaining the consent of a person as mentioned in subsection (1)(b), a greenhouse gas project inspector must inform the person that the person may refuse consent.

(4)       A consent of a person is not effective for the purposes of subsection (1) unless the consent is voluntary.

660     Facilities and assistance to be provided by occupier or person in charge s. 660

(1)       A greenhouse gas project inspector may direct, orally or in writing, a person who is— (a)       the occupier or person in charge of any building, structure or place referred to in

section 658(2); or (b)            the person in charge of any vessel, aircraft or equipment referred to in that subsection—

to provide the inspector all reasonable facilities and assistance to enable the inspector to effectively

exercise his or her powers under that section. (2) A person who is given a direction under subsection (1) must not without reasonable excuse contravene

the direction. 60 penalty units.

661     Obstructing or hindering a greenhouse gas project inspector s. 661

(1)       A person must not obstruct or hinder a greenhouse gas project inspector in the exercise of the greenhouse gas project inspector’s powers under this Division.

120 penalty units. (2)           Subsection (1) does not apply if the person has a reasonable excuse.

662     Warrants to enter residential premises

(1)       A greenhouse gas project inspector may apply to a magistrate for a warrant authorising the greenhouse gas project inspector, with such assistance as the greenhouse gas project inspector thinks necessary, to exercise the power referred to in section 658(2)(d) in relation to particular residential premises.

(2)       The application must be supported by an information on oath or affirmation that sets out the grounds on which the greenhouse gas project inspector is applying for the warrant.

(3)           If the magistrate is satisfied that there are reasonable grounds for issuing the warrant, the magistrate may issue the warrant authorising the greenhouse gas project inspector and any assistants the inspector thinks necessary to—

(a) enter the residential premises or the part of residential premises named or described in the warrant; and

(b) exercise the power referred to in section 658(2)(d) in those residential premises or that part of the residential premises.

(4)           In addition to any other requirement, a warrant issued under this section must state—

(a) the name of the greenhouse gas project inspector; and

(b) whether the inspection may be carried out at any time or only during specified hours of the day; and

(c) the day on which the warrant ceases to have effect; and

(d) any conditions to which the warrant is subject; and

(e) the purposes for which the warrant is issued.

(5)       The day specified under subsection (4)(c) is not to be more than 7 days after the day on which the

warrant is issued. (6) The purposes specified under subsection (4)(e) must include the identification of the premises in relation

to which the warrant is issued. (7)   A search warrant must be issued in accordance with the Magistrates’ Court Act 1989 and must be in a

form set out in the regulations under that Act. (8)            Subject to any provision to the contrary in this Act, the rules to be observed with respect to search

warrants mentioned in the Magistrates’ Court Act 1989 extend and apply to warrants under this section.

Corrective and remedial measures

Summary

Serious situations

 

A “serious situation” is defined in section 405 of the Victorian Offshore Act to include situations where there is:

  1. leakage or a significant risk of leakage of CO2 from storage formations or in the course of injection;
  2. behaviour or significant risk of behaviour of CO2 other than as predicted;
  3. significant adverse impact on the geotechnical integrity of the storage formation or structure, or significant risk of such impact as a result of CO2 injection; or
  4. unsuitability of the identified greenhouse gas storage formation (with or without engineering enhancements) for the relevant storage activities.

 

Where a serious situation occurs, the Act empowers the Minister under section 406 to direct the licence holder to:

  1. undertake injection or storage operations within the relevant storage formation in a specified manner;
  2. cease or suspend injection at a particular site or into a particular storage formation;
  3. inject a greenhouse gas into the relevant storage formation at a particular site;
  4. undertake specified activities to eliminate, mitigate, manage or remediate the serious situation; or
  5. take or not take any other specified action.

 

Actions specified in a direction may be required to be taken within the licence area or in an offshore area outside the licence area. If, however, the location in which an action is to be taken overlaps with the area covered by a licence, lease or permit held by another party, the Minister must consult with that other party before giving the direction, unless the serious situation is an emergency, in which case this consultation requirement does not apply (see section 408).

 

Under section 409, a person given such a direction must not contravene it without reasonable excuse.

 

Remedial directions

 

Sections 640 and 643 of the Victorian Offshore Act empower the Minister to give written directions to holders of greenhouse gas assessment permits and holding leases, and holders of greenhouse gas injection licences who have not yet commenced injection, requiring them to:

  1. remove all property from the title area;
  2. plug or close off all wells in the title area;
  3. provide for the conservation and protection of natural resources in the title area; and
  4. make good any damage to the seabed or subsoil in the title area.

 

Failure to comply with such a direction is in each case subject to penalty, and if the recipient of the direction does not comply with it, the Minister may do any or all of the things required to be done under the direction, including by removing and disposing of property and recovering its costs from the proceeds of any sale (see sections 644 and 645).

Article/Section No.

Section 405
Section 406
Section 407
Section 408
Section 409
Section 640
Section 643
Section 644
Section 645

Instrument Text

Division 5—Dealing with serious situations

405     Serious situation

(1) For the purposes of this Act, a serious situation exists in relation to an identified greenhouse gas storage formation specified in a greenhouse gas injection licence if—

(a)       a greenhouse gas substance injected into the identified greenhouse gas storage forma- tion—

(i)         has leaked; or (ii)      is leaking— from the identified greenhouse gas storage formation; or

(b)       there is a significant risk that a greenhouse gas substance injected into the identified greenhouse gas storage formation will leak from the identified greenhouse gas storage formation; or

(c)        a greenhouse gas substance— (i)    has leaked; or

(ii)        is leaking—

in the course of being injected into the identified greenhouse gas storage formation; or (d)                there is a significant risk that a greenhouse gas substance will leak in the course of

being injected into the identified greenhouse gas storage formation; or (e)      a greenhouse gas substance injected into the identified greenhouse gas storage forma-

tion— (i) has behaved; or (ii)             is behaving—

otherwise than as predicted in Part A of the approved site plan for the identified

greenhouse gas storage formation; or (f)   there is a significant risk that a greenhouse gas substance injected into the identified

greenhouse gas storage formation will behave otherwise than as predicted in Part A of

the approved site plan for the identified greenhouse gas storage formation; or (g)     either—

(i)         the injection of a greenhouse gas substance into the identified greenhouse gas storage formation; or

(ii)        the storage of a greenhouse gas substance in the identified greenhouse gas storage formation—

has had, or is having, a significant adverse impact on the geotechnical integrity of the

whole or a part of a geological formation or geological structure; or (h)           there is a significant risk that—

(i)         the injection of a greenhouse gas substance into the identified greenhouse gas storage formation; or

(ii)        the storage of a greenhouse gas substance in an identified greenhouse gas storage formation—

will have a significant adverse impact on the geotechnical integrity of the whole or a

part of a geological formation or geological structure; or (i)       the identified greenhouse gas storage formation is not suitable (with or without

engineering enhancements) for the permanent storage of the relevant amount of the relevant greenhouse gas substance injected at the relevant point or points over the relevant period.

(2) For the purposes of subsection (1)(i)— (a)      the relevant amount is the total amount of greenhouse gas substance authorised to be

injected into the identified greenhouse gas storage formation under the licence; and (b)     the relevant greenhouse gas substance is the kind of greenhouse gas substance that is authorised to be injected into the identified greenhouse gas storage formation under the

licence; and (c)          the relevant point or points is the potential greenhouse gas injection site or sites at

which the greenhouse gas substance is authorised to be injected into the identified

greenhouse gas storage formation under the licence; and (d)     the relevant period is the period during which the greenhouse gas substance is

authorised to be injected into the identified greenhouse gas storage formation under the

licence.

Note See section 374(1).

406 Powers of Minister to deal with serious situations

(1) If the Minister is satisfied that a serious situation exists in relation to an identified greenhouse gas storage formation specified in a greenhouse gas injection licence, the Minister may, by written notice given to the licensee, direct the licensee—

(a)       to take all reasonable steps to ensure that operations for the injection of a greenhouse gas substance into the identified greenhouse gas storage formation are carried on in a manner specified in the direction; or

(b)       to take all reasonable steps to ensure that operations for the storage of a greenhouse gas substance in the identified greenhouse gas storage formation are carried on in a manner specified in the direction; or

(c)        to cease or suspend the injection of a greenhouse gas substance at a site or sites specified in the direction; or

(d)       to inject a greenhouse gas substance into the identified greenhouse gas storage formation at a site or sites specified in the direction; or

(e)        to cease or suspend operations for the injection of a greenhouse gas substance into the identified greenhouse gas storage formation; or

(f) to undertake such activities as are specified in the direction for the purpose of— (i)        eliminating; or

(i) mitigating; or

(ii) managing; or

(iii) remediating—

the serious situation; or

(g) to take such action as is specified in the direction; or

(h) not to take such action as is specified in the direction.

(2) A direction under this section may require the licensee to do something—

(a) in the licence area; or

(b) in the offshore area but outside the licence area.

(3)       Subsection (1)(a) to (f) does not limit subsection (1)(g). (4)        Subsection (1)(a) to (f) does not limit subsection (1)(h).

(5) A direction under this section has effect, and must be complied with, despite— (a) any previous direction under this section; and (b) anything in the regulations or the applied provisions.

(6) A direction under this section prevails over— (a) anything in an approved site plan for the identified greenhouse gas storage formation; or (b) anything specified in the licence as mentioned in any of section 374(1)(c) to (k)—

to the extent of any inconsistency.

mitigating; or managing; or remediating—

(7)       A direction under this section may make provision in relation to a matter by applying, adopting or incorporating (with or without modification) a code of practice or standard contained in an instrument—

(a)       as in force or existing at the time when the direction takes effect; or

(b)       as in force or existing from time to time— so long as the code of practice or standard is relevant to that matter.

(8)       To avoid doubt, subsection (7) applies to an instrument, whether issued or made in Australia or outside Australia.

(9)       A direction under this section may prohibit the doing of an act or thing— (a) unconditionally; or

(b)       subject to conditions, including conditions requiring the consent or approval of a person specified in the direction.

407 Variation of matters inconsistent with direction to deal with serious situation

(1)          If—

(a)       a direction under section 406 is in force in relation to a greenhouse gas injection licence; and

(b)       apart from section 406(6), the direction would be inconsistent with a matter specified in the licence as mentioned in any of section 374(1)(c) to (k)—

the Minister may, by written notice given to the licensee, vary the matter for the purposes of removing

that inconsistency. (2)          A variation of a matter under subsection (1) takes effect on the day on which notice of the variation is

published in the Government Gazette. Note  For publication in the Government Gazette of notice of the variation, see section 754. (3) The regulations may provide that, if—

(a)       a direction under this section is in force in relation to a greenhouse gas injection licence; and

(b) apart from section 406(6), the direction would be inconsistent with anything in an approved site plan for the identified greenhouse gas storage formation—

then—

(c)        the licensee must, within the period ascertained in accordance with the regulations— (i)        prepare a draft variation of the approved site plan for the purposes of removing

that inconsistency; and (ii)                give the draft variation to the Minister; and

(d) the Minister must, by written notice given to the licensee—

(i)         approve the variation; or

(ii)        refuse to approve the variation; and (e)    if the Minister approves the variation—the approved site plan is varied accordingly.

(4)       If an approved site plan is varied, a reference in this Act to the approved site plan is a reference to the approved site plan as varied.

408     Consultation—directions to do something outside the licence area

(1)       This section applies if— (a) the Minister proposes to give a direction under section 406 to a greenhouse gas

injection licensee; and (b)    the direction requires the licensee to do something in an area (the action area) in the

offshore area but outside the licence area; and (c)          the action area is, to any extent, the subject of—

(i)         a greenhouse gas assessment permit; or (ii)           a greenhouse gas holding lease; or (iii)         a greenhouse gas injection licence; or (iv)      a greenhouse gas search authority; or (v)  a petroleum exploration permit; or

(vi)      a petroleum retention lease; or (vii)            a petroleum production licence; or (viii)  a petroleum special prospecting authority; and

(d)       the licensee mentioned in paragraph (a) is not the registered holder of the permit, lease, licence or authority mentioned in paragraph (c); and

(e)        the registered holder of the permit, lease, licence or authority mentioned in para- graph (c) has not given written consent to the giving of the direction.

(2)       Before giving the direction, the Minister must— (a)         by written notice given to the registered holder of the permit, lease, licence or authority

mentioned in subsection (1)(c), give at least 30 days notice of the Minister’s intention

to give the direction; and (b)            give a copy of the notice to such other persons (if any) as the Minister thinks fit.

(3)       The notice must— (a)           set out details of the direction that is proposed to be given; and (b)           invite a person to whom the notice, or a copy of the notice, has been given to make a

written submission to the Minister about the proposal; and (c)  specify a time limit for making that submission.

(4)       In deciding whether to give the direction, the Minister must take into account any submissions made in accordance with the notice.

(5)       However, if the Minister is satisfied that the direction is required to deal with an emergency— (a)       subsections (2), (3) and (4) do not apply to the direction; and (b)  as soon as practicable after the direction is given, the Minister must give a copy of the

direction to the registered holder of the permit, lease, licence or authority mentioned in subsection (1)(c).

409     Compliance with directions

A person who is given a direction under section 406 must not without reasonable excuse contravene the direction. 120 penalty units.

[…]

640     Remedial directions to current holders of permits, leases and licences

(1)       This section applies to— (a)            a greenhouse gas assessment permit; or

(b)       a greenhouse gas holding lease; or (c)        a greenhouse gas injection licence, if no operations for the injection of a greenhouse

gas substance into an identified greenhouse gas storage formation have been carried on

under the licence. (2)            The Minister may, by written notice given to the registered holder of the permit, lease or licence, direct the holder to do any or all of the following things on or before the applicable date— (a)           to—

(i)         remove, or cause to be removed, from the title area all property brought into that area by any person engaged or concerned in the operations authorised by the permit, lease or licence; or

(ii)        make arrangements that are satisfactory to the Minister in relation to that property—

(b)       to plug or close off, to the satisfaction of the Minister, all wells made in the title area by any person engaged or concerned in those operations;

(c)        to provide, to the satisfaction of the Minister, for the conservation and protection of the natural resources in the title area;

(d)       to make good, to the satisfaction of the Minister, any damage to the seabed or subsoil in the title area caused by any person engaged or concerned in those operations.

Notes

1 For applicable date and title area, see subsection (6). 2 For variation and revocation, see section 41A of the Interpretation of Legislation Act 1984. (3)         Subsection (2)(c) has effect subject to—

(a) Chapter 3; and

(b) this Chapter; and

(c) the regulations.

(4)       In attaining a state of satisfaction for the purposes of subsection (2)(b), the Minister must have regard to the principle that plugging or closing off wells should be carried out in a way that minimises damage to the petroleum-bearing qualities of geological formations.

(5) A person who is given a direction under subsection (2) must not without reasonable excuse contravene the direction. 120 penalty units.

(6) For the purposes of this section, the table has effect—

[INSERT]

(7) A notice under subsection (2) need not identify the applicable date as a particular calendar date.

[…]

643     Remedial directions to former holders of permits, leases, licences and authorities etc.

(1) This section applies if an event specified in the table has happened—

[INSERT]

(2) The Minister may, by written notice given to the person who was, or is, as the case may be, the registered holder of the permit, lease, licence or authority, direct the person to do any or all of the following things within the period specified in the notice—

(a)       to— (i)            remove, or cause to be removed, from the vacated area all property brought

into that area by any person engaged or concerned in the operations authorised

by the permit, lease, licence or authority; or

(ii) make arrangements that are satisfactory to the Minister in relation to that property;

(b)       to plug or close off, to the satisfaction of the Minister, all wells made in the vacated area by any person engaged or concerned in those operations;

(c)        to provide, to the satisfaction of the Minister, for the conservation and protection of the natural resources in the vacated area;

(d)       to make good, to the satisfaction of the Minister, any damage to the seabed or subsoil in the vacated area caused by any person engaged or concerned in those operations.

(3)       The period specified in the notice must be reasonable. (4)          Subsection (2)(c) has effect subject to—

(a)       Chapter 3; and (b)    this Chapter; and (c)             the regulations.

(5)       In attaining a state of satisfaction for the purposes of subsection (2)(b), the Minister must have regard to the principle that plugging or closing off wells should be carried out in a way that minimises damage to the petroleum-bearing qualities of geological formations.

(6)       A person who is given a direction under subsection (2) must not without reasonable excuse contravene the direction.

120 penalty units.

644     Minister may take action if a direction has not been complied with

(1)       This section applies if a direction is given under section 641 or 643. (2)           If—

(a)       a direction under section 641 has not been complied with; or (b)          an arrangement under section 641 has not been carried out in relation to the licence

area; or (c)     a direction under section 643 has not been complied with in relation to the vacated

area; or (d)     an arrangement under section 643 has not been carried out in relation to the vacated

area— the Minister may do any or all of the things required by the direction or arrangement to be done.

(3)          If—

(a)       a direction is given under section 641; and (b)      any property brought into the licence area by any person engaged or concerned in the

operations authorised by the licence has not been removed in accordance with— (i)          the direction; or (ii)              an arrangement under section 641 in relation to the licence area—

the Minister may, by written notice published in the Government Gazette, direct the owner or owners of that property to—

(c)        remove the property from the licence area; or

(d)       dispose of the property to the satisfaction of the Minister— within the period specified in the notice.

Note    For sanctions, see section 645. (4)  If—

(a)       a direction is given under section 643; and (b)      any property brought into the vacated area by any person engaged or concerned in the

operations authorised by the permit, lease, licence or authority has not been removed in accordance with— (i)           a direction under section 643 in relation to the vacated area; or (ii)            an arrangement under section 643 in relation to the vacated area—

the Minister may, by written notice published in the Government Gazette, direct the owner or owners of that property to—

(c)        remove the property from the vacated area; or

(d) dispose of the property to the satisfaction of the Minister— within the period specified in the notice.

Note    For sanctions, see section 645. (5)  The period specified in the notice must be reasonable. (6)               If a direction is given under subsection (3) or (4) in relation to property, the Minister must give a copy

of the notice to each person whom the Minister believes to be an owner of the property or of any part of the property.

645     Removal, disposal or sale of property by Minister—noncompliance with a direction

(1)       If a direction under section 644(3) or (4) in relation to property has not been complied with, the Minister may do any or all of the following things—

(a)       in the case of a direction under section 644(3)—remove, in such manner as the Minister thinks fit, any or all of that property from the licence area concerned;

(b)       in the case of a direction under section 644(4)—remove, in such manner as the Minister thinks fit, any or all of that property from the vacated area concerned;

(c)        dispose of, in such manner as the Minister thinks fit, any or all of that property; (d)               if, under section 644(6), a person was given a copy of the notice of the direction—sell, by public auction or otherwise, as the Minister thinks fit, any or all of that property that

belongs, or that the Minister believes to belong, to that person. (2)       The Minister may deduct, from the proceeds of a sale under subsection (1) of property that belongs (or

that the Minister believes to belong) to a particular person, the whole or a part of— (a)      any costs and expenses incurred by the Minister under that subsection in relation to that

property; and (b)       any costs and expenses incurred by the Minister in relation to the doing of any thing

required by a direction under section 641 or 643 to be done by that person; and (c) any fees or amounts payable by that person under this Act, so long as the fee or amount

concerned is due and payable. (3)  The proceeds of a sale of property under subsection (1), less any deductions under subsection (2), are to

be paid to the owner of the property. (4)   If the Minister incurs any costs or expenses under subsection (1) in relation to the removal, disposal or

sale of property, the costs or expenses— (a)         are a debt due by the owner of the property to the State; and (b)      to the extent to which they are not recovered under subsection (2)—are recoverable in a

court of competent jurisdiction. (5)            If the Minister incurs costs or expenses in relation to the doing of anything required by a direction under

section 641 or 643 to be done by a person who is or was the registered holder of a greenhouse gas assessment permit, greenhouse gas holding lease, greenhouse gas injection licence, greenhouse gas search authority or greenhouse gas special authority, the costs or expenses—

(a)       are a debt due by the person to the State; and (b)            to the extent to which they are not recovered under subsection (2)—are recoverable in a

court of competent jurisdiction.

Operational liabilities

Summary

Section 617(1) of the Victorian Offshore Act requires greenhouse gas title holders undertaking exploration or injection operations to, among other things:

  1. undertake such operations in a proper and workmanlike manner;
  2. control the flow and prevent the escape of greenhouse gases;
  3. control the flow and prevent the waste or escape of petroleum or water; and
  4. prevent damage to petroleum‑bearing strata, and potential greenhouse gas storage formations.

 

Title holders are further required under section 621 to:

  1. maintain in good condition and repair all structures, equipment and other property used to undertake operations in the title area; and
  2. remove from the title area all structures, equipment and other property that is neither used nor to be used in connection with such operations.

 

Failure to comply with these requirements is subject to penalty.

Article/Section No.

Section 617
Section 621

Instrument Text

617     Work practices

(1)           The table has effect—

[INSERT]

(2)       Paragraphs (a) to (g) of item 2 of the table in subsection (1) have effect subject to any authorisation given, or requirement made, by or under—

(a)       this Act; or (b)            the regulations; or (c)            a direction under this Act.

(3)       Paragraph (b) of item 1 of the table in subsection (1) does not limit paragraph (a) of that item. (4)     Paragraphs (a) to (g) of item 2 of the table in subsection (1) do not limit paragraph (a) of item 1 of the

table. (5)         A person referred to in column 2 in an item of the table in subsection (1) must comply with a

requirement in that item set out in column 3 of that table that applies to that person.

120 penalty units. (6)           In—

(a)       a prosecution for an offence against subsection (5) in relation to the noncompliance of a paragraph of an item of the table in subsection (1); or

(b)           an action arising out of a breach of the noncompliance of an item of the table in subsection (1)—

it is a defence if the defendant took all reasonable steps to comply with that paragraph. (7)             This section has effect subject to—

(a)           any other provision of this Act; and (b)          the regulations; and (c)       a direction under section 629; and (d)             any other law.

[…]

621     Maintenance and removal of property etc. by titleholder

(1)           For the purposes of this section, the table has effect—

[INSERT]

(2)       A titleholder referred to in column 3 in an item of the table in subsection (1) must maintain in good condition and repair all structures that are, and all equipment and other property that is—

(a)       in the title area set out in that item in column 4 of that table and that applies to that titleholder; and

(b)       used in connection with the operations authorised by the permit, lease, licence or authority set out in that item in column 2 of that table and that is held by that titleholder. 120 penalty units.

(3)       A titleholder referred to in column 3 in an item of the table in subsection (1) must remove from the title area set out in column 4 of that table and that applies to that titleholder all structures that are, and all equipment and other property that is, neither used nor to be used in connection with the operations—

(a)       in which the titleholder is or will be engaged; and (b)       that are authorised by the permit, lease, licence or authority set out in that item in

column 2 of that table and that is held by that titleholder.

120 penalty units. (4)           Subsections (2) and (3) do not apply in relation to any structure, equipment or other property that was

Colum

Item

1

2

3

4

5

6

7

8

9

10

11

12

not brought into the title area by or with the authority of the titleholder. (5)    This section has effect subject to—

(a)           any other provision of this Act; and (b)          the regulations; and

(c)        a direction under section 623 or 629; and

(d)           any other law.

Financial security

Summary

Greenhouse gas assessment permits, holding leases and injection licences issued under the Victorian Offshore Act are subject to the condition that, should the Minister require the title holder to provide security under section 489, the title holder will comply with that requirement (see sections 288, 327 and 375 respectively).

 

Specifically, section 489 of the Act empowers the Minister to require title holders to provide new or additional security in respect of the holder’s compliance with applicable statutory obligations under the title.

 

Issuance of a site closing certificate is also subject, under section 426, to lodgment of security equal to the Commonwealth’s anticipated costs in monitoring the behaviour of greenhouse gases stored in the relevant identified greenhouse gas storage formation.

 

Section 491 enables the making of regulations to govern the discharge of security lodged in respect of the above-mentioned greenhouse gas titles.

 

Greenhouse gas title holders may also be required, as a title condition imposed under section 620, to take out insurance against expenses and liabilities arising from operations performed under the title. 

Article/Section No.

Section 32
Section 288
Section 305
Section 327
Section 375
Section 426
Section 431
Section 432
Section 433
Section 489
Section 490
Section 491
Section 620

Instrument Text

32        Securities

(1)           For the purposes of this Act, if—

(a)       a greenhouse gas assessment permit, greenhouse gas holding lease or greenhouse gas injection licence is in force; and

(b)       either— (i)      the successful applicant for the permit, lease or licence lodged a security with

the Minister in response to the offer document for the permit, lease or licence;

or (ii)   the registered holder, or a former registered holder, of the permit, lease or

licence lodged a security with the Minister in response to a notice under

section 489; and (c)  the security has not been wholly discharged—

the security is taken to be in force in relation to the permit, lease or licence.

(2) For the purposes of this Act, if—

(a) a site closing certificate is in force; and

(b) the successful applicant for the certificate lodged a security with the Minister in response to the pre-certificate notice for the site closing certificate; and

(c) the security has not been wholly discharged—

the security is taken to be in force in relation to the site closing certificate.

Note For pre-certificate notice, see sections 420, 421, 422 and 423.

[…]

288     Standard conditions of greenhouse gas assessment permits

(1)       A greenhouse gas assessment permit is subject to the condition that— (a)      the permittee will not carry on key greenhouse gas operations under the permit unless—

(i)         the Minister has approved the operations under section 291; and (ii)   the permittee complies with the conditions (if any) to which the approval is

subject; and (b)         if the permittee is given a notice under section 489, the permittee will comply with the

notice. (2)       Despite section 287(2), the conditions mentioned in this section do not need to be specified in the

permit.

[…]

305     Effect of withdrawal or lapse of application

(1)       This section applies if— (a) 2 or more applications have been made under section 297 for the grant of a greenhouse

gas assessment permit over the same block or blocks; and (b)  one or more, but not all, of the applications are withdrawn or have lapsed.

(2)       A withdrawn or lapsed application is taken not to have been made. (3)           If the Minister gave an offer document in relation to a withdrawn or lapsed application, the Minister is

taken not to have given an offer document in relation to the withdrawn or lapsed application. (4)  If the applicant, or one of the applicants, whose application had been withdrawn had requested the Minister under section 463 to grant a greenhouse gas assessment permit to the applicant concerned, the

request is taken not to have been made. (5)         If—

(a)       the offer document in relation to a withdrawn application specified the form and amount of a security to be lodged by the applicant; and

(b)       the applicant had lodged the security— the security is discharged.

(6)       If the following conditions are satisfied in relation to a remaining applicant— (a)   the Minister had refused to grant a greenhouse gas assessment permit to the remaining

applicant; (b) the Minister did not exclude the remaining applicant from the ranking under

section 302(2)— the refusal is taken not to have occurred.

[…]

327     Standard conditions of greenhouse gas holding leases

(1)       A greenhouse gas holding lease is subject to the conditions that— (a)  the lessee will not carry on key greenhouse gas operations under the lease unless—

(i)         the Minister has approved the operations under section 329; and (ii)   the lessee complies with the conditions (if any) to which the approval is

subject; and (b)         if the lessee is given a notice under section 489, the lessee will comply with the notice.

(2) Despite section 326(2), the conditions mentioned in this section do not need to be specified in the lease.

[…]

375     Other standard conditions of greenhouse gas injection licences

(1)       A greenhouse gas injection licence is subject to the condition that, if the licensee is given a notice under section 489, the licensee will comply with the notice.

(2)       A greenhouse gas injection licence is subject to the condition that, if— (a)     regulations are made for the purposes of subsection (3); and (b)            those regulations impose requirements on the licensee—

the licensee will comply with those requirements. (3)   The regulations may establish a regime for third party access to services provided by means of the use of-

(a)       identified greenhouse gas storage formations; or (b)       wells, equipment or structures for use in injecting greenhouse gas substances into

identified greenhouse gas storage formations; or (c)        equipment or structures for use in the processing, compressing or storing of greenhouse

gas substances prior to the injection of the substances into identified greenhouse gas

storage formations. (4)       Despite section 373(2), the conditions in this section do not need to be specified in the licence. (5)   Subsections (1) and (2) do not limit sections 373(1) or 376(1).

[…]

426     Pre-certificate notice—security etc.

(1)       A pre-certificate notice that relates to an application for a site closing certificate must— (a) specify a program of operations proposed to be carried out by the Commonwealth for the purposes of monitoring the behaviour of a greenhouse gas substance stored in the

identified greenhouse gas storage formation concerned; and (b)           set out an estimate of the total costs and expenses of carrying out the program; and (c)       specify the form and amount of a security to be lodged by the applicant in respect of

the compliance, by the holder for the time being of the site closing certificate, with the holder’s obligations under section 433 in relation to the costs and expenses of carrying out the program; and

(d)       contain a statement to the effect that the application will lapse if the applicant does not lodge the security with the Minister within the period applicable under subsection (3).

(2)       The amount of the security must equal the estimate referred to in subsection (1)(b). (3)         The period for lodging the security is—

(a)       60 days after the pre-certificate notice was given to the applicant; or (b)        such longer period, not more than 180 days after the pre-certificate notice was given to

the applicant, as the Minister allows.

(4)       If the applicant does not lodge the security with the Minister within the period applicable under subsection (3), the application lapses at the end of that period.

(5)       The regulations may provide that an estimate referred to in subsection (1)(b) is to be made on the basis of—

(a)       an assumption that costs and expenses will increase at an annual rate specified in the regulations; and

(b) such other assumptions (if any) as are specified in the regulations. (6)               Subsection (1) does not apply if the Minister is satisfied that there have not been any operations for the injection of a greenhouse gas substance into the identified greenhouse gas storage formation concerned.

[…]

431     Transfer of securities

If—

(a) a security is in force in relation to a site closing certificate; and (b)      the site closing certificate is transferred—

then-

(c)        the interest of the transferor in the security is, by force of this section, transferred to the transferee; and

(d)       a document setting out or relating to the security has effect, after the transfer, as if a reference in the document to the transferor were a reference to the transferee.

432     Discharge of securities

The regulations may make provision in relation to the discharge, in whole or in part, by the Minister of securities in force in relation to site closing certificates.

433     Recovery of the State’s costs and expenses

(1) This section applies if—

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

(b) the State incurs reasonable costs or expenses in carrying out the program specified in the pre-certificate notice for the site closing certificate.

(2)       The costs or expenses— (a) are a debt due to the State by the holder of the certificate; and (b)            are recoverable in a court of competent jurisdiction.

(3) The total of the costs and expenses recoverable under subsection (2) must not exceed the estimate set out in the pre-certificate notice.

[…]

489     Additional securities etc.

(1)          If—

(a) one or more securities are in force in relation to—

(i) a greenhouse gas assessment permit; or a

(ii) greenhouse gas holding lease; or

(iii) a greenhouse gas injection licence; and

(b) the Minister is satisfied that the total amount of the securities is insufficient— the Minister may give the permittee, lessee or licensee a written notice—

(c)        requiring the permittee, lessee or licensee to lodge with the Minister, within 60 days after the giving of the notice, an additional security in respect of compliance with the applicable statutory obligations by the registered holder for the time being of the permit, lease or licence; and

(d) specifying the form and amount of the additional security.

(2)          If—

(a)       a greenhouse gas assessment permit, greenhouse gas holding lease or greenhouse gas injection licence is in force; and

(b)       no security is in force in relation to the permit, lease or licence; and (c)            the Minister is satisfied that it would be appropriate to require the lodgment of a security in respect of compliance with the applicable statutory obligations by the

registered holder for the time being of the permit, lease or licence— the Minister may give the permittee, lessee or licensee a written notice—

(d)       requiring the permittee, lessee or licensee to lodge with the Minister, within 60 days after the giving of the notice, a security in respect of compliance, by the registered holder for the time being of the permit, lease or licence, with the applicable statutory obligations; and

(e)        specifying the form and amount of the security. (3)        For the purposes of this section, the applicable statutory obligations are as follows—

(a)       the obligation of the registered holder to comply with a condition to which the permit, lease or licence is subject;

(b)       the obligation of the registered holder to comply with a direction given to the registered holder by the Minister under this Chapter, Chapter 6 or Part 8.1;

(c)        the obligation of the registered holder to comply with the provisions of— (i)  this Chapter; or

(ii) Chapter 5; or (iii)             Chapter 6; or (iv) Part 8.1; or (v)      the regulations.

490 Transfer of securities

If -

(a) a security is in force in relation to—

(i) a greenhouse gas assessment permit; or

(ii) a greenhouse gas holding lease; or

(iii) a greenhouse gas injection licence; and

(b) a transfer of the permit, lease or licence is registered under section 572—

then—

(c)        the interest of the transferor in the security is, by force of this section, transferred to the transferee; and

(d)       a document setting out or relating to the security has effect, after the transfer, as if a reference in the document to the transferor were a reference to the transferee.

491     Discharge of securities

The regulations may make provision in relation to the discharge, in whole or in part, by the Minister of securities in force in relation to—

(a) greenhouse gas assessment permits; or

(b) greenhouse gas holding leases; or

(c) greenhouse gas injection licences.

[…]

620     Insurance—greenhouse gas titles

(1)       The conditions of— (a)        a greenhouse gas assessment permit; or

(b)       a greenhouse gas holding lease; or (c)        a greenhouse gas injection licence; or (d)                a greenhouse gas search authority; or (e)            a greenhouse gas special authority—

may include a condition that the registered holder maintain, as directed by the Minister from time to time, insurance against—

(f)        expenses; or (g)         liabilities; or (h)          specified things—

arising in connection with, or as a result of— (i)            the carrying out of work under the permit, lease, licence or authority; or (j)           the doing of any other thing under the permit, lease, licence or authority—

including insurance against expenses of complying with directions relating to the clean-up or other

remediation of the effects of the escape of a greenhouse gas substance. (2)          A direction under this section must be in writing.

Enforcement

Summary

The enforcement provisions in the Victorian Offshore focus on the performance of inspections by authorised inspectors.

 

For this purpose, the Minister has the power under section 656 to appoint greenhouse gas inspectors with the powers specified in section 658, which include the power to:

  1. access any part of the offshore area or any structure, vessel, aircraft or building in an offshore area, the use of which is believed to be connected to exploration, pre-injection processing, injection, storage or transport in offshore CO2 sequestration operations;
  2. inspect and test any equipment the use of which is believed to be connected to any of those operations; and
  3. enter any structure, vessel, aircraft, building or place believed to contain documents relating to any of those operations.

 

In addition to this inspection mechanism,  section 663 provides that it is an offence to: 

  1. intentionally damage or interfere with any structure or vessel in the offshore area for use in greenhouse gas operations in that area;
  2. intentionally damage or interfere with any equipment on, or attached to, such a structure or vessel; or
  3. intentionally interfere with any operations or activities being carried out on, by means of, or in connection with, such a structure or vessel.

Article/Section No.

Section 655
Section 656
Section 657
Section 658
Section 659
Section 660
Section 661
Section 662
Section 663

Instrument Text

Division 2—Greenhouse gas

655     Simplified outline s. 655

(1)       This section sets out a simplified outline of this Division. (2)      The Minister may appoint greenhouse gas project inspectors, and the greenhouse gas project inspectors

may exercise powers of access, inspection and entry for the purposes of this Act and the regulations. (3)      A person must not interfere with greenhouse gas installations or operations. (4)         This section is intended only as a guide to readers as to the general scheme and effect of this Division.

656     Appointment of greenhouse gas project inspectors s. 656

The Minister may, by writing, appoint a person to be a greenhouse gas project inspector if— (a)     the person is an officer, or employee, of—

(i)         the Commonwealth, the State, another State or a Territory; or

(ii)        an authority of the Commonwealth, the State, another State or a Territory; or (b)  the person is not covered by paragraph (a), but the Minister is satisfied that the person

has the knowledge, skills and experience to be a greenhouse gas project inspector.

657     Identity cards of greenhouse gas project inspectors

(1)       The Minister must issue an identity card to a greenhouse gas project inspector. (2)  An identity card issued under subsection (1) must contain a recent photograph of the greenhouse gas

project inspector. (3)           A person who ceases to be a greenhouse gas project inspector must immediately return the identity card to -

(a)       the Minister; or (b)    if the Minister, by written notice given to the person, specifies another person to whom

the card is to be returned—that other person.

5 penalty units. (4)    Subsection (3) does not apply if the identity card was lost or destroyed.

(5)       A greenhouse gas project inspector must carry the identity card at all times when exercising powers, or performing functions, under this Act or the regulations as a greenhouse gas project inspector.

658     Monitoring powers of greenhouse gas project inspectors s. 658

(1)       For the purposes of this Act and the regulations, a greenhouse gas project inspector may, at all reasonable times and on production of the greenhouse gas project inspector’s identity card, exercise the powers conferred by subsection (2).

(2)           The powers a greenhouse gas project inspector may exercise under this section are as follows— (a)                to have access to any part of the offshore area;

(b)       to have access to any structure, vessel, aircraft or building in the offshore area that the greenhouse gas project inspector has reasonable grounds to believe has been, is being or is to be used in connection with any of the following operations in the offshore area—

(i)         operations relating to exploration for a potential greenhouse gas storage formation or a potential greenhouse gas injection site;

(ii)        operations relating to the injection of a greenhouse gas substance into the seabed or subsoil;

(iii)       operations relating to the storage of a greenhouse gas substance in the seabed or subsoil;

(iv)      operations relating to the processing, compression or pre-injection storage of a greenhouse gas substance;

(v)       operations relating to the preparation of a greenhouse gas substance for transport;

(c)        to inspect and test any equipment that the greenhouse gas project inspector has reasonable grounds to believe has been, is being or is to be used in the offshore area in connection with any of those operations;

(d)       to enter any structure, vessel, aircraft, building or place that is in— (i) the offshore area; or

(ii)        the State— and in which the greenhouse gas project inspector has reasonable grounds to believe there are any documents relating to any of those operations, and to inspect, take extracts from and make copies of any of those documents.

659     Entry into residential premises s. 659

(1)           A greenhouse gas project inspector may exercise powers under section 658(2)(d) to enter residential premises only—

(a) in accordance with a warrant issued under section 662; or (b)             after obtaining the consent of the occupier of the premises.

(2)           If—

(a)       a greenhouse gas project inspector enters residential premises in accordance with a warrant issued under section 662; and

(b)       the occupier of the premises is present at the premises— the greenhouse gas project inspector must make available to the occupier a copy of the warrant or a copy of the form of the warrant.

(3)       Before obtaining the consent of a person as mentioned in subsection (1)(b), a greenhouse gas project inspector must inform the person that the person may refuse consent.

(4)       A consent of a person is not effective for the purposes of subsection (1) unless the consent is voluntary.

660     Facilities and assistance to be provided by occupier or person in charge s. 660

(1)       A greenhouse gas project inspector may direct, orally or in writing, a person who is— (a)       the occupier or person in charge of any building, structure or place referred to in

section 658(2); or (b)            the person in charge of any vessel, aircraft or equipment referred to in that subsection—

to provide the inspector all reasonable facilities and assistance to enable the inspector to effectively

exercise his or her powers under that section. (2) A person who is given a direction under subsection (1) must not without reasonable excuse contravene

the direction. 60 penalty units.

661     Obstructing or hindering a greenhouse gas project inspector s. 661

(1)       A person must not obstruct or hinder a greenhouse gas project inspector in the exercise of the greenhouse gas project inspector’s powers under this Division.

120 penalty units. (2)           Subsection (1) does not apply if the person has a reasonable excuse.

662     Warrants to enter residential premises

(1)       A greenhouse gas project inspector may apply to a magistrate for a warrant authorising the greenhouse gas project inspector, with such assistance as the greenhouse gas project inspector thinks necessary, to exercise the power referred to in section 658(2)(d) in relation to particular residential premises.

(2)       The application must be supported by an information on oath or affirmation that sets out the grounds on which the greenhouse gas project inspector is applying for the warrant.

(3)           If the magistrate is satisfied that there are reasonable grounds for issuing the warrant, the magistrate may issue the warrant authorising the greenhouse gas project inspector and any assistants the inspector thinks necessary to—

(a) enter the residential premises or the part of residential premises named or described in the warrant; and

(b) exercise the power referred to in section 658(2)(d) in those residential premises or that part of the residential premises.

(4)           In addition to any other requirement, a warrant issued under this section must state—

(a) the name of the greenhouse gas project inspector; and

(b) whether the inspection may be carried out at any time or only during specified hours of the day; and

(c) the day on which the warrant ceases to have effect; and

(d) any conditions to which the warrant is subject; and

(e) the purposes for which the warrant is issued.

(5)       The day specified under subsection (4)(c) is not to be more than 7 days after the day on which the

warrant is issued. (6) The purposes specified under subsection (4)(e) must include the identification of the premises in relation

to which the warrant is issued. (7)   A search warrant must be issued in accordance with the Magistrates’ Court Act 1989 and must be in a

form set out in the regulations under that Act. (8)            Subject to any provision to the contrary in this Act, the rules to be observed with respect to search

warrants mentioned in the Magistrates’ Court Act 1989 extend and apply to warrants under this section.

663     Interfering with greenhouse gas installations or operations s. 663

(1)       A person must not intentionally damage— (a)     any structure or vessel that is in the offshore area and that is, or is to be, used in

greenhouse gas operations in that area; or (b)      any equipment on, or attached to, a structure or vessel referred to in paragraph (a).

Imprisonment for 10 years. (2)       A person must not intentionally interfere with—

(a)       any structure or vessel that is in the offshore area and that is, or is to be, used in greenhouse gas operations in that area; or

(b)           any equipment on, or attached to, a structure or vessel referred to in paragraph (a); or

(c)           any operations or activities being carried out, or any works being executed, on, by means of, or in connection with, a structure or vessel referred to in paragraph (a). Imprisonment for 10 years.

(3)       In this section—

greenhouse gas operations means—

(a)           operations relating to exploration for a potential greenhouse gas formation or a potential greenhouse gas injection site; or

(b)       operations relating to the injection of a greenhouse gas substance into the seabed or subsoil; or

(c)        operations relating to the storage of a greenhouse gas substance in the seabed or subsoil; or

(d)       operations relating to the processing, compression or pre-injection storage of a green- house gas substance; or

(e)        operations relating to the preparation of a greenhouse gas substance for transport; structure means any fixed, moveable or floating structure or installation, and includes a greenhouse gas pipeline, greenhouse gas pumping station, greenhouse gas tank station or greenhouse gas valve

station.

Site closure

Summary

Under section 414 of the Victorian Offshore Act, holders of greenhouse gas injection licences can apply to the Minister for site closing certificates in respect of identified greenhouse gas storage formations.

 

Applications must include written reports setting out, in respect of the relevant storage formation:

  1. modelling of the behaviour of the injected greenhouse gas, and related modelling information and analysis;
  2. assessment of the behaviour of the injected greenhouse gas;
  3. the expected migration pathway(s) for the stored greenhouse gas;
  4. the short‑ and long-term consequences of such migration;
  5. the applicant’s suggested approach for the Commonwealth in monitoring the stored greenhouse gas after issuance of the site closure certificate; and
  6. any other information specified in the regulations.

 

If the holder of a greenhouse gas injection licence ceases injection into the relevant storage formation, the licence holder is required under section 415 to apply for a site closure certificate, usually within thirty days after such cessation. Failure to make such an application is subject to penalty.

 

A similar obligation to apply for a site closure certificate arises:

  1. under section 416, if a basis for cancellation of the relevant greenhouse gas injection licence arises under Division 1 of Part 3.11 of the Act, in relation to cancellation of titles; and
  2. under section 418, if a greenhouse gas injection licence is tied to a petroleum title and that petroleum title ceases to have effect.

 

If, following receipt of an application for a site closure certificate, the Minister is satisfied that either:

  1. injection of greenhouse gas into the relevant identified greenhouse gas storage formation has ceased; or
  2. there has not (i.e. never) been any such injection into the storage formation,

the Minister may issue to the applicant a pre-certificate notice under section 420.

 

Under section 422, the Minister may refuse to issue a pre‑certificate notice if:

  1. the injected greenhouse gas is not behaving as predicted;
  2. there is a significant risk that the injected greenhouse gas will have a significant adverse impact on the conservation or exploitation of natural resources, the geotechnical integrity of a geological formation or structure, the environment, or human health or safety;
  3. the relevant statutory requirements have not been complied with; or
  4. any conditions specified in the regulations have not been satisfied.

 

Under section 426, pre-certificate notices are to contain:

  1. details of the program proposed to be carried out by the Commonwealth in monitoring the behaviour of greenhouse gas stored in the relevant storage formation;
  2. the estimated total cost of carrying out this program;
  3. details of the form and amount of the security required from the applicant in respect of its obligations under section 433 (which amount must be equal to the above-mentioned estimated cost); and
  4. and the period within which such security most be lodged (normally sixty days after issuance of the pre-certificate notice, failing which the notice will lapse).

 

If the Minister issues a pre-certificate notice, and following this the applicant lodges its security as required, the Minister must then issue a site closure certificate for the relevant identified greenhouse gas storage formation (see section 427), which under section 429 will normally remain valid indefinitely.

 

Section 420(2) requires that the Minister’s decision whether to issue a site closure certificate be made within five years of the date of lodgment of the application.

 

If, following issuance of a site closure certificate, the State incurs reasonable costs or expenses in carrying out the monitoring program specified in the pre‑certificate notice, under section 433 these costs and expenses may be recovered as a debt.

 

Where operations for the injection of a greenhouse gas substance into an identified greenhouse gas storage formation have ceased, and either:

  1. an application has been made for a site closing certificate;
  2. the licensee has breached the requirement imposed by subsection 415(1) to make an application for a site closing certificate; or
  3. the licensee has breached a direction under subsection 416(1) to make an application for a site closing certificate,

the Minister has the power under section 641 to give the licensee a written direction to:

  1. remove all property from the title area;
  2. plug or close off all wells;
  3. provide for the conservation and protection of natural resources;
  4. make good any damage to the seabed or subsoil;
  5. undertake specified operations to monitor the behaviour of stored greenhouse gas;
  6. undertake specified operations to eliminate, mitigate, manage or remediate the risk that injected greenhouse gas will have a significant adverse impact on navigation, fishing, pipeline construction or operation, enjoyment of native title rights, the conservation or exploitation of natural resources (whether in an offshore area or elsewhere), the geotechnical integrity of a geological formation or geological structure, the environment or human health or safety; and
  7. undertake specified operations to ensure or increase the likelihood that injected greenhouse gas will behave as predicted.

 

Failure to comply with such a direction is subject to penalty. If a party does not comply with a written direction, under sections 644 and 645 the Minister may:

  1. do any or all of the things required to be done under the direction, including by removing or disposing of property; and
  2. recover its costs from the proceeds of any sale. 

Article/Section No.

Section 414
Section 415
Section 416
Section 417
Section 418
Section 419
Section 420
Section 421
Section 422
Section 423
Section 424
Section 425
Section 426
Section 427
Section 428
Section 429
Section 430
Section 431
Section 432
Section 433
Section 641
Section 642
Section 643
Section 644
Section 645

Instrument Text

Division 7—Site closing certificates

414     Application for site closing certificate

(1)       A greenhouse gas injection licensee may apply to the Minister for a site closing certificate in relation to a particular identified greenhouse gas storage formation specified in the licence.

Notes

1 Part 3.8 contains additional provisions about application procedures. 2 Section 459 requires the application to be accompanied by an application fee. 3 Section 461 enables the Minister to require the applicant to give further information.

(2) An application under this section must be accompanied by— (a)      a written report that sets out—

(i) the applicant’s modelling of the behaviour of the greenhouse gas substance injected into the identified greenhouse gas storage formation; and

(ii) information relevant to that modelling; and

(iii) the applicant’s analysis of that information; and

(b)       a written report that sets out the applicant’s assessment of—

(i)         the behaviour of the greenhouse gas substance injected into the identified greenhouse gas storage formation; and

(ii)        the expected migration pathway or pathways of that greenhouse gas substance; and

(iii)       the short-term consequences of the migration of that greenhouse gas substance; and

(iv) the long-term consequences of the migration of that greenhouse gas substance; and

(c) the applicant’s suggestions for the approach to be taken by the Commonwealth, after the issue of the certificate, to the monitoring of the behaviour of a greenhouse gas substance stored in the identified greenhouse gas storage formation; and

(d) such other information (if any) as is specified in the regulations.

(3)       Subsection (2) does not apply if there have not been any operations for the injection of a greenhouse gas

substance into the identified greenhouse gas storage formation.

415     Mandatory application—cessation of injection operations

(1)       If—

(a)       a greenhouse gas injection licence is in force; and (b)     operations for the injection of a greenhouse gas substance into the identified greenhouse

gas storage formation concerned have ceased— the licensee must, within the application period, make an application under section 414(1) for a site closing certificate in relation to the identified greenhouse gas storage formation. 120 penalty units.

(2)       The application period for an application referred to in subsection (1) is— (a)        the period of 30 days after the day on which the cessation referred to in subsec-

tion (1)(b) occurred; or (b)   such longer period, not more than 90 days after that day, as the Minister allows.

(3)       The Minister may allow a longer period under subsection (2)(b) only on written application made by the licensee within the period of 30 days mentioned in subsection (2)(a).

416     Mandatory application—grounds for cancellation of licence

(1)       If—

(a)       a greenhouse gas injection licence is in force; and

(b)       under Division 1 of Part 3.11, there is a ground for cancelling the licence— the Minister may, by written notice given to the licensee, direct the licensee—

(c)        to make an application under section 414(1) for a site closing certificate in relation to each identified greenhouse gas storage formation specified in the licence; and

(d)       to do so within the period specified in the notice. (2)       A period specified under subsection (1)(d) must not be shorter than 30 days.

417     Compliance with direction to apply for site closing certificate

A person who is given a direction under section 416(1) must not without reasonable excuse contravene the direction. 120 penalty units.

418     Mandatory application—greenhouse gas injection licence tied to a petroleum retention lease or petroleum production licence

(1)       If—

(a)       a greenhouse gas injection licence is in force; and (b)     the greenhouse gas injection licence is tied to a petroleum retention lease or petroleum

production licence; and (c)  the petroleum retention lease or petroleum production licence ceases to be in force as a

result of being surrendered, cancelled, terminated or wholly revoked— the licensee of the greenhouse gas injection licence must, within the application period, make an

application under section 414(1) for a site closing certificate in relation to the identified greenhouse gas storage formation, or each of the identified greenhouse gas storage formations, specified in the greenhouse gas injection licence. 120 penalty units.

(2)       The application period for an application referred to in subsection (1) is— (a)        the period of 30 days after the day on which the cessation referred to in subsec-

tion (1)(c) occurred; or (b)  such longer period, not more than 90 days after that day, as the Minister allows.

(3)       The Minister may allow a longer period under subsection (2)(b) only on written application made by the

licensee within the period of 30 days mentioned in subsection (2)(a).

419     Variation of applications for site closing certificate

(1)       This section applies if an application for a site closing certificate has been made under section 414, 415, 416 or 418.

(2)       At any time before a decision on the application is made by the Minister, the applicant may, by written notice given to the Minister, vary the application.

(3)       A variation of an application must be made in the approved manner. (4)       A variation of an application may be made—

(a)       on the applicant’s own initiative; or

(b)       at the request of the Minister. (5)    A variation of an application may set out any additional matters that the applicant wishes to be

considered. (6)           If an application under this section is varied, a reference in this Act to the application is a reference to

the application as varied.

420     Issue of site closing certificate—pre-certificate notice

(1)       If—

(a)       an application for a site closing certificate has been made under section 414, 415, 416 or 418; and

(b)       either— (i)      the Minister is satisfied that operations for the injection of a greenhouse gas

substance into the identified greenhouse gas storage formation concerned have

ceased; or (ii) the Minister is satisfied that there have not been any operations for the

injection of a greenhouse gas substance into the identified greenhouse gas

storage formation concerned— the Minister may give the applicant a written notice (called a pre-certificate notice)

telling the applicant that the Minister is prepared to issue to the applicant a site closing

certificate in relation to the identified greenhouse gas storage formation. Note           See also section 426.

(2)       If an application for a site closing certificate has been made under section 414, 415, 416 or 418, the Minister must make a decision on the application within 5 years after the application was made.

421     Matters to which the Minister must have regard—pre-certificate notice

(1)       If the Minister is satisfied that there is a significant risk that a greenhouse gas substance injected into the identified greenhouse gas storage formation will have a significant adverse impact on—

(a)       navigation; or (b)      fishing; or (c) any activities being lawfully carried on, or that could be lawfully carried on, by way of

the construction or operation of a pipeline; or (d)            the enjoyment of native title rights (within the meaning of the Native Title Act 1993 of

the Commonwealth)— then, in deciding whether to give the applicant a pre-certificate notice, the Minister must have regard to that significant risk.

(2)       Subsection (1) does not limit the matters to which the Minister may have regard.

422     Circumstances in which a pre-certificate notice may be refused

(1)       The Minister may refuse to give the applicant a pre-certificate notice in relation to the identified greenhouse gas storage formation if—

(a) the Minister is not satisfied that the greenhouse gas substance injected into the identified greenhouse gas storage formation is behaving as predicted in Part A of the approved site plan for the identified greenhouse gas storage formation; or

(b) the Minister is satisfied that there is a significant risk that a greenhouse gas substance injected into the identified greenhouse gas storage formation will have a significant adverse impact on— (i)          the conservation or exploitation of natural resources (whether in the offshore

area or elsewhere); or (ii)      the geotechnical integrity of the whole or a part of a geological formation or

geological structure; or (iii)  the environment; or

(iv)      human health or safety. (2) Subsection (1) does not limit the matters to which the Minister may have regard in deciding whether to

refuse to give the applicant a pre-certificate notice.

423     Circumstances in which a pre-certificate notice must not be given

(1)       The Minister must not give the applicant a pre-certificate notice in relation to the identified greenhouse gas storage formation unless the Minister is satisfied that—

(a)       either— (i)      the relevant statutory requirements have been complied with; or (ii)  any of the relevant statutory requirements have not been complied with, but

there are sufficient grounds to warrant the issue of the site closing certificate; or (b) if any conditions are specified in the regulations—those conditions have been satisfied.

(2)       For the purposes of subsection (1)(a), each of the following is a relevant statutory requirement— (a)                the conditions to which the greenhouse gas injection licence is, or has from time to time

been, subject; (b)      the provisions of this Chapter, Chapter 5, Chapter 6 and Part 8.1; (c)                the provisions of the regulations.

424     Acknowledgement of receipt of application for site closing certificate

(1)       This section applies if an application has been made under section 414, 415, 416 or 418 for a site closing certificate.

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

425     Refusal to give pre-certificate notice

(1)       This section applies if— (a) an application has been made under section 414, 415, 416 or 418 for a site closing

certificate; and (b)    the Minister refuses to give a pre-certificate notice to the applicant.

(2)       The Minister must give written notice of the refusal to the applicant.

426     Pre-certificate notice—security etc.

(1)       A pre-certificate notice that relates to an application for a site closing certificate must— (a) specify a program of operations proposed to be carried out by the Commonwealth for the purposes of monitoring the behaviour of a greenhouse gas substance stored in the

identified greenhouse gas storage formation concerned; and (b)           set out an estimate of the total costs and expenses of carrying out the program; and (c)       specify the form and amount of a security to be lodged by the applicant in respect of

the compliance, by the holder for the time being of the site closing certificate, with the holder’s obligations under section 433 in relation to the costs and expenses of carrying out the program; and

(d)       contain a statement to the effect that the application will lapse if the applicant does not lodge the security with the Minister within the period applicable under subsection (3).

(2)       The amount of the security must equal the estimate referred to in subsection (1)(b). (3)         The period for lodging the security is—

(a)       60 days after the pre-certificate notice was given to the applicant; or (b)        such longer period, not more than 180 days after the pre-certificate notice was given to

the applicant, as the Minister allows.

(4)       If the applicant does not lodge the security with the Minister within the period applicable under subsection (3), the application lapses at the end of that period.

(5)       The regulations may provide that an estimate referred to in subsection (1)(b) is to be made on the basis of—

(a)       an assumption that costs and expenses will increase at an annual rate specified in the regulations; and

(b)       such other assumptions (if any) as are specified in the regulations. (6) Subsection (1) does not apply if the Minister is satisfied that there have not been any operations for the injection of a greenhouse gas substance into the identified greenhouse gas storage formation concerned.

427     Issue of site closing certificate

If—

(a)       an applicant has been given a pre-certificate notice under section 420(1); and (b)   if section 426(1) applies—the applicant has lodged the specified security within the

period applicable under section 426(3)— the Minister must issue to the applicant a site closing certificate in relation to the identified greenhouse gas storage formation specified in the pre-certificate notice.

Note If the applicant does not lodge the security with the Minister within the period applicable under section 426(3), the application lapses at the end of that period—see section 426(4).

428     Greenhouse gas injection licence transferred—transferee to be treated as applicant

(1)       This section applies if a transfer of a greenhouse gas injection licence is registered under section 572— (a)       after an application has been made under section 414, 415, 416 or 418 for a site closing certificate in relation to an identified greenhouse gas storage formation specified in the

greenhouse gas injection licence; and (b)  before any action has been taken by the Minister under section 420 or 425 in relation to

the application. (2)   After the transfer, sections 414 to 427 and Part 3.8 have effect in relation to the application as if any

reference in those sections and that Part to the applicant were a reference to the transferee.

429     Duration of site closing certificate

(1)       A site closing certificate remains in force indefinitely. (2)           Subsection (1) has effect subject to this Chapter.

430     Transfer of site closing certificate

If—

(a)       a site closing certificate is held by the registered holder of a greenhouse gas injection licence; and

(b)       a transfer of the licence is registered under section 572— the site closing certificate is, by force of this section, transferred to the transferee of the licence.

431 Transfer of securities

If—

(a) a security is in force in relation to a site closing certificate; and (b)      the site closing certificate is transferred—

then -

(c)        the interest of the transferor in the security is, by force of this section, transferred to the transferee; and

(d)       a document setting out or relating to the security has effect, after the transfer, as if a reference in the document to the transferor were a reference to the transferee.

432     Discharge of securities

The regulations may make provision in relation to the discharge, in whole or in part, by the Minister of securities in force in relation to site closing certificates.

433     Recovery of the State’s costs and expenses

(1) This section applies if—

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

(b) the State incurs reasonable costs or expenses in carrying out the program specified in the pre-certificate notice for the site closing certificate.

(2)       The costs or expenses— (a) are a debt due to the State by the holder of the certificate; and (b)            are recoverable in a court of competent jurisdiction.

(3) The total of the costs and expenses recoverable under subsection (2) must not exceed the estimate set out in the pre-certificate notice.

[…]

641     Site closing directions to current holders of greenhouse gas injection licences

(1)       This section applies if— (a) an identified greenhouse gas storage formation is specified in a greenhouse gas injection

licence; and (b)          operations for the injection of a greenhouse gas substance into the identified greenhouse

gas storage formation have been carried on under the licence; and (c)             the Minister is satisfied that operations for the injection of a greenhouse gas substance

into the identified greenhouse gas storage formation have ceased; and (d)     any of the following conditions is satisfied—

(i)         an application has been made for a site closing certificate in relation to the identified greenhouse gas storage formation;

(ii)        the licensee has breached the requirement imposed by section 415(1) to make an application for a site closing certificate in relation to the identified green- house gas storage formation;

(iii)       the licensee has not complied with a direction under section 416(1) to make an application for a site closing certificate in relation to the identified greenhouse gas storage formation.

(2) The Minister may, by written notice given to the registered holder of the licence, direct the holder to do any or all of the following things within the period specified in the notice—

(a) to— (i)      remove, or cause to be removed, from the licence area all property brought into

that area by any person engaged or concerned in the operations authorised by

the licence; or (ii)       make arrangements that are satisfactory to the Minister in relation to that

property; (b)  to plug or close off, to the satisfaction of the Minister, all wells made in the licence

area, whether or not those wells were made by a person engaged or concerned in those

operations; (c)           to provide, to the satisfaction of the Minister, for the conservation and protection of the

natural resources in the licence area; (d)   to make good, to the satisfaction of the Minister, any damage to the seabed or subsoil in

the licence area (whether or not caused by any person engaged or concerned in those

operations); (e)          to carry out such operations as are specified in the notice for the monitoring of the

behaviour of a greenhouse gas substance stored in the identified greenhouse gas storage

formation concerned; (f)     to undertake such activities as are specified in the notice for the purpose of—

(i) eliminating; or

(ii)        mitigating; or (iii)       managing; or (iv)      remediating— the risk that a greenhouse gas substance injected into the identified greenhouse gas storage formation will have a significant adverse impact on—

(v)       navigation; or (vi)     fishing; or (vii)           any activities being lawfully carried on, or that could be lawfully carried on, by

way of the construction or operation of a pipeline; or (viii)        the enjoyment of native title rights (within the meaning of the Native Title Act

1993 of the Commonwealth); or (ix)         the conservation or exploitation of natural resources (whether in the offshore

area or elsewhere); or (x)     the geotechnical integrity of the whole or a part of a geological formation or

geological structure; or (xi)  the environment; or

(xii)     human health or safety; (g) to undertake such activities as are specified in the notice for the purpose of—

(i)         ensuring; or (ii)           increasing the likelihood— that a greenhouse gas substance injected into the identified greenhouse gas storage formation will behave as predicted in Part A of the approved site plan for the identified greenhouse gas storage formation.

Note    For variation and revocation, see section 41A of the Interpretation of Legislation Act 1984. (3)       The period specified in the notice must be reasonable. (4)        Subsection (2)(c) has effect subject to—

(a)       Chapter 3; and (b)    this Chapter; and (c)             the regulations.

(5)       Subsection (2)(a), (b), (c), (d) and (e) do not limit subsection (2)(f) or (g). (6)   In attaining a state of satisfaction for the purposes of subsection (2)(b), the Minister must have regard to

the principle that plugging or closing off wells should be carried out in a way that minimises damage to

the petroleum-bearing qualities of geological formations. (7)    A subsection (2)(f) or (g) direction may require the registered holder of the licence to do something—

(a)       in the licence area; or

(b)       in the offshore area but outside the licence area. (8)       A person who is given a direction under subsection (2) must not without reasonable excuse contravene

the direction.

120 penalty units. (9)           To avoid doubt, the powers conferred on the Minister by this section do not limit the powers conferred

on the Minister by any other provision of this Act.

642     Consultation—directions to do something outside the licence area

(1)       This section applies if— (a) the Minister proposes to give a direction under section 641 to a greenhouse gas

injection licensee; and (b)    the direction requires the licensee to do something in an area (the action area) in the offshore area but outside the licence area; and (c)       the action area is, to any extent, the subject of—

(i) a greenhouse gas assessment permit; or (ii)                a greenhouse gas holding lease; or (iii)            a greenhouse gas injection licence; or (iv) a greenhouse gas search authority; or

(v) a petroleum exploration permit; or

(vi) a petroleum retention lease; or

(vii) a petroleum production licence; or

(viii) a petroleum special prospecting authority; and

(d) the licensee mentioned in paragraph (a) is not the registered holder of the permit, lease, licence or authority mentioned in paragraph (c); and

(e) the registered holder of the permit, lease, licence or authority mentioned in paragraph (c) has not given written consent to the giving of the direction. (2)        Before giving the direction, the Minister must—

(a)       by written notice given to the registered holder of the permit, lease, licence or authority mentioned in subsection (1)(c), give at least 30 days notice of the Minister’s intention to give the direction; and

(b)       give a copy of the notice to such other persons (if any) as the Minister thinks fit. (3)               The notice must—

(a)       set out details of the direction that is proposed to be given; and (b)      invite a person to whom the notice, or a copy of the notice, has been given to make a

written submission to the Minister about the proposal; and (c)  specify a time limit for making that submission.

(4)       In deciding whether to give the direction, the Minister must take into account any submissions made in accordance with the notice.

(5)       However, if the Minister is satisfied that the direction is required to deal with an emergency— (a)       subsections (2), (3) and (4) do not apply to the direction; and (b)  as soon as practicable after the direction is given, the Minister must give a copy of the

direction to the registered holder of the permit, lease, licence or authority mentioned in subsection (1)(c).

643     Remedial directions to former holders of permits, leases, licences and authorities etc.

(1) This section applies if an event specified in the table has happened—

[INSERT]

(2) The Minister may, by written notice given to the person who was, or is, as the case may be, the registered holder of the permit, lease, licence or authority, direct the person to do any or all of the following things within the period specified in the notice—

(a)       to— (i)            remove, or cause to be removed, from the vacated area all property brought

into that area by any person engaged or concerned in the operations authorised

by the permit, lease, licence or authority; or

(ii) make arrangements that are satisfactory to the Minister in relation to that property;

(b)       to plug or close off, to the satisfaction of the Minister, all wells made in the vacated area by any person engaged or concerned in those operations;

(c)        to provide, to the satisfaction of the Minister, for the conservation and protection of the natural resources in the vacated area;

(d)       to make good, to the satisfaction of the Minister, any damage to the seabed or subsoil in the vacated area caused by any person engaged or concerned in those operations.

(3)       The period specified in the notice must be reasonable. (4)          Subsection (2)(c) has effect subject to—

(a)       Chapter 3; and (b)    this Chapter; and (c)             the regulations.

(5)       In attaining a state of satisfaction for the purposes of subsection (2)(b), the Minister must have regard to the principle that plugging or closing off wells should be carried out in a way that minimises damage to the petroleum-bearing qualities of geological formations.

(6)       A person who is given a direction under subsection (2) must not without reasonable excuse contravene the direction.

120 penalty units.

644     Minister may take action if a direction has not been complied with

(1)       This section applies if a direction is given under section 641 or 643. (2)           If—

(a)       a direction under section 641 has not been complied with; or (b)          an arrangement under section 641 has not been carried out in relation to the licence

area; or (c)     a direction under section 643 has not been complied with in relation to the vacated

area; or (d)     an arrangement under section 643 has not been carried out in relation to the vacated

area— the Minister may do any or all of the things required by the direction or arrangement to be done.

(3)          If—

(a)       a direction is given under section 641; and (b)      any property brought into the licence area by any person engaged or concerned in the

operations authorised by the licence has not been removed in accordance with— (i)          the direction; or (ii)              an arrangement under section 641 in relation to the licence area—

the Minister may, by written notice published in the Government Gazette, direct the owner or owners of that property to—

(c)        remove the property from the licence area; or

(d)       dispose of the property to the satisfaction of the Minister— within the period specified in the notice.

Note    For sanctions, see section 645. (4)  If—

(a)       a direction is given under section 643; and (b)      any property brought into the vacated area by any person engaged or concerned in the

operations authorised by the permit, lease, licence or authority has not been removed in accordance with— (i)           a direction under section 643 in relation to the vacated area; or (ii)            an arrangement under section 643 in relation to the vacated area—

the Minister may, by written notice published in the Government Gazette, direct the owner or owners of that property to—

(c)        remove the property from the vacated area; or

(d) dispose of the property to the satisfaction of the Minister— within the period specified in the notice.

Note    For sanctions, see section 645. (5)  The period specified in the notice must be reasonable. (6)               If a direction is given under subsection (3) or (4) in relation to property, the Minister must give a copy

of the notice to each person whom the Minister believes to be an owner of the property or of any part of the property.

645     Removal, disposal or sale of property by Minister—noncompliance with a direction

(1)       If a direction under section 644(3) or (4) in relation to property has not been complied with, the Minister may do any or all of the following things—

(a)       in the case of a direction under section 644(3)—remove, in such manner as the Minister thinks fit, any or all of that property from the licence area concerned;

(b)       in the case of a direction under section 644(4)—remove, in such manner as the Minister thinks fit, any or all of that property from the vacated area concerned;

(c)        dispose of, in such manner as the Minister thinks fit, any or all of that property; (d)               if, under section 644(6), a person was given a copy of the notice of the direction—sell, by public auction or otherwise, as the Minister thinks fit, any or all of that property that

belongs, or that the Minister believes to belong, to that person. (2)       The Minister may deduct, from the proceeds of a sale under subsection (1) of property that belongs (or

that the Minister believes to belong) to a particular person, the whole or a part of— (a)      any costs and expenses incurred by the Minister under that subsection in relation to that

property; and (b)       any costs and expenses incurred by the Minister in relation to the doing of any thing

required by a direction under section 641 or 643 to be done by that person; and (c) any fees or amounts payable by that person under this Act, so long as the fee or amount

concerned is due and payable. (3)  The proceeds of a sale of property under subsection (1), less any deductions under subsection (2), are to

be paid to the owner of the property. (4)   If the Minister incurs any costs or expenses under subsection (1) in relation to the removal, disposal or

sale of property, the costs or expenses— (a)         are a debt due by the owner of the property to the State; and (b)      to the extent to which they are not recovered under subsection (2)—are recoverable in a

court of competent jurisdiction. (5)            If the Minister incurs costs or expenses in relation to the doing of anything required by a direction under

section 641 or 643 to be done by a person who is or was the registered holder of a greenhouse gas assessment permit, greenhouse gas holding lease, greenhouse gas injection licence, greenhouse gas search authority or greenhouse gas special authority, the costs or expenses—

(a)       are a debt due by the person to the State; and (b)            to the extent to which they are not recovered under subsection (2)—are recoverable in a

court of competent jurisdiction.

V. Management of long-term responsibilities and liabilities
Allocation of long term responsibilities & liabilities

Summary

 

With regard to the monitoring of stored greenhouse gas following site closure, section 426 the Victorian Offshore Act requires the Commonwealth Government to propose a program for such monitoring as part of the issuance of a pre-certificate notice for a site closing certificate.

Under section 433, if following issuance of a site closure certificate the State incurs reasonable costs or expenses in carrying out the monitoring program specified in the pre‑certificate notice, these costs and expenses may be recovered as a debt.

Article/Section No.

Section 426
Section 433

Instrument Text

426     Pre-certificate notice—security etc.

(1)       A pre-certificate notice that relates to an application for a site closing certificate must— (a) specify a program of operations proposed to be carried out by the Commonwealth for the purposes of monitoring the behaviour of a greenhouse gas substance stored in the

identified greenhouse gas storage formation concerned; and (b)           set out an estimate of the total costs and expenses of carrying out the program; and (c)       specify the form and amount of a security to be lodged by the applicant in respect of

the compliance, by the holder for the time being of the site closing certificate, with the holder’s obligations under section 433 in relation to the costs and expenses of carrying out the program; and

(d)       contain a statement to the effect that the application will lapse if the applicant does not lodge the security with the Minister within the period applicable under subsection (3).

(2)       The amount of the security must equal the estimate referred to in subsection (1)(b). (3)         The period for lodging the security is—

(a)       60 days after the pre-certificate notice was given to the applicant; or (b)        such longer period, not more than 180 days after the pre-certificate notice was given to

the applicant, as the Minister allows.

(4)       If the applicant does not lodge the security with the Minister within the period applicable under subsection (3), the application lapses at the end of that period.

(5)       The regulations may provide that an estimate referred to in subsection (1)(b) is to be made on the basis of—

(a)       an assumption that costs and expenses will increase at an annual rate specified in the regulations; and

(b)       such other assumptions (if any) as are specified in the regulations. (6) Subsection (1) does not apply if the Minister is satisfied that there have not been any operations for the injection of a greenhouse gas substance into the identified greenhouse gas storage formation concerned.

[…]

433     Recovery of the State’s costs and expenses

(1) This section applies if—

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

(b) the State incurs reasonable costs or expenses in carrying out the program specified in the pre-certificate notice for the site closing certificate.

(2)       The costs or expenses— (a) are a debt due to the State by the holder of the certificate; and (b)            are recoverable in a court of competent jurisdiction.

(3)           The total of the costs and expenses recoverable under subsection (2) must not exceed the estimate set out in the pre-certificate notice.

Financial contributions to long term stewardship

Summary

Although the Victorian Offshore Act does not require holders of greenhouse gas injection licences to make direct financial contributions to long term stewardship during the licence period, it does provide that:

  1. a site closing certificate will only be issued once the operator has provided security to cover the Commonwealth’s estimated costs in monitoring the long term behaviour of stored greenhouse gases (see section 426); and
  2. if, following issuance of a site closure certificate, the State incurs reasonable costs or expenses in carrying out the monitoring program specified in the pre‑certificate notice, these costs and expenses may be recovered as a debt (see section 433). 

Article/Section No.

Section 426
Section 433

Instrument Text

426     Pre-certificate notice—security etc.

(1)       A pre-certificate notice that relates to an application for a site closing certificate must— (a) specify a program of operations proposed to be carried out by the Commonwealth for the purposes of monitoring the behaviour of a greenhouse gas substance stored in the

identified greenhouse gas storage formation concerned; and (b)           set out an estimate of the total costs and expenses of carrying out the program; and (c)       specify the form and amount of a security to be lodged by the applicant in respect of

the compliance, by the holder for the time being of the site closing certificate, with the holder’s obligations under section 433 in relation to the costs and expenses of carrying out the program; and

(d)       contain a statement to the effect that the application will lapse if the applicant does not lodge the security with the Minister within the period applicable under subsection (3).

(2)       The amount of the security must equal the estimate referred to in subsection (1)(b). (3)         The period for lodging the security is—

(a)       60 days after the pre-certificate notice was given to the applicant; or (b)        such longer period, not more than 180 days after the pre-certificate notice was given to

the applicant, as the Minister allows.

[…]

433     Recovery of the State’s costs and expenses

(1) This section applies if—

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

(b) the State incurs reasonable costs or expenses in carrying out the program specified in the pre-certificate notice for the site closing certificate.

(2)       The costs or expenses— (a) are a debt due to the State by the holder of the certificate; and (b)            are recoverable in a court of competent jurisdiction.

(3)           The total of the costs and expenses recoverable under subsection (2) must not exceed the estimate set out in the pre-certificate notice.

VI. Additional Issues
Additional Issues

Article/Section No.

Section 628
Section 629
Section 630
Section 631
Section 632
Section 633
Section 639
Section 640
Section 641
Section 643
Section 641
Section 643
Section 644
Section 645

Instrument Text

PART 6.3—DIRECTIONS RELATING TO GREENHOUSE GAS Division 1—Simplified outline

628     Simplified outline

(1)       This section sets out a simplified outline of this Part. (2) The Minister may give a direction to a greenhouse gas titleholder. A direction may extend to other

persons. (3)    If there is noncompliance with a direction given by the Minister under Chapter 3, this Chapter or the

regulations, the Minister may do anything required by the direction to be done, and the Minister’s costs may be recovered from the person to whom the direction was given.

Division 2—General power to give directions

629     General power to give directions

(1)       In this section— greenhouse gas matter means—

(a)       exploring for a potential greenhouse gas storage formation; or (b)        exploring for a potential greenhouse gas injection site; or (c)            the injection of a greenhouse gas substance into the seabed or subsoil of the offshore

area; or (d)     the storage of a greenhouse gas substance in the seabed or subsoil of the offshore area;

title means— (a)       a greenhouse gas assessment permit; or (b)          a greenhouse gas holding lease; or (c) a greenhouse gas injection licence; or (d) a greenhouse gas search authority; or (e)  a greenhouse gas special authority.

(2)       The Minister may, by written notice given to the registered holder of a title, give the registered holder a direction as to any matter in relation to which regulations may be made.

Notes

1 Section 794 is the main provision setting out matters in relation to which regulations may be made. 2 For enforcement, see section 631. (3)       A direction given under this section to a registered holder applies to the registered holder and may also

be expressed to apply to— (a)        a specified class of persons, so long as the class consists of, or is included in, either or

both of the following classes— (i)  employees or agents of, or persons acting on behalf of, the registered holder; (ii)   persons performing work or services, whether directly or indirectly, for the

registered holder; or (b)        any person (other than the registered holder or a person to whom the direction applies

in accordance with paragraph (a)) who is— (i)     in the offshore area for any reason touching, concerning, arising out of, or

connected with, a greenhouse gas matter; or (ii)  in, on, above, below or in the vicinity of a vessel, aircraft, structure or

installation, or equipment or other property, that is in the offshore area for a

reason of that kind. (4)        If a direction so expressed is given, the direction is taken to apply to each person included in the

specified class mentioned in subsection (3)(a) or to each person who is in the offshore area as mentioned

in subsection (3)(b), as the case may be. Note      For notification requirements, see section 630. (5)                A direction under this section has effect, and must be complied with, despite—

(a)       any previous direction under this section; and

(b)       anything in the regulations. (6)        A direction under this section may make provision in relation to a matter by applying, adopting or

incorporating (with or without modification) a code of practice or standard contained in an instrument— (a)              as in force or existing at the time when the direction takes effect; or (b)            as in force or existing from time to time—

so long as the code of practice or standard is relevant to that matter.

(7) To avoid doubt, subsection (6) applies to an instrument, whether issued or made in Australia or outside Australia.

(8)       A direction under this section may prohibit the doing of an act or thing— (a) unconditionally; or

(b)       subject to conditions, including conditions requiring the consent or approval of a person specified in the direction.

630     Notification of a direction that has an extended application

(1)       If a direction under section 629 applies to— (a)  a registered holder; and

(b)       a person referred to in section 629(3)(a)— the registered holder must cause a copy of the notice by which the direction was given to be—

(c)        given to that other person; or (d)    displayed at a prominent position at a place in the offshore area frequented by that other

person.

60 penalty units. (2) If a direction under section 629 applies to—

(a)       a registered holder; and

(b)       a person referred to in section 629(3)(b)— the registered holder must cause a copy of the notice by which the direction was given to be displayed at a prominent position at a place in the offshore area. 60 penalty units.

(3)       If a direction under section 629 applies to— (a)  a registered holder; and

(b)       a person referred to in section 629(3)(b)— the Minister may, by written notice given to the registered holder, require the registered holder to cause to be displayed—

(c)        at such places in the offshore area; and

(d)       in such manner— as are specified in the notice, copies of the notice by which the direction was given.

(4)       A registered holder who is given a notice under subsection (3) must comply with the notice. 60 penalty units.

631     Compliance with directions

(1)       A person who is given a direction under section 629 must not without reasonable excuse contravene the direction.

120 penalty units. (2)           If—

(a)       a direction under section 629 applies to— (i)        a registered holder; and

(ii)        another person; and (b)        the other person is prosecuted for an offence against subsection (1) in relation to

noncompliance with the direction; and (c)            the other person adduces evidence that the other person did not know, and could not

reasonably be expected to have known, of the existence of the direction— the other person is not to be convicted of the offence unless the prosecution proves that the other person knew, or could reasonably be expected to have known, of the existence of the direction.

Division 3—Minister may take action if there is noncompliance with a direction

632     Minister may take action if there is noncompliance with a direction

(1)       If—

(a)       a person is subject to a direction given by the Minister under— (i)        Chapter 3; or

(ii) this Chapter; or

(iii)       Part 8.1; or

(iv)      the regulations; and (b)        the person does not comply with the direction—

the Minister may do any or all of the things required by the direction to be done. (2)           Costs or expenses incurred by the Minister under subsection (1) in relation to a direction are—

(a) a debt due to the State by the person subject to the direction; and (b)                recoverable in a court of competent jurisdiction.

(3)          If—

(a)       a direction under section 629 applies to— (i)        a registered holder; and

(ii)        another person; and (b)        an action under subsection (2) relating to the direction is brought against the other

person; and (c)          the other person adduces evidence that the other person did not know, and could not

reasonably be expected to have known, of the existence of the direction— the other person is not liable under subsection (2) unless the plaintiff proves that the other person knew, or could reasonably be expected to have known, of the existence of the direction.

(4)       In an action under subsection (2), it is a defence if the defendant took all reasonable steps to comply with the direction.

Division 4—Defence of taking reasonable steps to comply with a direction

633     Defence of taking reasonable steps to comply with a direction

In a prosecution for an offence in relation to noncompliance with a direction given by the Minister under—

(a) Chapter 3; or

(b) this Chapter; or

(c) Part 8.1; or

(d) the regulations—

it is a defence if the defendant took all reasonable steps to comply with the direction.

[…]

Division 2—Greenhouse gas

639     Simplified outline

(1)       This section sets out a simplified outline of this Division.

(2) The Minister may give remedial directions to greenhouse gas titleholders or former greenhouse gas titleholders about the following matters—

(a) the removal of property;

(b) the plugging or closing off of wells;

(c) the conservation and protection of natural resources;

(d) the making good of damage to the seabed or subsoil.

(3)       The Minister may give site closing directions to greenhouse gas injection licensees. (4)           If there is noncompliance with a direction, the Minister may do anything required by the direction to be

done. (5)         If property has not been removed in accordance with a direction, the Minister may direct the owner to

remove or dispose of the property. (6)            This section is intended only as a guide to readers as to the general scheme and effect of this Division.

640     Remedial directions to current holders of permits, leases and licences

(1)       This section applies to— (a)            a greenhouse gas assessment permit; or

(b)       a greenhouse gas holding lease; or (c)        a greenhouse gas injection licence, if no operations for the injection of a greenhouse

gas substance into an identified greenhouse gas storage formation have been carried on

under the licence. (2)            The Minister may, by written notice given to the registered holder of the permit, lease or licence, direct the holder to do any or all of the following things on or before the applicable date—

a)         to—

(i)         remove, or cause to be removed, from the title area all property brought into that area by any person engaged or concerned in the operations authorised by the permit, lease or licence; or

(ii)        make arrangements that are satisfactory to the Minister in relation to that property—

(b)       to plug or close off, to the satisfaction of the Minister, all wells made in the title area by any person engaged or concerned in those operations;

(c)        to provide, to the satisfaction of the Minister, for the conservation and protection of the natural resources in the title area;

(d)       to make good, to the satisfaction of the Minister, any damage to the seabed or subsoil in the title area caused by any person engaged or concerned in those operations.

Notes

1 For applicable date and title area, see subsection (6).

2 For variation and revocation, see section 41A of the Interpretation of Legislation Act 1984. (3)                Subsection (2)(c) has effect subject to—

(a) Chapter 3; and

(b) this Chapter; and

(c) the regulations.

(4)       In attaining a state of satisfaction for the purposes of subsection (2)(b), the Minister must have regard to the principle that plugging or closing off wells should be carried out in a way that minimises damage to the petroleum-bearing qualities of geological formations.

(5)       A person who is given a direction under subsection (2) must not without reasonable excuse contravene

the direction. 120 penalty units.

(6)       For the purposes of this section, the table has effect—

[INSERT]

(7)       A notice under subsection (2) need not identify the applicable date as a particular calendar date.

641     Site closing directions to current holders of greenhouse gas injection licences

(1)       This section applies if— (a) an identified greenhouse gas storage formation is specified in a greenhouse gas injection

licence; and (b)          operations for the injection of a greenhouse gas substance into the identified greenhouse

gas storage formation have been carried on under the licence; and (c)             the Minister is satisfied that operations for the injection of a greenhouse gas substance

into the identified greenhouse gas storage formation have ceased; and (d)     any of the following conditions is satisfied—

(i)         an application has been made for a site closing certificate in relation to the identified greenhouse gas storage formation;

(ii)        the licensee has breached the requirement imposed by section 415(1) to make an application for a site closing certificate in relation to the identified green- house gas storage formation;

(iii)       the licensee has not complied with a direction under section 416(1) to make an application for a site closing certificate in relation to the identified greenhouse gas storage formation.

(2)       The Minister may, by written notice given to the registered holder of the licence, direct the holder to do any or all of the following things within the period specified in the notice—

 (a)      to— (i)            remove, or cause to be removed, from the licence area all property brought into

that area by any person engaged or concerned in the operations authorised by

the licence; or (ii)       make arrangements that are satisfactory to the Minister in relation to that

property; (b)  to plug or close off, to the satisfaction of the Minister, all wells made in the licence

area, whether or not those wells were made by a person engaged or concerned in those

operations; (c)           to provide, to the satisfaction of the Minister, for the conservation and protection of the

natural resources in the licence area; (d)   to make good, to the satisfaction of the Minister, any damage to the seabed or subsoil in

the licence area (whether or not caused by any person engaged or concerned in those

operations); (e)          to carry out such operations as are specified in the notice for the monitoring of the

behaviour of a greenhouse gas substance stored in the identified greenhouse gas storage

formation concerned; (f)     to undertake such activities as are specified in the notice for the purpose of—

(i)         eliminating; or

(ii)        mitigating; or (iii)       managing; or (iv)      remediating— the risk that a greenhouse gas substance injected into the identified greenhouse gas storage formation will have a significant adverse impact on—

(v)       navigation; or (vi)     fishing; or (vii)           any activities being lawfully carried on, or that could be lawfully carried on, by

way of the construction or operation of a pipeline; or (viii)        the enjoyment of native title rights (within the meaning of the Native Title Act

1993 of the Commonwealth); or (ix)         the conservation or exploitation of natural resources (whether in the offshore

area or elsewhere); or (x)     the geotechnical integrity of the whole or a part of a geological formation or

geological structure; or (xi)  the environment; or

(xii)     human health or safety; (g) to undertake such activities as are specified in the notice for the purpose of—

(i)         ensuring; or (ii)           increasing the likelihood— that a greenhouse gas substance injected into the identified greenhouse gas storage formation will behave as predicted in Part A of the approved site plan for the identified greenhouse gas storage formation.

Note    For variation and revocation, see section 41A of the Interpretation of Legislation Act 1984. (3)       The period specified in the notice must be reasonable. (4)        Subsection (2)(c) has effect subject to—

(a)       Chapter 3; and (b)    this Chapter; and (c)             the regulations.

(5)       Subsection (2)(a), (b), (c), (d) and (e) do not limit subsection (2)(f) or (g). (6)   In attaining a state of satisfaction for the purposes of subsection (2)(b), the Minister must have regard to

the principle that plugging or closing off wells should be carried out in a way that minimises damage to

the petroleum-bearing qualities of geological formations. (7)    A subsection (2)(f) or (g) direction may require the registered holder of the licence to do something—

(a)       in the licence area; or

(b)       in the offshore area but outside the licence area. (8)       A person who is given a direction under subsection (2) must not without reasonable excuse contravene

the direction.

120 penalty units. (9)           To avoid doubt, the powers conferred on the Minister by this section do not limit the powers conferred

on the Minister by any other provision of this Act.

642     Consultation—directions to do something outside the licence area

(1)       This section applies if— (a) the Minister proposes to give a direction under section 641 to a greenhouse gas

injection licensee; and (b)    the direction requires the licensee to do something in an area (the action area) in the

offshore area but outside the licence area; and (c)          the action area is, to any extent, the subject of—

(i)         a greenhouse gas assessment permit; or (ii)           a greenhouse gas holding lease; or (iii)         a greenhouse gas injection licence; or (iv)      a greenhouse gas search authority; or

(v) a petroleum exploration permit; or

(vi) a petroleum retention lease; or

(vii) a petroleum production licence; or

(viii) a petroleum special prospecting authority; and

(d) the licensee mentioned in paragraph (a) is not the registered holder of the permit, lease, licence or authority mentioned in paragraph (c); and

(e) the registered holder of the permit, lease, licence or authority mentioned in para-graph (c) has not given written consent to the giving of the direction. (2)        Before giving the direction, the Minister must—

(a)       by written notice given to the registered holder of the permit, lease, licence or authority mentioned in subsection (1)(c), give at least 30 days notice of the Minister’s intention to give the direction; and

(b)       give a copy of the notice to such other persons (if any) as the Minister thinks fit. (3)               The notice must—

(a)       set out details of the direction that is proposed to be given; and (b)      invite a person to whom the notice, or a copy of the notice, has been given to make a

written submission to the Minister about the proposal; and (c)  specify a time limit for making that submission.

(4)       In deciding whether to give the direction, the Minister must take into account any submissions made in accordance with the notice.

(5)       However, if the Minister is satisfied that the direction is required to deal with an emergency— (a)       subsections (2), (3) and (4) do not apply to the direction; and (b)  as soon as practicable after the direction is given, the Minister must give a copy of the

direction to the registered holder of the permit, lease, licence or authority mentioned in subsection (1)(c).

643     Remedial directions to former holders of permits, leases, licences and authorities etc.

(1)       This section applies if an event specified in the table has happened—

[INSERT]

2)         The Minister may, by written notice given to the person who was, or is, as the case may be, the registered holder of the permit, lease, licence or authority, direct the person to do any or all of the following things within the period specified in the notice—

(a)       to— (i)            remove, or cause to be removed, from the vacated area all property brought

into that area by any person engaged or concerned in the operations authorised

by the permit, lease, licence or authority; or

(ii)        make arrangements that are satisfactory to the Minister in relation to that property;

(b)       to plug or close off, to the satisfaction of the Minister, all wells made in the vacated area by any person engaged or concerned in those operations;

(c)        to provide, to the satisfaction of the Minister, for the conservation and protection of the natural resources in the vacated area;

(d)       to make good, to the satisfaction of the Minister, any damage to the seabed or subsoil in the vacated area caused by any person engaged or concerned in those operations.

(3)       The period specified in the notice must be reasonable. (4)          Subsection (2)(c) has effect subject to—

(a)       Chapter 3; and (b)    this Chapter; and (c)             the regulations.

(5)       In attaining a state of satisfaction for the purposes of subsection (2)(b), the Minister must have regard to the principle that plugging or closing off wells should be carried out in a way that minimises damage to the petroleum-bearing qualities of geological formations.

(6)       A person who is given a direction under subsection (2) must not without reasonable excuse contravene the direction.

120 penalty units.

644     Minister may take action if a direction has not been complied with

(1)       This section applies if a direction is given under section 641 or 643. (2)           If—

(a)       a direction under section 641 has not been complied with; or (b)          an arrangement under section 641 has not been carried out in relation to the licence

area; or (c)     a direction under section 643 has not been complied with in relation to the vacated

area; or (d)     an arrangement under section 643 has not been carried out in relation to the vacated

area— the Minister may do any or all of the things required by the direction or arrangement to be done.

(3)       If—

(a)       a direction is given under section 641; and (b)      any property brought into the licence area by any person engaged or concerned in the

operations authorised by the licence has not been removed in accordance with— (i)          the direction; or (ii)              an arrangement under section 641 in relation to the licence area—

the Minister may, by written notice published in the Government Gazette, direct the owner or owners of that property to—

(c)        remove the property from the licence area; or

(d)       dispose of the property to the satisfaction of the Minister— within the period specified in the notice.

Note    For sanctions, see section 645. (4)  If—

(a)       a direction is given under section 643; and (b)      any property brought into the vacated area by any person engaged or concerned in the

operations authorised by the permit, lease, licence or authority has not been removed in accordance with— (i)           a direction under section 643 in relation to the vacated area; or (ii)            an arrangement under section 643 in relation to the vacated area—

the Minister may, by written notice published in the Government Gazette, direct the owner or owners of that property to—

(c)        remove the property from the vacated area; or

(d)       dispose of the property to the satisfaction of the Minister— within the period specified in the notice.

Note    For sanctions, see section 645. (5)  The period specified in the notice must be reasonable. (6)               If a direction is given under subsection (3) or (4) in relation to property, the Minister must give a copy

of the notice to each person whom the Minister believes to be an owner of the property or of any part of the property.

645     Removal, disposal or sale of property by Minister—noncompliance with a direction

(1)       If a direction under section 644(3) or (4) in relation to property has not been complied with, the Minister may do any or all of the following things—

(a)       in the case of a direction under section 644(3)—remove, in such manner as the Minister thinks fit, any or all of that property from the licence area concerned;

(b)       in the case of a direction under section 644(4)—remove, in such manner as the Minister thinks fit, any or all of that property from the vacated area concerned;

(c)        dispose of, in such manner as the Minister thinks fit, any or all of that property; (d)               if, under section 644(6), a person was given a copy of the notice of the direction—sell, by public auction or otherwise, as the Minister thinks fit, any or all of that property that

belongs, or that the Minister believes to belong, to that person. (2)       The Minister may deduct, from the proceeds of a sale under subsection (1) of property that belongs (or

that the Minister believes to belong) to a particular person, the whole or a part of— (a)      any costs and expenses incurred by the Minister under that subsection in relation to that

property; and (b)       any costs and expenses incurred by the Minister in relation to the doing of any thing

required by a direction under section 641 or 643 to be done by that person; and (c) any fees or amounts payable by that person under this Act, so long as the fee or amount

concerned is due and payable. (3)  The proceeds of a sale of property under subsection (1), less any deductions under subsection (2), are to

be paid to the owner of the property. (4)   If the Minister incurs any costs or expenses under subsection (1) in relation to the removal, disposal or

sale of property, the costs or expenses— (a)         are a debt due by the owner of the property to the State; and (b)      to the extent to which they are not recovered under subsection (2)—are recoverable in a

court of competent jurisdiction. (5)            If the Minister incurs costs or expenses in relation to the doing of anything required by a direction under

section 641 or 643 to be done by a person who is or was the registered holder of a greenhouse gas assessment permit, greenhouse gas holding lease, greenhouse gas injection licence, greenhouse gas search authority or greenhouse gas special authority, the costs or expenses—

(a)       are a debt due by the person to the State; and (b)            to the extent to which they are not recovered under subsection (2)—are recoverable in a

court of competent jurisdiction.