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Report Details


Committee Name:

Uniform Legislation and Statutes Review Committee

House:

Legislative Council
Report Type:Report

Title:

Petroleum and Energy Legislation Amendment Bill 2009
Report No:47
No of Pages:104
Physical Location:Legislative Council Committee Office

Presentation Date:

04/22/2010
Inquiry Name(s):Petroleum and Energy Legislation Amendment Bill 2009


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Hide details for Recommendations and findingsRecommendations and findings

The Committee’s Recommendations and Findings are grouped as they appear in the text at the page number indicated:


1. The Committee’s Recommendations and Findings are grouped as they appear in the text at the page number indicated:

Page 9

Recommendation 1: The Committee recommends that the Minister for Mines and Petroleum advise the Legislative Council at the time of debate of the Bill:

whether Parts 2 and 3 of the Petroleum Legislation and Repeal Act 2005 and Part 2, Division 2, of the Petroleum Amendment Act 2007 have been proclaimed; and

if not, of the proposed date of proclamation of those Parts and Division.

Page 9

Recommendation 2: The Committee recommends that, in the event Parts 2 and 3 of the Petroleum Legislation and Repeal Act 2005 and Part 2, Division 2, of the Petroleum Amendment Act 2007 have not been proclaimed at the time of debate of the Bill, the responsible Minister confirm for the Legislative Council that in the event they are passed, the clauses of the Bill identified in Appendix 2 to this report will not be proclaimed prior to proclamation of Parts 2 and 3 of the Petroleum Legislation and Repeal Act 2005 and Part 2, Division 2, of the Petroleum Amendment Act 2007.

Page 9

Recommendation 3: The Committee recommends that when a bill proposes amendments to a principal Act as if provisions of an earlier amending Act which have not come into operation had come into operation, the Bill and Second Reading Speech should clearly identify that circumstance for the information of the Parliament.

Page 27

Recommendation 4: The Committee recommends that subclauses 2(b) and (c) of the Bill be deleted from the Bill. This can be effected in the following manner.

Page 2, line 8 - To delete “;” and insert -

; and

Page 2, lines 9-13 - To delete the lines.

Page 27

Recommendation 5: The Committee recommends that when introducing a bill to the Legislative Council that proposes amendments with retrospective effect, the Executive provide an explanation for the proposal that those amendments have retrospective effect and advice as to whether the those amendments will adversely affect rights and liberties, or impose obligations, retrospectively.

Page 31

Recommendation 6: The Committee recommends that the Minister for Mines and Petroleum advise the Legislative Council whether the amendments proposed by clauses 4(4)(d), 46, 67(3)(c) and 176(1)(d) the Bill will permit carbon dioxide storage under, on or over land subject to the Submerged Land Act and, if so, whether this is an intended policy outcome.

Page 33

Finding 1: The Committee finds that, in addition to enabling the storage of carbon dioxide under the PGER Act and transport of carbon dioxide under the Submerged Land Act and Pipelines Act for the purpose of storage of carbon dioxide under the PGER Act, the practical effect of the amendments proposed by subclauses 4(4)(d), 46, 67(3)(c) and 176(1)(d) of the Bill is to extend the rights of existing and future titleholders to, at least, exploration for and exploitation of carbon dioxide resources (including locating potential storage sites).

Page 33

Finding 2: The Committee finds that, on the basis of the evidence presented to it, that the additional practical effect of the Bill described in Finding 1 is unintended.

Page 34

Recommendation 7: The Committee recommends that the Minister for Mines and Petroleum advise the Legislative Council of the Executive’s proposed amendments to the Bill in light of Finding 1 and that the Legislative Council not debate clauses 4(4)(d), 46, 60(a), 67(3)(c) or 176(1)(d) of the Bill prior to receipt and consideration of that response.

Page 43

Finding 3: The Committee finds that, as currently drafted, in proposing clauses and subclauses 4(4)(d), 46, 60(a), 67(3)(c), 151 and 176(1)(d), the Bill does not have sufficient regard to Aboriginal tradition (FLP 10).

Page 43

Finding 4: The Committee finds that the interim regime to regulate carbon dioxide storage, proposed by subclauses 4(4)(d), 46, 60(a), 67(3)(c), 151 and 176(1)(d) of the Bill, is incomplete and will operate for an uncertain period of time.

Page 44

Recommendation 8: The Committee recommends that the Minister for Mines and Petroleum provide the Legislative Council with an explanation as to why the Bill proposes introduction of an interim regime for regulation of carbon dioxide storage in 2010.

Page 45

Recommendation 9: The Committee recommends that the Minister for Mines and Petroleum provide the Legislative Council with:

advice as to whether the government will proceed with the “alternative procedure” of an Indigenous Land Use Agreement to address consent of the traditional owners of land to the use of that land for storage of carbon dioxide;

if so, an explanation of how that process will address consent to land use; and

if not, how the government proposes resolving this issue.

Page 47

Finding 5: The Committee finds that section 67(2) of the PGER Act, as amended by clause 46 of the Bill, is ambiguous and lacks clarity as to the distinction to be made between the circumstances in which an agreement will be required under section 67(1)(a) and the circumstances in which an approval will be required under section 67(2)(b) (FLP 11).

Page 51

Recommendation 10: The Committee recommends that the Minister for Mines and Petroleum explain to the Legislative Council:

why it is necessary to regulate some injection of carbon dioxide into a natural underground reservoir by agreement and some by approval;

how the two circumstances are distinguished through the amendments proposed by clause 46 of the Bill; and

the differences between “agreements” and “approvals”.

Page 51

Recommendation 11: The Committee recommends that the Minister for Mines and Petroleum identify for the Legislative Council:

the provisions of the PGER Act that provide the formal process for application for an approval under section 67(2)(b) of the PGER Act;

the provisions of the PGER Act that stipulate that an approval granted under section 67(2)(b) is to be subject to conditions to cover the drilling, reservoir management, environmental and OSH aspects of the operation; and

the regulations or guidelines that identify the conditions that are to be imposed in respect of drilling, reservoir management, environmental and OSH aspects of the operation.

Page 57

Finding 6: The Committee finds that the amendments proposed by clauses 67(2), (5), and (6), 69, 70, 77(2), 115, 128, 129(1)(a), 130-135(1), 136, 137, 139-143, 150, 154(1), 156, 157, 160-165, 168 and 189 of the Bill, introducing the title of “infrastructure licence” to the Submerged Lands Act are (other than in respect of regulation of storage and transport of carbon dioxide) generally consistent with the uniform legislative scheme.

Page 59

Recommendation 12: The Committee recommends that the Minister for Mines and Petroleum advise the Legislative Council:

whether there is a prospect of conflicting use arising by reason of an infrastructure licence and title being granted over the same area;

if not, how this is avoided; and

if so, of the legislative provision for resolution of any such conflict.

Page 64

Recommendation 13: The Committee recommends that the Minister for Mines and Petroleum advise the Legislative Council whether the Executive proposes to delete clauses 30 and 97 from the Bill. If so, this can be effected in the following manner.

Page 26, lines 3-6 - To delete the lines

Page 77, lines 1-4 - To delete the lines

Page 70

Finding 7: The Committee finds that the key principles of the legislative framework regulating a particular matter should be in primary, not subsidiary, legislation.

Page 70

Recommendation 14: The Committee recommends that the Minister for Mines and Petroleum explain the necessity for the “key principles” in respect of furnishing information in relation to a petroleum or geothermal energy resource discovery, and provision of that information to others, to be in subsidiary not primary legislation.